- with Senior Company Executives, HR and Finance and Tax Executives
- with readers working within the Law Firm industries
The guidance clarifies the standards Companies House will apply when assessing whether authorised corporate service providers meet the fitness requirements introduced by the Economic Crime and Corporate Transparency Act 2023
Companies House has published guidance on the criteria it will apply to determine if a person is fit and proper to carry out the functions of an authorised corporate service provider (ACSP). The guidance applies to new applicants seeking to register as ACSPs, as well as existing registered ACSPs.
Third-party service providers who carry out identity verification (IDV) checks for their clients must be registered as an ACSP with Companies House. In future (but no earlier than November 2027) anyone that files information at Companies House on behalf of clients will also need to be registered as an ACSP. These measures are being introduced by the Economic Crime and Corporate Transparency Act 2023 to improve transparency and trust in the public register.
Under section 1098B of the Companies Act 2006, Companies House will not register an applicant as an ACSP if they appear not to be fit and proper. Companies House will also monitor ACSPs and may suspend or terminate their ACSP status if they have reasonable cause to believe they are no longer fit and proper.
The guidance published by Companies House sets out a non-exhaustive list of areas and criteria which Companies House may consider as part of its fit and proper assessment, including:
- eligibility and competence to act as an ACSP, including whether the ACSP (or applicant) has appropriate Anti-Money Laundering (AML) supervision;
- criminal, regulatory and financial history such as bankruptcy or disqualification as a director;
- honesty, integrity and conduct, including in its previous dealings with Companies House; and
- history with Companies House and ACSP activity, such as how the ACSP carries out IDV and its compliance with statutory filing requirements.
Companies House may also look at aggravating factors as part of its assessment, such as repeated patterns of behaviour, as well as mitigating factors such as co-operation with Companies House.
An ACSP must be registered with at least one AML supervisory body, but the guidance emphasises that meeting the AML supervision requirement does not automatically mean that the fit and proper test is satisfied.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]
