More than a quarter of 2,000 UK firms will be in direct breach of the new ‘failure to prevent fraud’ corporate offence, due to come into force on 1st September, new research reveals.
The findings are part of the ‘ECCTA Regulations Report’ by compliance training provider Skillcast, which analysed over 37,000 data points from 2,000 private limited UK companies in ten sectors, using publicly available Companies House data to create an overall readiness score out of 1,200.
The report reveals concerning gaps in corporate governance, with over a quarter of the 2,000 firms analysed (26%) failing to name a person as the Person of Significant Control (PSC).
More than 240 firms listed a corporate entity instead, with over 200 active companies having no PSC listed at all, a serious lapse that breaches the transparency requirements of the Economic Crime and Corporate Transparency Act (ECCTA) and risks prosecution.
One in 12 UK firms analysed (8%) also had overdue confirmation statements in the last 12 months, and a further 4.5% failed to file accounts on time, placing them in direct violation of the existing ECCTA requirements that carry serious penalty risks.
The findings further uncovered significant financial and legal liabilities, with Companies House records showing 554 instances of compulsory strike-off actions and 1,023 company charges among the 2,000 companies analysed in the report – with more than half of the charges (517) remaining outstanding.
Overall, this indicates a concerning scale of vulnerability and risk across UK businesses ahead of the enforcement of the new ‘failure to prevent fraud’ corporate offence on September 1st under the ECCTA, which will hold entire organisations accountable for failing to implement vigorous anti-fraud measures.
However, some sectors fared better than others, with companies in the technology, property and real estate, and construction industries showing the strongest adherence to core governance standards.
Yet, half of the 10 sectors analysed failed to score above 700 out of a possible 1,200 on the ECCTA Readiness Index, indicating a widespread lack of preparedness for regulatory compliance.
Firms in the finance sector are the most vulnerable to failing to meet the new offence requirements, after the sector scored just 453.4 out of 1,200 – nearly half the top-performing sector’s total.
Nearly 16% of financial firms had overdue confirmation statements, while 6% were behind on account filings, signalling serious gaps in compliance and governance. The sector also recorded high rates of director turnover and company name changes, both of which could be perceived as regulatory evasion.
Meanwhile, the property and real estate (2) and law (3) sectors reported the lowest levels of overdue accounts, reflecting stronger governance and financial reporting practices against sectors like hospitality and HR, which faced significantly higher rates of 21 and 15, respectively.
With fraud now accounting for nearly 40% of reported crimes in England and Wales, more than any other category, the new ‘failure to prevent fraud’ offence will hold entire organisations accountable if they fail to implement appropriate safeguards, leaving no room for complacency on corporate accountability.
Skillcast’s “ECCTA Regulations Report” Index
| Industry | ECCTA Readiness Index Score (out of 1,200) |
| Technology | 889.4 |
| Property and Real Estate | 828.4 |
| Construction | 783.2 |
| Manufacturing | 782.8 |
| Retail | 761.4 |
| Utilities | 670.1 |
| HR and Recruitment | 612.2 |
| Law | 605.7 |
| Hospitality | 592.9 |
| Financial Services | 453.4 |
Vivek Dodd, CEO at Skillcast, commented on the findings:
“The ECCTA places a clear legal obligation on organisations to demonstrate they have reasonable procedures to prevent fraud, and that does not just mean having policies on paper. Businesses must be able to evidence undertaking detailed risk assessments, embedding fraud controls into daily operations, and ensuring visible, top-level commitment to compliance.
“The findings from our ‘ECCTA Regulations Report’ should serve as a wake-up call for firms. With less than three months to go until the new ‘failure to prevent fraud’ corporate offence requirements are enforced, many companies are operating in high-risk conditions that leave organisations exposed to serious criminal liability.
“While firms in some sectors like technology and construction are already taking clear steps to strengthen governance, others are falling dangerously behind. Without urgent action, these firms risk severe reputational damage and financial fallout, making strong governance, due diligence, and company-wide fraud prevention training business-critical.”
