Although I have two Ltd Companies (at different addresses) I haven't been notified by Companies House, so I wonder how many Companies are blissfully anaware that this is now law.
I only found out the other day when reading something on aweb.
-- Edited by Leger on Friday 8th of April 2016 01:20:44 PM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi John
I have seen something on this but couldnt recall where initially, but then I remembered a client throwing a letter at me back in late summer last year. It was a letter from Companies House inviting them to attend a seminar about changes to the Companies Act 2006. I didnt get the letter until after the event as is usual with my client, but did have a nosey round to find out what wouldve been covered - was a few small things but also the above. I do recall thinking at the time 'why hasnt my company had such a letter?' but have not had time to follow up on that one!
Thank you for the timely reminder though.
I wonder how many clients actually do have a 'register' ( and I use this in the loosest sense of the word) of legally required information at their registered offices where those offices are not at their Accountants?!!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
this new regulation is really aimed at businesses where the true power behind the thone is invisible. For example a business with a puppet director where the real decisions are made by perhaps a banned director with a loan to the company convertible to shares when their ban on being a director expires.
By law every limited company must already keeps a register of members and share ledger, plus a register of directors available for inspection at any time.
For the bulk of companies pretty much all of the information that you need can be lifted straight from those pages and recorded in a seperate section headed Persons with Significant Control which for most of our companies is unlikely to change year on year.
There is to be a new section in the companies house annual return. I don't think that appears until June so don't know what wording you will need to include yet.
One interesting additional requirement is that the persons nationality and country of residence are required on the new PSC form. Those requirement may in fact hold the key to the real reason behind this additional requirement.
Everything that you need to know is in this leaflet :
When taking on new clients ensure that all of the required information for the PSC is part of your MLR / KYC procedures. For existing clients you may require some additional confirmations on top of information that you already hold.
For anyone thinking that they can ignore this new requirement it basically comes under the same remit as MLR. Lifting the warning directly from the PSC guidance :
"Failure to provide accurate information on the PSC register and failure to comply with notices requiring someone to provide information are criminal offences, and may result in a fine and / or a prison sentence of up to two years".
In this case the responsibility lies with the director of the company although failure by the bookkeeper / accountant to properly advise their clients could result in professional body disciplinary procedures and possible legal action by clients so ensure that advice is provided in writing and kept with your clients permanent file.
Many thanks for the timely prompt John. Sorry that I didn't respond earlier but it's been one of those weeks so beyond scanning for spam I've not been too active on the site.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
this new regulation is really aimed at businesses where the true power behind the thone is invisible. For example a business with a puppet director where the real decisions are made by perhaps a banned director with a loan to the company convertible to shares when their ban on being a director expires.
By law every limited company must already keeps a register of members and share ledger, plus a register of directors available for inspection at any time. You can lead a horse to water and all that. (plus I shouldve said Registered or 'Sail' address)
When taking on new clients ensure that all of the required information for the PSC is part of your MLR / KYC procedures. For existing clients you may require some additional confirmations on top of information that you already hold. I had thought that peeps wouldve sought to complete KYC on the PSC already, although maybe thats just part of my old Corporate banking bit where we had to do that for.
Hi Shaun
Thanks for the leaflet - thats certainly a useful document to send to clients rather than trying to re-invent the wheel so to speak.
-- Edited by Cheshire on Saturday 9th of April 2016 02:19:22 PM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Whilst I am happy to inform the client and do the work needed, I'm not sure the bookkeeper/accountant could be blamed if they didn't advise their clients about it. It's a Director responsibility not an accounting one, imo.
Hi Joanne. Good point about doing MLR checks on the Shareholder. I'd not considered it but not needed to yet, as the Directors and Shareholders are the same in the ones I do.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I use Inform Direct as a free tool for reminders for filing company accounts/annual returns. There is a facility on there, again free, to fill in the PSC for each company. This covers the legal requirement to keep the record. Just thought I'd let you know, in case its of any use to anyone. I'm thinking of subscribing to the site as there are a lot more facilities, but as a free tool, I've found it really useful, just as a reminder prompt, especially during busy times.
