MLR101 Fit and proper

MLR101 Fit and proper

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Following a phonecall from HMRC to confirm that I was complying with the MLR regulations etc, I have today received a letter advising that as I form companies on behalf of clients through Companiesmadesimple then I should also be registered as a TCSP and pay an additional £50.00 fee together with completion of a form MLR101.

I had no idea about this and I wonder if it is correct or have I been very lax in not understanding my obligations.  If the latter and I register immediately am I likely to incur any penalty?

Many thanks.

Replies (3)

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David Winch
By David Winch
24th Jun 2013 14:04

TCSP

The key question is whether you are a 'TCSP' (Trust or Company Service Provider).  This is defined by Regulation 3(10) MLR 2007.

 

(10) “Trust or company service provider” means a firm or sole practitioner who by way of business provides any of the following services to other persons —

(a) forming companies or other legal persons;

(b) acting, or arranging for another person to act —

(i) as a director or secretary of a company;

(ii) as a partner of a partnership; or

(iii) in a similar position in relation to other legal persons;

(c) providing a registered office, business address, correspondence or administrative address or other related services for a company, partnership or any other legal person or arrangement;

(d) acting, or arranging for another person to act, as —

(i) a trustee of an express trust or similar legal arrangement; or

(ii) a nominee shareholder for a person other than a company whose securities are listed on a regulated market,

when providing such services.

Perhaps you were asked, "Do you form companies for clients?".  If you answered, "Yes" then HMRC will treat you as a TCSP.

However I would question whether you do form companies for clients or whether you simply arrange for clients to have companies formed for them by a company formation agent.

So have another think about whether you are a TCSP.  If you are, then you do need to complete the additional form and pay the additional fee.

If you consider, on reflection, that you are not a TCSP then contact HMRC again for them to reconsider the point.

David

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By Smartie99
24th Jun 2013 14:54

Thanks David,  I know I did

Thanks David,  I know I did read the rules before and came to the conclusion that I didn;t need to register, but we will see.

Could anyone else who is MLR supervised by HMRC comment if they also register as a TCSP?

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Chris M
By mr. mischief
24th Jun 2013 16:15

I don't

Admittedly my attitude to this MLR stuff is it is just another cynical money-making scheme for HMRC.  I have 122 clients, 1 is high risk due to international business activities and I have ML reviewed him to death.  As far as I am concerned that should be that.

But of course it isn't, I need to do the Jobsworthy drivel for the other 121 as well.  No way am I going to pay anything above the absolute minimum, which is what I do pay.

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