From tomorrow (6 April 2016), UK companies and companies that have a subsidiary incorporated in any part of the UK must keep and maintain a new register that records all the people or legal entities that have significant influence or control over it – a register of people with significant control (the PSC register, introduced by the Small Business, Enterprise and Employment Act 2015).
Will your company be exempt?
Quoted companies are exempt – companies obliged to report under DTR 5 (Official List companies and those on AIM and the ISDX Growth Market) will not need to create a PSC register.
However, companies should note that the DTR 5 exemption only applies to the company with traded securities, not each member of the group. It is therefore necessary for each of the DTR 5 company's subsidiary companies incorporated in any part of the UK to prepare and maintain a PSC register.
Where can you find more information?
Edward Craft, Chairman of our Corporate Governance Expert Group and Partner at Wedlake Bell LLP, explains in this article what the new regime means for quoted companies.
Practical Law has published detailed content on the requirement for companies and LLPs to create and maintain a register of people with significant control (subscription only):
- Practice note: identifying people with significant control
- Practice note: completing the register
- Checklist: who must keep a PSC register flowchart
- Checklist: identifying people with significant control flowchart
- Practice note: official wording for a PSC register
- Practice note: statutory notices under Part 21A of the Companies Act 2006
David Hicks, Member of our Legal Expert Group and Partner at Charles Russell Speechlys, details in this article the specific action companies need to take from 6 April 2016.
This article was modified and republished on 20 April 2016 to reflect current guidance.