"The much-anticipated publication of the Final Report marked a major milestone in the UK's journey to modernise its capital markets. It sets out a staged approach to digitisation, culminating in a fully intermediated digital shareholding system. This will benefit issuing companies and investors through reduced costs, more streamlined operations, and enable the UK's shareholding infrastructure to better integrate with the demands of today's financial market as well as those of the future."
"24% of paper shareholders did not identify a single benefit of holding physical certificates Only 8% cite better access to voting rights as a reason to hold them Just 20% cite avoiding broker fees 33% of paper shareholders received them as a gift or inheritance 52% purchased paper shares directly, but those aged 55+ are more likely to have purchased directly than younger age groups 75% reported a positive experience of converting shares from paper to digital"
About 4.7 million people in the UK hold paper share certificates. The Digitisation Taskforce recommended removal of paper certificates by 2027 and the UK government accepted the recommendation. The UK risks falling behind unless urgent steps are taken to support the transition and reach paper shareholders. Most paper shareholders are not opposed to digitisation: many cannot identify benefits of physical certificates, few cite voting access or avoiding broker fees, a third received shares as gifts or inheritances, and older investors are more likely to have purchased directly. Only a third plan to dematerialise before 2027. Digitisation offers reduced costs, streamlined operations, and better integration with modern market demands.
Read at London Business News | Londonlovesbusiness.com
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