October 25, 2022 Updating legislation
Whenever any piece of legislation passes through Parliament, the Government, or regulatory bodies concerned, tend to issue a raft of additional information. This helps to translate the legal wording into reality, providing guidance on the processes to be followed in order to meet the requirements of the legislation.
Over time this additional information is refined as questions arise or nuances require clarification. Sometimes these clarifications are minor, at other times they can significantly affect the way in which a piece of legislation translates into everyday actions. For example, on 24th October updated guidance in respect of two important pieces of recent legislation was issued.
The first guidance, in respect of the Register of Overseas Entities, was relatively minor; adding a translation to the information already provided. The second, in respect of the Economic Crime and Corporate Transparency Bill, was more substantial; adding a new factsheet on beneficial ownership and updating the factsheet on crypto-assets legislation. An accessible version of the factsheet in respect to civil sanctions and offences relating to reform of Companies House and limited partnerships was also added.
Minor or more substantial, it is important that those who are potentially affected by the legislation keep up to date with changes. The two pieces of legislation mentioned above could potentially impact not only on a company’s internal workings but also on its relationship with other companies.
In its factsheet on beneficial ownership, the Government highlights the People with Significant Control register which was set up in 2016 with the aim of providing transparency around the ownership and control of UK corporate structures and to help prevent misuse of those structures. It also looks at the Register of Overseas Entities which was set up in 2022 with the aim of helping to combat money laundering and achieving greater transparency in the UK property market. The factsheet answers some of the most common questions surrounding beneficial ownership as well as looking forward to further legislation which is designed to further strengthen the register; areas we touched on in our 27th September article on the Economic Crime and Corporate Transparency Bill.
Keeping up with legislative changes and clarifications can be a time-consuming challenge for company directors. That’s where Elemental can help. We not only keep on top of legislative changes, we also look to help our clients to translate those changes into actions within their own organisations. For example, when the register of overseas entities was launched in 2022 we took steps to ensure we understood the ramifications of the legislation before working closely with clients to help them to identify their beneficial owners and to meet the requirements of the new register.