LLPs to keep PSC register according to new Government consultation

Written on 14 Jul 2015

All limited liability partnerships (LLPs) will be required to hold a people with significant control (PSC) register from January 2016, the Government confirmed in its latest consultation on implementation of the PSC register regime. Companies had already been preparing to hold their own PSC registers from January 2016, but the Government had not previously set a date for LLPs. You can find further details about the PSC regime at our dedicated PSC hub.

The consultation also sets out proposals affecting:

  • Scottish limited partnerships: The PSC register regime will be extended to Scottish Limited Partnerships, and other types of UK legal entities, with effect from June 2017 as a result of the UK’s implementation of the EU’s Fourth Money Laundering Directive.
  • Foreign limited partnerships: Where a PSC is a foreign limited partnership, the PSC register is only intended to capture people who have the ability to control the management of that limited partnership (such as a general partner). The Government will be setting out the characteristics of those foreign limited partners who will NOT need to be registered as a PSC in yet to be published regulations. A carve out is already in place for PSCs which are UK limited partnerships.
  • UK companies listed overseas: Companies listed in the UK (whether on the Main Market or AIM) will be exempt from the requirement to keep a PSC register because they already have to disclose detailed ownership information under Chapter 5 of the Financial Conduct Authority’s Disclosure Rules and Transparency Rules (DTR 5). The latest consultation proposes to extend this exemption to any company that has voting shares admitted to trading on a regulated market in any EEA state, as they will be subject to requirements equivalent to DTR5. However, this leaves UK companies listed in other jurisdictions (e.g. on the NYSE or NASDAQ) facing the prospect of complying with the full PSC regime.
  • Individuals who wish to maintain their privacy: The Government has confirmed that individuals will only be able to apply to have their information kept off the public register when they are at serious risk of violence or intimidation. Individuals who wish to maintain their privacy will need to put measures in place in advance of the January 2016 implementation date.