The Keeper has a general duty, under section 100(3) of the 2023 Act, to correct the RSP where:
- they become aware of a manifest inaccuracy; and
- the correction action they must take is also manifest.
Section 101(1) of the 2023 Act contains a definition of RSP inaccuracy:
“There is an “inaccuracy” in the Statutory Pledges Record where the record misstates what the position is, in law or in fact, in relation to a statutory pledge.”
If you think that there may be a manifest inaccuracy in the RSP, you should read the following sections of this guidance before bringing the inaccuracy to the Keeper’s attention.
There are a number of exceptions to the Keeper’s statutory duty to correct on becoming aware of a manifest inaccuracy.
Exceptions From Keeper’s Duty to Correct
All inaccuracies identified in court orders, in Secured Creditor Correction applications and Correct Demand Correction applications are excluded from the Keeper’s statutory duty to correct a manifest inaccuracy in the RSP (sections 100(2)(a) and 100(2)(b) of the 2023 Act.
The double manifest test of section 100(3) of the 2023 Act does not therefore apply to such corrections.
Also, manifest inaccuracies which the Keeper thinks could be reasonably corrected via either the Secured Creditor Correction or Correction Demand Correction routes are excluded but only where the inaccuracy is not the fault of the Keeper (section 100(2)(c) of the 2023 Act).
The application of this “reasonableness test” will depend on the facts and circumstances of each individual case. The test will not be met, however, for reason of correction fee alone.
An example of when the Keeper would consider it unreasonable to use the Manifest Inaccuracy route to correction would be if a registered provider brought the fact of a statutory pledge having been discharged off-register to her attention as a manifest inaccuracy.
The Keeper would consider that it would be more reasonable for an application to be made for correction under either the Secured Creditor Correction route (if a demand under section 98(1) of the 2023 Act was successful) or the Correction Demand Correction route (if not) in order to effect the required correction of the register.
The 2023 Act specifically provides for such correction routes to be available therefore the Keeper would consider it reasonable to expect these statutory routes to be used for the purposes intended, wherever applicable.
Essentially, then, the duty of the Keeper to correct a manifest inaccuracy in the RSP relates to an inaccuracy which is either her fault or where it would be unreasonable, or perhaps impossible, to use an alternative route to correct that identified inaccuracy.
The Keeper will not, however, be at fault for introducing an inaccuracy into the register if simply taking information from an application for registration or correction and entering it on the register.
By way of illustration, the Manifest Inaccuracy correction route will apply if:
- the Keeper’s online system malfunctions and erroneously deletes a Statutory Pledges Record entry;
- a secured creditor incorrectly deletes a valid subsisting statutory pledge;
- the registration of a frivolous or vexatious statutory pledge is identified; and
- an additional inaccuracy is introduced by the Keeper when processing a Correction Demand correction application.
Name Changes Related to Gender Reassignment
If an individual provider or secured creditor wishes to change how their name appears in a Statutory Pledges Record due to gender reassignment, the section 100(2) of the 2023 Act Manifest Inaccuracy correction route must be followed.
Using this route will prevent any unintentional disclosure of sensitive personal information on the face of the register.
If you require to correct the register to effect a name change due to gender reassignment, this can be brought to the Keeper’s attention.
For the avoidance of doubt, a secured creditor must not use the Secured Creditor correction route to change a name appearing in a Statutory Pledges Record entry due to gender reassignment.
‘Manifest’ means perfectly clear and not reasonably disputable. Both the inaccuracy and the correction action need to meet this standard.
The Keeper's duty to correct a manifest inaccuracy in the RSP is engaged when she becomes aware of a manifest inaccuracy in a Statutory Pledges Record entry. In order to be manifest, the perceived inaccuracy must be clear and not reasonably disputable.
For those seeking to demonstrate that there is a manifest inaccuracy which the Keeper must correct under section 100(3) of the 2023 Act, there is a high evidential standard.
For the avoidance of doubt, the Keeper will not arbitrate in disputes. In any instance where there is disagreement between the provider and secured creditor as to an alleged inaccuracy, the Keeper would likely require a judicial determination before being able to correct the register.
As well as meeting the manifest test in relation to the existence of an inaccuracy, it must also be manifest how the Keeper can correct it.
In certain situations, it may be clear that an inaccuracy exists but it may not be clear how to fix it. For example, where an incorrect Statutory pledge constitutive document has been submitted and the original cannot be found, it is obvious that an inaccuracy exists but the Keeper will not know how to fix it.
If you perceive that there may be an inaccuracy in a Statutory Pledges Record entry that can be corrected via the manifest inaccuracy provisions of section 100(3) of the 2023 Act, you must fully investigate the matter to confirm that such an inaccuracy exists before contacting the Keeper.
If your investigations do establish that such an inaccuracy exists, you should submit, and clearly refer to, all the information that you have considered when you contact the Keeper. Such an inaccuracy can be brought to the Keeper’s attention.
The correction of a manifest inaccuracy does not attract a fee.
Where the Keeper corrects the manifest inaccuracy in the RSPS, they will notify this to a number of different parties.
The Keeper will send a notification of the fact of correction having taken place, in so far as it is reasonable and practicable to do so, by email, where such an address is held and by post, if not, to:
(a) the provider (including purported providers);
(b) the registered creditor;
(c) the party who brings the manifest inaccuracy to the Keeper’s attention;
(d) any other party who is mentioned by the party bringing the manifest inaccuracy to the Keeper’s attention in the process of doing so; and
(e) any other person who appears to the Keeper to be affected by it materially.
The Keeper’s default approach, however, will be to notify the fact of manifest inaccuracy correction having taken place to all email addresses held by the Keeper in relation to the corrected Statutory Pledges Record.
Manifest Inaccuracy Correction Notifications will contain a link to a web page or "landing page", which will contain details of the correction to which the Correction Notification relates, including a PDF version of the full record entry. The PDF will be a snapshot of the Statutory Pledges Record entry position as at that date, and, although it does not have the evidential status of an extract requested under section 106 of the 2023 Act, it fully reflects the Statutory Pledges Record entry after completion of the correction to which the Correction Notification relates.
All parties notified by email will receive the same Correction Notification, and all parties will be able to access the respective PDF. The parties notified will be free to forward on the link to the landing page as they see fit and it will be possible to print or to save the PDF's locally to their own systems. The link to the landing page will be available for a 30-day period, which should allow the parties adequate time to access it following the correction of the record entry.
Where a Correction Notification is sent by post, this will contain details of the correction to which the Correction Notification and a paper version of the PDF document referred to above.
As stated, for those seeking to demonstrate that a manifest inaccuracy exists, there is a high evidential standard. The Keeper will consider all evidence submitted before making a determination as to whether a manifest inaccuracy does indeed exist.
That said, the possibility of incorrect evidence being submitted, accidentally or otherwise, by someone bringing a perceived RSP inaccuracy to the Keeper’s attention always exists.
Before bringing such a perceived RSP inaccuracy to the Keeper’s attention, the person intending to do so should therefore be mindful that the effect of section 109(3) of the 2023 Act is that the Keeper is entitled to reasonably believe all information, including all documentation, submitted in connection with an RSP correction application.
As such, if the Keeper introduces inaccuracy into the RSP as a result of reflecting on the register wrong information supplied to them by someone bringing a perceived manifest inaccuracy to her attention, then this will not be an inaccuracy for which they are liable.
Rather, the person who brings the perceived inaccuracy to the Keeper’s attention may be liable under section 110 of the 2023 Act for any loss suffered as a result of the Statutory Pledges Record becoming inaccurate as a consequence.