Businesses across the West Midlands are being reminded that they now have new deadlines in which to inform Companies House of any changes to their ownership.
The legislative change, which comes as a result of the EU Fourth Money Laundering Directive (4MLD), and introduced last year as part of the Small Business, Enterprise and Employment Act 2015, means that all unlisted UK companies and LLPs must identify “People with Significant Control” over them, and record their details in a statutory register.
Kam Johal, Partner in FBC Manby Bowdler’s Corporate Department, explains:
“Until now, any changes to the People with Significant Control (PSC) register could be notified annually using the company’s annual CS01 confirmation statement. From now on, however, the change needs to be updated on the firm’s PSC register within 14 days and a further 14 days are allowed to send the information to Companies House.
“Simply, these changes to reporting within the PSC regime mean that companies must now be far more responsive and quicker to inform Companies House.”
The PSC regime was designed to combat corporate crime, by making it easier to find out who controls a company and was introduced as part of a global initiative to tackle misuse of company structures.
Kam concludes with a warning to certain listed companies to also be aware of the legislative changes:
"Whilst listed companies were exempt from the PSC regime due to their reporting requirements with the Financial Conduct Authority, the changes introduced by 4MLD may mean that AIM-listed companies lose their exemption. This is because 4MLD only expressly allows exemption for companies on regulated markets such as the main market of the London Stock Exchange."
"Simply, any AIM-listed companies need to keep a close eye on what is decided and be prepared to act accordingly."
For more information regards company ownership and the PSC regime, please contact Kam on 01902 578068 or firstname.lastname@example.org