Corporate Transparency and Register Reform: Consultation on improving the quality and value of financial information on the UK companies register

Overview

In 2019, the Government consulted on a range of options to enhance the role of Companies House, increase the transparency of corporate entities and help combat economic crime. On 18 September 2020, the Government published a response to the Corporate Transparency and Register Reform Consultation. It set out a broad package of reforms to Companies House to ensure it is fit for the future and continues to make a valuable contribution to the UK’s business environment. The proposed reforms are also designed to give Companies House a more effective role in assisting the Government’s wider efforts to tackle economic crime affecting the UK by improving the integrity of the information available about companies and other business entities.

 The Government response also noted that we would consult further on certain aspects of the reform package: on the detailed scope of the new querying power and how it will work in practice; and on further improvements to the financial information available on the companies register, primarily through the submission of accounts to Companies House. We are also taking this opportunity to consult further on a new set of principles for Corporate Director appointments given the transparency read-across to our wider package of reforms.

The Government is publishing these consultations separately, and in parallel, given differing stakeholder interests, and recognising that stakeholders may not wish to respond to all questions were the consultations to be combined.

 In the 2019 consultation (“the first consultation”) the proposals concerning the value of financial information on the companies register (“the register”) received strong support, but respondents challenged us to be more ambitious in the scale of reforms under consideration. This consultation addresses those challenges and sets out the vision for reform of accounts filings and proposals to deliver this. We look forward to receiving your response.

What happens next

The Government will consider responses to this consultation in parallel with the other aspects of register reform set out above and will confirm its plans in 2021. These measures will require primary legislation