Appendix 2: Call for Evidence
The Joint Committee on the Draft Registration of Overseas Entities Bill was appointed in February 2019 to consider the Government’s draft Bill for the implementation of a register that would require overseas companies and other legal entities that own property (i.e. real estate) in the UK to identify their ultimate principal beneficial owners. The Committee invites interested individuals and organisations to submit written evidence to this inquiry. The deadline for written evidence is 18 March 2019.
The Committee will make recommendations in a report to both Houses by 10 May 2019. In the short time available to us, the Committee will focus on the content of the draft Bill and its scope. We will not consider the merits of individual cases which have been, or are now, subject to formal proceedings in courts or tribunals.
Draft Registration of Overseas Entities Bill
The draft Bill would establish a public register of the beneficial owners of overseas entities that own or purchase land in the UK, and require overseas entities that wish to own UK land to:
- identify their beneficial owner(s);
- disclose that information to the register (held at Companies House); and update the information provided to the register annually.
Our aims
In scrutinising the draft Bill we aim to:
- Clarify and examine the Government’s policy objectives
- Assess whether the Bill as drafted would achieve the Government’s objectives
- Identify any unintended consequences of the Bill
- Make recommendations to improve the drafting of the Bill
Areas of interest
We shall explore and would welcome views on any, or all, of the key questions outlined below:
Objectives & scope
- Will the public register as established by the draft Bill effectively deliver the policy aim of preventing and combatting the use of land in the UK for the purposes of laundering money or investing illicit funds?
- Will the proposed register have a dampening effect on overseas investment into the UK property market? Is this a necessary consequence of increased transparency?
- Are the conditions for “registrable beneficial owners” appropriate? Are they sufficiently clear (i) for overseas entities with different ownership structures to be able to determine which individuals or legal entities are registrable, and (ii) to capture different types of legal entity?
- Should other types of entity (such as trusts) be included in the scope of the draft Bill?
- Are the proposed powers allowing the Secretary of State to exempt, or modify application requirements for, certain types of entities appropriate? Under what circumstances should these powers be exercised?
Operation of the register
- Are the information requirements sufficiently comprehensive? Are there other types of information that it would be useful to include? Conversely, do the requirements place an undue burden on entities?
- What controls should be in place to verify the information provided to the register?
- Does Companies House have sufficient capacity or resources to administer and monitor the register?
- Should entities which cannot identify, or provide full details of, their beneficial owners be allowed to register? Is it useful to hold the information of a managing officer in place of a beneficial owner? Is there any additional information that should be required from entities that are unable to give information about their beneficial owners?
- Does the draft Bill provide sufficient protections for individuals who could be put at risk by having information about them made publicly accessible?
- Should it be possible to appeal the suppression of information from public disclosure?
Compliance & enforcement
- Is a system of statutory restrictions and putting notes on the register, backed up by criminal offences, a comprehensive and practicable way to ensure compliance?
- How should the Government ensure that all prospective and existing overseas owners of qualifying estates are made aware of the new register and its requirements by the time the register is operational or before the end of the transition period?
- Will the draft Bill’s objectives be achieved in a consistent manner throughout the UK despite differences in how property is bought and sold–and in the draft Bill’s definitions of ‘qualifying estates’–in the different jurisdictions? Will there be a level playing field across the UK?
- Are the exceptions to the restrictions on disposal sufficient to protect the rights of third parties? Should any other exceptions be included in the draft Bill?
- Are the sanctions for non-compliance with information requirements proportionate and enforceable?
Delegated powers
- Are the proposed delegated powers in the draft Bill appropriate?
- Do the procedures selected (affirmative/negative resolution) for each power provide for sufficient levels of parliamentary scrutiny?