Latest news with #corporatetransparency
Times
06-08-2025
- Business
- Times
Boost growth or tackle crime? Flip-flopping will hamper both
There must be a sense of motion sickness at Companies House. Included in the Economic Crime and Corporate Transparency Act 2023 was a swathe of provisions intended not only to improve the quality of information on the register, but also to fight back against the use of UK corporate entities in economic crime. But no sooner was it confirmed in July that one such reform — significantly increasing the amount of filing required by small and micro companies — would shortly be implemented, it emerged that Jonathan Reynolds, the business secretary, was minded to scrap it as part of Labour's assault on red tape. This apparent reversal — not a U-turn, given it was implemented by the previous government — sat rather oddly with the announcement a fortnight later of a major operation between Companies House, the National Crime Agency and other agencies to strike off 11,500 non-compliant companies and target the businesses involved in their formation and management. Those within Companies House must be asking: are we clamping down on fraud or reducing compliance obligations? Those goals are not mutually exclusive — but the effect of the 2023 reforms has been a deliberate lurch away from Companies House as a repository of information to an enforcement agency with significant responsibility with respect to economic crime. That may sound sensible, but the approach skips over the question of whether it is remotely equipped for the task. Of the 150-odd offences contained within the Companies Act 2006, only one — failure to file accounts and reports — is prosecuted with any consistency. Approximately half the civil penalties for late filings go uncollected. Those who deal with Companies House regularly know that correspondence sent today is unlikely to receive a response in the next fortnight, no matter the urgency. Cases easily resolved without proceedings must often wait until the parties are actually at court before a sensible discussion can be had. A significant amount of expectation — and statutory power — has been piled onto Companies House, but that is only half the equation. The same concerns must also arise for the Insolvency Service, which has recently announced its own five-year plan to make economic crime a core part of its work. The idea that either organisation is capable of becoming a serious player in combating fraud and money-laundering — in addition to their core mandates — in the near future is bold. Fighting complex financial crime is hard (just look at the mixed fortunes of the Serious Fraud Office), requiring infrastructure and institutional experience that cannot be acquired in the short-term or with the drag of political flip-flopping. As long as Companies House is pulled in different policy directions — cleaning up UK plc while also reducing friction for business — it will struggle to achieve the transformation expected. Nick Barnard is a partner at the law firm Corker Binning
Yahoo
01-07-2025
- Business
- Yahoo
Proposed Companies House rules spark concerns for UK small businesses
Thousands of UK small and medium-sized enterprises (SMEs) are bracing for regulatory changes that will force them to reveal detailed financial information, prompting fears of competitive harm and disruption across key sectors. From April 2027, all limited companies — including small firms and micro-entities — will be required to submit full profit and loss (P&L) statements to Companies House under reforms introduced by the Economic Crime and Corporate Transparency Act 2023. This ends the long-standing option for SMEs to file abridged or 'filleted' accounts, which previously allowed them to keep key financial metrics private. The government says the changes are aimed at tackling fraud and improving corporate transparency. However, SME leaders warn the reforms could severely impact smaller firms' ability to compete, especially in sectors where client perception and financial discretion are critical. Martin McTague, national chair of the Federation of Small Businesses (FSB), criticised the move, saying it 'opens the door wide to competitors snooping on margins and for large companies in supply chains to scrutinise smaller suppliers' finances.' He warned that the reforms may 'give big players an unfair advantage and damage small firms' negotiating power,' potentially stifling growth and innovation in the process. The changes are especially troubling for SMEs in competitive, client-focused sectors such as professional services. Firms operating as limited companies or LLPs will be subject to the new reporting rules. Industry observers said many of these businesses have relied on the ability to present a strong public image while keeping key financial details, like profit margins and internal performance, confidential. In addition to expanding financial disclosures, Companies House has confirmed that all annual accounts must be filed using commercial software from April 2027. The current web-based and paper submission routes will be phased out. Companies House described the switch as 'a critical step in improving the accuracy and quality of data on the register by reducing errors and formatting issues.' It also expects the move to accelerate processing times and enhance its ability to detect and prevent fraud. The reforms will apply to all companies filing with Companies House, including: Small companies (with turnover under £15 million and fewer than 50 employees), which will be required to file their P&L statement, directors' report, and balance sheet. Micro-entities (with turnover under £1 million and fewer than 10 employees), which must file both a balance sheet and a P&L for the first time. All filings will need to be submitted digitally, and all financial records will be publicly accessible, eliminating a key layer of privacy that many SMEs have relied on. In response to growing concern, SME advocates are calling on the government to rethink the scope of the reforms or introduce carve-outs for the smallest businesses. The FSB has urged policymakers to strike a balance between transparency and competitiveness. 'The UK desperately needs more enterprise and growth,' McTague said. 'But these changes risk making the system less friendly for small business owners at exactly the wrong time.' "Proposed Companies House rules spark concerns for UK small businesses" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Zawya
02-06-2025
- Business
- Zawya
MSX, Ominvest host MEIRA Oman Chapter meeting
MUSCAT: The Oman Chapter of the Middle East Investor Relations Association (MEIRA) met in Muscat recently under the auspices of the Muscat Stock Exchange (MSX). The meeting, hosted by Oman International Development and Investment Company SAOG (Ominvest), brought together a distinguished group of investor relations professionals, market experts and representatives from MSX listed companies to discuss best practices in investor communications and corporate transparency. The meeting featured three in-depth workshops led by regional and international experts. Frederic Cornet, Head of Capital Markets at APCO Worldwide, led the first session focused on mastering earnings calls. His workshop addressed the importance of conducting well-prepared, strategic earnings calls that align senior leadership messaging with investor expectations while strengthening market confidence. He also emphasised how companies can leverage the outcomes of such calls to enhance future communication strategies. The second workshop, led by Julian Smith, Managing Director of BRR Media Limited, explored the use of multimedia specifically video and animation as tools to deliver a compelling equity story. Smith highlighted how visual storytelling can simplify complex business strategies, increase engagement with investors and ultimately support capital attraction. Real-world case studies were presented to illustrate how companies are successfully applying these tools to enhance investor trust. The third workshop was presented by Giles Coffey, General Manager of Corporate Finance and Advisory at Oman Investment Bank and it discussed the role investment banks play in helping companies navigate the challenges they face in investor relations. The MEIRA Oman Chapter meeting was part of MSX's ongoing efforts to develop a vibrant capital market through improved investor relations practices. The event also reinforced MSX's commitment to transparency, good governance and effective communication between listed companies and the investment community, both locally and internationally. Ominvest's hosting of this meeting underscored its strong dedication to fostering a thriving investor relations environment within the Sultanate of Oman and promoting best practices across the financial ecosystem. This initiative aligns with Ominvest's long-standing commitment to supporting Oman's economic growth and sustainable development by championing transparency, corporate excellence and strategic collaboration within the financial services sector.
BBC News
17-05-2025
- Business
- BBC News
Companies House: Couple trace fake firms to Solihull block of flats
A couple found they were the victims of identity fraud after their address was changed without their consent and fake companies and accounts set up in their investigation by the couple then led them to discover a number of companies listed as being based at the same address, a block of flats in Solihull, in the West whose name has been changed to protect her identity, said they faced months of stress and felt they had a lack of support from Companies House.A spokesperson from the government agency, said: 'Prior to the introduction of the Economic Crime and Corporate Transparency Act there were limited powers to validate the information that was delivered to her. "New powers under the Act allow us to act more quickly if people inform us personal information has been used without their consent.'Sophie told the BBC she first discovered something was wrong when her husband's postal vote did not come through for their local elections in contacted the council, who told them their address had been changed without the pair knowing about then received a letter from a trade company asking her husband to confirm a business account for a company that was not theirs. Acting quickly, the pair contacted Action Fraud and the UK fraud prevention group Cifas to flag the then led to them receiving several letters from bank and credit companies telling the couple attempts were being made to set up accounts in their husband was also listed as the director of another the couple have a legitimate business themselves, she said they wanted to act quickly and contacted Companies House about the fraudulent knowingly register false information with the agency is a crime under the Companies the process of getting a person's name removed from a business was "not straightforward", according to Sophie."They first write to the registered address and ask the named director to provide further proof of their ID," she added."They are given several weeks to respond, during which time the business can still trade."If they get no response, they will then move to dissolve the business, which again takes time."I had to send a lot of details to them, which is ironic since they clearly didn't ask for details at the beginning when the companies were being set up." Sophie sought legal advice to see if the efforts could be speeded up but was told it would cost £2,000-4,000 in advice fees with another £10,000-15,000 if the matter went to court."It took around four to five months to get his name removed, a lot of time. This chasing down has taken hours and hours of our time," she contacted her local police force about what had happened but said she did not receive a response.A spokesperson for West Midlands Police said they investigated allegations of identity fraud in Solihull in 2023 but "no suspects were identified".Sophie said her efforts to look into their situation led to her finding that the registered address of all the fake companies was a block of flats in block consists of about 30 apartments but Sophie said there were 24 different businesses registered ranged from ones dealing in sweets and confectionary to others which said they were removal services and construction."This highlights how easy it is to do, since the registration of adjacent addresses is lazy and obvious," she said. 'Hugely stressful' In most of the cases, Sophie found the names used to set up the companies belonged to a pensioner."A lot of these people, particularly those in their seventies, they won't have a clue what is happening and wouldn't necessarily have the resources to chase it down," she said."This could be hugely stressful for people and could actually end up costing them a lot of money."We had to register for CFA's (Counter Fraud Authority) which aren't free, we pay for that now because we feel we need to check our credit score but that option wouldn't be open to everybody."Sophie said she believed their case was not unique."This seems to be such an easy thing to do and there's really no comeback," she said."It almost feels like, well, you might as well give it a go."The Economic Crime and Corporate Transparency Act became law in 2023 and was aimed at giving Companies House greater powers to remove invalid registered office Sophie said she wanted to see more thorough checks of who was setting up new firms."I think there must be thousands of people in the country who are directors of companies and don't even know," she said."They need better identification for when you're setting up a company. Far better checks and balances when you're setting up a company."It shouldn't be this easy." What to do if you've been a victim of identity fraud Contact the organisation concerned - whether it be a bank, credit card company or something else and let them know what's happenedReport it to Action Fraud - individuals or businesses who have fallen victim to identity fraud should report it to Action Fraud on 0300 123 2040 or on their victim support - if you have been a victim of fraud, you can contact Victim Support for free, confidential advice and supportReport fraudsters If you have information about those committing identity crime please tell independent charity Crimestoppers anonymously on 0800 555 111 or at their websiteQuery suspicious mail - be suspicious of any unsolicited emails, even if it appears to be from a company you know ofBBC Action Line also has links to organisations that may be able to help if you have been affected by a scam or fraud. You can find out more about how to stay Scam Safe here. Follow BBC Birmingham on BBC Sounds, Facebook, X and Instagram.
