The Bigger Picture
From the bigger picture perspective, we had the UK Government’s Industrial Strategy – launched at the end of 2024, with Financial Services having been identified as one of the key 8 sectors. What we looked forward to was understanding what the individual strategy for this sector would be. On 15 July, the Chancellor delivered this strategy which included the statements of “…new vision for kickstarting growth in the financial services sector over the next ten years.” And “…ensure our markets support investment in UK businesses and enhance their competitiveness through driving forward digitalisation”.
It would be fair to say that following on from this, and with a focus on initiatives already underway, the second half of 2025 has delivered a great deal of activity, and this will continue.
Digitisation of the Shareholder Framework
As a share registration business, the digitisation of the shareholding framework in the UK, has now been recommended and accepted by the government. We began the year anticipating the Final Report of the Digitisation Taskforce, having responded to the Interim Report in September 2023, and on 15 July, as part of the Financial Services Growth and Competitiveness Strategy, the Final Report was published. As EQ stated on the day of publication “This is a welcome step forward in realising the potential of the UK Financial Services Sector. These reforms will help enhance the UK’s capital markets, drive competitiveness, and support sustainable growth, aligning with the government’s broader economic agenda. As the UK’s leading share registrar, we’re pleased to see the publication of the Digitisation Taskforce final recommendations included in these reforms, and to see that many of the points we raised in our response to the interim report have been included. We look forward to working with government departments, industry, the regulators, and our customers to deliver the optimum outcome”.
Capital Markets
In terms of capital markets, capital market reform has been ongoing for some time. This year we have seen the new PISCES framework delivered, designed to allow private companies to trade in shares. We eagerly await first trading to begin.
We saw a review of the AIM market, which celebrated 30 years of existence this year. The LSE has made immediate changes and set out areas of focus going forward. Importantly, it has been confirmed that AIM remains a vital growth market and has strong support for its unique role between private and Main Markets.
Turning to Main Markets, there has been prospectus reform, aimed at making it easier to raise capital.
So, whether you operate as a private company, one listed on AIM, or you are Main Market listed, you will have experienced change to how you can operate on UK capital markets as a result of reforms, all aimed at enhancing our UK capital markets.
Finally, capital markets need investors to thrive, and as we close 2025, we have the establishment of the UK Retail Investment Campaign, chaired by Sasha Wiggins. This Campaign aims to raise awareness of the importance of investing for people’s financial wellbeing as well at the positive impact this can have on the wider economy. The Campaign has recently announced the firms (platforms, banks, wealth and investment managers and investment trusts) which will be launching this Campaign and we look forward to seeing the activities gather momentum during 2026. Additionally, we have seen the FCA setting out a number of measures to empower retail investment, supporting the government’s aim to build a stronger investment culture.
Looking Forwards
Looking forward to 2026, priority areas of focus will be working towards industry wide digitisation and dematerialisation of the UK shareholding framework, at the same time as participating in initiatives that support the Financial Services Growth and Competitiveness Strategy and overall growth of UK capital markets.
2027 is set to be the culmination of the work over the next two years, delivering the removal of share certificates and digitised share registers, together with accelerated settlement of share trades to T+1 (settlement a day after trading).
With the 10-year Financial Services Growth and Competitiveness Strategy now set, our activities and support for all stakeholders will evolve over the coming years and we look forward to collaborating on initiatives to deliver this strategy.
Below we focus on a selection of initiatives from a share registration industry perspective:
A government supported digitisation journey
Preparing for the first trading under PISCES
ECCTA – implementation continues…
Digitisation and dematerialisation
A government supported digitisation journey
Following the release of the Final Recommendations of the Digitisation Taskforce on 15 July 2025, as registrars we have been working through how this can be delivered, together with industry. As we end 2025, Mark Austin has been appointed Chair of the Technical Group (DEMAT) and has been set Terms of Reference which is to deliver Step 1 and create the plans for the changes needed as part of Steps 2 and 3. The Terms of Reference contains key deliverables for the Chair to deliver. Broadly there are three objectives:
- Recommend a ‘go-live’ date for Step 1 by end 2027.
- Identify and implement actions needed as part of Step 2 – with the aim of the market being ready for Step 3 to begin by the end of this Parliament.
- Assess progress in implementing Step 2 and recommend a detailed plan for all shares to transition into the intermediated system in Step 3.
As a reminder, Step 1 is the removal of paper share certificates and establishment of digitised registers. Step 2 is preparing for a fully intermediated system. Step 3, all shares transition into the intermediated securities chain.
Registrars, along with other key market participants, will play a vital role in the delivery of digitisation of the UK shareholding framework and we look forward to contributing to the work of DEMAT.
What’s next? DEMAT membership has been confirmed, and the first meetings will begin. We look forward to being a valued participant to deliver the objectives as set out by government. By Summer 2026, the Chair is to report back to government on a recommended ‘go-live’ date for Step 1.
Capital markets for private companies
Preparing for the first trading under PISCES
PISCES, the Private Intermittent Securities and Capital Exchange System, is designed to bring together buyers and sellers of shares in private companies. Regulations and FCA rules are in operation, with the LSE and JP Jenkins now in receipt of operator licenses. If you would like to learn more about PISCES, please access our dedicated webpage here.
What’s next? Auctions to begin. Registrars are actively involved in discussions with Euroclear on the operation of the trading and settlement of securities.
Economic crime and corporate transparency
ECCTA – implementation continues…
The Economic Crime and Corporate Transparency Act (ECCTA) continues to be implemented in the UK. We have developed an ECCTA hub to assist with keeping track of the changes that have been implemented and those that are to come.
Transparency of directors and those persons with significant control (PSC) over a company is now required. Mandatory identity and verification (ID&V) is required from 18 November 2025, and the work of company secretaries and the advisors that support them, is focussed on ensuring directors and PSCs have completed their ID&V ahead of the first confirmation statements due after 18 November 2025.
Transparency of who owns shares also requires changes to the requirements for the Register of Members. As a reminder the requirement is for a forename and surname for each directly registered member. As at the date of this article, we await a confirmed timeline for implementation of the changes.
What’s next? The CGI Registrars Group continue to seek clarification on the details of the changes for the Register of Members. We await secondary legislation to implement these changes with a definitive date to be set by the Department for Business and Trade (DBT).
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