United Kingdom: Economic Crime and Corporate Transparency Act
A new set of rules applying to companies’ governance procedures was made law at the end of 2023 and are set out in the Economic Crime and Corporate Transparency Act 2023 (“ECCTA”). The ECCTA is aimed at cracking down further on the abuse of UK corporate structures and tackling economic crime, and its measures will result in several new requirements and changes to Companies House filings for UK Entities.
Key changes and requirements
Whilst the ECCTA is now law, most changes will be introduced over the course of the coming two years through secondary legislation and following significant reform of the systems within Companies House to enable them to discharge their new duties under the ECCTA.
The first changes came into force from 4 March 2024. They relate to:
the enhanced Registrar’s powers (namely, the ability to question information and require more evidence, the ability to annotate the register regarding confusing or misleading information, being able to clean up the register and sharing information with other government departments or law enforcement agencies);
the changes to registered office addresses and the introduction of new email addresses;
stronger checks on company names; and
requirement for all companies to confirm they are forming the company for a lawful purpose when they incorporate, and to confirm its intended future activities will be lawful on their confirmation statement.
The rules will apply to private companies, public companies, limited partnerships as well as other kinds of corporate entities. In addition, the ECCTA currently includes additional provisions applying to the registration of overseas entities, the use and management of crypto assets and anti-money laundering powers.
Each organisation will need to consider the wider implications of these corporate reforms to ensure compliance with the new legislation and clear communication to stakeholders. Overall, there will be changes to the way in which organisations interact with Companies House and how the information of the business and its senior management/ beneficial owners is transmitted and reported. Further detail regarding the impact of these reforms will follow as the ECCTA is gradually rolled out.
To learn more about the ECCTA, how it might impact your company and actions that may help companies to prepare we encourage you to review the article ECCTA 2023 – Five practical actions.
How can we help?
Computershare is dedicated to staying ahead of regulatory changes and helping our clients ensure compliance throughout the progress of the legislation through Parliament. The above referenced article sets out the various ways in which we are able to support clients with preparing for and complying with ECCTA. Our team of experts are also available for support with practical and detailed advice as needed.
Additionally, Computershare’s Global Entity Management System (GEMS) supports electronic filing to Companies House, allowing you to use the system as your single source of truth while also easily keeping on top of your filing obligations from within the system.
Following these latest changes from the ECCT bill GEMS now supports storing of a Registered Email address for all your entities and submissions along with your Confirmation Statement or Electronic Incorporation, as well as supporting the new statements for Lawful Purpose and Appropriate Addresses.
We will provide further updates once the changes are finalised, together with how we can support companies with the implementation.
Contact:
Please contact your dedicated Computershare Relationship Manager or send an email to globalentityservices@computershare.com for more information about how Computershare may assist you in responding to these new requirements.
This notice is provided by Computershare for general informational purposes only and is not intended and should not be construed as legal, regulatory, financial or tax advice. Computershare is not licensed or authorized to practice law in any jurisdictions and hence does not provide any legal advice and it does not hold itself out as doing so. Neither Computershare nor any of its affiliates or contributors accept any responsibility or liability for the quality, accuracy or completeness of any information contained in this notice. It is important that you seek independent professional advice relating to the subject matter of this notice before relying on it.