A study by Vistra reveals only 28% of UK directors are prepared for the Economic Crime and Corporate Transparency Act (ECCTA), with smaller companies least prepared and none confirming readiness. Less than 3% have complied with the identity verification mandate so far, despite the act being the most significant reform to Companies House since 1844.

The ECCTA introduces stringent identity verification requirements and a new offence for failing to prevent fraud. Vistra’s survey of 100 UK company directors shows 39% are unaware of the ECCTA deadlines, risking disqualification of officers and prohibiting companies from filing documents or engaging in acquisitions.

Larger practices show greater preparedness, but 58% of companies find the ECCTA burdensome, with only 23% disagreeing. Vistra warns businesses are underestimating the act’s scale and urgency, emphasizing early action to avoid bottlenecks and severe financial penalties.

Companies House will take a strict stance against non-compliant businesses, highlighting the need for alternative solutions for overseas directors and those reliant on paper documents. Specialist support is sought by many organizations to ensure efficient and effective compliance with the ECCTA’s reforms.

Read more at Yahoo Finance: UK companies lag in ECCTA compliance readiness