The Economic Crime and Corporate Transparency Bill (“the ECCT”), which is currently at the report stage in the House of Lords is expected to be passed in Spring 2023.
The Bill will impact UK Company Directors and people with significant control (“PSCs”). Law Debenture is undertaking planning to ensure our clients understand the actions required and how to deliver these once the ECCT becomes legislation, but that at this stage you do not need to take action.
If you are not already aware, once the ECCT becomes legislation additional obligations will arise in relation to verification of the identity of directors and people with significant control (”PSC”), Companies House communication channels, and shareholder disclosures.
In short, our expectation of this new regulation is that any Director or PSC appointed in the future will have to provide documentation to verify their identity, and an exercise will need to be carried out to verify any Director or PSC currently appointed.
Failing to meet verification requirements would constitute an offence, punishable with imprisonment or a fine, or both and have potential implications for a company’s registration.
Law Debenture is monitoring the progress of the ECCT while working with our software partners to understand Companies House requirements with a view to developing a digital solution designed to address related compliance needs for your Company’s Directors and PSCs.
Until the legislation is finalised, no action is required of your Company’s Directors and PSCs. We will continue to keep our clients apprised of the ECCT’s progress and the development of our Director and PSC solution.
Register here to receive updates from LawDeb on required actions and please do get in touch if you would like to discuss anything raised in this communication or would like to understand ways in which Law Debenture can assist you with your director, board and legal entity compliance. As always, our objective is to deliver peace of mind for our clients through our trusted corporate secretarial services.
