New Identity Fraud Protection for Company Directors
A research study published by fraud prevention agency Cifas in 2017 showed that company directors are twice as likely to be victims of identity fraud than other members of the public. As a result, a new level of fraud protection for directors is to be introduced.
The new laws are due to come into force by the end of Summer 2018, following an announcement in February.
What will change?
The new laws will allow company directors to hide their personal address from the public, rather than it being available for all to view on the Companies House register.
To be granted this protection under current law, a director must show that they are likely to be a victim of fraud, violence, or intimidation, should their personal address be available in the public domain.
Under the new laws, the director will have the ability to replace their personal address with another address where they can be contacted, such as their trading address. Official bodies, such as the police and the pensions regulator, will still have access to the director’s personal records to ensure the transparency of necessary legal information.
Adding this new layer of protection from identity fraud and other criminal activity for company directors is the key driver behind the changes. Equally important though, is maintaining the UK’s image as a safe place to start and grow a business. And the best way to ensure a director’s safety is to allow them to protect their personal information using this new method.
Protecting start-up founders and new investors is critical to wider UK economic stability.
How can we help?
At DRN, we have vast knowledge and experience in handling all matters concerning corporate law. Our team is here to work with you to overcome any legal challenges you may have as a company director or in running your business.
You can contact our Corporate Law Team today on 01282 433 241, or find out more here — DRN corporate law services.