Millions of UK adults risk missing 2027 paper shares deadline

New data shows that around 4.7 million adults in the UK continue to hold paper share certificates, with the majority unlikely to digitise their holdings before the government-mandated 2027 deadline. The study, conducted by Euroclear UK & International alongside Thinks Insight & Strategy, highlights that only a third of current paper certificate holders plan to move their shares into digital form by the cut-off.

Low engagement

The findings reveal a general lack of engagement with paper share certificates. Twenty-four percent of certificate holders could not name any benefit of keeping shares in paper form. Among those who did cite reasons, only 8% referenced better access to voting rights, while 20% aimed to avoid broker fees. A significant portion-33%-originally received their paper certificates as gifts or inheritances, and more than half of the holders aged 55 and over acquired them directly.

Positive digital experiences

Of those who have already converted their paper shares to digital format, three-quarters reported a positive experience. Yet, for those who continue to hold paper certificates, inertia and lack of awareness appear to be the main barriers to transition, rather than strong personal preference or practical benefits.

Deadline pressure

The UK's final deadline for digitisation comes by way of recent government acceptance of the Digitisation Taskforce's recommendations, which specify the total removal of paper share certificates in favour of a digital register by 2027. Digitisation is expected to deliver benefits such as reduced administrative costs, streamlined operations, and improved communications between companies and investors.

International comparisons

The research points to Sweden, where the adoption of a fully digital shareholding system supported by Digital ID has resulted in retail households holding around 40% of their assets in shares. This rate is nearly four times greater than in the UK, where household equity ownership stands at only 11%.

System consolidation

Around 99% of shares in FTSE350-listed companies are already held electronically in the Central Securities Depository. The remaining paper certificates involve duplicated processes and limit direct communications between issuers and individual investors. Consolidation into a single digital system is anticipated to make shareholding structures more transparent and participation easier, with potential governance benefits for corporations and greater engagement from retail investors.

Lack of awareness

Despite the advantages of digital shareholding, the data shows that a significant proportion of the population may need targeted support and clearer information ahead of the 2027 change. The study identifies opportunity for the government and capital markets to tailor outreach and guidance to affected shareholders, particularly those who may be unaware of how to begin the digitisation process.

"The research shows that paper shareholding generally isn't about investor preference, but largely a case of inertia. Most simply haven't gotten around to digitising or don't know how to. With very few citing lower costs as a reason to hold paper shares, it also suggests that brokers and investing platforms are democratising access to investing and making it cheaper and easier for everyone. This is something that must be celebrated as we move to a modern shareholding framework in line with the Digitisation Taskforce's recommendations. With clear guidance, transparency on costs, and assisted onboarding, the transition can be as smooth and successful as the move to online banking."

"This research provides a very timely and much-needed update on the number of paper shareholders there are in the UK. For the government and the City to launch an effective campaign to digitise paper shares and get more people investing in UK capital markets, they need to know more about the people they are trying to reach. By delving into the characteristics of those who hold paper shares, as well as what the perceived benefits of paper certificates are - or lack thereof - this research should serve as a useful resource to those at the centre of this initiative," said Carol McNaughton Nicholls, Managing Partner, Thinks Insight & Strategy.