Persons of Significant Control: the changes
The need to inform Companies House of Persons of Significant Control (PSC) was introduced in 2016. Now there's a change in the rules about the way PSCs are reported.
If there are any changes to 'beneficial ownership' of a firm - that's people that may, in some way, benefit from shares or other involvement - the company must now inform Companies House soon after the change occurs. The company will no longer be required (or permitted) to report information about PSCs using the annual Confirmation Statement.
Most significantly, there are important changes to reporting deadlines which must be met to avoid the company Directors facing a possible criminal conviction:
- If a company has reasonable cause to believe an entity has ceased to be a PSC, or that the details of a PSC have changed, they must contact the person to confirm the change within the following 14 days (the previous deadline was “as soon as practicable”)
- On receiving confirmation of a change of beneficial ownership (due within a month, as before) the firm must update the PSC register within the following 14 days (no grace period was given in the previous regime);
- Firms that have not chosen to keep their PSC register at Companies House must notify the Registrar within the following 14 days after the register has been updated (no deadline applied previously)
There are also a few changes to the Companies House forms relating to PSC. For example, the Confirmation Statement form has been modified, with the section asking for details of current PSCs removed entirely from the “additional information” supplement.
Firms only need to confirm that the PSC information (along with most other company data) held at by the Registrar was accurate at the time of the Confirmation Statement.
To find out more about PSC reporting and how to stay on the right side of the new rules, contact NWNBlueSquared.