New protection for company directors from identity fraud
The Department of Business, Energy & Industrial Strategy issued the following announcement last week:
- Company directors are twice as likely to be victims of identity fraud, research shows
- New laws will allow directors to remove their personal address from the company register whilst still ensuring transparency at Companies House
- Protection will help to ensure the UK continues to be one of the best places in the world to start a business – a key part of our Industrial Strategy
New laws to help protect company directors from identity fraud and personal harm will be introduced by the Government. The new laws will enable company directors to remove their personal addresses from the UK’s official company register on Companies House. Directors must still provide their business address as a legal requirement.
This comes in response to reports that fraudsters are using this publicly available information to pose as company directors to buy products online. There are also concerns the information is leaving company directors vulnerable to violence and intimidation.
They are twice as likely to be the victims of identity fraud, with company directors being victims in one in five recorded cases, according to research by fraud prevention organisation Cifas.
These new regulations will also help to ensure people feel safe when setting up a new business by protecting directors from identity fraud.
Currently, personal addresses can only be removed when Companies House and the relevant authorities judge there is a serious risk of violence or intimidation because of the company’s work.
The new laws will also ensure transparency in legal information as public authorities such as the police, the insolvency service and the pension regulator will still be able to access directors’ information, such as their personal address.
The laws will come into force by the end of summer 2018.
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