Question

To ask the Right hon. Member for Kenilworth and Southam, representing the Speaker's Committee on the Electoral Commission, whether the Electoral Commission has issued guidance on (a) companies and (b) unincorporated associations raising funds from foreign donations overseas and assigning proceeds for political (i) donations and (ii) donations in kind to (A) political parties and (B) regulated donees.

The Commission’s guidance for political parties covers permissibility of donations from companies and unincorporated associations. If an organisation makes a donation on behalf of another source without disclosing the details of the original donor, this is likely to be an agency offence. The law places a responsibility on the recipient of a donation to ensure they are satisfied as to the identity of the donor, and that the donor is permissible

A company is a permissible donor if it is registered as a company at Companies House, is incorporated in the UK, and is carrying on business in the UK. An unincorporated association is permissible if it has more than one member, the main office is in the UK, and it is carrying on business or activities in the UK.

The Commission has highlighted that it remains possible for money from foreign sources to enter the UK electoral system, including through companies and unincorporated associations. There are no requirements for unincorporated associations to check that gifts they receive are from permissible sources, or on how company donations are funded. It has called for changes to ensure the system protects against foreign interference.