OFSI updates guidance on aggregation
OFSI has updated its general guidance by adding a paragraph to Chapter 4 on ownership and control.
The new paragraph (4.14) clarifies OFSI’s position on aggregation and reads:
“When making an assessment on ownership and control, OFSI would not simply aggregate different designated persons’ holdings in a company, unless, for example, the shares or rights are subject to a joint arrangement between the designated parties or one party controls the rights of another. Consequently, if each of the designated person’s holdings falls below the 50% threshold in respect of share ownership andthere is no evidence of a joint arrangement or that the shares are held jointly, the company would not be directly or indirectly owned by a designated person.
It should be noted that ownership and control also relates to holding more than 50% of voting rights, the right to appoint or remove a majority of the board of directors and it being reasonable to expect that a designated person would be able in significant respects to ensure that the affairs of a company are conducted in accordance with their wishes. If any of these apply, the company could be controlled by a designated person.”
The UK government also held a webinar on on UK sanctions related to Russia last week. A recording of the webinar is available on line for a short time here.
To see OFSI’s general guidance