Economic Crime and Corporate Transparency Act 2023 (Consequential, Supplementary and Incidental Provisions) Regulations 2024
(8 months, 4 weeks ago)
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Lord Johnson of Lainston
That the Grand Committee do consider the Economic Crime and Corporate Transparency Act 2023 (Consequential, Supplementary and Incidental Provisions) Regulations 2024.
The Minister of State, Department for Business and Trade (Lord Johnson of Lainston) (Con)
My Lords, it is a pleasure to see the same team back again. We have covered late payments of paternity leave and now we are on economic crime; I hope that they are not linked. I believe these are to be consequential, which in plain English means inconsequential. I hope that we can cover this quite smoothly but of course, as always, I am very open to hearing noble Lords’ views on how we can improve our legislation to reduce economic crime in this country and get Companies House to work more effectively. At the risk of being slightly repetitive, I urge noble Lords to look at my interests in the register.
These regulations were laid before the House on 30 January under the Economic Crime and Corporate Transparency Act 2023, which I will refer to as the 2023 Act. This Act makes changes to the Companies Act 2006, which, among other things, reforms the role and powers of the Registrar of Companies.
Last week, I brought forward the first four affirmative statutory instruments to begin the long-awaited process of enabling the registrar to become a proactive gatekeeper of company information. Those regulations and the powers in the 2023 Act equip the registrar with the ability to compel answers about suspicious information, remove or change information on the UK company register, as well as analyse and disclose data available to her to law enforcement agents. I am pleased to say that, by next week, the registrar will be able to begin using her new powers. This will be an important step in improving the integrity of the company register for investors and businesses alike and will help in the fight against economic crime.
This statutory instrument will make minor consequential amendments to the Companies Act 2006 and the Economic Crime (Transparency and Enforcement) Act 2022. It also introduces changes to eight pieces of secondary legislation. The changes are very technical in nature but are designed to ensure that the reforms apply coherently and the registrar’s new powers are exercised effectively.
The key purpose of this statutory instrument is to ensure that the changes introduced into the Companies Act 2006 will extend, where possible, to law governing other business entities registered in the UK. It also lifts restrictions on the use and disclosure of certain data by the registrar and allows her to share it more widely, especially with public authorities for purposes connected with the exercise of these functions. The changes are necessary to ensure consistency across the statute book pertaining to business entities, as well as to provide clarity and accessibility to users of legislation.
Although this statutory instrument does not make any policy changes, these regulations are an important effort to ensure that the registrar’s objectives and powers are applied consistently to all business activities registered at Companies House. I am sure that noble Lords have read some of the background notes but these are grandfathered in European companies, called Societas, and various other types of companies; I will be happy to write to noble Lords in greater detail but we are comfortable in wanting to make sure that we have not let any peculiar formation through the net.
Looking ahead, there will be greater opportunities to consider the more substantial parts of the reforms. My department will continue to bring forward further statutory instruments to implement the reforms to Companies House fully. These instruments will strengthen the role and powers of the registrar, help tackle economic crime and make the company register one of the most trusted in the world. I beg to move.
Lord Fox (LD)
Those are laudable aim, Minister. Those of us who laboured long and hard into the night on the then Economic Crime and Corporate Transparency Bill welcome the arrival of this statutory instrument. When we considered the other ones last week, I asked when the commencement statutory instrument was due. I think that this is what I was asking for, so that is good news.
I have nothing to add. As I say, we debated long and hard on the Bill, now the Act. The proof of the pudding will be in Companies House and how it gets motoring on its new mission. I know that the Minister and the department know this; anything that we can do together to help it get there is to the benefit of all of us. We wish this statutory instrument godspeed and we wait hopefully for the other 50-something that will come hard on its heels.
Lord Leong (Lab)
My Lords, as stated earlier, I declare my interest as a director of several companies, as set out in the register. I thank the Minister for clearly setting out this set of regulations. I agree with the noble Lord, Lord Fox: we on these Benches are content to support this set of technical regulations and have nothing further to add.
Lord Johnson of Lainston (Con)
I am grateful to the noble Lords for their support of this technical point. If people are listening to these debates, they should not be under any illusion that there has not been a rigorous debate around every element of the ECCT Bill—and more will come. In this instance, these are technical points, and I would be grateful if this instrument could be passed by the Committee.