As Britain prepares to enforce sweeping identity
verification rules under the Economic Crime and Corporate Transparency Act
(ECCTA), a new survey shows that most directors are not yet ready, despite the
deadline being less than three weeks away. The findings reveal a concerning gap in compliance, just as Companies House prepares to tighten oversight of
corporate transparency.
Join IG, CMC, and Robinhood at London’s leading trading industry event!
Half of Firms Still Not Ready for Verification
Vistra’s latest global pulse survey found that 52% of
company directors at international firms operating in the UK have yet to meet
the ECCTA’s mandatory identity verification requirement, set to begin on 18
November 2025.
The law requires all directors, Persons with
Significant Control (PSCs), and anyone filing on behalf of a company to verify
their identity with Companies House. Yet Companies House data suggests the
actual compliance rate may be even lower—fewer than one in five of the
estimated seven million individuals have completed verification so far.
Firms that miss the deadline risk fines, filing bans,
or even director disqualification. Only 56% of directors surveyed were
confident they had correctly identified all PSCs within their organizations,
heightening the risk of administrative and reputational fallout.
According to Meg Ogunsola, Global Director of Entity
Management Solutions at Vistra: “Companies House data shows that fewer than one
in five of those required to verify have done so, and early action will be
critical in avoiding disruption and potential backlogs once verification
becomes a legal requirement.”
Starting 18 November 2025, all newly appointed company
directors and PSCs must verify their
identity before they can be incorporated or appointed. Existing directors will
be required to complete identity verification when filing their next
confirmation statement, with full compliance required by November 2026
Awareness Still Alarmingly Low
Despite being one of the most significant corporate
governance reforms since Companies House was established in 1844, nearly a
third of respondents remain unaware of ECCTA requirements or key deadlines.
Jonathan Frost, Source: LinkedIn
Recently commenting about the move, Jonathan Frost, Director of Global Advisory for EMEA at BioCatch, said: “The announcement from Companies House that it will verify the identities of directors and beneficial owners is a vital step forward for corporate transparency. However, the proposed 12-month phased rollout leaves a clear window for criminals to abuse.”
Related: UK Company Directors Must Verify Identity or Risk Losing Role Under New Law Starting November
Compliance gaps are not limited to identity
verification. Only 53% of respondents whose companies qualify under the new
Failure to Prevent Fraud offense reported being compliant, despite the measure taking effect on September 1, 2025.
The offense applies to large
companies—those with turnover above £36 million, assets exceeding £18 million,
or more than 250 employees—and carries unlimited fines for breaches.
UK Lags Behind Global Counterparts
Ironically, firms based in the UK are the least
prepared globally, according to Vistra’s data. Only 72% of UK directors were
aware of the ECCTA, compared to 76% in the EU, 90% in APAC, and a full 100% in
the US.
US firms also lead in compliance, with 65% for identity verification and 71% for the fraud prevention rule, compared to just 38% and 44%,
respectively, among UK firms.
The disparity extends to perceptions of risk. While
100% of US respondents expressed concern about penalties or reputational harm from non-compliance, only 59% of UK respondents reported the same concern. Despite the short-term challenges, the ECCTA’s tougher
verification standards appear to be boosting the UK’s reputation for
transparency.
Two-thirds of global directors surveyed stated that they are now more likely to approve the creation of UK subsidiaries or entities due to the new regime—an indication that stricter compliance rules may ultimately strengthen
investor confidence in the long run.
As Britain prepares to enforce sweeping identity
verification rules under the Economic Crime and Corporate Transparency Act
(ECCTA), a new survey shows that most directors are not yet ready, despite the
deadline being less than three weeks away. The findings reveal a concerning gap in compliance, just as Companies House prepares to tighten oversight of
corporate transparency.
Join IG, CMC, and Robinhood at London’s leading trading industry event!
Half of Firms Still Not Ready for Verification
Vistra’s latest global pulse survey found that 52% of
company directors at international firms operating in the UK have yet to meet
the ECCTA’s mandatory identity verification requirement, set to begin on 18
November 2025.
The law requires all directors, Persons with
Significant Control (PSCs), and anyone filing on behalf of a company to verify
their identity with Companies House. Yet Companies House data suggests the
actual compliance rate may be even lower—fewer than one in five of the
estimated seven million individuals have completed verification so far.
Firms that miss the deadline risk fines, filing bans,
or even director disqualification. Only 56% of directors surveyed were
confident they had correctly identified all PSCs within their organizations,
heightening the risk of administrative and reputational fallout.
According to Meg Ogunsola, Global Director of Entity
Management Solutions at Vistra: “Companies House data shows that fewer than one
in five of those required to verify have done so, and early action will be
critical in avoiding disruption and potential backlogs once verification
becomes a legal requirement.”
Starting 18 November 2025, all newly appointed company
directors and PSCs must verify their
identity before they can be incorporated or appointed. Existing directors will
be required to complete identity verification when filing their next
confirmation statement, with full compliance required by November 2026
Awareness Still Alarmingly Low
Despite being one of the most significant corporate
governance reforms since Companies House was established in 1844, nearly a
third of respondents remain unaware of ECCTA requirements or key deadlines.
Jonathan Frost, Source: LinkedIn
Recently commenting about the move, Jonathan Frost, Director of Global Advisory for EMEA at BioCatch, said: “The announcement from Companies House that it will verify the identities of directors and beneficial owners is a vital step forward for corporate transparency. However, the proposed 12-month phased rollout leaves a clear window for criminals to abuse.”
Related: UK Company Directors Must Verify Identity or Risk Losing Role Under New Law Starting November
Compliance gaps are not limited to identity
verification. Only 53% of respondents whose companies qualify under the new
Failure to Prevent Fraud offense reported being compliant, despite the measure taking effect on September 1, 2025.
The offense applies to large
companies—those with turnover above £36 million, assets exceeding £18 million,
or more than 250 employees—and carries unlimited fines for breaches.
UK Lags Behind Global Counterparts
Ironically, firms based in the UK are the least
prepared globally, according to Vistra’s data. Only 72% of UK directors were
aware of the ECCTA, compared to 76% in the EU, 90% in APAC, and a full 100% in
the US.
US firms also lead in compliance, with 65% for identity verification and 71% for the fraud prevention rule, compared to just 38% and 44%,
respectively, among UK firms.
The disparity extends to perceptions of risk. While
100% of US respondents expressed concern about penalties or reputational harm from non-compliance, only 59% of UK respondents reported the same concern. Despite the short-term challenges, the ECCTA’s tougher
verification standards appear to be boosting the UK’s reputation for
transparency.
Two-thirds of global directors surveyed stated that they are now more likely to approve the creation of UK subsidiaries or entities due to the new regime—an indication that stricter compliance rules may ultimately strengthen
investor confidence in the long run.
