Persons with significant control - PSC's; Company obligations and Forms
Anti Money Laundering
- Anti Money Laundering
- Form PSC01 Notice of individual person with significant control (PSC)
- Real time information RTI for Persons with significant control PSC’s – the Fourth Anti Money Laundering directive From 26 June 2017
- Companies are required to inform Companies House on forms PSC01 to PSC09 whenever there is a change.
Most usual changes;
- Changes in shareholder address and basic details etc.
- New shareholder owning more than 25% of the share capital or more than 25% of the voting rights.
- more than 25% but less than 50%
- more than 50% but less than 75%
- more than 75%
- Changes in the percentage ownership band of an existing shareholder.
- Where there are no shares:
- Company limited by guarantee.
- Limited liability partnership.
- The same principles apply according to voting rights.
- Also applicable to a person who:
- Holds the right, directly or indirectly, to appoint or remove a majority of the board of directors.
- Has the right to exercise, or actually exercises, significant influence or control over the company.
- Significant influence or control provisions mean that related parties share capital and voting rights need to be agregated for PSC reporting.
- Also applicable to individuals with control over shares and voting rights owned by trusts.
- Also applicable to individuals with control over shares and voting rights owned by partnerships or other firms.
What normally applies:
- File form PSC01 for new individual PSC.
- File form PSC04 for change of individual's details.
- File form PSC07 for ceasing to be a PSC - All entities.
- See full list of PSC forms below.
Joint Shareholders and trustees where there is trust ownership:
- Each joint shareholder is taken to hold the entire shareholding in their own right for PSC purposes.
- If The Trust is a PSC:
- Each trustee is taken to hold the entire shareholding in their own right for PSC purposes.
- So where joint holdings apply, the total of PSC's may exceed 100%. This is correct according to the legislation.
- Limited by guarantee.
- Charity-owned trading subsidiaries.
- Significant influence or control could apply to major donors, influential advisors, or founders.
Not applicable to:
- Significant influence or control excludes:
- Directors - acting as employees; who hold less than 25% of shares or voting rights.
- Routine professional advisers.
- Changes have previously been entered on Form CS01 Confirmation statements.
- Your company may not previously have filed a Form CS01 in which case you need to notify existing persons with significant control (PSC's) as at 26 June 2017 on forms, and within the time, for changes as below.
- Companies have 14 days, after any change, to update their PSC register and
- An additional 14 days to submit the information to Companies House.
- Criminal proceedings could result from the non submission or incorrect completion.
- Penalties may be fines; custodial sentences are possible.
Beneficial owners may NOT be:
- Foreign companies unless the foreign company is listed on a stock exchange equivalent to the London Stock Exchange such as the New York Stock Exchange and other well-known exchanges.
- Companies with tax haven addresses.
If you have elected to keep PSC register information on the public register the full date of birth is available for public inspection.
Form PSC01 New individual PSC
Form PSC02 and PSC03 Equivalent forms for significant control by other entities whether or not you have elected to keep PSC register information on the public register.
Form PSC04, PSC05 and PSC06 New individual PSC. Change details forms: Individual, Relevant Legal Entity RLE or Other registerable person ORP, respectively.
Form PSC07 Ceasing to have significant control form. Same form for Individual, Relevant Legal Entity RLE or Other registerable person ORP.
Form PSC08 and PSC09 Notification of PSC statements indicating that a company has taken reasonable steps to find out if there is anyone who is a registrable person or a registrable relevant legal entity (RLE), and if so, to identify them.
Persons of significant control (PSC's) are registrable persons.
There are Tick boxes on Form PSC08 to notify Companies House that:
☐ There is no registrable person.
☐ The company has not yet completed taking reasonable steps to find out if there is anyone who is a registrable person.
☐ There is an identified registrable person for whom details have not been provided.
☐ Section 790D Notice From: The company To: A 'new' registrable person:- Information has been requested from the person but has not been provided by them.
☐ Section 790E Notice From: The company To: An existing registrable person:- Information of change(s) has been requested from the person but has not been provided by them.
There are Tick boxes on Form PSC09 to amend or withdraw previous notifications on Form PSC08.