New legal requirements take effect from 18 November 2025, requiring directors and persons with significant control (PSCs) of companies to verify their identities with Companies House. As part of the Economic Crime and Corporate Transparency Act 2023 (ECCTA), the stated objective is to improve the quality and reliability of data and to end the misuse of company registers. However, in a nutshell: fraud prevention is the main driver.

This article examines the backdrop of fraud, how the new requirements will operate, penalties for non-compliance, risks and obligations for company directors, why fiduciary duties are relevant, and recent developments in case law.