UK HM Treasury accepts Digitisation Taskforce roadmap to end paper share certificates by end-2027 and move to a fully intermediated shareholding system

UK HM Treasury has published the Digitisation Taskforce’s final report and a government response accepting its recommendations for modernising the UK shareholding framework, including a staged plan to remove paper share certificates for publicly traded companies and ultimately transition all shares into an improved intermediated holding model. Under Step 1, the government intends to legislate to end the issuance of paper shares and require in-scope companies to replace paper share registers with digitised share registers by the end of 2027 at the latest, with a single implementation date to be set by an industry Technical Group. It also plans to amend legislation so shares in UK companies can be held in uncertificated form on overseas branch registers, targeting delivery by Q2 2027. Step 2 is framed as a programme of legislative and regulatory changes to improve the intermediated system so beneficial owners can exercise rights effectively through intermediaries, including easier digital company communications, electronic payment by default, and a baseline intermediary service. Next, HM Treasury will appoint an industry Chair to establish and lead the Technical Group, publish its terms of reference, and set a timetable for it to report back with an implementation plan. The government will set criteria that must be met before Step 3 (full migration into intermediation) proceeds, including safeguards for vulnerable and older investors.