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Protect your stock ownership rights! UK Gov considers ending DRS for household investors, putting your investment at risk.

 Letter template to His Majesty's Treasury Digitization Taskforce:

 

Dear Sir Douglas Flint,
I want to express my deep concerns regarding recent discussions around limiting individual investors' ability to hold and own shares in my / our names via direct registration.
We individual investors play a pivotal role in capital markets. Despite our smaller investment sizes compared to institutional investors, we collectively provide a significant pool of long-term, stable capital that underpins the global economy. They contribute to market liquidity, foster capital formation, and often stay invested for longer periods, offering corporations a stable source of financing.

However, we need confidence to stay engaged in capital markets. The ability to directly register and own shares in my / our names is the most critical factor in maintaining this confidence. This mechanism offers them the assurance that we become actual stakeholders, not just numbers on a broker's ledger. Direct registration is the only GUARANTEED way to ensure, that we household investors can fully exercise our essential rights as shareholders.

The absence of the direct registration option can create an environment of mistrust and suspicion. If we feel disenfranchised or doubt the integrity of the system, there could be a mass exodus from the markets. Such an eventuality would not only affect liquidity but also have a cascading impact on global capital markets. With less capital flowing into businesses and government, the pace of economic growth could slow down. We know from the GFC 2008 it took years to rebuild this lost trust and stabilize the markets.

In summary, the direct ownership of shares is not just an option but a necessity for me /us as household investors to maintain faith in capital markets. I urge you to consider the detrimental long-term effects that could result from depriving them of this right.

Full Name

 

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