Businesses have new deadlines to comply with regulations around transparency of ownership from this month, under the so-called PSC* regime. The move is happening as part of the implementation of the EU Fourth Money Laundering Directive (4MLD) which must be implemented across the EU by 26 June 2017.
Unlisted UK companies and LLPs must identify “People with Significant Control” over them and record their details in a statutory register. This can no longer be done annually. Changes must be notified with 14 days to update the firm’s PSC register and a further 14 days to send the information to Companies House.
Our company law specialist, Paul Reader, said “For all companies within the PSC regime, the changes on reporting mean that companies must be more responsive in future. Companies must make sure they’re hitting that 14 day deadline and using the new forms PSC1 to PSC9.”
4MLD does not expressly allow for companies listed on prescribed markets to be exempt, only for those on regulated markets such as the main market of the London Stock Exchange. Although Companies House has announced that the FCA’s Disclosure Rules and Transparency Rules (DTR5) exemptions are changing, it’s still not clear what the impact will be on AIM companies.
“AIM-listed companies need to keep watching to see what is decided. It may be that AIM retains the exemption, for example by being included as a Schedule 1 market, but if not, AIM companies will have to get procedures in place to comply with PSC as well as DTR5” says Paul.
To speak to Paul regarding company law matters call him on 01892 526 344 or email email@example.com
*The PSC regime was designed to combat corporate crime, by making it easier to find out who is controlling a company as part of a global initiative to tackle misuse of company structures. The EU’s Fourth Money Laundering Directive requirements requires member states to hold a central register showing current corporate beneficial ownership. The PSC register provides the central register, but this change on notification procedures is required to comply with the requirement that the register be ‘current’.
The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.