The PSC (Persons with Significant Controls) Register is set to replace the current annual return form as of June 2016. As this will be on public register via Companies House, organisations should inform all everyone’s details which will appear on the register prior to submitting their details.
This should be fairly easy for smaller companies who have a simple governance structure, however those with links to foreign entities or involvement with private equity may find it takes longer to identify and compile the required information. Find out more in the ‘What do You Need to Do’ section below.
What You Need to Know about the PSC Regime
On 6th April 2016, there are to be changes to the Companies Act 2006. This will present a New PSC Regime, which will need unlisted UK Companies to take practical steps in order to identify those people with significant control over them, and to record their details in a new statutory register (known as a PSC register).
As of June 2016, organisations will have to store this information on the public register at Companies House. This is due to become part of the new annual confirmation process (which will replace the current annual return).
The PSC Regime has an aim to increase clarity around who owns and controls UK Companies; it is also part of a wider global initiative to block the criminal misuse of companies.
What do You Need to Do?
On 6th April 2016, companies bound by the PSC Regime must have a PSC register which includes details of identified Persons with Significant Control’s (PSC’s) (to the extent that they hold confirmed information) and registrable RLEs, and/or a statement (in the prescribed form) that they are taking reasonable steps to find out if they have any.
Companies with links to foreign entities or involvement with private equity should consider taking some preliminary steps; The Government recommend that the company officer:
Identifies the people with significant control (PSCs) over the company and confirm their information (see paragraph 9);
Record the details of the PSC on the company’s own PSC register;
Provide this information to Companies House as part of the annual Confirmation Statement (formerly the Annual Return); and
Update the information on the company’s own PSC register when it changes, and update the information at Companies House when the next Confirmation Statement is made.
Need Extra Guidance?
You can find more information with the draft guidance that The Government has published to help companies understand and comply with the PSC regime, which also contains sample notices for requesting PSC information. Which can be found here: https://www.gov.uk/government/publications/guidance-to-the-people-with-significant-control-requirements-for-companies-and-limited-liability-partnerships
Original Author: Assent Risk Management