News Alert: Companies House Issues PSC Update
Many of you will be aware that UK companies are now required to hold a record of persons or entities who exercise significant control in relation to that company.
These persons or entities are referred to as PSCs (persons with significant control) or RLEs (relevant legal entities).
As part of these relatively new requirements, companies must file a statement annually at Companies House containing certain prescribed information about their PSCs and RLEs. This is known as a confirmation statement (Companies House form CS01) and it replaces the former requirement to file an annual return. Companies are also required to notify Companies House when there are changes to the details of their PSCs or RLEs, including, for example, where their personal details or the nature of their control has changed.
It appears that some companies are still getting to grips with completing the form CS01 and other notification forms. In its business plan for 2018 - 2019 Companies House have said that it will start contacting companies directly where it 'believes they have misunderstood the requirements', to ensure that appropriate corrections and updates are made to the information held, where necessary.
Directors should be aware that breaches of the PSC and RLE record requirements can give rise to various criminal offences and appropriate sanctions against a company and its officers, including fines.
Those concerned as to whether they have complied with the requirements should take this opportunity to review their internal records and Companies House filings. Where areas of non-compliance are found, companies should consider what corrective steps should be taken, including whether additional or secondary filings should be made at Companies House, and seek out professional support in doing so.