New law: New rules require earlier reporting of company and LLP 'persons with significant control' to Companies House
Company officers and members of Limited Liability Partnerships (LLPs) subject to the PSC rules (which require them to investigate and record the identities and particulars of 'persons with significant control') must comply with significant changes to those rules.
This update was published in Legal Alert - July 2017
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Previously, companies and LLPs only had to notify Companies House of any changes in their PSCs when they filed a Confirmation Statement at Companies House. This could be as infrequently as once a year.
However, from 26 June 2017 they must notify Companies House of any change to the identity or particulars of PSCs within 28 days. They have 14 days to enter the change in the PSC register they are required to keep under the PSC rules. A 'change' includes changes in the nature of the control PSCs exercise in relation to the company or LLP. Changes are notified on official forms PSC01 to PSC09 and LL PSC01 to LL PSC09.
Also, companies whose shares are on the Alternative Investment Market (AIM) or the ICAP Securities and Derivatives Exchange (ISDX), that were not previously subject to the PSC rules, must also now comply with the rules.
In addition, Scottish Limited Partnerships, and Scottish general partnerships (all of whose partners are limited entities) must register PSC information with Companies House in a similar way to limited companies and LLPs. The Government has issued new guidance on what 'significant influence and control' means in this context.
Companies House has also said it intends to conduct a proactive campaign of contacting entities whose PSC information is clearly inaccurate/non-compliant. It also intends to carry out an education and awareness campaign on the PSC rules generally. Finally, it has said it will add a 'report it now' button to its online company information so that visitors can report possible PSC inaccuracies instantly to Companies House.
- 26 June 2017
- Companies and LLPs should ensure their systems for investigating and recording PSC information are sufficiently robust to enable them to comply with the new requirements to notify changes in PSCs and their particulars at Companies House
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.