PSC Register—impact on lending and taking security
Published by a LexisPSL Banking & Finance expert
Last updated on 27/07/2020

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • PSC Register—impact on lending and taking security
  • Overview of the PSC register regime
  • Background and applicable legislation and guidance
  • Which entities should maintain a PSC register?
  • Which entities should be recorded on the PSC register?
  • How promptly should a PSC register be updated?
  • Obligations of companies
  • Obligations of PSC/RLEs, warning and restrictions notices
  • Summary of risks and considerations for finance parties
  • When might a lender or secured party fall within the PSC register regime?
  • More...

PSC Register—impact on lending and taking security

Introduction

This Practice Note looks at the potential impact on lenders and secured parties (finance parties) of the requirement on certain entities under Part 21A of the Companies Act 2006 (CA 2006) to maintain a register of people who own or control that entity (PSC register).

The Practice Note starts with an overview of the most relevant aspects of the PSC register regime from a finance party's perspective before providing:

  1. a summary of considerations and risks for finance parties

  2. an explanation of when a finance party may fall within the ambit of the regime

  3. the risks to secured parties of the service of a restrictions notice and how to mitigate such risks, and

  4. some developments to look out for

Overview of the PSC register regime

This section provides a brief overview of the PSC register regime, highlighting the key areas that lenders should be aware of and focusing on the requirements for companies as set out in the CA 2006. For detailed information, see the materials set out in: Disclosure of beneficial ownership—overview.

Background and applicable legislation and guidance

The framework of the PSC regime, which originally took effect on 6 April 2016, is set out in CA 2006, Pt 21A, as originally inserted by Schedule 3 of SBEEA 2015. The primary legislation is supported, for companies, by the Register of People with Significant

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