It’s been over a year since UK companies and LLPs have been required to keep a Register of Persons with Significant Control (PSC Register).
Since the rules came into force, all companies and LLPs should have been through the process of identifying their PSCs, drafting their PSC Register and notifying Companies House accordingly.
However, recent changes to the notification requirement means that you may need to revisit this process again.
Since 6 April 2016, UK companies and LLPs have been required to keep a PSC Register identifying those individuals or relevant legal entities which have significant influence or control over them. This information is then filed with Companies House once a year via a Confirmation Statement.
The changes to PSC Register requirements have been introduced as a result of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“the Regulations”) which aim to help prevent money laundering and terrorist financing. The changes will increase the transparency of who owns and controls companies and LLPs in the UK.
Under the previous regime updates to the Confirmation Statement were required annually unless a company or LLP has opted to keep its PSC Register on a central register. However, since 26 June 2017 companies and LLPs will need to inform Companies House whenever there is a change to their PSC Register.
Companies and LLPs have 14 days to update their PSC Register and then another 14 days to send the information to Companies House using forms PSC01 and PSC09. Changes may arise as a result of any alterations to the share structure of a company e.g. following a share transfer, share buy back or company sale.
This new requirement to file information with Companies House throughout the year does add an extra administrative burden. However, as companies and LLPs need to keep an up to date PSC Register at the registered office address, hopefully this won’t cause too much extra work as companies and LLPs should be updating the information on their PSC Register when changes happen.
It is likely that additional legislation will be published shortly to ensure the UK’s compliance with the regulations.
Natalie Pring is a solicitor at Royds Withy King, specialising in Corporate & Commercial, Technology & Media, and Employment.