The introduction of the Fourth Money Laundering Directive (Directive) has resulted in changes to and an expansion of the PSC regime in order to promote transparency in business and to counter money-laundering and tax evasion.
Before the Directive
Since 6 April 2016, the majority of UK companies and LLPs have been required to keep a PSC register, to update the PSC register regularly throughout the life of the company and to inform Companies House about its PSC status annually as part of the confirmation statement (the replacement for the annual return).
After the Directive
New forms and deadlines
From 26 June 2017:
- the confirmation statement will no longer contain a section dealing with PSCs
- every company which is not exempt from the PSC regime must:
- update its PSC register within 14 days of a change being confirmed by a PSC
- complete and file within an additional 14 days (i.e. not as part of the confirmation statement each year) one of the nine ‘PSC’ forms at Companies House reflecting that change
Bear in mind that the details for a PSC who is an individual must not be entered on the PSC register of notified to Companies House until that person has confirmed his/her details.
Loss of exemption for AIM companies and other entities
From 26 June 2017:
- Those companies admitted to trading on the AIM and NEX exchanges (which were previously exempt from the PSC regime since they comply with disclosure and transparency rule (DTR) 5) are now subject to the PSC regime and must maintain a PSC register and update Companies House as mentioned above.
- Scottish general partnerships, where all the partners are corporates, Scottish limited partnerships and unregistered companies are now subject to the PSC regime and will need to update Companies House as mentioned above but are not required to maintain a PSC register.
Any changes to a PSC register which occurred before 26 June 2017 but after the last confirmation statement filed must also be notified to Companies House within 14 days from 26 June 2017.
A failure to comply with the new rules is an offence.