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A B C D E F G H I J K L M N O P R S T V W Y

PSC reporting requirements - more changes to come

PSC reporting requirements - more changes to come

Tuesday 29th November 2016

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The introduction of the People with Significant Control (PSC) register under the Small Business, Enterprise & Employment Act 2015 (SBEE) demonstrated the UK Government’s commitment to promoting corporate transparency. This commitment continues with the implementation of the EU Fourth Money Laundering Directive (Fourth Directive). This directive will add to the PSC reporting requirements that companies are already subject to under SBEE.
 
Frequency of filings
 
The Fourth Directive requires the beneficial ownership information held centrally to be ‘adequate, accurate and current.’ Whilst current legislation ensures that information held about PSCs is adequate and accurate, filing confirmation statements annually does not ensure that PSC information is current. Companies can elect to file numerous confirmation statements to reflect changes to their PSCs but there is no legal requirement to do so. Under the Fourth Directive companies will be required to update their PSC information within six months of it changing. 
 
HM Treasury’s consultative paper on Fourth Directive implementation suggests that private companies can combat the increased administrative burden, by electing to keep their PSC register centrally with Companies House. This mechanism was introduced under SBEE. Any changes made to the company’s statutory register would be made directly to Companies House. 
 
Widened scope
 
The Fourth Directive also widens the scope of the legal entities that are required to disclose who their beneficial owners are. The following entities are now required to disclose who their PSCs are:
 
  • European Cooperative Society (SCE);
  • Scottish Partnerships and Scottish Limited Companies;
  • Scottish Partnership;
  • Unregistered Companies. This includes some Royal Chartered bodies. 
Companies trading on the prescribed markets such as AIM and ISDX may no longer benefit from exemption requirement and could be required to disclosure their PSCs.  
 
The Fourth Directive will require companies to assess whether they are able to adhere to the increased frequency of filings. Whilst the burden of holding the statutory register can be pushed to Companies House the obligation of ensuring this information is accurate will remain with companies. 
 
Further reading: You can read our overview about the PSC regime which we published in April by following this link
 
If you would like more information about the PSC reporting regime please do not hesitate to get in touch with your usual contact within the Corporate team or contact:
 
Partner, Corporate
Tel: 0151 600 3106
Email: rupert.gill@brabners.com
 
 
 
Paralegal, Corporate
Tel: 0151 600 3066