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UK PARLIAMENT · SITTING

Kevin Hollinrake

MP for Thirsk and Malton · Conservative · United Kingdom

IN THEIR OWN WORDS

That issue is one of the many things that the people who signed the petition are concerned about, Dr Huq. One of the big things that the Government promised, which I agree with them about, is the need to encourage faster growth in our economy. Of course that is right, but look at where that growth is.

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The UK economy went through many challenges, of course, some of them caused by Brexit; the reality is that a change like that was bound to have a short-term effect—but only a short-term effect. The country grew faster than Germany and France during that period of time.

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As I said before, governing is not easy; we had many challenges ourselves, and we did not get everything right, but what we did during that difficult period of time—those 14 years—was get 1.2 million more people employed in our economy. Unemployment was halved during our time in office.

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Of course, many Government Members supported his leadership challenge. We are here now, looking forward to a general election coming down the track. We are ready for a general election when the Government are, because, unlike them, we have a strong leader—against their weak leader.

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I was, absolutely. I thank my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) for his excellent opening speech. He made so many good points, not least about the level of support for this petition.

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Members on the Government side of the House also feel betrayed and angry with their own leadership, for marching them up to the top of the hill and marching them back down again on many of these issues, but they do not feel as betrayed as the businesspeople in this country in particular.

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The complete record

Every one of 3,516 lines we hold for Kevin Hollinrake, in date order, each linked to its source. Free to read, in full, without an account. Page 60 of 71.

  1. Property transactions often take many months to complete, and during that time a third party transacting with an overseas entity must have certainty that the entity remains compliant with the requirements of the register so that transactions are not disrupted. The key sanction for non-compliance with the register, which interferes with existing property rights, is to make it impossible for a buyer to register a title if purchasing from a non-compliant overseas entity. The onus is therefore on the buyer and their agents to ensure that they do not transact with a non-compliant entity. In order to protect the buyer, likely to be an innocent third party, it follows that there must be absolute legal certainty about the compliance status of the overseas entity throughout the duration of the transaction.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (EIGHTEENTH SITTING) · 2022-11-24 · READ IN HANSARD

  2. I might get into trouble with you, Sir Christopher, but on the previous new clause, countries on the high-risk jurisdiction list include Israel, Turkey and the Czech Republic. Is it honestly the Opposition’s intention to prevent individuals and companies from those jurisdictions from buying property in the UK? We should think again. I thank the hon. Member for Aberavon for new clause 55. I wholeheartedly agree that keeping the information on the register up to date is critical. The annual update requirement is intended to provide certainty for third parties transacting with overseas entities.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (EIGHTEENTH SITTING) · 2022-11-24 · READ IN HANSARD

  3. The amendment makes all trust information available, even if that sits below the 25% or whatever ownership there might be of the trust or its benefit.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (EIGHTEENTH SITTING) · 2022-11-24 · READ IN HANSARD

  4. The word “trust” in this context sends shivers down all our spines. I understand the rationale behind the new clause, but the right hon. Member for Barking is right in that I will state my position. There is a key matter here. The right hon. Lady cited a couple of examples, one a trust and one a company, where she implied a disguised ownership of certain assets. The current requirements of legislation are that information about a registrable beneficial owner of a trust is displayed publicly. If someone is a beneficial owner, their name is revealed publicly. She might argue that that person could be lying, but they can lie about ownership of anything—“I don’t own any of this and do not exert control”—as we have discussed before.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (EIGHTEENTH SITTING) · 2022-11-24 · READ IN HANSARD

  5. The other thing I would say is that trusts are used for legitimate purposes, including to protect the privacy and safety of children, for example, and other vulnerable individuals. The ECTE Act allows the registrar to disclose protected trust information to HMRC, and regulations will soon be made to allow the registrar to disclose the information to other persons with functions of a public nature, such as tackling crime.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (EIGHTEENTH SITTING) · 2022-11-24 · READ IN HANSARD

  6. I just do not think that is right. The right hon. Lady might not have meant this exactly, but even if ownership is reduced—this goes for a company more than a trust—to below 5%, the amendment would not even solve that issue, would it? The legislation requires the beneficial ownership to be registrable and for there to be openly available information. Of course the person who is entering that information could lie. A lawyer or accountant could lie. But now they are subject to a criminal sanction for doing that if it is proven. As has been mentioned, information around trusts is a concern. It should raise red flags with Companies House. That information can of course be shared.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (EIGHTEENTH SITTING) · 2022-11-24 · READ IN HANSARD

  7. We may have to agree to disagree. The requirement to register somebody of beneficial ownership is quite clear. If there is a beneficial owner, that person will have to be publicly named. That is what we seek to achieve through this legislation, and that is what we think it does. There are some points in the amendment that we think are relevant, including potentially widening access to information in certain circumstances with certain authorities. We will consider that, but we cannot accept the totality of the amendment at this time. Question put, That the clause be read a Second time.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (EIGHTEENTH SITTING) · 2022-11-24 · READ IN HANSARD

  8. The right hon. Gentleman says that there is a much stricter cost-control regime in the United States. He is clearly not aware that there is no such regime in the United States, because no adverse costs are awarded. It is a completely different legal system.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (EIGHTEENTH SITTING) · 2022-11-24 · READ IN HANSARD

  9. It is clear that regulations made under the Bill may make consequential, supplementary, incidental, transitional or saving provisions and regulations under specified clauses must be subject to the affirmative resolution procedure. I am sure we can write to the hon. Lady to set out exactly what those situations are.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (FIFTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  10. Provisions about the registration of Scottish qualifying partnerships exist in the 2017 regulations, made using powers under now repealed section 2(2) of the European Communities Act 1972. That has two consequences. First, there is no existing power to amend the regulations, other than by an Act of Parliament. Secondly, if not replaced under section 1 of the proposed retained EU law Bill, the 2017 regulations will be revoked at the end of 2023. This power will allow us to keep the existing requirements on Scottish qualifying partnerships and to add new ones. Without the amendment and new clause, it will not be possible to extend key measures introduced via the Bill, such as identity verification, to Scottish qualifying partnerships, thereby creating a dangerous loophole. I hope that my explanation has provided further clarity.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (FIFTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  11. It is a pleasure to speak with you in the Chair, Mr Paisley. I will speak briefly to amendment 43 and new clause 22, which are minor technical changes necessary due to the European Communities Act 1972 having been repealed. They give the Secretary of State the power to apply company or limited partnership law by regulations to Scottish qualifying partnerships, as well as to impose new requirements of Scottish qualifying partnerships not included in company or limited partnership law, such as identity verification. It allows the Government to retain the measures introduced by the Scottish Partnerships (Register of People with Significant Control) Regulations 2017 in relation to SQPs and to amend them in the future.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (FIFTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  12. Through that, the Government seek to ensure that companies governed by the laws of other jurisdictions that operate in the UK are subject to identity verification requirements that are introduced by the Bill and will apply to UK companies. Regulations under the power will include requiring the delivery of statements or other information to the registrar. They will also include exemptions from identity verification on national security grounds. The application of identity verification obligations through secondary legislation will allow the Government to adapt ID verification requirements at speed. Overseas companies who operate within the UK are only within limited control of UK law. UK legislation affecting them therefore needs to adapt more quickly to their changing circumstances than primary legislation would allow for.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  13. New clauses 1 to 3 allow for the making of regulations requiring overseas companies that have established a physical presence in the UK to provide an appropriate address for the overseas company, their directors or other officers, to the same standard required of domestic companies incorporated here in the UK. The aim is the same—to ensure that addresses and email addresses on the companies register are accurate and that documents sent to them will reach the companies concerned or their officers. New clause 4 allows the application, through regulations, of identity verification requirements to directors of overseas companies operating in the UK.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  14. It is always a pleasure to serve with you in the Chair, Ms Elliott. Government new clauses 1 to 4 will introduce delegated powers allowing for the application of the Companies House reform measures elsewhere in the Bill to overseas companies registered in the UK. In this context, an overseas company is one that is incorporated overseas but that has a physical establishment or branch in the UK. Under long-standing provisions in the Companies Act 2006, that presence brings with it certain obligations to register information with Companies House.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  15. (12) Regulations under this section are subject to affirmative resolution procedure.’ (3) In section 1087 (material not available for public inspection), in subsection (1)(ga)— ‘(a) after “1097A” insert “, 1097B”; (b) for “company registered office” substitute “registered office, service address”.’”— (Kevin Hollinrake.) This new clause confers a regulation-making power to enable the registrar to change a person’s registered service address. It is based on section 1097A of the Companies Act 2006, which makes similar provision in relation to a company’s registered office. Brought up, read the First and Second time, and added to the Bill.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  16. (9) On an appeal, the court must direct the registrar to register such address as the relevant person’s registered service address as the court considers appropriate in all the circumstances of the case. (10) The regulations may make further provision about an appeal and in particular— (a) provision about the time within which an appeal must be brought and the grounds on which an appeal may be brought; (b) further provision about directions by virtue of subsection (9). (11) The regulations may include such provision applying (including applying with modifications), amending or repealing an enactment contained in this Act as the Secretary of State considers necessary or expedient in consequence of any provision made by the regulations.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  17. (6) The provision made by virtue of subsection (5)(k) may in particular include provision creating summary offences punishable with a fine not exceeding level 3 on the standard scale or, for continued contravention, a daily default fine not exceeding one-tenth of level 3 on the standard scale. (7) The regulations must confer a right on the company to appeal to the court against any decision to change the relevant person’s registered service address under the regulations. (8) If the regulations enable a person to apply for a registered service address to be changed, they must also confer a right on the applicant to appeal to the court against a refusal of the application.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  18. (5) The regulations may make provision as to— (a) who may make an application, (b) the information to be included in and documents to accompany an application, (c) the registrar requiring the company or an applicant to provide information for the purposes of determining anything under the regulations, (d) the notice to be given of an application or that the registrar is considering the exercise of powers under the regulations, (e) the notice to be given of any decision under the regulations, (f) the period in which objections to an application may be made, (g) how the registrar is to determine whether a registered service address meets the requirements of section 1141(1) and (2), including in particular the evidence, or descriptions of evidence, which the registrar may without further enquiry rely on to be satisfied that the address meets those requirements, (h) the referral by the registrar of any question for determination by the court, (i) the registrar requiring the company to provide an address to be registered as the relevant person’s service address, (j) the nomination by the registrar of an address (a “default address”) to be registered as the relevant person’s service address (which need not meet the requirements of section 1141(1) and (2)), (k) the period for which the default address is permitted to be the relevant person’s registered service address, and (l) when the change of address takes effect and the consequences of registration of the change (including provision similar or corresponding to section 1140(5)).

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  19. (2) In this section— “registered service address”, in relation to a relevant person, means the address for the time being shown in the register as the person’s current service address; “relevant person” means— (a) a director of a company that is not an overseas company, (b) a secretary or one of the joint secretaries of a company that is not an overseas company, or (c) a registrable person or registrable relevant legal entity in relation to a company (within the meanings given by section 790C). (3) The regulations may authorise or require the address to be changed on the registrar’s own motion or on an application by another person. (4) The regulations must provide for the change in the address to be effected by the registrar proceeding as if the company had given notice under section 167H, 279H or 790LC of the change.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  20. Brought up, read the First and Second time, and added to the Bill. New Clause 5 Rectification of register: service addresses “(1) The Companies Act 2006 is amended as follows. (2) After section 1097A insert— ‘1097B Rectification of register: service addresses (1) The Secretary of State may by regulations make provision authorising or requiring the registrar to change a registered service address of a relevant person if satisfied that the address does not meet the requirements of section 1141(1) and (2).

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  21. (3) The regulations may include provision— (a) requiring the delivery of statements or other information to the registrar; (b) for statements or other information delivered to the registrar under the regulations to be withheld from public inspection; (c) applying section 167M (prohibition on director acting unless ID verified), with or without modifications; (d) applying section 1110D (exemption from identity verification: national security grounds), with or without modifications. (4) Regulations under this section are subject to negative resolution procedure.’”— (Kevin Hollinrake.) Regulations under this new clause can impose identity verification requirements on the directors of overseas companies, corresponding to the requirements introduced by the Bill for directors of UK companies.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  22. New Clause 4 Overseas companies: identity verification of directors “After section 1048A of the Companies Act 2006 (inserted by section (Registered addresses of overseas companies) of this Act) insert— ‘1048B Identity verification of directors (1) This section applies in relation to an overseas company that is required to register particulars under section 1046. (2) The Secretary of State may by regulations make provision for the purpose of ensuring that each individual who is a director of such a company— (a) is an individual whose identity is verified (see section 1110A), or (b) falls within any exemption from identity verification that may be provided for by the regulations.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  23. (3) In subsection (2) “registered address”— (a) in relation to the overseas company, means the address for the time being registered for the company under regulations under section 1048A(1)(a); (b) in relation to a person other than the overseas company, means any address for the time being shown as a current address in relation to that person in the part of the register available for public inspection.’”— (Kevin Hollinrake.) Regulations under this new clause can require an overseas company to provide and maintain an appropriate address and appropriate email address. Broadly speaking, an address is appropriate if documents sent there will reach the company. Brought up, read the First and Second time, and added to the Bill.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  24. (4) In this section— “appropriate address” has the meaning given by section 86(2); “appropriate email address” has the meaning given by section 88A(2). (5) Regulations under this section are subject to negative resolution procedure.’ (3) In section 1139 (service of documents on company), for subsections (2) and (3) substitute— ‘(2) A document may be served on an overseas company whose particulars are registered under section 1046— (a) by leaving it at, or sending it by post to, the company’s registered address, or (b) by leaving it at, or sending it by post to, the registered address of any person resident in the United Kingdom who is authorised to accept service of documents on the company’s behalf.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  25. (2) The regulations may include provision— (a) allowing an overseas company to change the address or email address for the time being registered for it under the regulations; (b) requiring an overseas company to ensure that the address or email address for the time being registered for it under the regulations is an appropriate address or appropriate email address. (3) The regulations may include— (a) provision for information contained in a statement specifying an appropriate email address to be withheld from public inspection; (b) provision corresponding or similar to any provision made by section 1097A (rectification of register relating to a company’s registered office) or to provision that may be made by regulations made under that section.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  26. The new clause makes it clear that the regulations can provide for the information to be withheld from public inspection and that they can confer a discretion on the registrar. Brought up, read the First and Second time, and added to the Bill. New Clause 3 Registered addresses of an overseas company “(1) The Companies Act 2006 is amended as follows. (2) After section 1048 insert— ‘1048A Registered addresses of an overseas company (1) The Secretary of State may by regulations make provision requiring an overseas company that is required to register particulars under section 1046 to deliver to the registrar for registration— (a) a statement specifying an address in the United Kingdom that is an appropriate address for the company; (b) a statement specifying an appropriate email address for the company.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  27. New Clause 2 Overseas companies: availability of material for public inspection etc “In section 1046 of the Companies Act 2006 (overseas companies: registration of particulars), after subsection (6A) (inserted by section (Change of addresses of officers of overseas companies by registrar) of this Act) insert— ‘(6B) Regulations under this section may include provision for information delivered to the registrar under the regulations to be withheld from public inspection. (6C) The provision that may be made by regulations under this section includes provision conferring a discretion on the registrar.’”— (Kevin Hollinrake.) Section 1046 of the Companies Act 2006 confers a regulation-making power to require overseas companies to register information.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  28. Regulations under new clause 4 will correspond to regulations applying to UK companies made and debated by Parliament under the affirmative procedure. The extension to overseas companies would therefore not require additional scrutiny by Parliament and the regulations will be subject to the negative procedure. Question put and agreed to. New clause 1 accordingly read a Second time, and added to the Bill.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  29. I am happy to, and I thank the hon. Lady for her points. As we have said during similar discussions, the registrar will have access to information; most of the queries that she will follow up will have come through information received during the course of her duties. It does not make sense for Companies House to physically validate all addresses, but nevertheless information may well come to light through the registrar’s work or the requirement for other bodies to share information with her if they feel that inaccurate information is on the register. That is how we anticipate that information will come forward. I will not revisit the issue of national security other than to say that the power will be used sparingly and that we do not know what we do not know, so it is important that we have a provision that might be necessary in future.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  30. New clauses 10 and 11 therefore provide powers to update the 1986 Act and the Company Directors Disqualification (Northern Ireland) Order 2002 to apply to limited partnerships, limited liability partnerships and Scottish partnerships.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  31. Through other provisions in this Bill, a disqualified individual is prevented from acting as a general partner of a limited partnership. However, that would only cover individuals who have been disqualified for their actions as directors in a company. We also need to be able to disqualify general partners for their actions within a limited partnership. Currently, that cannot be done because the Company Directors Disqualification Act 1986 applies only to directors of companies and other limited corporate entities such as building societies and NHS foundation trusts. We would like to ensure that general partners are subject to the same requirements as directors.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  32. New Clause 12 Required information about overseas entities: address information “In the following provisions of Schedule 1 to the Economic Crime (Transparency and Enforcement) Act 2022 (which refer to an entity’s registered or principal office) omit ‘registered or’— paragraph 2(1)(c); paragraph 5(1)(b); paragraph 6(1)(d); paragraph 7(1)(b).”— (Kevin Hollinrake.) This new clause would mean that the required information that must be provided about an overseas entity, a corporate registrable beneficial owner or managing officer includes its principal office in all cases, rather than there being an option to provide its registered or principal office. Brought up, and read the First time .

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  33. (7) Regulations under this Article are to be made by statutory instrument. (8) A statutory instrument containing regulations under this Article may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.’”— (Kevin Hollinrake.) This new clause allows the Secretary of State to make regulations applying the CDD(NI)O 2002 in relation to relevant entities, meaning that a person’s conduct in relation to relevant entities would lead to disqualification, and disqualifications in other circumstances would prohibit a person from acting in relation to relevant entities. Brought up, read the First and Second time, and added to the Bill.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  34. (4) In this Article a “relevant entity” means— (a) a limited partnership registered under the Limited Partnerships Act 1907; (b) a limited liability partnership registered under the Limited Liability Partnerships Act 2000; (c) a partnership, other than a limited partnership, that is— (i) constituted under the law of Scotland, and (ii) a qualifying partnership within the meaning given by regulation 3 of the Partnerships (Accounts) Regulations 2008. (5) Regulations under this Article may make consequential, supplementary, incidental, transitional or saving provision. (6) The provision which may be made by virtue of paragraph (5) includes provision amending provision made by or under either of the following, whenever passed or made— (a) an Act; (b) Northern Ireland legislation.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  35. (2) For that purpose, the regulations may in particular— (a) extend the company disqualification conditions to include corresponding conditions relating to a relevant entity; (b) limit the company disqualification conditions to remove conditions relating to a relevant entity; (c) modify which company disqualification conditions can, in combination with each other, result in a person being disqualified under this Order; (d) provide for any of the company disqualification conditions to result in or contribute to a person being disqualified from acting in a role or doing something in relation to a relevant entity. (3) In this Article “the company disqualification conditions” means the conditions that can result in or contribute to a person being disqualified under this Order from acting in a role or doing something in relation to any entity.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  36. (3) After Article 25C insert— ‘25D Power to amend application of Order in relation to relevant entities (1) The Secretary of State may by regulations amend this Order for the purpose of applying, or modifying the application of, any of its provisions in relation to relevant entities.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  37. I have nothing further to add. Question put and agreed to. New clause 10 accordingly read a Second time, and added to the Bill. New Clause 11 Power to amend disqualification legislation in relation to relevant entities: NI “(1) The Company Directors Disqualification (Northern Ireland) Order 2002 (S.I. 2002/3150 (N.I. 4)) is amended as follows. (2) In Article 2(2) (interpretation), for the definition of ‘regulations’ substitute— ‘“regulations”, except in Articles 13D and 25D, means regulations made by the Department subject (except in Article 23(3)) to negative resolution;’.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  38. In advance of the launch of the register, the Register of Overseas Entities (Delivery, Protection and Trust Services) Regulations 2022 were made. Regulation 14 specified the circumstances in which a legal entity trustee is deemed to be “subject to its own disclosure requirements”. By virtue of a legal entity trustee being a registrable beneficial owner, the overseas entity must provide the required information about the trust and persons connected to it, such as beneficiaries, settlors and interested persons.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  39. New clause 13 will require overseas entities to include the title number for relevant interests in land that they hold in their application for registration, both when providing an update and when applying to be removed from the register. Overseas entities that are already registered will be required to provide this information when they next provide an update or, if sooner, when they apply to be removed from the register. The collection of this information will improve the effectiveness of the register and will help law enforcement agencies with their investigations. The information will not be made publicly available because the Government do not consider that to be appropriate, given privacy concerns. Let me turn new clause 15.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  40. This is to ensure that there is a person who can be contacted about the overseas entity, in addition to the relevant person who verified the information. It is possible that in jurisdictions outside the UK, individuals younger than 16 may be allowed to act as company directors, secretaries or equivalents. Directors of UK companies are required to be at least 16 years of age, so the new clause provides consistency by requiring the contact details of someone who is at least 16 years of age. New clause 21 will update the language about penalties for non-compliance in section 34 of the Economic Crime (Transparency and Enforcement) Act 2022 to reflect changes made by the Judicial Review and Courts Act 2022. It will ensure consistency with the wording used in other clauses in the Bill.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  41. All the new clauses relate to the register of overseas entities. New clause 12 will mean that the required information that must be provided about an overseas entity, a corporate registrable beneficial owner or a managing officer will always include its principal office, rather than there merely being an option to provide its registered or principal office. The new clause will improve the quality of the information provided and align with the information required about other types of legal entities. New clause 14 will ensure that overseas entities that provide the details of a managing officer who is under the age of 16, or who is a legal entity, must also provide details of a person who is more than 16 years old.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  42. I will deal with that, if I can, as I go through. Essentially, trusts are often there to protect the identity of vulnerable persons, so I am not sure that the provision will do what the right hon. Member wants to do in her new clause, but we can probably discuss that when we discuss her new clause.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  43. New clause 15 goes further by ensuring that a legal entity acting as a trustee is always a registrable beneficial owner whether or not it is “subject to its own disclosure requirements” and even if there is another registrable beneficial owner further down a chain of ownership. This maximises the transparency in respect of the involvement of a legal entity trust in a chain of ownership. The provisions also provide a power to expand the description of persons who are registrable beneficial owners where the overseas entity is part of a chain of entities that includes a trustee. It is appropriate to have a power to expand the description, given that there may be complex arrangements that attempt to circumvent the requirements. The provisions revoke regulation 14 because it is no longer needed.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  44. Without regulation 14, if the corporate trustee were not subject to its own disclosure requirements, the overseas entity would have to “look through” the legal entity trustee to find a registrable beneficial owner higher up the chain of ownership. But in the situations we are talking about it is information about the trust that is wanted, rather than information about the ownership or control of the legal entity trustee. Currently, regulation 14 therefore ensures that Companies House, His Majesty’s Revenue and Customs and law enforcement agencies receive the information about the trust and persons connected to it, which I think may be the point that the right hon. Member raises and which is much more useful to meet the aims of the register.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  45. As I understand it, somebody under the age of 16 could be the managing officer, but we still require somebody over the age of 16 to be contactable. That is how we square that particular circle. It is not in our gift to legislate for how other jurisdictions describe directors of companies. Forgive me, but I missed the hon. Lady’s second point. If she could restate it, I will try to address it.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  46. This ensures consistency with the language that clauses 136 and 137 introduce into the 2022 Act. Brought up, read the First and Second time, and added to the Bill. Ordered, That further consideration be now adjourned. — (Scott Mann.)

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  47. New Clause 21 Enforcement of requirement to register: updated language about penalties etc “(1) The Economic Crime (Transparency and Enforcement) Act 2022 is amended as follows. (2) In section 34 (power to require overseas entity to register if it owns certain land)— (a) in subsection (4)(a), for ‘the maximum summary term for either-way offences’ substitute ‘a term not exceeding the general limit in a magistrates’ court’; (b) omit subsection (5). (3) In section 36 (meaning of ‘daily default fine’) after ‘applies for’ insert ‘the’.”— (Kevin Hollinrake.) This new clause updates the penalty provision for the offence in section 34 of the Economic Crime (Transparency and Enforcement) Act 2022 to reflect changes made by the Judicial Review and Courts Act 2022.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  48. (5) Regulations under this section are subject to the negative resolution procedure.’; (b) omit sections 29 and 29A (application to rectify register and resolution of discrepancies). (2) In section 1073 of the Companies Act 2006 (power to accept documents not meeting requirements for proper delivery), in subsection (6)(a), after ‘section 1094A(1)’ (inserted by section 82 of this Act) insert— ‘or any corresponding provision of any other enactment’.”— (Kevin Hollinrake.) This new clause replicates for the register of overseas entities the changes that clause 82 of the Bill makes in relation to the register of companies. Brought up, read the First and Second time, and added to the Bill.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  49. (3) The provision that may be made under subsection (2) includes provision as to— (a) who may make an application, (b) the information to be included in and documents to accompany an application, (c) the notice to be given of an application and of its outcome, (d) a period in which objections to an application may be made, and (e) how an application is to be determined, including provision as to evidence that may be relied upon by the registrar for the purposes of satisfying the test in section 28(1). (4) The provision that may be made by virtue of subsection (3)(e) includes provision as to circumstances in which— (a) evidence is to be treated by the registrar as conclusive proof that the test in section 28(1) is met, and (b) the power of removal must be exercised.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD

  50. (3) The Secretary of State may by regulations provide that the registrar’s power to remove material from the register under this section following an application is limited to material of a description specified in the regulations. (4) Regulations under this section are subject to the negative resolution procedure. 28A Further provision about removal of material from the register (1) The Secretary of State must by regulations make provision for notice to be given in accordance with the regulations where material is removed from the register under section 28 otherwise than on an application. (2) The Secretary of State must by regulations make provision in connection with the making and determination of applications for the removal of material from the register under section 28.

    ECONOMIC CRIME AND CORPORATE TRANSPARENCY BILL (SIXTEENTH SITTING) · 2022-11-22 · READ IN HANSARD