Mark Barlow
Two major changes are coming to the UK’s financial system by the end of 2027. While they may sound complicated, they will basically affect how shares are owned, and bought and sold, even for the everyday investors.
The first change is the end of the much-loved paper share certificates. The second is a move to faster share dealing, known as T+1. Together, they are part of a wider push to modernise UK markets and bring them up to speed with the rest of the world.
The direction is clear; however, the question is whether firms, and investors, are ready.
Paper shares are still surprisingly common
You might assume paper share certificates are a thing of the past in today’s digital world. In reality, that isn’t the case. According to Euroclear, around 4.7 million UK adults still hold shares on paper.
This creates real problems as companies are forced to run two systems at once, one paper and one for digital, which is expensive, inefficient and more prone to error. It also increases the risk of lost paperwork, delays and confusion for investors.
By the end of 2027, paper share certificates are expected to disappear altogether as all shares will be held digitally instead. This process is known as dematerialisation, but in simple terms it just means moving shares online. After that point, paper certificates will no longer be recognised as proof of ownership. The shares themselves will still exist, but ownership will be recorded only on digital registers.
The biggest challenge isn’t necessarily the technology – it’s awareness. Research shows that only around a third of people with paper shares plan to convert them before the deadline. Many don’t even realise they still own shares, often dating back to past jobs or family investments in well-known companies such as National Grid, Barclays or M&S.
Investors who haven’t converted by 2027 won’t lose their shares, but they may face delays, extra checks and difficulties when selling, transferring or exercising shareholder rights.
For wealth managers and advisers, this is a crucial moment to speak to clients and make sure nothing is missed. For investors, it’s a timely reminder to check old paperwork that may have been stored in boxes for decades, to give you time to take action well before deadlines arrive.
What is T+1?
The second change is about speed.
When you buy or sell shares, the deal does not complete instantly. There is a short delay while the money and the shares are exchanged which is called settlement.
At the moment, the UK uses T+2, which means settlement happens two working days after the trade. T+1 shortens that to just one working day.
Why does this matter?
- Money reaches sellers faster
- Buyers receive shares sooner
- There is less risk if markets move suddenly
- Less cash is tied up waiting for trades to complete
North America already moved to T+1 in 2024. Europe is now following with the UK expected to implement the change in October 2027.
Why now?
For most investors, the move to T+1 settlement will happen quietly in the background. Firms will upgrade systems, automate processes and adapt how they operate, largely out of sight.
Paper shares, however, are a very different story as failing to act now risks storing up an administrative headache, not just for you but for those who come after you.
Shareholders who move early to digital will find the transition far simpler. Those who don’t may face delays and complexity when they want to sell or leave future generations to untangle paper records during estate administration. What should be a straightforward digital transaction could instead become a burdensome task at exactly the wrong time.
If you, or anyone you know, still has paper share certificates and has questions about the changes, we are always happy to help. Please call us on 0161 486 2250 or speak to your financial planner to explore what you could do.
