BEIS Consultation on extension of Persons with Signifcant Control (PSC) regime: Implementation of Fourth Money Laundering Directive (Market Message)
The Department for Business, Energy & Industrial Strategy has published a discussion paper in relation to the requirement under the Fourth Money Laundering Directive for Member States to maintain a central register of corporate beneficial ownership information. Although the UK already has a central register of this kind from the PSC regime, the requirements of the Directive are not mirrored in UK Legislation.
In particular the UK legislation took the view that legal entities already subject to equivalent reporting standards should not be subject to the new requirements. The UK legislation, therefore, exempts UK companies admitted to trading on UK regulated markets, such as the London Stock Exchange Main Market, or prescribed markets such as the Alternative Investment Market (AIM), and the ICAP Securities and Derivatives Exchange (ISDX) Growth Market, as well as UK and non-UK entities admitted to trading on other regulated markets in the European Economic Area (EEA) or on certain markets in Japan, the USA, Switzerland and Israel.
The Directive allows an exemption to its beneficial ownership requirements for companies listed on regulated markets but does not expressly also exclude those listed on prescribed markets, regardless of the nature of existing disclosure requirements. BEIS are, therefore, considering that it may be necessary to bring companies listed on markets, such as AIM and ISDX, within the scope of UK PSC register as part of the UK's implementation of the Fourth Money Laundering Directive.
ISDX proposes to respond to the consultation and would appreciate your views on the impact of this and potential transitional arrangements to inform our response and assist BEIS in their further consideration of this point. Interested parties are of course welcome to make their own direct response to the BEIS Consultation, but we believe that a consolidated view from the market operator of the views of participants would be welcomed by BEIS. As the consultation closes on December 16th we ask that any submissions to us are received by Friday 9th December.
The two relevant questions posed by BEIS are as follows: A. What would be the potential costs and benefits of companies on UK prescribed markets also having to comply with UK PSC register requirements from June 2017? Please provide evidence where possible. B. If UK companies on UK prescribed markets were to be brought into scope, what transitional arrangements would be necessary or helpful? The full BEIS consultation can be found at; https://www.gov.uk/government/consultations/implementing-the-fourth-money-laundering-directive-beneficial-ownership-register Please send responses to: LDN_ISDX-Regulation@NewCo.Global By 9th December 2016, please include whether your response is confidential or that we may attribute your response publicly.