Important PSC regime changes
Changes to the rules on people with significant control (the “PSC rules”) came into force on 26 June, meaning the new 14 day deadlines for dealing with PSC information must now be adhered to.
The changes to the PSC rules were only laid before Parliament on Friday before coming into force three days later. The convention that a law should not be laid before Parliament fewer than 21 days before it comes into force was not followed in order to meet the deadline set of 26 June and to avoid a fine for late implementation of the new law. The changes, although late to be confirmed, are as expected following earlier announcements when the changes were proposed:
- The PSC rules now apply to unregistered companies, companies listed on UK secondary markets (such as AIM and NEX Exchange), Scottish limited partnerships and certain Scottish general partnerships (basically general partnerships who only have limited company members). To date the PSC rules have only applied to companies, LLPs and SEs. There is a four week compliance grace period for the newly targeted entities.
- Companies and LLPs are now obliged to record changes to information on their PSC register within 14 days of obtaining the information and must file the information with the registrar within a further 14 days.
- Scottish partnerships are not required to maintain a PSC register but must notify information to Companies House within the 14 day timeframe.
- PSC information is no longer noted on the annual Confirmation Statement. Instead, the relevant forms (forms PSC01 to PSC09) must be filed with Companies House as and when there are any changes to PSC information.
These changes mean that:
(i) AIM, NEX Exchange and unregistered companies must start collating their PSC information now. They must keep a PSC register from 24 July and file the information at Companies House within 14 days;
(ii) relevant Scottish partnerships must start collating PSC information now. They must file their PSC information with Companies House by 24 July;
(iii) companies, LLPs and relevant Scottish partnerships have 14 days to send a notice requesting confirmation from PSCs where a PSC’s information changes;
(iv) companies and LLPs that have new/altered PSC information from 26 June onwards must update their register within 14 days of becoming aware of the change and have a further 14 days (from the date they update the register) to notify Companies House; and
(v) companies and LLPs that have new/altered PSC information from before 26 June (basically PSC information that hasn’t been notified on a Confirmation Statement) must notify Companies House before 10 July.
This is a short summary of the changes. We will publish an update when we have reviewed the legislation in more detail.
For more information, contact Cathy Goodman, Corporate Professional Support Lawyer.