The majority of firms are taking no action in response to the most significant Companies House reform since 1844 that affects 7 million people verifying their identities.
Only one in five UK companies have changed their registered address between January 2022 and February 2025. Further, nearly 14% of companies changed legal status.
Despite the risk of fines and reputational damage, research shows a low level of readiness with only 28% of UK directors being compliant. Smaller firms are so far negligent of the rules. While larger firms show greater readiness, just 37% of the largest are very prepared.
As statistics currently show pitiful efforts to compliance, by autumn 2025, all directors, persons of significant control, and company filers must verify their identity.
Yet, only 250,000 of an estimated 7 million or under 4% have done so.
Also coming into force on 1 September 2025 as part of the Economic Crime and Corporate Transparency Act, is the new “Failure to Prevent Fraud” offence, which could enforce legal action for employee fraud unless safeguards are put in place.
This offence only applies to firms which meet two of three of the following criteria: more than 250 employees, more than £36 million turnover and more than £18 million in total assets so will only impact the largest firms.
21% of people claim compliance with the ECCTA’s identity verification requirements which is unsubstantiated.
Some UK directors were not even aware of the ECCTA deadlines in spite of the warnings and criminal repercussions.
Meg Ogunsola, Global Director of Entity Management Solutions at Vistra, commented: “The ECCTA is arguably the most important piece of legislation that people aren’t prepared for, and it affects millions across the UK as well as others working globally for UK-based entities”
“Many are taking a ‘wait and see’ approach that’s both risky and short-sighted”.
“Firms must also ensure that their directors and senior employees undergo appropriate training so that they are aware of their duties and responsibilities under the ECCTA”.
