HM Treasury: Terms of Reference for Dematerialisation Market Action Taskforce

On 9 October 2025, HM Treasury published the Terms of Reference for the Dematerialisation Market Action Taskforce (DEMAT). The setting up of the DEMAT was a recommendation of the Digitisation Taskforce which published its final report in July 2025.  

The Digitisation Taskforce’s final report includes recommendations for driving forward full digitisation of the UK shareholding framework and improving the intermediated system of share ownership, including a staged approach to removing paper share certificates and ultimately moving to a fully intermediated system of shareholding in the UK. Further details are here.

A key recommendation in the final report was to establish a ‘Technical Group’ to work with industry stakeholders to deliver Step 1 (replacing existing paper-based or ‘certificated’ share registers by ‘digitised’ share registers), including setting a precise date before the end of 2027 for this to take place, and creating a detailed plan for the further changes which the market will need to make as part of Step 2 (making changes to the intermediated system to facilitate the ability of beneficial owners of shares to exercise their rights effectively and efficiently through intermediaries) and Step 3 (moving shares on the temporary digitised registers into the intermediated system).

The government has appointed Mark Austin to establish and chair the new DEMAT and he is to decide the composition and structure of the DEMAT.

The government has asked the Chair to report back by Summer 2026 with a recommended ‘go-live’ date for Step 1, which should be before the end of 2027, and an implementation plan for the actions industry participants need to take to deliver this.

Among other things, the DEMAT has also been asked to begin working with market participants to identify and implement the actions they need to take as part of Step 2, with the aim of the market being ready for Step 3 to begin by the end of the current Parliament. The government includes its criteria for assessing readiness for Step 3 and key principles to be used to assess progress on Step 2.:

(HM Treasury, Policy Paper, Terms of Reference for Dematerialisation Market Action Taskforce (DEMAT), 09.10.2025)

HM Treasury: Public Offers and Admissions to Trading (Amendment and Consequential and Transitional Provisions) Regulations 2025

On 15 October 2025, the Public Offers and Admissions to Trading (Amendment and Consequential and Transitional Provisions) Regulations 2025 were published, together with an Explanatory Memorandum.

The new Regulations make consequential amendments to the commencement provisions in the Public Offers and Admissions to Trading Regulations 2024 (POATRs) to reflect the revocation of assimilated EU law relating to prospectuses, set out transitional provisions in relation to the new regulated activity of operating a public offer platform introduced by the POATRs, and make a minor amendment to the investigatory powers of the Financial Conduct Authority provided under the POATRs.

For further information see our Prospectus regime portal page here.