Updates to Companies House rules on identity verification and authorised corporate service providers
The Registrar of Companies House has recently published rules pursuant to new regulations enacted under the Economic Crime and Corporate Transparency Act 2023 (ECCTA), Kerry Southworth, associate solicitor in our corporate team, and Charlie Mather, solicitor in the regulatory and compliance team, look at the new identity verification regime in more detail.
The new rules will affect new and existing company directors and persons with significant control (PSCs), as well as professionals, including accountants and insolvency practitioners, submitting documents to Companies House on their behalf.
Upcoming changes
Following the introduction of enhanced corporate duties and extended enforcement powers relating to Companies House, the new identity verification requirements are designed as a further step towards promoting a more transparent and accountable business environment in the UK, and preventing and deterring economic crime.
Under the new regime, individuals required to verify their identities, including directors and PSCs, must do so either directly via Companies House, or via an Authorised Corporate Service Provider (ACSP).
It is anticipated that the requirements for individuals to verify their identities will come into force in the autumn this year.
In the meantime, eligible individuals and businesses that carry out identity checks will be able to apply for ACSP status. This was due to take effect on 25 February, but the launch of the ACSP registration service has been delayed.
Individuals are due to be able to voluntarily verify their identities with Companies House from 25 March, although with the delay of the service launch of ACSP registration, the launch of the voluntary verification service may also be delayed.
ACSP eligibility
Individuals and businesses that carry out identity checks on their clients under the authority of an anti-money laundering supervisory body, including the ICAEW, IAB and IPA, will be eligible to apply to become an ACSP, subject to verification of their identity or the identity of a senior individual within the business, such as a director or a partner.
As a part of the registration process, applicants will be required to provide information about the business, including the registration number with the relevant supervisory body, and pay the £55 registration fee.
Legal requirements for ACSPs
Under the new regulations, ACSPs are subject to strict legal requirements, including a duty to notify Companies House within 14 days of any changes to the information it holds pertaining to the ACSP.
An ACSP that breaches the legal requirements may commit a criminal offence and could have its ACSP status suspended or revoked. Depending on the offence, criminal liability could also extend to all of the officers of the ACSP, including all directors or partners.
Harrison Drury’s corporate and regulatory teams can provide you with advice on what you should do if you want to register as an ACSP, and how to stay compliant with the new identity verification regime. If you need support, please get in touch on 01772 258 321.