The UK government has introduced some significant amendments to the PSC regime (which defines the obligations of People with Significant Control) since June 2016. With the new amendments, information will be collected in a more methodical and an updated manner. Here are some of the notable changes that are implemented to the PSC regime.
- Companies had to mention the changes to their PSC register in the annual confirmation statement prior to this amendment. However, from 26 June 2017, companies in the UK should use a separate set of forms (PSC01 to PSC09 forms) instead of confirmation statement to inform Companies House about those changes.
- Companies that trade shares on AIM and NEX Exchange Growth Market were earlier exempted from sending a PSC update every year. However, as per the new amendments, even those companies should maintain PSC registers and send the updates.
- The amendments encourage different legal entities to be complying with the new rules. Mostly, the unregistered companies that are based in the UK have to change their approach and provide the PSC information to the Companies House.
- The regulations, however, grant some grace period for companies (particularly AIM and NEX Exchange Companies / unregistered companies) to adapt to the new situation. These establishments are given a grace period (which will end by 24 July 2017) to create their PSC registers to comply with the regulations. After the completion of the register, they have further 14 days to file the updated PSC register and send it to Companies House.
- As a measure to impose a practically effective anti-money laundering process, some information will be exposed to credit institutions in the UK. With this measure, the government expects to keep PSC individuals away from money-laundering.
Already, Companies House has taken significant steps to maximize the productivity and preciseness of the data available on each PSC register. In near future, the Companies House will manually filter all the PSC registers with faulty date and contact the respective companies in order to correct them. If anyone notices an issue in the public PSC records, it will be reportable; it will make the information more accurate.
In addition to that, there are many rules and regulations implemented to prevent harmful practices such as all types of money laundering, terrorist financing etc. Also, these implementations provide a new guidance on the UK PSC.
One of the major reasons to introduce this update is to prevent the unethical financial behavior of some people who misuse the company structures. Practically, with the previous regulations, some individuals have formed nominal companies and used them for various corrupted purposes such as tax evasion, money laundering etc. Since such behavior put both customers and the country’s economy at risk alike, an update to the PSC register was a much-needed one. With the new implementation, it is expected that people will use the company structures for legal and ethical processes without causing any trouble on the economy and the peace of the country.