HM Treasury appoints Mark Austin to chair the Dematerialisation Market Action Taskforce to plan the end of paper share certificates by end 2027

HM Treasury has established the Dematerialisation Market Action Taskforce (DEMAT), chaired by Mark Austin CBE, and published its Terms of Reference to take forward reforms to the UK shareholding framework following the government’s acceptance of the Digitisation Taskforce’s recommendations. DEMAT is intended to support delivery of a staged move from paper share certificates towards a fully intermediated shareholding model. The underlying roadmap has three steps: replacing certificated share registers with temporary digitised registers (before the end of 2027), improving the intermediated system so beneficial owners can exercise rights and receive information effectively through intermediaries (over the course of this Parliament), and then transitioning shares on temporary digitised registers into the intermediated system. The Chair is expected to report back by Summer 2026 with a recommended “go-live” date for Step 1 and an implementation plan, and to develop and assess the actions needed for Steps 2 and 3, including whether a “one-way street” and/or a “sunset date” should be used for the final transition. The Chair will determine DEMAT’s membership and processes, with government, the Financial Conduct Authority, the Bank of England and other public bodies able to attend as observers. HM Treasury also positioned DEMAT as part of its Wholesale Financial Markets Digital Strategy and said it will appoint a Digital Markets Champion in due course.