Investors and trust beneficiaries run the risk of being made an example of in respect of the new UK register of People with Significant Control if they don't take advice and consider structuring options, says Ogier lawyer Alexander Curry.
Alex, who addressed a forum on the PSC Register in London last week, said that uncertainty over the subjective test of "significant influence or control" in the legislation meant that investors should take specific advice over their positions and their options.
The PSC Register has been in force since April, creating responsibilities for UK-incorporated companies and limited liability partnerships to maintain a register of all those with more than 25% ownership or voting rights, and those who have "significant control and influence".
Although no enforcement action has been taken in the early months since the PSC Register has come into force, Alex says that the current climate will not continue indefinitely, and that investors and trust beneficiaries should be taking onshore and offshore advice about whether they should be entered on the public register.
Alex, who has written a briefing on the rules, said: "If you haven't already taken advice on the PSC Register, then the time to do so is now.
"There will be some who want to consider their structuring options or consider selling and relinquishing certain UK assets entirely, rather than have their details published in the PSC Register.
"That's a decision for the individual, but what's certain is that no-one can ignore the new legislation, and no-one can ignore their responsibilities under the law."
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