Alan Hughes, executive director at Vistra, explains why persons with significant control (PSC) identification is proving such a challenging part of the incoming ID verification rules at Companies House, raising a red flag for directors
On 18 November, mandatory ID verification for directors, persons with significant control (PSCs) and LLP members will come into force under the Economic Crime and Corporate Transparency Act (ECCTA). This is set to be the most substantial shake-up to UK corporate compliance in nearly two centuries.
The goal is clear: better regulation to strengthen transparency and accountability within the UK’s business environment and to prevent misuse of corporate structures for illicit purposes. But with the clock ticking, awareness and readiness remain concerningly low.
Nearly a third (31%) of UK directors surveyed by Vistra were unaware of the ID verification deadline. Meantime, at the beginning of November only one million of the estimated seven million affected individuals had completed verification. That’s less than 15%.
