Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024

Lord Jones Excerpts

Monday 13th January 2025 Grand Committee

[Lord in Waiting/Government Whip (Lord Leong) (Lab)]

My Lords, these regulations were laid before the House on 22 May 2024. I shall speak also to the Unique Identifiers (Application of Company Law) Regulations 2024, which were laid before the House on 31 October 2024. These regulations form part of a programme to implement the Economic Crime and Corporate Transparency Act 2023, which I will refer to as the 2023 Act. The 2023 Act is a landmark piece of legislation which delivers the most significant reforms to Companies House in more than 180 years to protect the public from fraud and deliver real benefits to the business community.

There has already been much progress since the 2023 Act was passed, including the introduction of stricter rules and checks to help Companies House cleanse the register. The two sets of regulations we are debating today will help to implement perhaps the most important change to the UK’s company registration framework in the 2023 Act: requiring identity verification for those setting up, running and controlling companies. Through amendments to the Companies Act 2006, the 2023 Act establishes two ways in which an individual can verify their identity, either directly with Companies House or via an authorised corporate service provider—ACSP. These providers must be supervised for anti-money laundering purposes and be registered with Companies House.

I will set out specifically what the two instruments will do. The Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024 set up the legal framework that underpins identity verification. The identity-verification procedure involves an individual delivering specific information to the registrar or to an ACSP. This must include their name and date of birth and any other further information specified in the registrar’s rules, which are a form of tertiary legislation. Given the technical and increasingly evolving mechanisms for identity verification, it would be inappropriate to list in these regulations every single identity document that must be provided to the registrar or ACSP or every single step an individual must take. Instead, the registrar is enabled to specify the requirements in a more suitable format and to adapt or tweak the detail quickly where necessary. Companies House has published a draft version of the registrar’s rules, which have been shared with Members today. I hope they provide a useful example of what evidence and steps might be required from applicants. When the registrar or ACSP receives all the correct information from an applicant, they will grant the identify verification application if they are satisfied that the information provided is true.

That is the broad legal process for identity verification. In practice, Companies House will use the GOV.UK One Login platform to deliver the identity-verification service. One Login is a cross-departmental verification platform, enabling users to have a single login and verified identity for multiple government services. An individual will create an account and can verify their identity using a range of evidence, such as a passport or driving licence, or through knowledge-based verification questions based on their credit record or banking information. The process also includes checks to make sure that the individual matches the picture on their photo ID. For most people completing the purely digital route, the process will take a matter of minutes. Individuals can also complete the process in person at a post office.

If an individual decides to verify via an ACSP, the ACSP must follow the legal procedure established in these regulations and in the registrar’s rules. Companies House will issue guidance to ACSPs to explain how the procedure should be applied in practice and what checks they must perform on the information received. This will ensure that both routes achieve the same level of assurance in identity verification. Once an ACSP verifies an applicant’s identity, they will deliver a verification statement to Companies House to confirm that they have followed the correct procedure. The verification statement will be published alongside the applicant’s appointments on the register to maximise transparency. Alongside the verification statement, ACSPs must give the registrar information about the evidence they relied on to verify an individual’s identity. This means that Companies House will not lose access to crucial identity data if someone uses an ACSP, and will provide them with assurance that identity checks have been completed correctly.

The regulations add other checks and balances to the ACSP regime. ACSPs will be required to maintain records relating to identity verification for seven years from the date when they determined the identity-verification request. The registrar can suspend and deauthorise an ACSP if they consider that they are not fit and proper to carry out the functions of an ACSP. The registrar can perform spot checks on ACSPs and ask them to provide information about their identity-verification obligations. All those provisions combined ensure that Companies House has the tools at its disposal to ensure that the ACSP regime is as effective and robust as possible.

The second set of regulations, the Unique Identifiers (Application of Company Law) Regulations 2024, are technical and apply provisions on unique identifiers contained in the Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024 to other entities. A key mechanism underpinning the operation of identity verification is the use of unique identifiers, or personal codes, that are used to identify individuals who have had their identity verified, as well as registered ACSPs. The first set of regulations will enable the allocation of unique identifiers to individuals associated with companies. These regulations give the registrar powers to allocate unique identifiers to ACSPs and individuals associated with other entities—namely, limited partnerships, limited liability partnerships, companies authorised to register, unregistered companies and Scottish qualifying partnerships. Identity-verification requirements will eventually apply to other entities registered at Companies House, so it is necessary that we make these regulations to ensure that the requirements can operate in practice.

I want to provide an update on the timings of identity verification. Companies House published its outline transition plan in October 2024, which confirmed that it aims to start requiring identity verification from autumn 2025. In a few weeks, ACSPs will be able to register, and individuals will be able to voluntarily verify their identity with Companies House, giving people lots of time to complete the process before legal requirements start. I beg to move.

[Lord Jones (Lab)]

My Lords, I rise on the principle that the Executive should be accountable. I shall be brief. I thank the Minister for shedding some light on these dense and complicated regulations. They are obviously of help to the department, to Ministers and to business, but I dare say the Chancellor of the Exchequer was not reading them on her recent outward journey to the People’s Republic of China.

I found the factsheet helpful, and I acknowledge the strong statements therein. It states that the requirements will

“make it challenging for individuals to create a fictitious identity, or fraudulently use another person’s identity, to set up or run a company”,

and talks about being

“registered with a UK supervisory body for anti-money-laundering purposes”.

As the Minister implied, economic crime is debilitating to the nation and, without a doubt, we have problems with it in Britain.

Who is the registrar and when was she or he appointed, for what term and at what salary? Is Companies House running smoothly, so as to cope with requests and approaches from directors and people with significant control? Are there bottlenecks or significant hold-ups, perhaps even labour disputes? Are there impediments to those who file? How many money laundering cases did the registrar take to court in 2023 and 2024? These questions are designed to be helpful. If they are not answered immediately, perhaps there might be a letter.

[Lord Fox (LD)]

My Lords, I thank the Minister for his explanation. For those of us who worked on the economic crime Bills, this is a welcome development. I am interested in the timeline, because it seems some time ago that we debated the Bill, which I believe has become an Act, and we find ourselves looking to the autumn of 2025 before some of these vital identity-verification processes will reach the statute book. I certainly do not blame the Minister, because he is new to this, but what is behind the delay and how many more statutory instruments are we due? I think there are still quite a few on the stocks. When can we expect them and what functions will they unlock? When we debated the original Bill, I think we all felt this to be a real and present issue that needed immediate, or near-immediate, attention. Clearly, things are dragging on and I wonder what is causing that.

Further to the noble Lord’s comments about the functioning of Companies House, we were absolutely clear that this would be a culture change for Companies House, which will cease to be a filing cabinet and start having to investigate and verify what is coming across its desk. The previous Minister was confident that funding was in place and that the process to create that new culture was under way. We would benefit from the new set of eyes from the Minister, if not now then perhaps in a separate meeting where we can review the functioning, including the future functioning, of Companies House—a follow-on from the meetings that were so helpful during the formulation of the Bill.

Male Victims of Crime: Support

Lord Jones Excerpts

Thursday 9th June 2022 Lords Chamber

[Baroness Williams of Trafford (Con)]

I do not think there should be any favour. The whole concept and application of domestic abuse means that the system should ensure remedies and solutions for victims—as opposed to “favour”, if that is the right word—and I think the criminal justice system, fair as it is, will see to that.

[Lord Jones (Lab)]

My Lords, does the Minister’s department have any interface with Victim Support across the country? What help, advice and collaboration is there between the organisation Victim Support and her department?

Alcohol Licensing (Coronavirus) (Regulatory Easements) (Amendment) Regulations 2021

Lord Jones Excerpts

Monday 6th September 2021 Grand Committee

[The Minister of State, Home Office (Baroness Williams of Trafford) (Con)]

My Lords, these regulations contain modest measures to help to support the hospitality industry’s recovery from the economic impact of closures and restrictions on its operation during the Covid-19 pandemic. The measures will help hospitality businesses to recoup some of the revenue they have lost since March of last year. They will also allow greater flexibility in the way in which licensed premises operate if circumstances change.

Data from trade organisations and other sources show significant financial losses for the hospitality industry as a consequence of the pandemic. Curren Goodden Associates, a data and research company, reports that around 6,000 licensed premises closed in 2020 across Britain. The British Beer and Pub Association has estimated a year-on-year decrease in beer sales of £7.8 billion in 2020. Office for National Statistics data up to the end of May this year showed that payments to suppliers from food and drink businesses remained at around half their pre-pandemic levels.

The statutory instrument contains three measures to help. The first will extend provisions in the Business and Planning Act 2020 to allow for a further year, until 30 September next year, sales of alcohol for consumption off the premises to licensed premises that did not have that permission. This will allow up to 38,000 licensed premises that did not have permission to make off-sales when the Act commenced last year to continue selling alcohol for consumption outdoors, to take away or for home delivery.

The second measure amends the limits prescribed in Section 107 of the Licensing Act 2003 to increase the allowance for temporary event notices that a premises user can give in respect of a premises from 15 to 20 and increases the maximum number of days on which temporary events may be held at such premises from 21 to 26, in each of the calendar years 2022 and 2023. The increase in premises allowances of temporary event notices will enable unlicensed premises to host more revenue-generating events, such as wedding receptions and markets where alcohol is sold, as well as enabling licensed premises to extend hours by way of a temporary event notice to accommodate celebratory occasions.

Finally, the statutory instrument amends existing regulations, the Licensing Act 2003 (Permitted Temporary Activities) (Notices) Regulations 2005, to make consequential amendments to the relevant forms for temporary event notices and counter-notices. All businesses should still comply with the latest government guidance on working safely during the pandemic.

I reassure the Committee that, before this order was laid, Home Office officials consulted the National Police Chiefs’ Council about the effects that the temporary off-sales permission has had thus far. The view of the police then was that it had not caused any increase in crime and disorder.

Alongside the extension of the temporary off-sales permission, the statutory instrument will extend an expedited review process which allows responsible authorities to quickly alter the licensing conditions granted to premises or to remove the permission for sales of alcohol for consumption off the premises. I know that noble Lords will appreciate the impact which the pandemic has had on the hospitality industry, and I hope that the Committee will support these measures to aid its recovery. I commend this order to the House. I beg to move.

[Lord Jones (Lab)]

I thank the Minister for her cogent introduction to the regulations and for the copious, detailed, helpful Home Office Explanatory Memorandum. I am sure that all of us seek progress for these regulations. It is so good to see my noble friend Lord Coaker in his Front-Bench seat. I recollect his determination, diligence and command of subject in another place. Can the Minister throw any further light on how previous provisions for Covid have fared in Wales? Was there easy acceptance or did her department detect some resistance? How did her department liaise with and consult the Senedd in Cardiff? Speedily, was it? Or was it dilatory? What form did the consultation take? Was it ministerially, face to face? I think not, from paragraph 10 of the Explanatory Memorandum. Was it official to official? Again, paragraph 10 is specific. Why was it not ministerially face to face? Were there problems? Surely the Minister will surely dispel those considerations. Has the department made any assessment of the differences in the reception of and obedience to the previous post-Covid provisions? What was the link between her department and the department of health? How were these links between departments managed?

Finally, the Committee may know that many decades ago there was a referendum in Wales to determine Sunday opening for public houses. Nonconformist opinion rallied negative forces. The referendum was lost and many remained thirsty on Sundays. I hasten to say that Wales is not a land of hypocrisy and whitewash, but in those days in much of Wales every Sunday there was a procession of buses carrying thirsty Welshwomen and Welshmen to borderland English pubs. Several decades later the second referendum was positive, possibly because the chapels were emptying. I remind the Committee that the great Welshman and Prime Minister Lloyd George enacted legislation that impinged strongly on pub opening times, but the World War I war effort was judged to be the better for it.

[Lord Paddick (LD)]

My Lords, I thank the Minister for explaining these regulations. I am concerned that the information that she gave to the Committee appears to be somewhat out of date. For example, she gave information about the sale of beer until May this year. Looking at the press, the evidence is that the hospitality sector has recovered extremely well in recent months, what with staycations and people enjoying their newfound freedom. I wonder whether she has any more up-to-date information about why these regulations are necessary.

Of the three measures, the last one is consequential in terms of applications for temporary event notices, and the increases to the limits for temporary event notices are only marginal. My major concern, which we have previously discussed, is about on-licence premises being allowed to sell alcohol to take away. When we discussed this previously, I expressed concern about alcohol being sold in open containers, allowing customers to purchase alcohol and then to walk down the street unsupervised, to the annoyance of passers-by and local residents. Of particular concern was if the alcohol was served in containers made of glass which could be broken and used as weapons.

Misuse of Drugs Act 1971 (Amendment) Order 2016

Lord Jones Excerpts

Tuesday 18th October 2016 Grand Committee

[The Minister of State, Home Office (Baroness Williams of Trafford) (Con)]

My Lords, this order was laid before Parliament on 20 July. I am very grateful to the Advisory Council on the Misuse of Drugs for its world-class advice. It is the council’s recommendations that have prompted the order before your Lordships today.

The order relates to a group of synthetic cannabinoids, captured by a generic definition, and to dienedione, an anabolic steroid. The order would amend the generic definition of synthetic cannabinoids in Schedule 2, Part 2 of the 1971 Act, to include the new group as class B drugs. This will make it an offence to possess, produce, import, export, supply or offer to supply these drugs without Home Office licence. The order will insert dienedione into Schedule 2 Part 3 of the Act, as a class C drug. Similar to other anabolic steroids, dienedione will be exempted from the Act’s possession offence.

The psychoactive effects and harms of the third generation synthetic cannabinoids proposed to be controlled by the order are reported to be similar to cannabis and other synthetic cannabinoids already controlled under the 1971 Act. A number of substances with legitimate medicinal applications have been specifically exempted from the definition, along with some substances already controlled as class A drugs. There are no known legitimate or recognised uses of the remaining compounds beyond potential research.

The ACMD advises that the potential physical and social harms of dienedione would be commensurate with those of other anabolic steroids. It notes that the substance can alter the growth of skeletal muscle and bone as well as the differentiation, growth and maintenance of the reproductive system and sexual characteristics in men.

The ACMD considers that these substances are being, or are likely to be, misused, and that misuse is having, or is capable of having, harmful effects sufficient to constitute a social problem. For this reason, my honourable friend the Minister for Vulnerability, Safeguarding and Countering Extremism, accepted the advisory council’s advice that these substances should be subject to this order.

In due course it is intended to make two further related negative statutory instruments to come into force at the same time as the order. This will add dienedione and the third generation synthetic cannabinoids to the appropriate schedules to the Misuse of Drugs Regulations 2001. The Misuse of Drugs (Designation) Order 2001 will also be amended to designate these synthetic cannabinoids, as they have no recognised legitimate uses outside of research.

The order, if made, will provide enforcement agencies with the requisite powers to restrict the supply and use of these harmful substances in this country. We know that the law change cannot, on its own, deter all those inclined to use or experiment with these drugs. However, we expect the order to have a notable impact on their availability. This will also provide a clear message to the public that the Government consider these substances too dangerous to health to allow them to circulate in the UK.

[Lord Jones (Lab)]

My Lords, I thank the Minister for her cogent and precise explanation of this draft statutory instrument. I am not able to discern from looking at the papers before us whether the Misuse of Drugs Act 1971 (Amendment) Order 2016 as a statutory instrument has any reference to Wales. Perhaps the Minister’s officials may be able to advise her. My guess is that it does not, but perhaps the information can come forward for the convenience of the Committee via officials. If it is not applicable, are we able to understand today how it may indirectly be applied to the Principality? Some information would be helpful. Even though more and more Members of your Lordships’ House have a link to and a residence in Wales, it is harder and harder to obtain information about the Principality given the establishment of the Welsh Assembly.

Lastly, and with no great seriousness, looking at the Explanatory Note and at the last list of substances that have legitimate medical uses, can I invite the Minister—who has great ability—for the convenience of the Committee to pronounce the last three substances?

[Lord Kennedy of Southwark (Lab)]

My Lords, I thank the noble Baroness for her explanation of the order before us today and say at the outset that we fully support them and what the Government are trying to do. I see in my briefing note that synthetic cannabinoids are also known as Spice, which I will use as it is easier. There were 29 deaths from these drugs in 2011 and that figure rose to 67 in 2014. Spice can cause aggression and delusions and worsen mental conditions and clearly is a very dangerous substance. We must do what we can to get it off the streets.

Figures from the Centre for Social Justice show that officers from 32 police forces attended 3,807 incidents in 2014, up from 1,400 the previous year. The Prison Ombudsman reported that between June 2013 and January 2016 there were 58 fatalities where the prisoner was thought to be, or suspected of being, involved with the substances before their death.

I do not know whether the Minister has any evidence or any information regarding admissions to A&E departments. I am sure there will be a number of these and ones where these drugs were taken with other substances. As I said, I fully support the order but I have a number of other points and questions for the Minister. If she cannot answer them now I would be very happy for her to write to me.

These drugs are still covered by the Psychoactive Substances Act so why are we moving across to the Misuse of Drugs Act? There is also a possession offence with this Act. How is that going to be policed? It would also be helpful if the Minister could say something about how schools, colleges and universities deal with young people’s exposure to these drugs and more generally about the quality of drug and alcohol education provision. I understand that the drugs strategy is going to be published in the next few weeks. Can she say a bit more about that, particularly about education and prevention? Does she see an intelligence gap in our ability to police the levels of Spice in the UK, being imported into Britain and being stockpiled? I am conscious that she may not be able to answer these questions here, and I am content with the order.

[Baroness Williams of Trafford]

My Lords, I thank all noble Lords who have contributed to the debate, and I shall go through the various questions they have asked. The noble Lord, Lord Jones, mentioned the fact that no reference is made to Wales, but these orders apply to England and Wales. He asked about the last three substances mentioned in the order—telmisartan, viminol and zafirlukast. The noble Lord wants to intervene.

[Lord Jones]

Only to congratulate the noble Baroness on her pronunciation.

[Baroness Williams of Trafford]

I thank the noble Lord. The noble Lord, Lord Kennedy, has rightly outlined the very real harms associated with Spice, in particular in prisons. A documentary I saw about the drug highlighted the terrible effect it is having on the streets of Manchester. In terms of the number of admissions to A&E departments, I do not have that figure today, but if we have it, I will provide it for him. However, I cannot think that even indirectly it does not contribute to emergency hospital admissions because of the general effect it has on the person who is using it. Moreover it is very cheap, which is why it acts as a pull on those who have less access to money than others.

The noble Lord also asked about the crossover from the psychoactive substances legislation to the Misuse of Drugs Act. Given the reported risks and the known harms that the substances are already known to pose to public health, the ACMD had previously advised that they warrant control under the misuse of drugs legislation. The control utilises the stricter offences of production and distribution without a licence under any circumstances, which I am sure that the noble Lord will be pleased about, as well as the possession offence. That can impose a higher maximum sentence. These stricter penalties for offences will prove to be a stronger deterrent to the supply of these substances. I repeat what I said in my opening remarks: there is no known medicinal use for them.

The noble Lord asked about the drugs strategy. As he knows it is currently being developed and we will continue to build on the 2010 strategy to take a balanced approach and tackle drug misuse as a pre-driver of crime. We aim to publish the strategy shortly. I know that your Lordships do not like the word “shortly”, but we are planning to release it soon.

The noble Lord also talked about education and prevention, which for me is the key point in this: how do we deter our young people from taking these poor lifestyle choices in the first place? We have an online resilience-building resource called Rise Above which is aimed at 11 to 16 year-olds. It provides resources to help to develop the skills young people need to make positive choices for their health, including avoiding drug use. We also have FRANK, the Government’s drug information advice service that many noble Lords will have heard of. It continues to be updated to reflect new and emerging patterns of drug use and it evolves to remain in line with young people’s media habits. Moreover, Public Health England has developed its role in supporting local areas in terms of sharing evidence to support the commissioning and delivery of effective public health prevention activities. I think that I have answered all the questions put by noble Lords, and with that I beg to move.

Equipment Interference (Code of Practice) Order 2015

Lord Jones Excerpts

Monday 7th December 2015 Grand Committee

[Lord Jones (Lab)]

My Lords, I support the proposals, which were conscientiously and effectively explained by the Minister. I recollect him in another guise in another place, where he practised, to a degree, the black arts and would have been pleased by a depleted Committee on a Monday when many Members are travelling.

I rise to support the measures and to emphasise a truth with regard to measures such as these. The existence of secret services in a parliamentary democracy always requires debate and scrutiny, which is why we are in Committee this afternoon. We debate and argue, at length, sometimes, as is our duty. We need our secret services. It was possible for our sovereign to attend the 2012 Olympic Games in total safety because of the successful, thorough and patriotic work of our secret services and the allied services alongside them. They always aim to prevent terrorism and to fight it by all means. Praise should go to the then director of MI5, Jonathan Evans—now the noble Lord, Lord Evans of Weardale—and the many people in other services alongside him in that successful approach to the 2012 Olympic Games.

To give noble Lords a little history, I had the honour of chairing the Standing Committee in another place that gave legitimacy and birth to the Intelligence and Security Committee, which is referred to in the measures before us. It was necessary to bring the security services into the public domain because of a hearing in the Strasbourg court. My constituent, when I was in another place, required the legislation. That case brought forward the legislation that brought into being the IS Committee. Later, having taken the chair for that legislation, the late John Smith nominated me to join the Intelligence and Security Committee as a founder member. For something like 10 years I found myself travelling to Washington, Ottawa and European capitals as a member of that committee. As a result of those experiences, I see the relevance of what the Minister has put to this Committee, and I offer it my modest support.

Noble Lords may know that the witnesses at that IS Committee were former Prime Ministers, former Foreign Secretaries, even the onetime archivist of the KGB, many Permanent Secretaries and directors of the secret services. The committee I served on was very ably chaired by the noble Lord, Lord King, who in another place was Tom King MP. Bringing these matters up to date, I note that there was a previous Joint Committee of both Houses that considered legislation not dissimilar from some of the measures referred to by the Minister. I served on that Joint Committee and I noted the evidence given, firmly but politely, by the Home Secretary.

I emphasise that the orders before us are very necessary but they will need to be stringently and carefully examined and debated from time to time, and that is the process in which we are engaged today. I heard the Minister talking about stringent conditions. With regard to the investigatory powers, members of the Joint Committee were able to meet the Commissioner of the Metropolitan Police, the then assistant commissioner, Cressida Dick, and the considerable, able and conscientious team working under their leadership at the offices on the other side of the Thames. I have no doubt whatever that the conditions are stringent and it was right that the Minister made that point.

[Lord Kennedy of Southwark (Lab)]

My Lords, the orders before us today are important. They are tools to obtain evidence of suspected wrongdoing. I can tell the noble Lord that the Opposition support both orders, although we have some concerns. There has to be a balance between the scope of the powers exercised by the state and the rights of individuals who are subject to the exercise of those powers.

The noble Lord will, I am sure, be aware of the concerns raised by the Bar Council in relation to legal privilege. It would be helpful if he could say something about the safeguards against interference with privileged communications and, in particular, how the equipment interference order could result in the acquisition of matters subject to legal privilege, as well as what steps are being taken to mitigate such a risk. What I am looking for today from the noble Lord, Lord Bates, is more reassurance that the balance has been properly fixed. Clearly, technology is moving very fast and I am supportive of the Government ensuring, on the one hand, that the powers are appropriate and up to date and, on the other, that the procedures are properly codified and people’s rights are respected. I also understand that the orders are likely to be in force for only a short time, as of course we will be having the new Bill, which has to be on the statute book by the end of next year.

It would be helpful if the noble Lord could explain to the Committee a bit more about the safeguards that are in place, particularly in relation to the interception of communications code. Can he also say a bit more about the equipment interference code? As he said, it confers no new powers but simply sets out those powers and the safeguards that are in place. The noble Lord, Lord Paddick, suggests that new powers are being conferred, so the comments of the two noble Lords contrast somewhat. Therefore, we need to be clear about whether there are new powers in this code. If the noble Lord says that there are not, can he set out for the Committee why he believes that he is correct and the noble Lord, Lord Paddick, is wrong in that respect? Having said that, the Opposition support the orders.