The disclosure elements of the People with Significant Control (“PSC”) regime came into force on 30 June 2016, requiring virtually all UK registered companies and LLPs having the responsibility to prepare and maintain a PSC register to provide information contained in that register to Companies House, for inclusion in the public register.
Parts of the EU Fourth Money Laundering Directive (the “Directive”) come into force on 26 June 2017 and, from that date, companies and LLPs who satisfy the requirement to prepare and maintain a PSC register will be required to notify Companies House whenever the content of that register changes. At present, any change to a company’s PSC register is notified to Companies House by way of the annual confirmation statement (which replaced the former annual return filing requirement).
Those companies and LLPs who have not yet filed a confirmation statement, and are due to file their first statement after these changes become effective, will be required to notify details of any PSCs to Companies House before submitting their confirmation statement, in order to comply with these new requirements.
The changes brought about by the Directive will also have an impact on certain companies who currently rely on exemption under DTR5 regulations. Unless a company is traded on an EEA or Schedule 1 specified market, they will no longer be able to take advantage of this exemption and will be required to prepare and maintain a PSC register, as well as notify information held in that register to Companies House.
The Directive will also extend the PSC regime to include Scottish limited partnerships and Scottish general partnerships, as discussed in our recent blog. At the time of writing little is known about the criteria and disclosures which new entities caught by the Directive will be required to make, despite the relatively short period until the proposed implementation date.
Due to the timing of the UK general election, details of the legislative requirements, and indeed the implementation date, are still subject to change. Once final details are made public, the disclosure of PSC information is likely to continue to be a substantial focus for the majority of companies, LLPs and now SLPs.