Optimizing IT Systems for British Success

As an outcome of the intro of the UKLR sourcebook in July 2024, both the London Stock Market (LSE) and FTSE Russell made consequential changes to their guidelines. In July 2024, the LSE verified amendments to its Admission and Disclosure Standards to show the collapse of the previous premium and standard listing sections into the new business company classification.

It then provided a summary and Frequently asked questions verifying its view when the last UKLR sourcebook was published in July 2024. Among the procedures proposed as part of the Edinburgh Reforms in December 2022 was the establishment of the Accelerated Settlement Taskforce, chaired by Charlie Geffen. The objective of the taskforce was to consider the possible benefits of the UK transferring to a T +1 securities settlement cycle and describe how this modification could be executed.

On 19 February 2025, the UK government announced it accepted the suggestion and the UK market means to relocate to a T +1 settlement cycle on 11 October 2027. Among the suggestions from the UK Secondary Capital Raising Evaluation caused the facility in July 2022 of the Digitisation Taskforce, chaired by Sir Douglas Flint.

Scale Mid-Market Expansion in 2026

In July 2023, the taskforce published an Interim Report (read our summary here) that made a variety of recommendations, including: legislation ought to be brought forward, and business posts of association changed, as quickly as practicable to stop the issuance of brand-new paper share certificates; the federal government ought to advance legislation to require dematerialisation of all share certificates at a future date; the government should speak with provider and financier agents on the preferred disposition of "residual" paper share interests and whether a time frame should be imposed for the identification of untraced Ultimate Beneficial Owners (UBOs); andintermediaries need to have an obligation, as a condition of participation in the clearing and settlement system, to put in place typical innovation that allows them to react to UBO demands from issuers within a really brief time frame.

ANSR July UK PRs

Digitisation would target listed companies with a view to reducing costs and waste, and enhancing shareholder interaction. The report proposes extra steps to guarantee that UBOs within the intermediated securities chain would be able to exercise shareholder rights that are presently only guaranteed for registered investors, in addition to steps to improve interaction in between companies and UBOs.