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New practice: Companies House steps up enforcement of 'persons with significant control' disclosure rules

Limited companies, LLPs and other entities subject to the 'persons with significant control' (PSC) regime, requiring them to disclose individuals with significant control over them, face a more rigorous approach to compliance from Companies House, its latest Annual Report makes clear.

June 2018

This update was published in Legal Alert - June 2018

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, all UK Limited Liability Partnerships (LLPs), all Scottish Limited Partnerships and some Scottish general partnerships, as well as various other UK organisations. They require organisations 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 particulars
  • Record PSCs in their PSC register
  • File information from their PSC register at Companies House

However, there continues to be a significant amount of inaccurate information about PSCs filed at Companies House. The latest Companies House business plan makes clear it is stepping up its campaign to ensure the PSC information it holds is increasingly accurate and up-to-date. It will:

  • Contact organisations it thinks have misunderstood the rules
  • Pursue organisations that have neither filed information about PSCs nor notified it of 'additional matters' – for example, they do not believe they have any PSCs
  • If organisations have requested further information from PSCs, or sanctioned them for not complying with requests, follow up to make sure their PSC information is up-to-date
  • Deal quickly and effectively with complaints received about missing or incorrect PSC information
  • Share information with law enforcement and government departments, to help deal with economic crime

Operative date

  • Now

Recommendation

  • Companies, LLPs and others affected should review their PSC information, procedures and any outstanding notices, to ensure that they comply with their obligations under the PSC rules, and that their PC information is always up-to-date

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.

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