According to the survey of 100 company directors at international firms operating in the UK, 52% admit their organisations are not yet compliant with the new identity verification requirements, despite the mandatory regime beginning on 18 November. Companies House data suggests actual compliance may be even lower, with around 800,000 of the estimated 7 million required individuals having completed the process. Organisations that have not verified their directors before the due date of their next confirmation statement or PSCs when needed during the following 12 months will be exposed to significant fines and reputational damage.
The ECCTA mandates that all directors, Persons with Significant Control (PSCs), LLP members and anyone filing on behalf of a company must verify their identity with Companies House. Yet, only 56% of directors surveyed are confident they have correctly identified all PSCs within their organisations. Failure to properly identify or verify PSCs can result in severe penalties, including fines, bans on document filing, and even disqualification from the Companies House register.
Awareness of the new regulations remains an issue, with nearly one in three respondents still unaware of the ECCTA’s requirements or deadlines. Given that it’s the most significant reform to corporate transparency in the UK since the inception of Companies House in 1844, this knowledge gap is cause for concern.
Identity verification is not the only compliance hurdle companies are facing. Just 53% of respondents whose companies meet the Failure to Prevent Fraud offence criteria believe they are compliant, despite it having come into force on 1st September 2025. This offence applies to companies meeting two of the following three criteria – annual turnover over £36 million, assets above £18 million, and more than 250 employees – and non-compliance risks unlimited fines.
Despite the UK’s reputation as a global leader in corporate governance, being widely recognised for its comprehensive and progressive corporate governance code as well as its influence on international standards, the survey shows that UK-based firms are the least prepared globally. Only 72% of UK directors surveyed were aware of the ECCTA, compared to 76% in the EU, 90% in APAC, and a full 100% in the US. Compliance rates for both identity verification (38%) and the Failure to Prevent Fraud offence (44%) were also lowest among UK respondents. By contrast, US respondents lead with compliance rates of 65% and 71%, respectively.
This mirrors the level of concern. Only 59% of UK respondents surveyed are worried about penalties, operational disruption, or reputational harm from non-compliance, far lower than the 100% in the US, 85% in APAC, and 75% globally.
Even though UK firms lag behind, the ECCTA’s rigorous standards are bolstering the UK’s global benchmark in corporate governance. Two-thirds of global directors surveyed indicated they are now more likely to approve the establishment of new UK subsidiaries or entities due to the ECCTA’s new verification requirement, reinforcing the country’s reputation as a safe and transparent market for investment.
Meg Ogunsola, Global Director of Entity Management Solutions at Vistra, commented: “With the rollout of mandatory identity verification beginning just weeks away, firms should not wait until their next confirmation statement to prepare. 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.”
“Companies House has made clear it will take a hard line on non-compliance and is already cracking down on fake directors. Firms that wait could face backlogs, enforcement action and lasting damage to stakeholder confidence.
“Global organisations should also note that Companies House’s direct verification process does not support non-biometric passports, underlining the need to move quickly and explore alternative routes, like working with Authorised Corporate Service Providers (ACSPs). Firms must act now or risk significant consequences.”
