ICAEW.com works better with JavaScript enabled.

New law: Companies must comply with PSC and confirmation statement rules

Limited companies, LLPs and others subject to the 'persons with significant control' (PSC) regime are changing their procedures to comply with changes to the regime, and the rules regarding confirmation statements, announced by Companies House.

Legal Alert

This update was published in Legal Alert - June 2017

Legal Alert is a monthly checklist from Atom Content Marketing highlighting new and pending laws, regulations, codes of practice and rulings that could have an impact on your business.

The PSC rules currently apply to almost every UK private company, most UK public companies, and all UK Limited Liability Partnerships (LLPs), and require them to:

  • Take reasonable steps to find out if they have any PSCs and to identify them
  • Give notice to each person (or legal entity) they know or have reasonable cause to believe should be recorded in their PSC registers (they may also give notice to anyone who may know someone is a PSC, or who knows someone who does) asking them to confirm their details
  • Record PSCs in their PSC register
  • File information from their PSC register at Companies House

Article 30 of the 4th Money Laundering Directive (4MLD) contains a separate but overlapping set of rules requiring EU member states to introduce obligations on various types of company and other entities in their territories to collect information about their real owners and make it available.

Companies House has issued a press release indicating the following changes to the PSC rules, as a result of the 4MLD:

  • It states: "From 26 June PSC won't be updated on the confirmation statement (CS01). Instead, you'll need to tell us on forms PSC01 to PSC09 whenever there's a change. You'll have 14 days to update your register and another 14 days to send the information to us." So any change to your PSC register must be notified to Companies House within 28 days, rather than notified on your next confirmation statement. Companies must continue to confirm the PSC information at Companies House is accurate in their confirmation statements
  • From 24 July, Scottish limited partnerships, and Scottish general partnerships all of whose partners are limited companies, must register PSC information with Companies House. They were not previously required to do so
  • From 26 June 2017, there will no longer be an exemption from the PSC rules for DTR5 companies which are not on a regulated market. This means Alternative Investment Market (AIM) and ISDX companies may have to comply with them

Operative date

  • 26 June 2017 and 24 July 2017

Recommendation

  • Companies, LLPs and others affected should see the press release on the GOV.UK website and review their timetables and procedures for complying with the PSC rules to take account of the changes, and train staff accordingly

Disclaimer: This article from Atom Content Marketing is for general guidance only, for businesses in the United Kingdom governed by the laws of England. Atom Content Marketing, expert contributors and ICAEW (as distributor) disclaim all liability for any errors or omissions.