On 6 April 2006, ICSA announced a consultation on the possible introduction of mandatory electronic transfers for all share transactions. It is hoped this would render transactions quicker and more secure. This would also remove the risk associated with relying on paper certificates while removing any requirement for an indemnity in respect of share certificates. Costs should also be reduced. A number of other countries have already taken this step, including France, Italy and Sweden.
The consultation closes on 30 June 2006. It can be accessed at icsa.org.uk/demat.