Companies House has published new guidance setting out the ‘fit and proper’ criteria that apply to Authorised Corporate Service Providers (ACSPs). But what does this mean for firms providing company secretarial and Companies House services?
For some, company secretarial work can appear to be a straightforward administrative task – submitting a form, updating company information or filing documents with Companies House.
However, the introduction of the Authorised Corporate Service Provider (ACSP) regime highlights that there is considerably more responsibility involved.
What is an ACSP?
An ACSP is a third-party service provider authorised to carry out certain activities on behalf of clients in connection with Companies House.
The Economic Crime and Corporate Transparency Act 2023 introduced the ACSP regime as part of wider measures designed to improve the accuracy, transparency and trustworthiness of the Companies House register.
Third-party service providers carrying out identity verification (IDV) checks for clients must be registered as an ACSP. In future, anyone filing information at Companies House on behalf of clients will also need to be registered as an ACSP. This requirement is expected to apply from November 2027 at the earliest.
What does ‘fit and proper’ mean?
Companies House has now published guidance explaining the criteria it will consider when deciding whether an individual or organisation is fit and proper to act as an ACSP.
The assessment can cover a number of areas, including:
- Eligibility and competence – whether the applicant is eligible and has the appropriate competence to carry out ACSP functions.
- Criminal, regulatory and financial history – including matters such as criminal offences, regulatory breaches, bankruptcy or director disqualification.
- Honesty, integrity and conduct – including previous behaviour and dealings with Companies House.
- History with Companies House and ACSP activity – including how identity verification is carried out and whether statutory filing requirements have been complied with.
Companies House may also consider other relevant circumstances, including how serious an issue was, when it occurred and whether it has since been resolved.
Registration isn’t the end of the process
Importantly, the ‘fit and proper’ assessment does not simply apply when an organisation first registers as an ACSP.
Companies House will continue to monitor ACSPs and can take action where it has reasonable cause to believe that an organisation or individual is no longer fit and proper to carry out ACSP functions.
Depending on the circumstances, this could include requesting further information, suspending ACSP status or ceasing an organisation’s registration.
This means that maintaining appropriate standards and processes is an ongoing responsibility.
How does AML supervision fit in?
ACSPs must be appropriately supervised by a relevant anti-money laundering (AML) supervisory body.
However, being supervised for AML purposes does not automatically mean that an organisation satisfies Companies House’s ‘fit and proper’ test.
The two requirements are separate, and Companies House has its own responsibility to assess whether an ACSP is fit and proper to carry out its functions.
What does this mean for businesses?
The new guidance is a useful reminder that company secretarial and Companies House work is not simply about completing forms and submitting information.
There are important responsibilities behind the process, from ensuring information is accurate and compliant to carrying out the appropriate checks and maintaining suitable procedures.
For businesses using an external provider for company secretarial or Companies House services, choosing a provider that understands these requirements is increasingly important.
For ACSPs themselves, the focus is not just on becoming registered, but on demonstrating the appropriate standards of competence, integrity and compliance on an ongoing basis.
At EQ, our Company Secretarial team can support businesses with their company secretarial and Companies House requirements, helping to ensure that the necessary processes and obligations are managed appropriately.
If you would like to discuss your company secretarial requirements, please get in touch with our team.
Source: Companies House, ‘Fit and proper criteria for Authorised Corporate Service Providers’.