PSC Register: A Reminder!
Although it has been a legal requirement for some time, many companies are still not meeting their PSC Register duties – below is a short reminder of the core legal obligations.
Since April 2016, UK companies and LLPs are required to keep a register of people with significant control (PSC) over them. They are required to identify and record people who own or control the company. The PSC Register helps improve the transparency of who owns and controls companies, will help inform investors when they are considering whether to invest in a company, and also helps to prevent fraud.
Who is a PSC?
A PSC is an individual who meets one or more of the following conditions:
- Holds (directly or indirectly) more than 25% of a company’s shares
- Holds (directly or indirectly) more than 25% of the voting rights
- Has the right (directly or indirectly) to appoint/control the majority of the board
- Has the right to exercise, or actually exercises, significant influence or control over a company
- Has the right to exercise, or actually exercises, significant influence or control over a trust or firm which itself satisfies at least one of the above conditions
What does a company need to do?
An officer of the company needs to:
- Identify PSCs and confirm their information
- Record the details of this person on the company’s PSC Register within 14 days
- Provide this information to Companies House within a further 14 days
- Update any changes to the company’s PSC Register within 14 days, then update Companies House within a further 14 days
- Confirm to Companies House that the information on the public register is accurate, where it has not been updated in the previous 12 months
What information needs to be recorded?
Each of the following needs to be recorded:
- Date of birth
- Country, state or part of the UK where they usually live
- Service address
- Usual residential address
- Date they became a PSC in the company
- Which conditions for being a PSC the individual meets
- Whether an application has been made for their information to be protected from public disclosure
The company is required to take reasonable steps to contact PSCs and confirm their information for the register. Failure to provide accurate information on the PSC Register, and failure to comply with notices requiring someone to provide information, are criminal offenses and may result in a fine and/or a prison sentence of up to two years.
Rebecca Jones, Trainee Solicitor