Part 1: Companies House Reform Identity verification Section 65: Procedure etc for verifying identity
This section inserts sections 1110A and 1110B into the Companies Act 2006. Section 1110A introduces the meaning of "identity is verified".
	Section 1110A(1) provides, that an individual’s identity is verified if the person has verified their identity with the Registrar directly or a verification statement in respect of the person has been delivered to the Registrar by an authorised corporate service provider. Irrespective of whether the individual’s identity becomes verified by verification with the Registrar directly or via an authorised corporate service provider, both verification methods must comply with the requirements under regulations made by the Secretary of State under section 1110B. Compliance with the section 1110B regulations will have to be confirmed by the authorised corporate service provider in the verification statement.
	Section 1110A(2) defines a verification statement for the purpose of section 1110A, as a statement made by an authorised corporate service provider (defined under the new 1098A of Companies Act 2006) confirming that an individual’s identity has been verified in accordance with the verification requirements in section 1110B.
	Section 1110A(3) provides that a verification statement must also specify the authorised corporate service provider’s supervisory authority or authorities for the purposes of the Money Laundering Regulations. The Registrar will be required to make verification statements available for public inspection. Including an authorised corporate service provider’s supervisor(s) on the verification statement will mean that the public can see this information, thereby increasing the register’s transparency.
	Section 1110A(4)provides that the Secretary of State may, by regulations, make further provision about the contents of a verification statement, including a provision to amend this section.
	Verification statements in the meaning of section 1110A(2) must be distinguished from statements solely confirming that an individual’s identity is already verified. They are required for example under sections 12(2A), 12B, 167G(3)(c), 790LB(1)-(2), and 1067A, they do not count for the purpose of section 1110A(1)(b) and do not fall under the definition in subsection (2). Verification statements under section 1110A(2) can only be delivered by authorised corporate service providers and their delivery has the legal effect of changing individual’s verification from unverified to verified. By contrast, other statements solely confirming that individual’s identity is verified have only declaratory effect. The effect of section 1110A(5) is to allow both types of statements to be delivered at the same time.
	Section 1110A(6) provides that the Secretary of State may by regulations, set out the circumstances in which someone ceases to be an individual whose identity is verified.
	Section 1110A(7) provides, that those regulations can confer discretion on the Registrar, and that someone ceases to be an individual whose identity is verified unless within a specified period of time their identity is reverified. Reverification will require individuals to verify their identity either directly with the Registrar or by an authorised corporate service provider delivering a statement to the Registrar.
	Section 1110B(1) gives the Secretary of State the power to make regulations in connection with identity verification and reverification, both by the Registrar directly, as well as by an authorised corporate service provider.
	Section 1110B(2)(a) provides that the regulations may make provisions about the procedure for verifying or reverifying of individual’s identity (including evidence required). Subsection (2)(b) also provides that the regulations can also make provision about the records a person who is or has been an authorised corporate service provider has to keep in connection with verifying or reverifying an individual’s identity. Subsection (3) allows offences to be created for authorised corporate service provider failing to keep these records. This will ensure that, if ever required, there is some record in which to check that the standard of identity verification complies with those set out under section 1110B. Subsection (4) sets out the maximum available sentences which can be made in the regulations made under section 1110B.
	Provisions under these regulations can confer discretion on the Registrar, including provisions to impose requirements by Registrar’s rules. Procedure could include specifying different methods of identity verification in line with best practice which is likely to evolve over time. Regulations under section 1110B will be subject to an affirmative resolution procedure.