Izabella Brooks discusses new identity verification requirements in the FT Adviser
Izabella’s article was published in the FT Adviser, 7 April 2025, and can be seen here.
Izabella Brooks, Associate in our Corporate and Commercial department, explores the implications of new identity verification measures introduced within the financial services sector.
She highlights how these regulatory updates are reshaping compliance practices, impacting client onboarding processes, and presenting both challenges and opportunities for financial advisers. Central to these changes is the Economic Crime and Corporate Transparency Act 2023 (ECCTA), which introduces sweeping reforms to Companies House, the most significant since its inception in 1844.
The ECCTA aims to reduce economic crime and bolster national security by enhancing the transparency of UK corporate entities. It targets a broad range of structures, including companies, limited partnerships, and overseas entities, with the goal of improving the accuracy of information on the public register. A key feature of the legislation is the transformation of Companies House from a passive data repository into an active gatekeeper with new powers to verify identities and scrutinise corporate data more rigorously.
These reforms will be implemented in stages, but their long-term impact is already clear: a more robust regulatory environment that demands greater diligence from businesses and advisers alike. For financial professionals, this means adapting to more stringent compliance requirements while also leveraging the reforms to build trust and credibility with clients. Izabella underscores that while the changes may increase administrative burdens, they also offer a valuable opportunity to strengthen the integrity of the UK’s corporate landscape.
Read the full article on the FT Adviser website [external link].