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By Nicola Ferriday
Assurance and Advisory Head of Department, Charities and Not-For-Profit
Posted on: 19 May 2016

People with Significant Control Register

PSC Register

We wanted to remind you of the changes that have become effective following the Small Business, Enterprise and Employment Act receiving Royal Assent in March 2015. The changes being introduced throughout 2016 will impact the legal requirements for business submissions, information filed with Companies House and the processes and systems businesses utilise.

People with Significant Control Register

The first change requires all companies, LLPs and SEs to keep a register of individuals who have significant control from 6 April 2016.  This is known as the “Register of People with Significant Control” or “PSC Register”.

The PSC register has been introduced to help increase transparency over who owns and controls UK companies; help inform investors before investment; and support law enforcement agencies in money laundering cases.

What is ‘significant control’?

An individual who is deemed to have ‘significant control’ will meet one or more of the conditions:

  • Owns more than 25% of the company's shares
  • Holds more than 25% of the company's voting rights
  • Holds the right to appoint or remove the majority of directors
  • Has the right to, or actually exercises significant influence or control
  • Holds the rights to exercise or actually exercise significant control over a trust or company that meets one of the first 4 conditions.

What do you need to do?

An officer of the company is required to identify the people with significant control, record the details in the company’s own PSC register and provide this information to Companies House as part of an annual confirmation statement (formally the Annual Return) after 30 June 2016.

The information in the PSC register must be kept up to date. Failure to provide accurate information is a criminal offence which can result in fines and / or imprisonment.

The register needs to be held at your registered office or your single alternative inspection location (SAIL) should you complete your own annual return, and be available for inspection on request. If your business’ registered office or SAIL is your accountants’ office, you can request that your PSC register is maintained there.

What information should be included on the register?

Individuals who are listed on a company’s PSC register need to disclose their name, service address nationality, date of birth and residential address. They are also required to disclose the nature of the control they exercise.

Confirmation Statements

Here it is worth noting that from 30 June 2016, the Annual Return will be replaced by the ‘Confirmation Statement’. With the new format, you will be able to check and confirm the company information held and update the information as many times as necessary in a year.

 

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Nicola Ferriday
Assurance and Advisory Head of Department, Charities and Not-For-Profit

Nicola made a conscious decision after qualifying in 1980 to work exclusively with charities and other ‘not for profit’ organisations. She joined Myers Clark in 2007 to lead the Charities and Not for Profit team and now has over 30 years’