Every company must maintain a register of people with significant control (PSC). From 26 June 2017, any changes will have to be notified to Companies House (CH) differently. What do you need to know?

 

On the record. Since 6 April 2016 it has been mandatory for all companies to maintain a register of people with significant control (PSC). A company’s PSC information must also be filed with Companies House (CH) in the company’s annual confirmation statement – this is the document which replaced the now defunct annual return. We looked at PSC registers and the information which must be included in them in April 2016 ( yr.17, iss.14, pg.3 , see The next step ).

 

Updating details. On 26 June 2017 there will be an important rule change that affects PSC registers. From that date a PSC register won’t be updated via the annual confirmation statement. Instead, your company will need to inform CH whenever there’s a change of PSC information. Depending on the circumstances, you will need to use Forms PSC01 to PSC09 (see The next step ). You will have 14 days to update your PSC register and a further 14 days to send the new information to CH.

 

The consequences? These improved PSC transparency changes are required under the EU Fourth Money Laundering Directive which aims to prevent money laundering and terrorist financing. Where a company fails to accurately maintain its PSC register, the directors will commit a criminal offence which is punishable by a fine and/or two years’ imprisonment. So you really shouldn’t ignore this important legal requirement.

Tip. This change does not remove the legal requirement for a company to file an annual confirmation statement; updating PSC information in the timescales above is additional to that legal requirement.

 

Reproduced with the permission of Indicator – FL Memo Limited. For subscription information call 01233 653500;

http://www.indicator.co.uk