We also reflect on last year’s events including the Grenfell tragedy, by giving a brief overview of the interim Hackitt Report. In addition to some of the key highlights from the quarter, we have also prepared a spotlight piece on the execution requirements for a range of corporate entities.
Anti-Money Laundering Regulations
The Money Laundering Terrorist Finance and Transfer of Funds (information on the Payer) regulations 2017, which transpose the Fourth EU Money Laundering Directive into UK law, were enacted on 26 June 2017. The new regulations introduce a number of important changes due to the shift in focus to a risk-based approach to compliance, and create a number of new obligations. The regulations apply to all organisations operating in the regulated sector and so will apply to RPs who carry out regulated activities including “estate agency” work as an intermediary in property sales (e.g. private market sale and shared ownership sales to subsequent buyers) and providing lending.
The main changes introduced by the regulations include:
For a full copy of the Regulations please click here.
Fire Safety a ‘Call to Action’ – Independent review of building regulations and fire safety; interim report
This independent review, being conducted by Dame Judith Hackitt, was commissioned by the Department for Communities and local government in response to the fire at Grenfell tower. The interim report was published in December 2017 and can be found here. The National Housing Federation (“NHF”) has summarised the report which can be viewed here. It is expected that the final report will be published in spring.
The interim report findings are quite stark, with an overall conclusion that the current regulatory system for ensuring fire safety in high-risk and complex buildings is not fit for purpose. We summarise the key findings below:
Goodbye HCA, Hello RSH!
The investment and regulatory arms of the Homes and Communities Agency were renamed in January 2018. The investment functions have been re-branded as ‘Homes England’ and the regulatory functions are now undertaken by the ‘Regulator of Social Housing’ (the “RSH”). Following a consultation, a draft Order (The Legislative Reform (Regulator of Social Housing) (England) Order 2018) was laid before Parliament on 28 February 2018 and subject to approval, will establish the RSH as an independent body. It is anticipated that the Order will take effect in October. It is important to note that until the Order is officially enacted, Homes England and RSH both legally remain functions of the HCA.
The following website and contact details have been updated to reflect the rebrand:
Key Dates
October 2017 - Late Payment Reporting
Companies who fit the following requirements must now submit details of their payment practices twice a year. The companies who must comply, are those who meet two or more of the following thresholds. Two years before the publication of late payment information is required:
Late payment reporting only applies to companies registered under the Companies Act 2006, so Community Benefit Societies are not affected.
March/April 2018 – Social Housing Pension Scheme
The valuation of the Social Housing Pension Scheme opened in September 2017 and is expected to announce its findings in March or April of this year. Any changes will not take effect until April 2019 but it is important to understand whether the changes will apply to your organisation.
6 April 2018 - The Government Auto Enrolment Pension Scheme
The auto enrolment pension scheme introduced last year will change in April. The minimum employer contributions will increase from 1% to 2%. This is set to increase again in April 2019 from 2% to 3%.
16 May 2018 – Deadline for the implementation of the Golden Share Regulations
The date for compliance is finally upon us. The Regulations came into force on 16 November (for further details of the regulations, please see our ebriefing from 19 September 2017). After 16 May 2018, your constitution must reflect the regulations to ensure transparency and compliance with the Governance and Financial Standard.
We are happy to advise on the best approach to liaising with local authorities and we also offer fixed-fee packages to amend your constitution to reflect the new regulations.
25 May 2018 – General Data Protection Regulations (“GDPR”)
By 25 May, all contracts with third parties should contain clauses which enforce the GDPR and references to the Data Protection Act 1998 will no longer be sufficient. The Crown Commercial Service has released standard clauses that are contained within the appendices to the Public Policy Notice titled “Procurement Policy Note – Changes to Data Protection Legislation & General Data Protection Regulation” which can be found here. As these are geared towards use by Central Government, local authorities and other public bodies, you may find our package of standard clauses to be of more use. We also offer tailored clauses if you require a more comprehensive review of the data protection provisions in your contracts.
The GDPR also places reporting obligations on organisations. Organisations are required to have a Data Protection Officer (in some circumstances) who is responsible for advising the organisation and its employees about their obligations to comply with the GDPR and other data protection laws. Further information about how the GDPR will affect organisations can be found on the ICO website.
Corporate Governance Code
The Financial Reporting Council has been consulting on its proposals to revise the UK Corporate Governance Code (the consultation closed on 28 February 2018). The proposed amendments aim to reflect the changes to the economic and social climate and also consider the Government’s response to the Green Paper consultation on corporate governance reform. It is anticipated that the revised code will be published this summer to apply to accounting periods beginning on or after 1 January 2019.
Spotlight – Execution Methods Refresher
The correct execution of documents is an area of increased importance for RPs after the introduction of the de-regulatory measures last April. This is particularly the case for charitable RPs whose Board members are required to ensure compliance with the requirements of Part 7 of the Charities Act 2011 (the “Act”).
The table here indicates the execution requirements for different types of documents under the legislation. The way in which your organisation is authorised to execute deeds will usually be set out in your constitutional document (i.e. your Rules or Articles of Association) – this should be checked first.
Disposals by registered charities - section 333 delegations and powers of attorney
The trustees (i.e. the Directors) of registered charities are also required to provide a signed certificate in relation to disposals confirming that they have complied with the requirements of Part 7 of the Charities Act 2011(the “Act”). The trustees are able to use section 333 of the Act to resolve that any two Directors (as trustees) can execute documents on behalf of all trustees. This includes the certificates to be given in relation to disposals, which are given by trustees in their personal capacity rather than on behalf of the organisation itself. The trustees can enter into a personal power of attorney to delegate this function to the appropriate people. If you are interested in putting such an arrangement in place or have any questions, please contact Gemma Bell.
If you have any questions on any of the topics within this update, please contact Sharon Thandi or Ellen Briers.
Recent data reports that the financial cost of clinical negligence claims runs to a total of £83bn, but what is the real cost of clinical negligence?
Would you know how to manage an escalating social media storm? Are you confident in your plans and policies for responding to, and managing, a prominent ‘scandal’ in your charity?
The Civil Partnership (Opposite-Sex Couples) Regulations 2019 were made on 5 November 2019 and came into force on 2 December 2019.
HMRC’s approach to underpayment of the National Minimum Wage (NMW) is getting tougher and shows no sign of abating.
HMRC’s approach to underpayment of the National Minimum Wage (NMW) is getting tougher and shows no sign of abating.
Now 2020 is here and we have welcomed in the new decade, it’s time to welcome in changes regards the contents of employee’s statement of particulars.
In December 2019, the Care Quality Commission brought its first prosecution against a local authority
The CIL was introduced under the Planning Act 2008 and the CIL Regulations 2010, which came into force in April 2010. CIL is a non-negotiable tax charged by local authorities on new developments.
The Court of Appeal’s recent decision is likely to be unwelcome news for any cash-strapped councils seeking to fund the costs of taxi enforcement through licence fees.
It is important that trustees are aware of the law relating to people who are transgender and those who identify as non-binary so that they can ensure compliance.
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.