Equiniti's Preparations For Dematerialisation

EQ strategy, objectives and actions
EQ products and platforms
EQ internal experts

UK Dematerialisation is a strategic priority for EQ and we are committed to delivering uninterrupted, high-quality service throughout this mandatory, government-backed initiative. Our preparations for Step 1 Digital Registers are well underway, with the objective of ensuring a seamless transition from 'Certificated' share registers to 'Digitised' share registers for our Issuers and their Shareholders by the end of 2027, in line with regulatory and market modernisation.

We have already taken several significant steps:

Comprehensive Programme Planning: EQ has mobilised a dedicated Dematerialisation Readiness programme with board-level endorsement. This programme is established to ensure we deliver modern, digital, and compliant solutions to meet the needs of the staged approach to removing paper share certificates and ultimately moving to a fully intermediated system of shareholding in the UK. The immediate focus is Step 1 Digital Registers and is aligned with the Digitisation Taskforce’s proposed timeline and our experienced team is working in close collaboration with industry and partners to meet the requirements of step 1. Key areas of our preparation as we move through Q1 2026 include:
Proactive Engagement with DEMAT and Industry: EQ is uniquely positioned having secured membership on the UK Government's Dematerialisation Market Action Taskforce (DEMAT). This taskforce is responsible for delivering a Step 1 implementation plan outlining the actions industry participants need to take to achieve Digital Registers. Within its role on DEMAT, EQ will play a key role in shaping the implementation plan and readiness activities which will cover Legislative Changes, the Technical and Operational Implementation approach, and Shareholder Communication & Education plans.
Investment in Products & Platforms: Our Product & Engineering Teams are engaged and already assessing the changes required to our core platforms and services. Early investment in development, ensures we will be ready for the transition from physical share certificates to electronic holdings by the end of 2027. With the removal of physical certificates, we will design and implement new features including Digital Holding Confirmations (DHC), providing evidence of ownership for transactional processing purposes. Core transfer processes such as CREST stock deposits, withdrawals, off-market transfers, new shareholder notifications, and security transaction alerts will be digitised and streamlined during the step 1 implementation.
Communication & Education: Our Clients and their Shareholders will receive regular updates, guidance, and support as Step 1 progresses throughout 2026 and 2027. We are working on a comprehensive communication campaign for issuers and shareholders is essential to ensure awareness and readiness. Clear, consistent messaging will minimise confusion and market disruption. Special attention is needed for dormant holders and lenders using physical certificates as collateral, who must be informed about the invalidation of certificates upon dematerialisation.