It’s imperative to stay ahead of regulatory changes that can impact your business operations. With upcoming changes to UK law happening as soon as the 4th March 2024, it’s crucial that you are aware of these changes and how they could affect your business.
We’ve asked Suzy Dawson-Newbury, Director of Governance, Risk and Compliance, to outline everything you need to know so that you’re prepared.
Take it away Suzy
The Economic Crime and Corporate Transparency Act will introduce a number of changes over the next few years.
These changes are poised to have a significant impact on businesses operating within the UK, and it’s essential that your organisation is fully prepared to comply with these new legal requirements.
Below I’ve outlined the new measures and key areas of changes, as well as my top tips for how to adapt to regulatory change.
Enhanced quality of data and Confirmation Statement Changes
From the 4th March 2024 Companies House will use greater powers to query information, implement stronger checks on company names, and enforce new rules for registered office addresses.
As such, all companies will be required to provide a registered email address, confirm the future purpose of the company will be lawful and provide an appropriate registered address, with PO box addresses no longer satisfying the new requirements. This will be done when submitting Confirmation Statements or on incorporation.
Identity Verification
Individuals setting up, running, owning, or controlling a company in the UK will be required to verify their identity, emphasising the need for robust identity verification processes within organisations. More information on how this process will work is due to be released in the coming months.
Streamlined Accounts
Companies will have to transition towards filing accounts through software only, along with changes to small company accounts filing options. These changes will be phased in over the next 2 /3 years.
Companies House Fees and Data Protection
Increased Companies House fees will take effect from 1st May and will reflect new future expenditure considerations, ensuring that costs are recovered from existing expenditure.
Furthermore, over the next 2 years individuals will gain the ability to apply to suppress personal information from historical documents and protect their personal information from public view due to potential risk of harm.
Limited Partnerships and Transparency of Company Ownership
Limited partnerships will need to file their information through authorised agents and provide additional shareholder information. Secondary legislation to be implemented before this can be rolled out. Additionally, restrictions on the use of corporate directors will be imposed to improve transparency of company ownership.
Strengthened Investigation, Enforcement, and Data Sharing
Companies House will be equipped with more effective investigation and enforcement powers, including new abilities to share data with law enforcement agencies and other government departments, underscoring the heightened focus on safeguarding data integrity and ensuring compliance.
Adapting to Regulatory Changes
In light of these upcoming regulatory changes, you must proactively adapt to ensure your business is compliant and mitigate any associated risks. Some ways to do this include:
- Assessing the impact of the regulatory changes on your organisation’s data management, identity verification, and filing processes.
- Making changes to registered addresses where appropriate.
- Implementing robust identity verification procedures to meet the new requirements for company owners and controllers.
- Reviewing and adjusting accounts filing procedures to align with the transition toward software-only filing.
- Ensuring that the company’s confirmation statement process adheres to the new requirements for registered email addresses and lawful future activities.
- Reviewing partnership filing processes and shareholder information to comply with the revised regulations.
If you require any further information or help with any of the points raised in this article, please fill out the contact form below and one of our experts will be in touch.
