Firms urged to comply with new register

Leading South West law firm Stephens Scown LLP is warning companies and limited liability partnerships (LLPs) that they must complete their register of Persons with Significant Control (PSC) by 6 April – with failure to undertake this being a criminal offence committed by the Company and its controlling officers. 

Introduced under the Small Business Enterprise and Employment Act 2015, the PSC register is designed to record which people own or control a company or LLP so as to provide greater public transparency.  The register will also help combat the issue of shell companies in criminal enterprises.

The register will become an essential document to help inform banks and investors when they are considering investing in a company as well as supporting law enforcement agencies in money laundering investigations.

Companies and LLPs will also need to keep the register up to date whenever there is a change of significant control in the future.

Commenting on the issue, James Keliher, corporate partner at Stephens Scown, said: “This new requirement is part of the Government’s drive to raise transparency in business, to combat criminal activity and to underline the UK’s pre-eminence in clarity of corporate ownership.  It means that companies will need to undertake quite a challenging review of their ownership and control structures. 

"There are five criteria to determine ‘significant control’, which extend far beyond just share ownership; the criteria requires a review of governance documents and thinking about ways in which a controlling influence can be exerted.

“At Stephens Scown, we have created a user friendly process to help answer these complex questions. We have drawn up template registers and can help companies or LLPs anywhere in England and Wales to prepare theirs easily.”

Stephens Scown can prepare a standard PSC register for £250 including VAT.

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Stephens Scown has over 290 staff, including more than 50 partners, across its offices in Exeter, Truro and St Austell. For more information visit www.stephens-scown.co.uk