Aiming For Too Much Transparency?

UK AIM companies are currently exempt from the requirement to maintain a register of people with significant control, or PSC register.  This may change in June 2017 with the implementation of the Fourth Money Laundering Directive.  At best, this would be an administrative inconvenience, but directors would need to consider whether to undertake investigations into shareholdings and relationships between shareholders.  Failure to comply would render both the company and directors potentially liable to fines and imprisonment.

The current PSC regime in the UK exempts companies from the requirement to maintain a PSC register if they are subject to Chapter 5 of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules (DTR 5).  DTR 5 applies to UK companies with shares traded on a regulated market (such as the main market of the London Stock Exchange), as well as to companies with shares traded on a prescribed market like AIM.  The exemption applies as