Economic Crime and Corporate Transparency Bill Third Reading
Scottish and Welsh legislative consent granted, Northern Ireland
legislative consent sought. 5.17pm Motion Moved by Lord Johnson of
Lainston That the Bill now be read a third time. The Minister of
State, Department for Business and Trade (Lord Johnson of Lainston)
(Con) My Lords, following the expedited passage of the Economic
Crime (Transparency and Enforcement) Act 2022, my noble...Request free trial
Economic Crime and
Corporate Transparency Bill
Third Reading
Scottish and Welsh legislative consent granted, Northern Ireland
legislative consent sought.
5.17pm
Motion
Moved by
of Lainston
That the Bill now be read a third time.
The Minister of State, Department for Business and Trade ( of Lainston) (Con)
My Lords, following the expedited passage of the Economic Crime
(Transparency and Enforcement) Act 2022, my noble friend assured the devolved
Governments that they would be closely engaged throughout the
passage of this second Bill. Our officials have been sure to keep
their counterparts in the devolved Administrations informed and
we have met a number of times at ministerial level to discuss key
issues.
As noble Lords will be aware, the Northern Ireland Civil Service
is facing a number of challenges in the absence of the Northern
Ireland Assembly and the subsequent lack of an Executive, one of
which being that it is not possible to engage the legislative
consent process for this or any other Bill. Given the importance
of this Bill, the official level of support for its provisions
and the desire to ensure a united response against economic
crime, we will proceed to legislate for the whole of the UK
without the formal legislative consent of the Northern Ireland
Assembly. We have written to the Northern Ireland Permanent
Secretaries to keep them informed.
However, I am pleased to confirm that on 20 June the Welsh Senedd
voted to grant legislative consent to the Bill. Last week, on the
Scottish Parliament’s last sitting day before the Summer Recess,
the Scottish Parliament also voted to grant legislative consent
to the Bill. I thank colleagues and officials in all three
Administrations for the constructive way in which they have
worked during the development and passage of this Bill to design
measures that will be as effective as possible in tackling
economic crime across all parts of the United Kingdom.
Amendment 1
Moved by
of Lainston
1: After Clause 61, insert the following new Clause—
“Duty to deliver information about exemption from Part 21A
In section 853H of the Companies Act 2006 (duty to deliver
information about exemption from Part 21A), after subsection (2)
insert—“(2A) The statement under subsection (2) must specify— (a)
whether the company falls within the description specified in
section 790B(1)(a) or a description specified in regulations
under section 790B(1)(b), and(b) if it falls within a description
specified in regulations under section 790B(1)(b), what that
description is.””Member’s explanatory statement
A company that is exempt from Part 21A of the Companies Act 2006
(information about persons with significant control) has to
confirm that it is exempt in each confirmation statement. This
new clause would require it to explain why. See the Minister's
undertaking at report stage (20 June, col. 149)
of Lainston (Con)
My Lords, I will now speak briefly to the government amendments,
which deliver on the undertakings I made on Report, first in
response to concerns raised about the robustness of the people
with significant control—PSC—framework and secondly to close a
gap in the register of overseas entities information
requirements. I thank the noble Lord, , in particular, for
raising these issues. I also welcome the contributions of my
noble friend and of the noble
Lords, , , and .
The majority of the amendments fall into the former category of
the PSC framework. I reassure noble Lords that, although the
number of amendments is higher than we might have liked to table
at Third Reading, the majority are minor consequential or
tidying-up amendments, and a lot of the new material is in fact a
refashioning of existing rules to make them work in the new
context of a central register, rather than locally held PSC
registers. These amendments improve this by requiring companies
to collect additional and more useful information, and by
improving the mechanisms through which companies collect the
information and report it to Companies House.
Currently, companies must record various “additional matters” in
the PSC register. The Bill as drafted removed the
regulation-making power through which these additional matters
are prescribed. Amendments 26 and 32 preserve those requirements
in the context of a centrally held PSC register. Amendment 26
means that a company will notify the registrar if the company
knows, or has cause to believe, that a person has become a PSC
but the company has not yet had confirmation from them. Amendment
32 means that a company must give notice to the registrar if it
knows or has cause to believe that the company has no PSC. This
will provide a hook for the registrar to query the statement that
a company has no PSC, if she has intelligence to suggest
otherwise.
The Bill as drafted removed an important measure to ensure that
personal information is protected appropriately. Amendments 14,
17, 20, 22 and 25 ensure that protection mechanisms remain in
place, otherwise a person who is at serious risk of violence or
intimidation could be reported as a PSC without ever knowing,
meaning that they may not have had the opportunity to apply for
their personal information not to be displayed publicly.
To improve accuracy and transparency, and to make it easier to
monitor and prosecute non-compliance, Amendment 1 requires a
company that is exempt from the PSC requirements to explain why
it is exempt in each confirmation statement. Amendment 15
improves existing provisions of the Companies Act 2006 which
require companies to investigate and obtain information about
their PSCs.
Amendments 33 and 34 widen the scope of a regulation- making
power in the Bill so that the power can amend relevant parts of
the Companies Act 2006 and to make consequential amendments to
other parts of the Act. This is to ensure that the legislation is
coherent, by avoiding having similar provisions spread across
primary and secondary legislation.
Amendment 39 creates a reasonable excuse defence relating to the
offence of failing to comply with information notices. This
aligns the drafting of the offences with other similar
offences.
All other amendments are consequential. I hope that noble Lords
will support these amendments.
I turn to Amendment 9. On Report, the noble Lord, , tabled an
amendment seeking to close a gap in the register of overseas
entities’ information requirements relating to overseas entities
acting as nominees. The Government agreed that this gap exists,
and I thank the noble Lord and Transparency International for
bringing it to our attention. The amendment tabled by the noble
Lord was not quite right, but I hope that this amendment
addresses his concerns. It amends Schedule 1 to the Economic
Crime Transparency and Enforcement Act 2022 to ensure that, where
there is a nominee relationship, this is declared. It then
inserts a new definition of beneficial ownership into Schedule 2
to the 2022 Act: “registrable beneficial owners”. I hope that
noble Lords will welcome this amendment and agree that it closes
the gap that we discussed on Report. I beg to move.
(CB)
My Lords, I thank the Minister for these amendments. As he said,
I described at Report the loophole in the register of overseas
entities that allows people to hide the true ownership of UK
properties through nominee arrangements. As the Minister
described, he tabled Amendment 9, as he undertook to do, which
effectively closes that loophole. I am not sure what conclusion
to take from the fact that my original 11-line amendment has
turned into one that runs to three pages—it presumably says
something about my amendment drafting skills—but I am most
grateful.
The other amendments that the Minister tabled relate to the
register of persons with significant control. These new
amendments tighten the rules and will improve the ability to
identify PSCs. In particular, I welcome the requirement for the
information to be filed on a centrally held register, rather than
locally held registers managed by the companies themselves. The
requirement to explain why a company is exempt from the PSC
requirements is also an important improvement.
I was slightly confused as to what happens if a company has
become aware that it has a PSC but the PSC has not yet confirmed
their status or information. Amendment 20 appears to deal with
that situation; it requires the company to notify the registrar
if it knows, or has cause to believe, that a person has become a
registrable person but has not yet had confirmation. However,
that seems to conflict with the explanatory statement to
Amendment 17:
“This means that a company will only need to notify the registrar
of a person with significant control if the person has confirmed
their status and information about them”.
Amendment 20 says that the registrar must be notified of an
unconfirmed PSC but Amendment 17, or at least the explanatory
statement to it, seems to say exactly the opposite. Can the
Minister please explain which is right and how the two work
together? More importantly, can he reassure me that a PSC will
not be able to avoid being notified to the registrar simply by
failing to confirm their status or information.
I put on record that, while I welcome and support the amendments,
I do not believe that they deal with the problem of nominee
shareholders not having to declare themselves as such. The new
amendments are not an alternative to the amendment that the House
passed on Report that required shareholders to state whether or
not they are acting as a nominee, and if so who for. I hope that
the Government will continue to consider that amendment and look
at it favourably in the other place, or at the very least meet
with me and others to see whether we can find a workable
compromise. It should not be possible for bad actors to hide
behind nominees, and there should be consequences for those who
act as nominees to conceal such bad actors.
I am extremely grateful to the Minister and his officials for
their helpful and constructive engagement throughout this
process; they have been extremely generous with their time. In
particular, I thank them for having addressed a number of issues,
including the one we have just talked about, throughout the
progress of the Bill. The level of engagement from all Ministers
involved has been exemplary—if only all Bills were managed so
constructively. I also thank all noble Lords who have been so
generous in their support of the various amendments that I have
proposed. When the Bill started in this House, it was generally
seen to be a good Bill, and I think that it emerges from this
House in even better shape.
(LD)
My Lords, there are times when your Lordships’ House is
confronted with so many Third Reading amendments that it can be
somewhat irksome, but this is not one of those occasions. This is
a useful and helpful response from the Minister and his team to
the debate we had on Report, and for that I thank them.
I reinforce the point made by the noble Lord, Lord Vaux, that
these amendments do not replace those that we passed on Report,
which I similarly hope the Minister and his team will continue to
consider as we go forward.
Transparency of ownership and the registration of overseas
entities are important to this. The point we have made on a
number of occasions about keeping the whole Bill under review and
looking at how it works once it becomes an Act will be vital. It
is clear that we cannot second-guess all the reactions we will
get out there, so having the fluidity and agility to deal with
that will be important.
Although it is slightly confusing, I will offer my thanks and
congratulations at this point, so that I do not do so twice.
First, I congratulate the Ministers on getting legislative
consent so smoothly. For many of the Bills that I have been
working on of late, legislative consent never seems to come.
However, unlike many of those Bills, this is one where all the
House agreed on its objectives, so all we were discussing were
the ways in which we could achieve those objectives. In that
regard, I thank the Ministers for the great amount of time and
effort they have devoted to listening to, and having meetings
with, Members across your Lordships’ House and for seeking ways
of accommodating our helpful suggestions. Particular thanks are
due to the noble Lords, and Lord Sharpe, and the
noble and learned Lord, , as well as the noble Lord,
, and the noble Earl, Lord
Minto, who made appearances in Grand Committee.
Similarly, the whole Bill team, and organisations such as
Companies House, have given up a lot of their time to speak with
us, so thanks should be given to them. There have been many
contributions from the Cross Benches and the Benches opposite. I
will not single out anyone for praise, except to say that it has
been a great pleasure working with everyone on the Bill; I felt
that we were all pulling in the same direction.
I also thank the noble Lord, Lord Ponsonby, and the noble
Baroness, Lady Blake, for their camaraderie on the Bill. I thank
my noble friends Lady Bowles, Lady Kramer, , , and on our Benches. Finally, thanks
go to Sarah Pughe in our Whips Office, who has kept us all in
order.
5.30pm
I hope the Commons and the Bill team take what we have left them
with and, notwithstanding the probable need for some tidying up,
maintain the spirit of the amendments your Lordships have made to
the Bill. Undoubtedly, they will help the Bill bear down on what
we all want to do, which is to rid this country of the
disgraceful scourge of economic crime. I hope we have been able
to contribute to that process.
(Lab)
My Lords, I thank the Minister for his letter on the amendments
tabled at Third Reading; it was very much appreciated. All of us
involved fully understand the importance of transparency of
ownership in Companies House and the register of overseas
entities, issues we have revisited many times throughout
consideration of the Bill.
Ensuring that complex, opaque structures cannot be built to hide
economic wrongdoing is central to what we need this Bill to do. I
appreciate the approaches taken in working with colleagues across
the House to make sure that this important and complex Bill is as
effective as possible at preventing economic crime and enforcing
consequences for those who commit or facilitate it. However, as
we have heard, other areas of the Bill need to be changed, as
this House has agreed and as the noble Lord, Lord Vaux, noted,
particularly through his own amendments. I hope that Ministers
will also hear those points as the Bill heads back to our
colleagues in the other place.
I thank all the officials, whose diligence, work, unfailing
response and willingness to talk to us throughout has been
exemplary. I thank the Ministers for their patience and
commitment to working with all parties across the House, in
particular the noble Lords, and Lord Sharpe, and the
noble and learned Lord, . We are very grateful for
that commitment. I give special thanks to Clare Scally, who works
in our office. Her tireless support and endless patience working
through the various amendments is to be commended. She has kept
us on the straight and narrow going through the various changes,
which have been welcomed, in the main. I particularly thank my
noble friends who have engaged in the debate, especially my noble
friends Lord Ponsonby and , who have given so much of
their insight and expertise to help us move forward.
As we have heard today, there is no doubt that this Bill is in a
better place than when we started. However, all of us, hand on
heart, know that there is still much more to do, particularly in
tackling the sheer scale of economic crime in this country. Many
people who were not aware of that now are, and I believe that the
demand for action will grow. I hope that our improvements to the
Bill will have a swift impact on its legislative journey and
really help the many victims who must remain at the heart of our
considerations.
of Lainston (Con)
My Lords, before I conclude, I would just like to cover the
comments made by the noble Lord, Lord Vaux. If my memory is
correct, Amendment 17 prevents the publication of a PSC whose
identity has not been verified, so there is no conflict between
the two. It is only right that people whose identity has not been
verified is published. What is important about these additional
amendments is that they ensure that you have to ascertain that
you have no PSCs, or if the PSC has not been identified then the
registrar is able to make further inquiries. They are not
inconsistent and make a sound change to the Bill very much along
the lines the noble Lord was recommending in the first place.
I thank the Opposition Front-Benchers, in particular the noble
Lords, and , the noble
Baroness, Lady Blake of Leeds—a formidable Front Bench, if I may
say—and the noble Lord, . I thank them for their
engagement and constructive scrutiny of the Bill, as well as the
enormous amount of time they dedicated to the various meetings
ahead of each set of debates. It was a very valuable
collaboration and I believe together in this House, we have
formed a significant piece of legislation that all the peoples of
the United Kingdom will benefit from.
I thank some of the other key contributors to this Bill. Many
other noble Lords have been instrumental in the improvements made
during its passage through this House, including the noble Lords,
and . The noble Lord,
Lord Vaux, and I spent many hours working through this Bill, and
if ever asked to point to the value of this great Chamber, it is
exactly those constructive debates that I would point to. I am
extremely grateful for his input and strong sense of
collaboration.
Thanks must also go to my noble friends Lady Stowell of Beeston,
Lady Morgan of Coates, Lord Leigh of Hurley—I have rightly
described him as a “guru of finance”— , and others for their input
and constructive challenge. I also thank my noble friend , who has also engaged
extremely constructively with me during this process, and my
noble and learned friend . Over recent months, we have
had robust discussions and debates and I genuinely thank them for
their engagement.
I must also thank the Whip, my noble friend ; the formidable team
of Whips and officials; and my ministerial colleagues—my noble
friends and Lord Minto, and
my noble and learned friend Lord Bellamy—who have all done an
excellent job when representing this Bill in the House in all
debates over the last few months. The Bill is significant both in
size and scope, spanning several departments.
This brings me to all the officials working across multiple
departments behind the scenes supporting the ministerial team as
we engaged and debated with noble Lords on the detail of the
Bill; I extend true personal thanks and the thanks of my noble
friend Lord Sharpe. I thank Louise Smyth, the registrar of
Companies House, who will be taking many of the actions we are
passing through this House in order to make Companies House
function more effectively. She and her entire team have engaged
consistently throughout this process, and we wish her the
greatest of success in implementing this dramatic programme.
I thank the analysis, company law and corporate transparency team
in my own Department for Business and Trade, headed especially
ably by the deputy director, Matt Ray, and his head of policy,
Steve Webster. I thank the criminal finances and asset recovery
unit in the Home Office, excellently led by Maria Hannan. I thank
Paul Rowlands, Lucy Chisholm, the hard-working legal teams in
both departments—I can certainly attest to that—and the expert
drafters from the Office of the Parliamentary Counsel,
particularly Diggory Bailey and Camilla Grundy. I thank my
private office team, in particular, Emily Tranter and Simon
Moore, who have supported me so much over these last few months.
Finally, I thank the Bill team: Tom Ball, the Bill manager, and
his fantastic team of Nicola Wallace, Anna Gray, Corrie Monaghan,
Tim Holland, Sophie Curry, Monique Sidhu, Michael Tam and Carolin
Grassmann. Everyone involved has demonstrated impressive levels
of expertise, and I think I can speak for all Ministers when I
say that we felt in safe hands. I am grateful for their
proactive, patient and professional support throughout.
Finally, I thank the House authorities for managing the large
number of amendments made in this House, and the parliamentary
staff, the doorkeepers and clerks for their professionalism and
continued support to the Bill and to your Lordships’ House.
To conclude, this Bill is a milestone piece of legislation, which
will deliver major reforms to the framework for corporate
criminal liability, improving the ability to hold corporations
liable in their own right for economic crimes; the first serious
reform of limited partnership law since 1907; the most
significant changes to our system for setting up and maintaining
companies since the 1850s; the first national legislation from
any Government to take action against SLAPPs; and the legislative
underpinning to tackle the new threats facing us in 21st century
through action on crypto assets and improved data-sharing.
Economic crime affects every single one of us in different ways
and at different scales. This Government are determined to tackle
economic crime and drive out dirty money, protecting British
citizens. We are ensuring that public agencies, law enforcement
and the private sector have the tools needed to deliver greater
protections for members of the public and businesses. As I have
said on multiple occasions, the Government have been determined
throughout that the Bill strikes the right balance in all areas
between tackling criminality and avoiding undue burdens on the
law-abiding majority. I remain keener than ever to get this
important legislation on the statute books, and look forward to
implementing the reforms that it contains when we reach Royal
Assent. I beg to move.
Amendment 1 agreed.
Clause 63: Identity verification of persons with significant
control
Amendments 2 to 4
Moved by
of Lainston
2: Clause 63, page 52, line 23, leave out “790LD” and insert
“790LDA”
Member’s explanatory statement
This is consequential on my amendment to Schedule 2, page 222,
line 31. See the Minister's undertaking at report stage (20 June,
col. 149).
3: Clause 63, page 56, line 8, leave out “790LA” and insert
“790LCB”
Member’s explanatory statement
This is consequential on my amendment to Schedule 2, page 225,
line 17 inserting a new section 790LCB into the Companies Act
2006. See the Minister's undertaking at report stage (20 June,
col. 149).
4: Clause 63, page 57, line 2, leave out “790LA” and insert
“790LCB”
Member’s explanatory statement
This is consequential on my amendment to Schedule 2, page 225,
line 17 inserting a new section 790LCB into the Companies Act
2006. See the Minister's undertaking at report stage (20 June,
col. 149).
Amendments 2 to 4 agreed.
Clause 68: Identity verification: material unavailable for public
inspection
Amendments 5 and 6
Moved by
of Lainston
5: Clause 68, page 67, line 7, after “statement” insert “or other
document”
Member’s explanatory statement
Clauses 68, 136 and 166 ensure that certain documents are
withheld from public inspection. My amendments to those Clauses
protect similar documents delivered under regulations under
section 1067A(5)(a) and (6) of the CA 2006. My amendments are
therefore consequential on those regulation-making powers, which
were added at earlier stages.
6: Clause 68, page 67, line 16, leave out “(1) or (2)”
Member’s explanatory statement
See the explanatory statement to my first amendment to Clause
68.
Amendments 5 and 6 agreed.
Clause 136: Material not available for public inspection
Amendments 7 and 8
Moved by
of Lainston
7: Clause 136, page 135, line 5, after “statement” insert “or
other document”
Member’s explanatory statement
See the explanatory statement to my first amendment to Clause
68.
8: Clause 136, page 135, line 6, leave out “(1) or (2)”
Member’s explanatory statement
See the explanatory statement to my first amendment to Clause
68.
Amendments 7 and 8 agreed.
Amendment 9
Moved by
of Lainston
9: After Clause 160, insert the following new Clause—
“Registrable beneficial owners: nominees
(1) The Economic Crime (Transparency and Enforcement) Act 2022 is
amended as follows.(2) In Schedule 1 (required information)—(a)
in paragraph 3(1), for paragraphs (e) and (f) substitute—“(e)
whether the individual is a registrable beneficial owner by
virtue of paragraph 2(1) of Schedule 2 or paragraph 2(2) of that
Schedule;(f) if the individual is a registrable beneficial owner
by virtue of paragraph 2(1) of Schedule 2—(i) a statement as to
which of the conditions in paragraph 6 of that Schedule is met
and why, and(ii) a statement as to whether that condition is met
by virtue of the individual being a trustee;(fa) if the
individual is a registrable beneficial owner by virtue of
paragraph 2(2) of Schedule 2, a statement as to which of the
conditions in paragraph 6A of that Schedule is met and why;”;(b)
in paragraph 4, for sub-paragraph (f) substitute—“(f) whether the
government or public authority is a registrable beneficial owner
by virtue of paragraph 4(1) of Schedule 2 or paragraph 4(2) of
that Schedule;(fa) if the government or public authority is a
registrable beneficial owner by virtue of paragraph 4(1) of
Schedule 2, a statement as to which of the conditions in
paragraph 6 of that Schedule is met and why;(fb) if the
government or public authority is a registrable beneficial owner
by virtue of paragraph 4(2) of Schedule 2, a statement as to
which of the conditions in paragraph 6A of that Schedule is met
and why;”;(c) in paragraph 5(1), for paragraphs (g) and (h)
substitute—“(g) whether the entity is a registrable beneficial
owner by virtue of paragraph 3(1) of Schedule 2 or paragraph 3(2)
of that Schedule;(h) if the entity is a registrable beneficial
owner by virtue of paragraph 3(1) of Schedule 2—(i) a statement
as to which of the conditions in paragraph 6 of that Schedule is
met and why, and(ii) a statement as to whether that condition is
met by virtue of the entity being a trustee;(ha) if the entity is
a registrable beneficial owner by virtue of paragraph 3(2) of
Schedule 2, a statement as to which of the conditions in
paragraph 6A of that Schedule is met and why;”. (3) In Schedule 2
(registrable beneficial owners)—(a) in paragraph 2—(i) the
existing text becomes sub-paragraph (1);(ii) in paragraph (a) of
that sub-paragraph, for “(see Part 2)” substitute “by virtue of
paragraph 6”;(iii) after that sub-paragraph insert—“(2) An
individual is also a “registrable beneficial owner” in relation
to an overseas entity if the individual is treated as a
beneficial owner of the overseas entity by virtue of paragraph
6A.”;(b) in paragraph 3—(i) the existing text becomes
sub-paragraph (1);(ii) in paragraph (a) of that sub-paragraph,
for “(see Part 2)” substitute “by virtue of paragraph 6”;(iii)
after that sub-paragraph insert—“(2) A legal entity other than a
government or public authority is also a “registrable beneficial
owner” in relation to an overseas entity if it is treated as a
beneficial owner of the overseas entity by virtue of paragraph
6A.”;(c) in paragraph 4—(i) the existing text becomes
sub-paragraph (1);(ii) in that sub-paragraph, for “(see Part 2)”
substitute “by virtue of paragraph 6”;(iii) after that
sub-paragraph insert—“(2) A government or public authority is
also a “registrable beneficial owner” in relation to an overseas
entity if it is treated as a beneficial owner of the overseas
entity by virtue of paragraph 6A.”;(d) after paragraph 6
insert—“Persons treated as beneficial owners where entity holds
land as nominee6A_ A person (“X”) is to be treated as a
beneficial owner of an overseas entity (“Y”) if one or more of
the following conditions are met.Y holds land in England or Wales
as nominee for XCondition 1 is that Y—(a) is registered in the
register of title kept under the Land Registration Act 2002 as
the proprietor of a qualifying estate within the meaning of
Schedule 4A to that Act,(b) became so registered in pursuance of
an application made on or after 1 January 1999, and(c) holds the
qualifying estate as nominee for—(i) X, or(ii) an entity of which
X is a beneficial owner by virtue of paragraph 6.Y holds land in
Scotland as nominee for XCondition 2 is that—(a) Y—(i) holds an
interest in land by virtue of being entered, on or after 8
December 2014, as proprietor in the proprietorship section of the
title sheet for a plot of land that is registered in the Land
Register of Scotland,(ii) is, in relation to a lease that was
recorded in the General Register of Sasines or registered in the
Land Register of Scotland before that date, by virtue of an
assignation of the lease registered in the Land Register of
Scotland on or after that date, the tenant under the lease,
or(iii) is the tenant under a lease that was registered in the
Land Register of Scotland on or after that date, and(b) Y holds
the interest in land referred to in paragraph (a)(i), (ii) or
(iii) as nominee for— (i) X, or(ii) an entity of which X is a
beneficial owner by virtue of paragraph 6.Y holds land in
Northern Ireland as nominee for XCondition 3 is that Y—(a) is
registered in the register kept under the Land Registration Act
(Northern Ireland) 1970 (c. 18 (N.I.)) as the owner of a
qualifying estate within the meaning of Schedule 8A to that
Act,(b) became so registered on or after the day on which that
Schedule came into force, and(c) holds the qualifying estate as
nominee for—(i) X, or(ii) an entity of which X is a beneficial
owner by virtue of paragraph 6.”;(e) in paragraph 8, for
“paragraphs 2(b) and 3(c)” substitute “paragraphs 2(1)(b) and
3(1)(c)”.”Member’s explanatory statement
This amendment means that where an overseas entity holds certain
interests in land as a nominee for another person that person is
treated as a beneficial owner for the purposes of the register of
overseas entity. It also deals with less direct relationships.
See the Minister's undertaking at report stage (20 June, col.
187).
Amendment 9 agreed.
Clause 166: Material unavailable for public inspection
Amendments 10 and 11
Moved by
of Lainston
10: Clause 166, page 159, line 42, after “statement” insert “or
other document”
Member’s explanatory statement
See the explanatory statement to my first amendment to Clause
68.
11: Clause 166, page 159, line 43, leave out “(1) or (2)”
Member’s explanatory statement
See the explanatory statement to my first amendment to Clause
68.
Amendments 10 and 11 agreed.
Clause 184: Money laundering: information orders
Amendment 12
Moved by
of Lainston
12: Clause 184, page 178, line 4, leave out “337ZL(5)” and insert
“339ZL(5)”
Member’s explanatory statement
This amendment corrects a cross-reference.
Amendment 12 agreed.
Schedule 2: Abolition of certain local registers
Amendments 13 to 40
Moved by
of Lainston
13: Schedule 2, page 222, line 9, leave out paragraph 9 and
insert—
“9_ In section 790C (key terms), omit subsection (10).”Member’s
explanatory statement
This is consequential on my other amendments to Schedule 2 and
leaves out a definition that is no longer used. See the
Minister's undertaking at report stage (20 June, col. 149).
14: Schedule 2, page 222, line 30, at end insert—
“9A_ After section 790C insert—“790CA References to
“confirmation” etc of informationFor the purposes of this Part a
company has had confirmation of—(a) a person’s status as a
registrable person or a registrable relevant legal entity in
relation to the company,(b) the required particulars of a person
(see section 790K),(c) any other information about a person,if
the person has supplied that information to the company whether
or not in pursuance of any duty imposed by this Part (and
references to a company obtaining confirmation of information are
to be read accordingly).””Member’s explanatory statement
This defines what is meant by “confirmation” for the purposes of
my other amendments to Schedule 2, which mean that a company
which knows of a person with significant control etc only has to
notify the registrar if it has had confirmation from the person.
See the Minister's undertaking at report stage (20 June, col.
149).
15: Schedule 2, page 222, line 31, leave out paragraphs 10 to 13
and insert—
“10_ For sections 790D and 790E substitute—“790CB Duty to find
out about persons with significant controlA company to which this
Part applies must take reasonable steps to find out if there is
anyone who is a registrable person or a registrable relevant
legal entity in relation to the company and, if so, to identify
them.790D Company’s duty to give notices to persons with
significant control(1) A company to which this Part applies must
give a notice to a person under this section if—(a) the company
knows or has cause to believe that the person is a registrable
person or a registrable relevant legal entity in relation to the
company, but(b) the company has not had confirmation of the
person’s status as a registrable person or registrable relevant
legal entity or has not had confirmation of all of the required
particulars of the person (see section 790K).(2) The notice must
require the person—(a) to inform the company whether the person
is a registrable person or a registrable relevant legal entity in
relation to the company, and(b) if they are, to give the company
all of the required particulars of the person (see section
790K).(3) The notice must require the person to whom it is given
to comply with the notice by no later than the end of the period
of one month beginning with the day on which it is given.(4) The
company must give the notice—(a) as soon as reasonably
practicable after the company becomes subject to the duty to give
a notice under this section, and(b) in any event before the end
of the period of 14 days beginning with the day on which the
company becomes so subject.(5) A company is not required to give
a notice under this section to a person if— (a) the application
for the registration of the company contained a statement of
initial significant control naming the person as someone who
would, on the company’s incorporation, become a registrable
person or a registrable relevant legal entity in relation to the
company, and(b) the company has no cause to believe that at any
time since its incorporation the person has ceased to be a
registrable person or a registrable relevant legal entity in
relation to the company.(6) The Secretary of State may by
regulations make further provision about the giving of notices
under this section, including provision about their form and
content and the manner in which they must be given.(7)
Regulations under subsection (6) are subject to negative
resolution procedure.790DA Obtaining information from third
parties(1) A company to which this Part applies may give a notice
to a person under this section if it knows or has cause to
believe that the person—(a) knows the identity of someone who
falls within subsection (2), or(b) knows the identity of someone
likely to have that knowledge.(2) The persons who fall within
this subsection are—(a) a registrable person in relation to the
company;(b) a relevant legal entity in relation to the
company;(c) an entity which would be a relevant legal entity in
relation to the company but for the fact that section 790C(6)(b)
does not apply in respect of it.(3) A company must give a notice
under subsection (1) to a person (“a third party”) if the
company—(a) knows or has cause to believe that a person is a
registrable person or a registrable relevant legal entity in
relation to the company (“a suspected PSC”),(b) is under a duty
to give the suspected PSC a notice under section 790D but does
not have the information that it needs in order to contact them,
and(c) knows or has cause to believe that the third party—(i)
knows the identity of the suspected PSC, or(ii) knows the
identity of someone likely to have that knowledge.(4) A notice
under subsection (1) must require the person to whom it is given
(“the recipient”)—(a) to inform the company whether the recipient
knows the identity of any person who—(i) falls within subsection
(2), or(ii) is likely to know the identity of anyone who falls
within subsection (2), and(b) if the recipient does, to give the
company any information within the recipient’s knowledge that
would allow the company to contact each such person.(5) The
notice must require the person to whom it is given to comply with
the notice by no later than the end of the period of one month
beginning with the day on which it is given.(6) A person to whom
a notice under subsection (1) is given is not required by that
notice to disclose any information in respect of which a claim to
legal professional privilege (in Scotland, to confidentiality of
communications) could be maintained in legal proceedings.(7) The
Secretary of State may by regulations make further provision
about the giving of notices under this section, including
provision about their form and content and the manner in which
they must be given. (8) Regulations under subsection (7) are
subject to negative resolution procedure.(9) In this section a
reference to knowing the identity of a person includes knowing
information from which that person can be identified.790E
Company’s duty to find out about changes in PSC information(1)
This section applies if a company—(a) knows or has cause to
believe that there has been a change in the required particulars
of a registrable person or a registrable relevant legal entity in
relation to the company (see section 790K), but(b) has not had
confirmation that the change has occurred or has not had
confirmation of all of the information that the company would
need to include in a notice of the change under section 790LC(1)
or 790LCA(1).(2) The company must give the person a notice
requiring the person—(a) to inform the company whether the change
has occurred, and(b) if it has, to give the company the
information that the company would need to include in a notice of
the change under section 790LC(1) or 790LCA (1).(3) The notice
must require the person to whom it is given to comply with the
notice by no later than the end of the period of one month
beginning with the day on which it is given.(4) The company must
give the notice—(a) as soon as reasonably practicable after the
company becomes subject to the duty to give a notice under
subsection (2), and(b) in any event before the end of the period
of 14 days beginning with the day on which the company becomes so
subject.(5) The Secretary of State may by regulations make
further provision about the giving of notices under this section,
including provision about their form and content and the manner
in which they must be given.(6) Regulations under subsection (5)
are subject to negative resolution procedure.790EA Company’s duty
to find out about persons ceasing to be PSCs(1) This section
applies if a company—(a) knows or has cause to believe that a
person has ceased to be a registrable person or a registrable
relevant legal entity in relation to the company, but(b) has not
had confirmation that the person has ceased to be a registrable
person or a registrable relevant legal entity in relation to the
company or has not had confirmation of the date on which the
person so ceased.(2) The company must give the person a notice
requiring the person—(a) to inform the company whether the person
has ceased to be a registrable person or a registrable relevant
legal entity in relation to the company, and(b) if the person
has, to inform the company of the date on which the person so
ceased.(3) The notice must require the person to whom it is given
to comply with the notice by no later than the end of the period
of one month beginning with the day on which it is given.(4) The
company must give the notice—(a) as soon as reasonably
practicable after the company becomes subject to the duty under
subsection (2), and (b) in any event before the end of the period
of 14 days beginning with the day on which the company becomes so
subject.(5) The Secretary of State may by regulations make
further provision about the giving of notices under this section,
including provision about their form and content and the manner
in which they must be given.(6) Regulations under subsection (5)
are subject to negative resolution procedure.790EB Company’s duty
to notify failure to comply with notices(1) A company must notify
the registrar if a person fails to comply with a notice given by
the company under section 790D, 790DA, 790E or 790EA within the
period specified in it.(2) The notice must be given within the
period of 14 days beginning with end of the period specified in
the notice under section 790D, 790DA, 790E or 790EA .790EC
Company’s duty to notify of late compliance with notices(1) A
company must notify the registrar if a person who has failed to
comply with a notice given by the company under section 790D,
790DA, 790E or 790EA within the period specified in it
subsequently complies.(2) The notice must be given within the
period of 14 days beginning with the day on which the person
complied with the notice under section 790D, 790DA, 790E or 790EA
.”11_ In section 790F (failure by company to comply with
information duties), for subsection (1) substitute—“(1) If a
company fails, without reasonable excuse, to comply with a duty
under section 790CB, 790D, 790DA(3), 790E, 790EA, 790EB or 790EC
to take steps or give a notice, an offence is committed by—(a)
the company, and(b) every officer of the company who is in
default.”12_ For sections 790G and 790H substitute—“790G Duty to
notify company on becoming PSC(1) This section applies to a
person if—(a) the person knows that they are a registrable person
or a registrable relevant legal entity in relation to a
company,(b) the material in the register that is available for
public inspection does not indicate the person’s status as a
registrable person or registrable relevant legal entity in
relation to the company, and(c) the person—(i) has not informed
the company of the person’s status as a registrable person or
registrable relevant legal entity in relation to the company,
or(ii) has not given the company all of the required particulars
of the person (see section 790K).(2) The person must—(a) inform
the company of the person’s status as a registrable person or
registrable relevant legal entity in relation to the company,
and(b) give the company the required particulars (see section
790K).(3) The person must comply with the duty in subsection (2)
before the end of the period of one month beginning with the day
on which the conditions in subsection (1) are met.790H Duty to
notify company of changes in PSC information(1) This section
applies to a person if— (a) the person knows that they are a
registrable person or a registrable relevant legal entity in
relation to a company,(b) there has been a change in the required
particulars of the person (see section 790K) and the person knows
that to be the case, and(c) the person has not informed the
company of the change or has not given the company all of the
information that the company would need to include in a notice of
the change under section 790LC(1) or 790LCA(1).(2) The person
must—(a) inform the company of the change, and(b) give the
company the information that the company would need to include in
a notice of the change under section 790LC(1) or 790LCA(1).(3)
The person must comply with the duty in subsection (2) before the
end of the period of one month beginning with the day on which
the conditions in subsection (1) are met.790HA Duty to notify
company of ceasing to be a PSC(1) This section applies to a
person if—(a) the person knows that they have ceased to be a
registrable person or a registrable relevant legal entity in
relation to a company,(b) the material in the register that is
available for public inspection does not indicate the person as
having ceased to be a registrable person or a registrable
relevant legal entity in relation to a company, and(c) the person
has not informed the company of having ceased to be a registrable
person or a registrable relevant legal entity in relation to the
company or has not informed the company of the date on which the
person so ceased.(2) The person must inform the company—(a) that
the person has ceased to be a registrable person or a registrable
relevant legal entity in relation to the company, and(b) of the
date on which the person so ceased.(3) The person must comply
with the duty in subsection (2) before the end of the period of
one month beginning with the day on which the conditions in
subsection (1) are met.”12A_ In section 790I (enforcement of
disclosure requirements), for the words from “a notice” to the
end substitute “—(a) a notice under section 790D, 790DA, 790E or
790EA, or(b) a duty under section 790G, 790H or 790HA.”13_ In
section 790J (power to make exemptions)—(a) in subsection (2)(a),
for “790D(2) or 790E” substitute “ 790D, 790E or 790EA”;(b) in
subsection (2)(c), for “790D(5)” substitute “790DA”;(c) in
subsection (2)(d), for “and 790H” substitute “, 790H and
790HA”;(d) in subsection (2)(e) for “section 790M” substitute
“any of sections 12A, 790LA, 790LBA, 790LC, 790LCA, 790LCB,
790LD, 790LDA”.”Member’s explanatory statement
This amendment changes provisions in Part 21A of the Companies
Act 2006 that are aimed at ensuring that a company has
information about persons with significant control. It is
connected with the other amendments to that Part made by or
proposed to be made by the Bill. See the Minister's undertaking
at report stage (20 June, col. 149).
16: Schedule 2, page 224, line 5, at end insert “of persons with
significant control”
Member’s explanatory statement
This adjusts a heading in the material inserted into the
Companies Act 2006, in consequence of my other amendments to
Schedule 2. See the Minister's undertaking at report stage (20
June, col. 149).
17: Schedule 2, page 224, leave out lines 6 to 27 and insert—
“790LA Duty to notify registrar of confirmed persons with
significant control(1) A company must give a notice to the
registrar if it has had confirmation of—(a) a person’s status as
a registrable person or a registrable relevant legal entity in
relation to the company, and(b) the required particulars of the
person (see section 790K).(2) A notice under subsection (1) must
contain a statement of the required particulars.(3) A notice
under subsection (1) must be given within the period of 14 days
beginning with the day on which the company had confirmation as
mentioned in that subsection.(4) A company is not required to
give a notice under this section in relation to a person if—(a)
the application for the registration of the company contained a
statement of initial significant control naming the person as
someone who would, on the company’s incorporation, become a
registrable person or a registrable relevant legal entity in
relation to the company, and(b) the company has no cause to
believe that at any time since its incorporation the person has
ceased to be a registrable person or a registrable relevant legal
entity in relation to the company.(5) Nothing in section 126
(notice of trusts not receivable by registrar) affects the duty
to give a notice under this section (or the receipt of that
notice by the registrar).”Member’s explanatory statement
This means that a company will only need to notify the registrar
of a person with significant control if the person has confirmed
their status and information about them. See the Minister's
undertaking at report stage (20 June, col. 149).
18: Schedule 2, page 224, line 29, leave out “(a)”
Member’s explanatory statement
This is consequential on my amendment to Schedule 2, page 224,
lines 6 to 27. See the Minister's undertaking at report stage (20
June, col. 149).
19: Schedule 2, page 224, line 32, leave out “(a)”
Member’s explanatory statement
This is consequential on my amendment to Schedule 2, page 224,
lines 6 to 27. See the Minister's undertaking at report stage (20
June, col. 149).
20: Schedule 2, page 225, line 2, at end insert—
“790LBA Duty to notify registrar of unconfirmed persons with
significant control(1) A company must give a notice to the
registrar if—(a) it knows or has cause to believe that a person
has become a registrable person or a registrable relevant legal
entity in relation to the company, but(b) it has not yet had
confirmation as mentioned in section 790LA (1).(2) The notice
must state that fact.(3) A notice under subsection (1) must be
given within the period of 14 days beginning with the day on
which the company first knows or has cause to believe that the
person has become a registrable person or a registrable relevant
legal entity in relation to the company. (4) Nothing in this
section requires a company, on its incorporation, to give a
notice in relation to a person included in the statement of
initial significant control under section 12A.”Member’s
explanatory statement
This requires a company to notify the registrar if it knows or
has cause to believe that someone has become a person with
significant control but that fact, or the person’s required
particulars, have not been confirmed. See the Minister's
undertaking at report stage (20 June, col. 149).
21: Schedule 2, page 225, line 2, at end insert—
“Duty to notify registrar of changes in required
particulars”Member’s explanatory statement
This adds a new heading in the run of sections inserted into the
Companies Act 2006, in consequence of my other amendments to
Schedule 2. See the Minister's undertaking at report stage (20
June, col. 149).
22: Schedule 2, page 225, line 4, leave out from “if” to end of
line 7 and insert “it—
(a) has had confirmation that there has been a change in the
required particulars of a registrable person, or a registrable
relevant legal entity, in relation to the company (see section
790K), and(a) has had confirmation of how the required
particulars have changed and the date on which they
changed.”Member’s explanatory statement
This means that a company only has to notify the registrar of a
change in the required particulars of a person with significant
control if the person has confirmed details of the change to the
company. See the Minister's undertaking at report stage (20 June,
col. 149).
23: Schedule 2, page 225, leave out lines 11 to 14 and
insert—
“(3) A notice under subsection (1) must be given within the
period of 14 days beginning with the day on which the company had
confirmation as mentioned in that subsection.”Member’s
explanatory statement
This is consequential on my amendment to Schedule 2, page 225,
line 4. See the Minister's undertaking at report stage (20 June,
col. 149).
24: Schedule 2, page 225, line 17, at end insert—
“Duty to notify registrar of person ceasing to be person with
significant control etc”Member’s explanatory statement
This adds a new heading in the run of sections inserted into the
Companies Act 2006, in consequence of my other amendments to
Schedule 2. See the Minister's undertaking at report stage (20
June, col. 149).
25: Schedule 2, page 225, line 17, at end insert—
“790LCA Duty to notify of pre-incorporation changes in required
particulars(1) A company must give a notice to the registrar if
it—(a) has had confirmation that there was a pre-incorporation
change in the required particulars of a proposed PSC (see section
790K), and(b) has had confirmation of how the required
particulars have changed and the date on which they changed.(2)
But a company is not required to give a notice under subsection
(1) in respect of a person if it has given a notice under section
790LD in respect of the person.(3) A notice under subsection (1)
must state—(a) the change in the required particulars, and(b) the
date on which the change occurred. (4) A notice under subsection
(1) must be given within the period of 14 days beginning with the
day on which the company had confirmation as mentioned in that
subsection.(5) In this section—“pre-incorporation change” means a
change that occurred—(a) after the application for the
registration of the company was delivered to the registrar,
but(b) before the company was incorporated;“proposed PSC”, in
relation to a company, means a person who was named in a
statement under section 12A(1)(a) as a person who would, on the
company’s incorporation, become a registrable person or
registrable relevant legal entity in relation to the
company.”Member’s explanatory statement
This moves material currently in new section 790LD of the
Companies Act 2006 and means that a company will only need to
notify the registrar of pre-incorporation changes in the
particulars of a person with significant control if the changes
have been confirmed by the person. See the Minister's undertaking
at report stage (20 June, col. 149).
26: Schedule 2, page 225, line 17, at end insert—
“790LCB Duty to notify registrar when person ceases to have
significant control(1) A company must give a notice to the
registrar if it—(a) has had confirmation that a person has ceased
to be a registrable person or a registrable relevant legal entity
in relation to it, and(b) has had confirmation of the date on
which the person so ceased.(2) A notice under subsection (1) must
state—(a) the person’s name and service address, and(b) the date
on which the person ceased to be a registrable person or a
registrable relevant legal entity in relation to the company.(3)
A notice under subsection (1) must be given within the period of
14 days beginning with the day on which the company had
confirmation as mentioned in that subsection.”Member’s
explanatory statement
This is consequential on my amendment to Schedule 2, page 224,
lines 6 to 27. See the Minister's undertaking at report stage (20
June, col. 149).
27: Schedule 2, page 225, line 18, leave out “changes occurring
before company is incorporated” and insert “someone not becoming
person with significant control on incorporation”
Member’s explanatory statement
This amendment is consequential on my amendment to Schedule 2,
page 225, line 17 inserting a new 790LCA into the Companies Act
2006. See the Minister's undertaking at report stage (20 June,
col. 149).
28: Schedule 2, page 225, line 19, leave out “becomes aware” and
insert “knows”
Member’s explanatory statement
This changes the language of new section 790LD(1) of the
Companies Act 2006 to conform with the language of the other
notification duties in relation to persons with significant
control (as amended). See the Minister's undertaking at report
stage (20 June, col. 149).
29: Schedule 2, page 225, leave out lines 23 to 34
Member’s explanatory statement
This is consequential on my amendment to Schedule 2, page 225,
line 17 inserting a new 790LCA into the Companies Act 2006. See
the Minister's undertaking at report stage (20 June, col.
149).
30: Schedule 2, page 225, line 36, leave out “becomes aware as”
and insert “has the knowledge”
Member’s explanatory statement
This is consequential on my amendment to Schedule 2, page 225,
line 19. See the Minister's undertaking at report stage (20 June,
col. 149).
31: Schedule 2, page 225, leave out lines 38 to 41
Member’s explanatory statement
This is consequential on my amendment to Schedule 2, page 225,
line 17 inserting a new 790LCA into the Companies Act 2006. See
the Minister's undertaking at report stage (20 June, col.
149).
32: Schedule 2, page 225, line 41, at end insert—
“790LDA Duty to notify registrar if company ceases to have
persons with significant control(1) A company must give a notice
to the registrar if it knows or has cause to believe that—(a)
there has at some time been a person who is a registrable person
or registrable relevant legal entity in relation to the company,
and(b) there has ceased to be anyone who is a registrable person
or registrable relevant legal entity in relation to the
company.(2) A notice under subsection (1) must —(a) state that
the company has that knowledge or cause to believe, and(b)
specify the date on which the company first had that knowledge or
cause to believe.(3) A notice under subsection (1) must be given
within the period of 14 days beginning with the day on which the
company first had the knowledge or cause to believe mentioned in
that subsection.”Member’s explanatory statement
This imposes a duty on a company to notify the registrar if there
ceases to be any persons with significant control in relation to
the company. See the Minister's undertaking at report stage (20
June, col. 149).
33: Schedule 2, page 226, line 2, at end insert “(including
information about whether it has any);
(b) compliance with Chapter 2 by the company or any person to
whom the company has given a notice under that Chapter (including
provision requiring a company to provide the registrar with a
copy of any such notice, whether on request or
otherwise).”Member’s explanatory statement
This expands the regulation-making power to require a company to
provide further information in relation to persons with
significant control. See the Minister's undertaking at report
stage (20 June, col. 149).
34: Schedule 2, page 226, line 2, at end insert—
“(1A) The provision that may be made by regulations under
subsection (1) includes provision amending this Part.(1B) The
consequential provision that may be made by regulations under
subsection (1) by virtue of section 1292(1) also includes
provision amending any other provision of this Act.”Member’s
explanatory statement
This would allow regulations under new section 790LE of the
Companies Act 2006 (power to create further duties to notify
information about persons with significant control) to amend the
relevant Part of the Act and make consequential amendments to
other parts of the Act. See the Minister's undertaking at report
stage (20 June, col. 149).
35: Schedule 2, page 226, line 7, after “790LA” insert “,
790LBA”
Member’s explanatory statement
This is consequential on my amendment to Schedule 2, page 225,
line 2 inserting a new section 790LBA into the Companies Act
2006. See the Minister's undertaking at report stage (20 June,
col. 149).
36: Schedule 2, page 226, line 7, leave out “or 790LD” and insert
“, 790LCA, 790LCB, 790LD or 790LDA”
Member’s explanatory statement
This is consequential on my amendments to Schedule 2, page 225,
lines 17 and 41. See the Minister's undertaking at report stage
(20 June, col. 149).
37: Schedule 2, page 226, line 18, after “790LA” insert “,
790LBA”
Member’s explanatory statement
This is consequential on my amendment to Schedule 2, page 225,
line 2 inserting a new section 790LBA into the Companies Act
2006. See the Minister's undertaking at report stage (20 June,
col. 149).
38: Schedule 2, page 226, line 19, leave out “or 790LD” and
insert “, 790LCA, 790LCB, 790LD or 790LDA”
Member’s explanatory statement
This is consequential on my amendments to Schedule 2, page 225,
lines 17 and 41. See the Minister's undertaking at report stage
(20 June, col. 149).
39: Schedule 2, page 227, line 14, at end insert—
“17A_(1) Schedule 1B (enforcement of disclosure requirements in
relation to persons with significant control) is amended as
follows.(2) In each of the following provisions, for “or 790E”
substitute “, 790DA, 790E or 790EA”—(a) paragraph 1(1)(a) and
(3)(a);(b) paragraph 8(3)(a);(c) paragraph 11(a) and (b);(d)
paragraph 12(2)(b).(3) For paragraphs 13 and 14
substitute—“Offence of failing to comply with notices13_(1) A
person to whom a notice under section 790D, 790DA, 790E or 790EA
is addressed commits an offence if the person fails, without
reasonable excuse, to comply with the notice.(2) Where the person
is a legal entity, the offence is also committed by every officer
of the entity who is in default.(3) A person guilty of an offence
under this paragraph is liable—(a) on conviction on indictment,
to imprisonment for a term not exceeding two years or a fine (or
both);(b) on summary conviction—(i) in England and Wales, to
imprisonment for a term not exceeding the general limit in a
magistrates’ court or a fine (or both);(ii) in Scotland, to
imprisonment for a term not exceeding 12 months or a fine not
exceeding the statutory maximum (or both);(iii) in Northern
Ireland, to imprisonment for a term not exceeding 6 months or a
fine not exceeding the statutory maximum (or both).Offence of
failing to provide information14_(1) A person commits an offence
if the person fails, without reasonable excuse, to comply with a
duty under section 790G, 790H or 790HA.(2) Where the person is a
legal entity, the offence is also committed by every officer of
the entity who is in default.(3) A person guilty of an offence
under this paragraph is liable—(a) on conviction on indictment,
to imprisonment for a term not exceeding two years or a fine (or
both);(b) on summary conviction— (i) in England and Wales, to
imprisonment for a term not exceeding the general limit in a
magistrates’ court or a fine (or both);(ii) in Scotland, to
imprisonment for a term not exceeding 12 months or a fine not
exceeding the statutory maximum (or both);(iii) in Northern
Ireland, to imprisonment for a term not exceeding 6 months or a
fine not exceeding the statutory maximum (or both).False
statements: basic offence14A_(1) A person commits an offence if,
in purported compliance with a notice under section 790D, 790DA,
790E or 790EA or in purported compliance with a duty imposed by
section 790G, 790H or 790HA , and without reasonable excuse, the
person makes a statement that is misleading, false or deceptive
in a material particular.(2) Where the person is a legal entity,
the offence is also committed by every officer of the entity who
is in default.(3) A person guilty of an offence under this
paragraph is liable on summary conviction—(a) in England and
Wales, to a fine;(b) in Scotland, to a fine not exceeding level 5
on the standard scale;(c) in Northern Ireland, to a fine not
exceeding level 5 on the standard scale.False statements:
aggravated offence14B_(1) A person commits an offence if, in
purported compliance with a notice under section 790D, 790DA,
790E or 790EA or in purported compliance with a duty imposed by
section 790G, 790H or 790HA, the person makes a statement that
the person knows is misleading, false or deceptive in a material
particular.(2) Where the person is a legal entity, the offence is
also committed by every officer of the entity who is in
default.(3) A person guilty of an offence under this paragraph is
liable—(a) on conviction on indictment, to imprisonment for a
term not exceeding two years or a fine (or both);(b) on summary
conviction—(i) in England and Wales, to imprisonment for a term
not exceeding the general limit in a magistrates’ court or to a
fine (or both);(ii) in Scotland, to imprisonment for a term not
exceeding twelve months or to a fine not exceeding the statutory
maximum (or both);(iii) in Northern Ireland, to imprisonment for
a term not exceeding six months or to a fine not exceeding the
statutory maximum (or both).””Member’s explanatory statement
This introduces a reasonable excuse defence for offences relating
to a failure to comply with duties relating to persons with
significant control. It also replaces the offences relating to
false or misleading information with a strict liability offence
(not dependent on knowledge) and an aggravated offence (where
there is knowledge). See the Minister's undertaking at report
stage (20 June, col. 149).
40: Schedule 2, page 228, line 27, leave out “or 790LC” and
insert “, 790LBA, 790LC, 790LCA, 790LCB, 790LD or 790LDA”
Member’s explanatory statement
This is consequential on my amendments to Schedule 2, page 225,
lines 2, 17 and 41. See the Minister's undertaking at report
stage (20 June, col. 149).
Amendments 13 to 40 agreed.
Bill passed and returned to the Commons with amendments.
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