Government response to new beneficial ownership register of overseas companies

The government has released its response to the call for evidence on proposals for a register showing beneficial ownership of overseas companies and other legal entities that own UK property or participate in UK government procurement. The document sets out how the government plans to implement the register in the light of responses received and views gained through the wider consultation process. It also outlines how policy proposals have developed since April 2017. The government plans to develop legislation to create the new register publishing a draft Bill for scrutiny in summer 2018 and intends that the register will be operational in 2021.

The government proposals include that:

1. all legal forms which can hold properties will be within the scope of the new register’s requirements, while ensuring that there is flexibility to permit exemptions for types of entity if this seems appropriate
2. the definition of beneficial owner will be aligned to the definition of people with significant control (PSC) in the PSC regime
3. entities that are not similar to UK companies limited by shares should use the adaptations listed in the call for evidence to identify their beneficial owners
4. there should be a system of statutory restrictions and putting notes on the land register, backed up by criminal offences, in order to ensure compliance.

For further information, see LNB News 23/03/2018 57.

Financial Reporting Council prioritises update of UK Corporate Governance Code in three-year strategy

The Financial Reporting Council (FRC) has published its three-year strategy for 2018–2021, outlining its priorities including a comprehensive update of the UK Corporate Governance Code