Research by Vistra shows fewer than one in three UK company directors feel ready for the upcoming Economic Crime and Corporate Transparency Act (ECCTA), with smaller firms being the least prepared.

The ECCTA represents the biggest Companies House reform since 1844, introducing mandatory ID verification for directors and a new offence for failing to prevent fraud. ID verification began in April and will roll out gradually over 12 months from autumn 2025 to ease the transition.

Despite the threat of unlimited fines and director disqualification, uptake has been slow. Of the 6–7 million people required to verify their ID, only 250,000 have done so voluntarily. Vistra’s survey of 100 directors found 39% are unaware of ECCTA deadlines, exposing companies to enforcement risks, including restrictions on filings and transactions.

Larger firms are better prepared, with 37% fully ready and 49% confident in their compliance procedures. However, 58% of businesses consider the ECCTA burdensome, while only 23% disagree.

Meg Ogunsola, Vistra’s Global Director, warns that many businesses underestimate the Act’s scale and urgency. She stresses the importance of acting early to avoid bottlenecks and financial penalties, especially for firms with overseas directors or paper-reliant processes.

“With reforms of this scale, it’s no surprise companies are seeking specialist support to manage compliance efficiently,” Ogunsola said.

Full info obtained here