In This Edition:
- Legislation.gov.uk – Proposed Immigration and Asylum Bill and its Impact on Modern Slavery Act Reporting
- Financial Conduct Authority – Primary Market Bulletin 64
- HM Treasury - Regulation Action Plan Progress Report
- HM Treasury – Wholesale Digital Markets Champion
- Financial Services and Markets Bill 2026-27
- HMRC – Draft Legislation for a Securities Transfer Tax to Replace Stamp Duty and Stamp Duty Reserve Tax
- Report of the Dematerialisation Market Action Taskforce (DEMAT)
- Government Response to the Dematerialisation Market Action Taskforce UK Implementation Plan
- HM Treasury – Financial Services Growth and Competitiveness Strategy Policy Paper
Legislation.gov.uk – Proposed Immigration and Asylum Bill and its Impact on Modern Slavery Act Reporting
On 30 June 2026, the government presented its Immigration and Asylum Bill to Parliament, proposing changes to section 54 of the Modern Slavery Act 2015 (MSA). This section of the MSA requires companies with an annual turnover of £36 million or more to prepare and publish an annual slavery and human trafficking statement.
The changes proposed by the Bill aim to strengthen expectations on businesses and public bodies to address modern slavery in their supply chains and introduce a penalties regime for non-compliance with the modern slavery reporting framework. Many of these proposed changes, in particular the introduction of penalties for non-compliance, have been in the pipeline for some time.
The main changes the Bill proposes to the section 54 modern slavery reporting regime are:
- New prescribed content for modern slavery statements – it will become mandatory for in-scope organisations to include broadly similar non-prescribed content in a mandatory statement
- Updated certification and approval requirements – an accuracy statement would be required from the relevant signatory (this is usually the Board of the company)
- New requirement to submit statements to the Secretary of State – by “specified electronic means” (likely by uploading statements to the existing modern slavery statement registry, which is not mandatory at present)
- New penalty regime for non-compliance – the Bill provides a framework whereby companies that fail to comply with reporting requirement “without reasonable excuse” would face a financial penalty, not exceeding the greater of £1 million or 1% of the company’s total turnover (there will be guidance for a right of appeal)
The government is still considering whether to mandate human rights due diligence as part of its review into the UK's approach to responsible business conduct, and has not yet formally confirmed its approach.
The Bill progressed through its second reading in Parliament on 13 July and is now at the Committee Stage.
The Bill can be viewed here: Immigration and Asylum Bill - Parliamentary Bills - UK Parliament
Financial Conduct Authority – Primary Market Bulletin 64
On 6 July 2026, the FCA published its 64th Primary Market Bulletin, focusing on:
- Total Voting Rights (TVR) disclosures – the FCA has identified continuing concerns about the clarity of some issuer disclosures.
- Significant transaction notifications – the FCA provides observations on compliance with the disclosure requirements introduced under the UK Listing Rules (UKLR) reforms in 2024.
Total Voting Rights (TVR) Disclosures
The FCA reviewed a sample of issuers that had changed their share capital and found that, while most companies disclosed relevant share capital information, some did not clearly identify the company's total voting rights figure. In some cases, disclosures contained the number of shares in issue but did not expressly refer to "total voting rights" or present the information in a dedicated TVR section.
Significant Transaction Notifications
Following the UK Listing Rules reforms in July 2024, listed companies are no longer generally required to obtain shareholder approval or publish an FCA-approved circular for significant transactions. Instead, shareholders are informed through a notification-based regime under UKLR 7.3.
The FCA has reviewed notifications submitted since the reforms and identified two areas requiring attention.
- Risk Disclosures - varying approaches to transaction risk disclosures
- Board "Best Interests" Statement - instances where issuers altered the prescribed board statement required under UKLR 7
Further information is available here: Primary Market Bulletin No 64.
HM Treasury - Regulation Action Plan Progress Report
On 8 July 2026, HM Treasury published a report providing details of the government's progress in delivering the key actions set out in its regulation action plan published on 17 March 2025. An update was provided in October 2025, alongside which HM Treasury and the DBT published a call for evidence asking businesses to provide their views on regulations they think are not fit for purpose or which inhibit growth, innovation and investment. A summary of the responses to the questionnaire has also been published.
The report states:
“Over the past year, guided by the vision and commitments set out in the Regulation Action Plan, the Government has acted to overhaul the regulatory landscape so that it better supports growth. The programme is modernising regulation to drive growth, innovation and investment and support the Industrial Strategy; and at the same time maintain essential protections for consumers and deliver the positive outcomes communities across the country want to see.”
Among other things, the report notes that:
- A pledge to reduce regulatory reporting – the FCA has stripped out data requests for 36,000 firms and reduced transaction reporting requirements
- A further consultation will set out practical reforms to streamline the corporate reporting framework
As part of the response to the call for evidence, the government:
- Launched a new joint small business taskforce
- Plans to bring forward a Regulating for Growth Bill
- Will explore further reforms, such as digitisation and the use of artificial intelligence for regulatory approvals
The report notes that the responses have informed plans and initiatives to reduce administrative burdens, and the government will introduce further reform for regulators in due course.
The Regulation Action Plan Progress Report can be accessed here: Regulation Action Plan Progress Report July 2026
The Update on Key Regulator Pledges is available here: Update Against the Regulation Action Plan's 'Key Regulator Pledges' - May 2026
HM Treasury – Wholesale Digital Markets Champion
On 13 July 2026, HM Treasury published the first report from the UK's wholesale digital markets champion, Chris Woolard, setting out a framework for the UK financial sector to drive tokenisation of wholesale financial markets.
The report states that a co-ordinated approach between the government, industry and regulators is needed to enable clear treatment of tokenised and digital assets to enable the UK to tokenise assets at scale and improve its position as a global financial centre.
The report sets out ten industry priorities, including:
- Having a clear direction towards scalable, live tokenised markets
- Supporting the development of tokenised markets
- Building wholesale payment rails that support tokenised markets
- Developing legal certainty, best practice and regulatory standards that support tokenised markets
Comments can be made on the report until 4 September 2026. Further information about the action groups will be made available by September 2026 and it is anticipated they will make progress by the end of 2026.
The report can be accessed here: Wholesale Digital Markets Champion
Financial Services and Markets Bill 2026-27
On 8 July 2026, the Financial Services and Markets Bill 2026-27 (FSM Bill) completed its committee stage in the House of Lords. The following amendments were highlighted following Parliamentary discussion:
- Tokenisation in the UK wholesale financial markets
- FCA rules on AI in financial services
- Regulation of digital assets
- Increasing public understanding of financial services
- Financial services dispute resolution
The FSM Bill will now move to the report stage, a date for this has not yet been scheduled.
Further information on the Bill and proposed amendments can be accessed here: HL Bill 5—VI
HMRC – Draft Legislation for a Securities Transfer Tax to Replace Stamp Duty and Stamp Duty Reserve Tax
On 13 July 2026, the government published draft legislation introducing a securities transfer tax (STT) to replace stamp duty (SD) and stamp duty reserve tax (SDRT) and a related policy paper.
STT is intended to operate as a fully digital and self-assessed regime, with reporting and payment through a new HMRC portal. The draft legislation:
- Sets out the substantive framework for STT, including compliance and administration rules
- Preserves and modernises a range of exemptions and reliefs
- Provides for the abolition of SD and SDRT
The government states that it is aiming to introduce STT, its legislative framework and a new online portal in 2027, with legislation introduced in the Finance Bill 2026-27 to enable commencement of the new tax. SD and SDRT will no longer apply to transfers of securities entered into on or after the STT commencement date. An update is expected in autumn 2026.
The closing date for commenting on the draft legislation is 7 September 2026.
Further information can be accessed on the HMRC website here: Securities Transfer Tax — modernisation of the Stamp Taxes on Shares Framework - GOV.UK
Report of the Dematerialisation Market Action Taskforce (DEMAT)
On 14 July 2026, the Dematerialisation Market Action Taskforce (DEMAT), chaired by Mark Austin CBE, published the UK Implementation Plan for the Withdrawal of Paper Share Certificates, which sets out a roadmap for the removal of paper share certificates for UK-traded shares of UK incorporated companies.
The UK's move away from paper share certificates is being carried out in three stages:
- Step 1 – removing paper share certificates and establishing digital registers
- Step 2 – making improvements to the intermediated system
- Step 3 – moving shares onto the improved intermediated model, completing the transition to a fully digital model of share ownership
The DEMAT report sets out the key measures to be implemented under Step 1, with implementation targeted for late 2027. These measures include:
- Withdrawing paper share certificates as evidence of ownership title
- Modernising share transfer requirements to allow transfers and related processes to be carried out digitally
- Developing operational standards for digital registers
- Publishing guidance to help market participants prepare for transition
- Carrying out a public awareness campaign
The DEMAT report clarifies that Step 1 is an interim, temporary stage, ahead of the necessary improvements being carried out to the intermediated shareholding framework. DEMAT intends to publish a further report next year that will set out a roadmap for improving the intermediated securities system (Step 2) and for moving all shareholders of in scope securities on to it (Step 3).
View more information on our Dematerialisation and Digitisation hub.
Government Response to the Dematerialisation Market Action Taskforce UK Implementation Plan
On 14 July 2026, the government responded to the report published by the Dematerialisation Market Action Taskforce (DEMAT), the UK Implementation Plan for the Withdrawal of Paper Share Certificates.
The government welcomed the report and accepted its recommendations. Consequently, it will legislate to mandate that all publicly traded UK companies must keep digital share registers and that paper shares in those companies will no longer be evidence of ownership. The legislation is expected to come into force by end 2027.
The report also sets out what industry stakeholders need to do to deliver these changes and the government encourages impacted market participants to engage with DEMAT to implement these recommendations. The government also welcomes the DEMAT commitment to produce operational standards for the digital share registers and looks forward to seeing these in due course.
The full government response can be accessed here: Government response to DEMAT Implementation Plan – July 2026 - GOV.UK
HM Treasury – Financial Services Growth and Competitiveness Strategy Policy Paper
On 14 July 2026, HM Treasury published a policy paper on its financial services growth and competitiveness strategy (Strategy) launched in July 2025, when the Treasury committed to reporting annually on progress made in delivering the Strategy.
The policy paper sets out key milestones achieved in the first year as the government takes the next steps, working in partnership with industry and the regulators.
Ahead of the Chancellor of the Exchequer’s Mansion House 2026 speech on 14 July, the government undertook a targeted industry feedback exercise to inform the paper and its next steps. The feedback was consistent in saying that the Strategy set the right direction, but its credibility depends on delivery.
Highlights included:
- Introduction of the Financial Services and Markets Bill 2026-27
- Acceleration of the work to digitise wholesale markets and introducing a new regulatory framework for cryptoassets
- Delivering reforms to pensions, retail investment and capital markets to help encourage investment
- Working with the Financial Services Skills Commission to ensure industry access to talent with the skills for the future
- Accepting the recommendations from the Financial Services AI Champions as set out in the recently published AI adoption plan for the UK financial services sector
The policy paper can be viewed here: One Year On Delivering the Financial Services Growth and Competitiveness Strategy
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