NEWS EXTRA


or authorised persons to file information. New processes are proposed for sensitive information to be protected. Proposals to allow directors some additional rights to suppress their information from public view have also been set out. Information on the register should be of real, practical use to those who wish to find out information about those taking advantage of the privilege and protection of limited liability. At the same time, it is recognised that information on the register should not become a tool for abuse and so information of a sensitive personal nature will not be made publicly available. Ensuring compliance, sharing intelligence, other measures to deter abuse of corporate entities Companies House data on UK corporate bodies could be improved through cross checks against data held by other government and private sector bodies. The government wants to see the exchange of intelligence made easier in order to enable greater sophistication in identifying possible criminal behaviour. This will lead to faster identification of anomalies between data at Companies


House and elsewhere. It will deliver a more effective link between different company records on the register and provide those searching the register with faster access to better information.


Also sought were views on several related measures that might deter abuse of UK legal entities, including ending the business activities of limited partnerships which are being misused, imposing limits on the number of directorships any one individual can hold, disclosure of banking information and action to deter misuse of company names and addresses.


The proposals set out, in high level terms, how Companies House will work with other agencies to ensure compliance and take action against offenders.


It also proposes a range of additional measures to further deter abuse of UK-registered corporate entities.


The routine cross-checking of information on the companies register against external data sets, and powers to obtain feedback from obliged entities on discrepancies identified, is proposed alongside adopting


September 2020 www.buildersmerchantsjournal.net


a risk-based approach to the sharing of intelligence with law enforcement agencies and requiring companies to provide details of their bank account.


Implementation The proposals in the consultation, if implemented in full, would amount to the most significant reform of the UK’s company registration framework since a register was first introduced in 1844 and go to the core of the Companies Act. There are significant implications for Companies House operating model and approach. All of the services it provides will need to be modernised and transformed to provide a better service to customers.


There will be an impact on the fees levied by Companies House, though the government fully expects them to remain very low by international standards. Transformation will touch every aspect of Companies House’s work, covering both customer- facing and internal digital systems.


On completion of the programme Companies House will be a truly digital organisation, inside and out, its services will be


simple and easy to use, allowing customers to interact with it using the latest technology. It will be better able to respond to broader challenges and adapt to changing needs.


This, in turn, will mean Companies House is able to better support wider government policy on corporate transparency and tackling financial crime. As they say, it is always better to aim for the stars. Making the UK a better, safer place to do business is an excellent and worthwhile ambition, the hope has to be that the watchdogs who will be manning the fort at Companies House will not be toothless and will have the wherewithal to help keep the majority safe. BMJ


Peter Windatt is an accountant and licensed insolvency practitioner at BRI Business Recovery and Insolvency. He has been involved in the regulation of the profession for many years and represents his professional body in many aspects of the insolvency profession.


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