Important Changes to the Persons of Significant Control (PSC) Regime

On 23 June 2017 the Government published the Information about People with Significant Control (Amendment) Regulations 2017. Two important changes have been made to the current PSC regime:

• from 26 June 2017 all reporting entities (including most private companies) must update their register of people with significant control (PSC Register) within 14 days of a relevant change in beneficial ownership and then also notify Companies House within 14 days of updating their PSC Register; and
   
• from 24 July 2017 there is a requirement for UK companies on AIM (and other prescribed markets) to keep a PSC Register for the first time.

These changes have been announced in order to implement the requirements of the EU's Fourth Anti-Money Laundering Directive.

Background to the PSC Regime

As part of the UK’s commitment to enhance transparency around company ownership, since 6 April 2016 most UK companies and all UK LLPs have been required to keep a register of any individuals or relevant legal entities that have significant control over them (and are registerable). From 30 June 2016, this information was required to be provided to Companies House in the UK by filing a ‘confirmation statement’, which replaced the requirement to file an annual return.

Until now, entities that had to keep a PSC Register have only had to notify Companies House of any changes annually, as part of their confirmation statement filing.

Further information on the PSC Regime can be found here.

Immediate action may be required

Under the amended PSC regime any entity that has made changes to its PSC Register since the date of its last confirmation statement must now give notice of these changes to Companies House before the end of the period of 14 days beginning 26 June.

The new entities subject to the PSC regime from 24 July (such as AIM companies) should now prepare to set up and maintain a PSC register and, where necessary, to send out investigation notices to persons whom they believe to be a PSC or to have information about a PSC.

Individuals who are likely to be PSCs should prepare to supply their details to each entity in which they are a PSC.

For further information regarding these changes or for assistance with filing changes to your PSC Register please do not hesitate to contact us.

Date published: 07 July 2017