Dematerialisation of securities in the UK: what it means and why it matters

This article was first published in Digital Bytes.

The UK government has announced that they plan to dematerialise all securities issued by UK companies and traded on UK markets by 2025, in an effort to modernise the UK's financial infrastructure. The dematerialisation of securities is not merely a regulatory shift, it represents a move towards a more streamlined and efficient system. As we approach 2025, investors should prepare for the transition, ensuring that their holdings align with the digital age. The challenge the UK government now face is how best to implement this change in a widespread and accessible way.

This along with other key questions relating to the topic of dematerialisation from the article have all been discussed by Shoosmiths partner and blockchain lead Sam Tyfield in the below podcast with Jonny Fry:

Listen here

In introducing the topic and the podcast itself Sam described “Dematerialisation of the equity securities market in the UK is long overdue and the status quo puts the UK at a competitive disadvantage; moving to a fully dematerialised equity holdings model is a legislative and contractual challenge. Ultimately, the UK should look at a new paradigm which utilises emerging (although proven) technology to provide the individual interests sought by those shareholders who are concerned they would lose them in a nominee-based model.”