People with Significant Control – June 2017 Update

26 June 2017 marks the formal transposition of the European Fourth Anti-Money Laundering Directive into UK law in the form of the Money Laundering Regulations 2017. With it comes a change to the existing People with Significant Control (“PSC“) regime.

PSC Regime – Background

The requirement that all qualifying companies and LLPs create and maintain a register of PSCs has been in effect since 6 April 2016. For more information on identifying PSCs please see our earlier article.

What has changed?

Prior to 26 June 2017 a UK company (or LLP) was only required to report any changes to its PSCs when filing its annual confirmation statement. However, in an effort to increase transparency of who owns and controls UK companies and LLPs, the requirement to update and report has been greatly enhanced. There have also been changes to widen the scope of organisations to which the PSC regime applies, and some previous exemptions relating to public trading companies have been removed.

Filing Requirements

  • PSC information is no longer collected and updated annually on the confirmation statement;
  • Companies and LLPs are now required to update their own PSC registers within 14 days of any change;
  • Companies and LLPs must now notify Companies House of any changes to their PSC information within 14 days of updating their registers;
  • Companies House must be notified using forms PSC01 though to PSC09 (for companies) or LL PSC01 through to LL PSC09 (for LLPs)

Failure to observe the new filing requirements is an offence and the company/LLP and its officers may be subject to financial penalties.

Widening of the Scope

  • From the 24 July 2017, the scope of the PSC regime will be extended so as to also apply to Scottish Partnerships and Scottish Limited Partnerships (SPs and SLPs)
  • Some previously exempt companies i.e. those subject to Chapter 5 of the FCA’s Disclosure Guidance and Transparency Rules may also now fall within the scope of the PSC regime (although companies traded on an EEA or schedule 1 specified market will remain exempt). For more information please contact us.

PLEASE NOTE: this briefing note contains information about current legal issues and is only intended as a general statement of the law – it does not give legal advice. No action should be taken in reliance on this note without specific legal advice.

For further information please contact:

Colin Winter
Partner, Corporate