Our Health and Social Care team has been representing Care England to date in its application and will be preparing the case for the next month’s hearing on 20-21 March.
The specific requirement of the Standard is:-
“To maintain a thorough, accurate and up to date record of their assets and liabilities and particularly those liabilities that may have recourse to social housing assets” (Paragraph 2.5(a))
As in the consultation documentation there is no particular format for the register. The Code requires the register to be readily available and show such information as would be needed in the event of a potential or actual failure of the provider. What that information is depends on the individual provider, but it needs to contain sufficient information to enable a potential buyer to accurately price the value of the business and/or the value of the social housing assets in the event of distress.
The Code states that the register should identify all social housing assets and where these assets are encumbered. The expectation is that the register will normally include treasury arrangements, key contracts, title information and any restrictions on individual titles (for example planning obligations, charitable or other restrictions), valuations, stock condition and lender covenants. But this list is the starting point; with the pointer that liabilities included on the register need to be “in the widest context”. The Code suggests: -
- loans including borrowing from other group companies or related undertakings
- guarantees, indemnities etc. including those provided to subsidiaries and SPVs
- whether secured or unsecured
- leases, sale/lease and leaseback transactions
- mark-to-market exposures on derivative positions
- cross default provisions (for example, a provision in a loan agreement which provides that a default on one loan agreement gives rise to a default on another one, including where these potentially cross between organisations within a group)
- a duty or responsibility that obligates one organisation to another, leaving it little or no discretion to avoid settlement
- the potential for any impairment particularly in relation to investments in non-core activities
An important aspect is the role of a RP’s Board in compliance with the Asset Register requirements. It is the Board which “owns” the Register since it is the Board who certify compliance in the annual accounts.
It is hoped that Boards will see the Register as a tool for them to use as having an accurate assets and liabilities register is so closely allied with the expectation of stress testing.
For more information
Anthony Collins Solicitors has updated the National Community Land Trust (“NCLTN”) Model Rules.
Currently, the law doesn’t allow a single parent with a child born via surrogacy to obtain a parental order, leaving their family legally vulnerable.
The national study, Why Asthma still kills, involved a detailed examination of the circumstances surrounding 195 deaths from asthma in the UK in 2012.
Our Housing team are delighted following a formal tender procurement process to have been appointed to three lots under the new multi-million-pound legal services framework for The Riverside Group.
Necrotising Fasciitis, more commonly known as the ‘flesh-eating disease’, is a significant medical condition that requires urgent treatment.
Many of us who have been following the unfolding Inquest, are not surprised that the Coroner found gross and significant failures on the part of those caring for him.
Transferring out of SHPS will not be suitable for every housing association. So what should housing associations do?
In all the action to remove defective cladding, leaseholders have been the elephant in the room. Whilst social landlords might have adopted a wait and see approach private landlords do not have that luxury.
We welcome the Labour Party’s commitment to doubling the size of the co-operative economy. We wholeheartedly support the ambition to grow this vitally important part of the economy.
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.