New laws to help protect company directors against identity fraud

The government will introduce new laws that will help to protect company directors from identity fraud and personal harm.

The new laws will enable company directors to remove their personal addresses from the UK’s official company register on Companies House. However, as a legal requirement, directors must still provide an alternative address – such as their business information.

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.

According to recent data, 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.

Business Minister Andrew Griffiths, commented, “Through our Industrial Strategy we have set our blueprint for ensuring we build on our reputation as one of the best places in the world to start and grow a business.

“These new laws will protect new and existing business owners from potential harm and identity fraud while ensuring we maintain our high standards of corporate transparency.”

Currently, personal addresses can only be removed when Companies House and the relevant authorities judge there is a serious risk of violence or intimidation as a result 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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