18 February 2010
On 16 December 2009 the UK Payments Council announced that they aim to phase out cheques from the UK market completely by October 2018
The removal of paper, and in particular cheques, from the dividend process has come under focus for two reasons:
- On 16 December 2009 the UK Payments Council Board announced that they aim to phase out cheques from the UK market completely by October 2018 - after they described the payment method as being in "terminal decline".
- Via the E-comms directive and other 'green' initiatives companies and shareholders are looking to remove paper from as many processes as possible.
These drivers mean that 'cheque free dividends' will become increasingly adopted over the coming years but our belief is that for truly 'paperless dividends' the market needs to look at the whole process and not just cheques. For example, we believe that tax vouchers should also be 'electronic' wherever possible.
Being heavily involved in the paperless dividend debate, we are well positioned to offer your company specific and considered advice on this subject. Click here to view our guidance note on this matter and please contact your Relationship Manager to discuss how we can assist you with the transition to paperless dividends.