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Regulations introducing important changes to the regime relating to people with significant control over a company have recently come into effect.

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Important changes to the PSC regime

19 July 2017

Regulations introducing important changes to the regime relating to people with significant control over a company have recently come into effect.

The purpose of the amendments is to bring UK law into compliance with the EU’s Fourth Money Laundering Directive. Because the Directive had to be transposed by 26 June, and Parliament was dissolved between 3 May and 21 June for the general election, the new legislation has been brought into force at very short notice: the Information about People with Significant Control (Amendment) Regulations 2017 were made on 22 June, laid before Parliament on 23 June and came into force on 26 June.

The changes are as follows:

  • The PSC regime now applies additionally to companies listed on prescribed markets, including AIM and NEX, to unregistered companies and to Scottish limited partnerships. Such entities must comply with their PSC obligations by 24 July 2017. A Scottish limited partnership may now be a registrable relevant legal entity in relation to a UK company.
  • Where a company needs to send notice to a registrable person or relevant legal entity relating to a relevant change in their required particulars, it must send such notice within 14 days of becoming aware of the change. If a company already has a duty to give such notice, it must do so by 9 July 2017.
  • A company must update its PSC register within 14 days of becoming aware of any change. Where confirmation by a registrable person is needed, it must update the register within 14 days of confirmation.
  • A company must file any changes to its PSC register at Companies House within 14 days of updating the register, using forms PSC01 to PSC09 as appropriate.
  • The Registrar of Companies may now disclose secured PSC information to credit institutions and financial institutions.

These changes are a significant development of the PSC regime and will require many companies to take action in short order. Any company where there have been changes to its PSC position since its last confirmation statement was filed must enter those changes in its PSC register by 9 July 2017 (subject to confirmation of changes to the required particulars of any individual registrable person) and then file the changes at Companies House within 14 days (so by 23 July at the latest).

For further information, see our longer article here. The government’s updated guidance may be found here.

This article was written by Brendan Biggs.