Schedules Schedule 6 – Duty to deliver information about changes in beneficiaries
This schedule requires an overseas entity that has a beneficial owner who is a trustee to provide information about changes in beneficiaries under the trust that take place during an update or other period (rather than just providing a snapshot of the beneficiaries at the end of the period).
	This Schedule amends the Economic Crime (Transparency and Enforcement) Act 2022 (ECTE Act 2022).
	Paragraph 2 amends Section 7 of the ECTE Act 2022 by first making consequential changes to section 7, subsection 3 and subsection 4, and by inserting a new subsection 4A into section 7. Subsection 4A sets out the information that is to be provided by an overseas entity when it submits its annual update and is required to provide information about a trust. The overseas entity must provide a statement about trust beneficiaries, and where a change has occurred during the update period, the overseas entity must provide the required information (as set out in paragraph 8(1)(d) of Schedule 1 to the ECTE Act 2022) about each change. Information must be provided about anyone who has become, or ceased to be, a beneficiary under the trust during the update period.
	Sub-paragraph (6) substitutes subsections (6) and (7) of section 7 of the ECTE Act 2022. New subsection (6) sets out that any statements required by subsection (1)(a) or (b) must relate to the state of affairs as at the end of the update period. New subsection (7)(a) provides that any information required by subsection (1)(a) or (b) as a result of a person having become, or ceasing to be, a beneficiary under a trust or (b) required by subsection 1(b) as a result of a person having become, or ceasing to be, a registrable beneficial owner of an overseas entity must relate to the time when the person attained that status, or ceased to hold that status.
	New subsection (7A) to section 7 sets out that any other information required to be provided by subsection (1)(a) must relate to the state of affairs at the end of the update period.
	Paragraph 3 amends section 9 (application for removal) of the ECTE Act 2022. Sub-paragraphs (2) and (3) make consequential changes to subsections (1)(b) and (c) and to subsection (3) of section 9.
	Sub-paragraph (4) amends subsection (4) of section 9 to provide that where the information provided under subsection 1(c0 includes information that a person who ceased to be a registrable beneficial owner was a trustee, a statement, or statement and information, as the case may be, must be provided as set out in new subsection (4A) to section 9.
	Sub-paragraph (5) inserts new subsection (4A) into section 9. The table in new subsection (4A) sets out what is required to be provided where a person who has ceased to be a registrable beneficial owner was a trustee.
	Sub-paragraph (6) amends subsection (6) of section 9, substituting the words "subsection (2)" for the words "this section".
	Sub-paragraph (7) substitutes subsections (7) and (8) of section 9. New subsection (7) sets out that any statements required by subsection (1)(b) or (c) must relate to the state of affairs at the time of the application for removal.
	New subsection (8) provides that any information (a) required by subsection (1)(b) or (c) as a result of a person having become or ceasing to be a beneficiary under a trust, or (b) required by subsection (1)(c) as a result of a person having become or ceasing to be a registrable beneficial owner of an overseas entity, must relate to the time when the person attained, or ceased to hold, that status.
	New subsection (8A) to section 9, inserted by sub-paragraph (7), sets out that any other information required to be provided by subsection (1)(b) must relate to the state of affairs at the time of the application for removal.
	Paragraph 4 substitutes section 12 (duty to take steps to obtain information) of the ECTE Act 2022. New section 12 sets out that before making an application for registration under section 4(1), overseas entities must take reasonable steps to obtain all of the information it is required to submit to the Registrar under that section, if it is able to obtain it (subsection 1). Subsections (2) and (3) provide for the same duty on overseas entities before they comply with section 7 of the ECTE Act 2022, and before they make an application for removal under section 9.
	Subsection (4) sets out the steps that an overseas entity is required to take by virtue of subsections (1), (2) or (3). These steps must include the provision of a notice to any person that the overseas entity knows, or has reason to believe, is a registrable beneficial owner in relation to the entity. The notice requires the person receiving it to (a) state whether or not they are a registrable beneficial owner in relation to the entity, and (b) if they are, to provide or confirm the information mentioned in subsections (1), (2) or (3) so far as they relate to the person, or a trust of which they are, or were, a trustee.
	Subsection (5) provides that the steps that the overseas entity must take by virtue of subsections (2) or (3) also include giving notice to any person that it knows, or has reasonable cause to believe, has ceased to be a registrable beneficial owner in relation to the entity during the update period (within the meaning of section 7) or relevant period (within the meaning of section 9). The person must (a) state whether or not they are a person that has ceased to be a registrable beneficial owner of the entity, and (b) if they are, provide or confirm the information mentioned in subsection (2) or (3) as far as relating to that person, or a trust of which they are or were a trustee.
	Subsection (6) sets out that any notice given under subsections (4) or (5) must require the person to whom it is given to comply with it within a period of one month beginning with the day on which the notice is given.
	Subsection (7) provides that a person given a notice under subsection (4) or (5) is not required to disclose any information in respect of which a successful claim to legal professional privilege (or, in Scotland, confidentiality of communications) could be made.
	Paragraph 5 inserts new subsection (6) into section 13 of the ECTE Act 2022. New subsection (6) sets out that a reference to a person who is a registrable beneficial owner in relation to the overseas entity includes, in relation to obtaining information required by section 7(1)(b), 9(1)(c) or 42(1)(c)(i), a reference to a person who has ceased to be a registrable beneficial owner.
	Paragraph 6 inserts new section 17A into the ECTE Act 2022: Exceptions to duty to provide change of beneficiary information. This section provides a power for the Secretary of State to make regulations providing for exceptions to the requirement to deliver information by virtue of section 7(3)(c), 4(c), 9(3)(c) or 4(c)(subsection (1)). Before making regulations, the Secretary of State must consult the Scottish Ministers if the regulations contain provision that would be within the legislative competence of the Scottish Parliament if contained in an Act of that Parliament (subsection (2)). Subsection (3) provides that the Secretary of State must consult with the Northern Ireland Department of Finance before making regulations under the power in subsection 1, if the regulations contain provision that (a) would be within the legislative competence of the Northern Ireland Assembly if contained with an Act of that Assembly, and (b) would not, if contained in a Bill for an Act of the Northern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998.
	Regulations made under the power in subsection (1) are subject to the negative procedure.
	Paragraph 7 inserts a new subsection (1A) into section 43 (transitional information) of the ECTE Act 2022. New subsection (1A) provides that in subsection (1) of section 43, the reference to section 12 is to that section as it had effect before the amendments made by Schedule (Duty to deliver information about changes to beneficiaries) to the Economic Crime and Corporate Transparency Act 2023 (duty to deliver information about changes in beneficiaries).
	Paragraph 8 amends section 44 (interpretation) of the ECTE Act 2022 by omitting subsection (2).