(1) The regulator may require a private registered provider to pay compensation if the regulator is satisfied that—
(a) any of the following cases applies, and
(b) the award of compensation is appropriate (whether or not as part of a response including other action).
(2) Case 1 is where the registered provider has failed to meet a standard under section 193, 194 or 194C.
(3) Case 2 is where the registered provider has given an undertaking under section 125 and failed to comply with it.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) Case 4 is where the registered provider has failed to comply with a performance improvement plan notice.
(6) Case 5 is where the registered provider has failed to comply with the duty in section 218B(4) (duty to provide copy of performance improvement plan).
(1) Compensation in respect of a failure may be awarded to one or more persons who have suffered as a result of the failure.
(2) But an award may be made only to—
(a) a specified tenant of social housing provided by the registered provider,
(b) each member of a specified class of tenants of social housing provided by the registered provider, or
(c) each member of the class of tenants of social housing provided by the registered provider.
(1) The regulator may not award compensation to a person in respect of a matter if a housing ombudsman has awarded compensation to the person in respect of the matter.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) Compensation is awarded by the regulator giving notice (a “compensation notice”) to—
(a) the registered provider, and
(b) the person to be compensated.
(2) The notice must specify—
(a) the grounds on which the compensation is awarded,
(b) the amount of the compensation,
(c) the person to be compensated,
(d) any interest or additional compensation which, by virtue of section 244(2), is payable in the event of late payment, and
(e) a period within which it must be paid.
(3) The notice may require the registered provider to publish information about the compensation award in a specified manner.
(4) The notice must explain the effect of sections 244(1) and (3) and 245.
(5) The Secretary of State—
(a) shall make regulations about the period under subsection (2)(e),
(b) may make other regulations about the form and content of a compensation notice, and
(c) may make regulations about the manner in which a compensation notice is given.
(1) This section applies when the regulator is considering—
(a) whether to award compensation, or
(b) the amount of compensation to award.
(2) The regulator must take account of any information available to it about the financial situation of the registered provider.
(3) The regulator must consider the likely impact of the compensation on the registered provider's ability to provide services.
(4) In particular, the regulator must aim to avoid—
(a) jeopardising the financial viability of the registered provider,
(b) preventing the registered provider from honouring financial commitments, or
(c) preventing the registered provider from taking action to remedy the matters on the grounds of which the compensation might be awarded.
(1) Before giving a compensation notice to a private registered provider the regulator must give the provider a notice (a “pre-compensation warning”)—
(a) specifying grounds on which the regulator thinks compensation could be awarded,
(b) warning the provider that the regulator is considering awarding compensation to a specified person,
(c) including any indication that the regulator is able to give of the likely amount of any compensation, and
(d) explaining the effect of sections 243, 244(1) and (3) and 245.
(2) Before giving a pre-compensation warning the regulator must consult the housing ombudsman for the scheme of which the registered provider is a member.
(3) If the regulator gives a pre-compensation warning it must send a copy to—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(za) the HCA,
(aa) the Greater London Authority (if the pre-compensation warning is given to a registered provider who owns land in Greater London), and
(b) any other persons it thinks appropriate.
(4) For the purposes of subsection (3)(b) the regulator shall consider, in particular, any person who provided information as a result of which the pre-compensation warning is given.
(5) A pre-compensation warning must—
(a) refer to section 125 (voluntary undertaking), and
(b) indicate whether or to what extent the regulator would accept a voluntary undertaking instead of, or in mitigation of, awarding compensation.
(6) A pre-compensation warning may be combined with notice under one or more of sections 230, 248, 250 and 252.
(1) A pre-compensation warning must specify a period during which the registered provider may make representations to the regulator.
(2) The period must—
(a) be a period of at least 28 days, and
(b) begin with the date on which the registered provider receives the pre-compensation warning.
(3) Representations may address—
(a) whether compensation should be awarded;
(b) the amount of any compensation that may be awarded.
(4) After the end of the period specified under subsection (1) the regulator shall—
(a) consider any representations made, and
(b) decide whether to award compensation.
(1) Compensation shall be treated as a debt owed to the person to whom it is awarded.
(2) The Treasury may make regulations authorising the regulator—
(a) to award interest on compensation not paid during the period specified under section 240(2)(e);
(b) to award additional compensation where compensation is not paid during that period.
(3) Interest and additional compensation shall be treated as compensation.
(4) Regulations under subsection (2)(a) may provide for an interest rate to be—
(a) set by a specified person, or
(b) determined in accordance with the regulations.
(1) A private registered provider who is given a compensation notice may appeal to the High Court against—
(a) the award of compensation,
(b) its amount, or
(c) both.
(2) An appeal under this section must be brought within the period of 28 days beginning with the day on which the registered provider is given the compensation notice.
(3) The requirement to pay the compensation is suspended during the appeal period.
(4) Regulations under section 244(2) may not authorise the regulator to—
(a) award interest in respect of the appeal period, or
(b) award additional compensation during that period.
(5) The “appeal period” means—
(a) where an appeal is brought, the period beginning with the day on which the compensation notice is given and ending with the day on which the appeal is finally determined or withdrawn, and
(b) otherwise, the period during which an appeal could be brought.
(1) This section applies if the regulator is satisfied that—
(a) a registered provider has failed to meet a standard ... under section 193, 194 or 194C,
(aa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(ab) a registered provider—
(i) does not have a health and safety lead designated under section 126A, or
(ii) has failed to meet a requirement under section 126C(1),
(ac) the functions of the health and safety lead are not being carried out,
(b) the affairs of a registered provider have been mismanaged in relation to social housing , or
(c) a registered provider has failed to comply with a performance improvement plan notice.
(2) The regulator may by notice require the registered provider to implement a process specified by the regulator for the purpose of—
(a) inviting persons to apply to undertake management functions of the registered provider, and
(b) selecting from the applications and making an appointment.
(3) A requirement may relate to—
(a) the registered provider's affairs generally in so far as they relate to social housing, or
(b) specified affairs relating to social housing.
(4) A requirement must include—
(a) provision about the constitution of a selection panel (which must include provision for ensuring representation of tenants' interests),
(b) provision for ensuring best procurement practice (and consistent with any applicable procurement law), and
(c) provision about the terms and conditions on which the manager is to be appointed (including provision about—
(i) setting, monitoring and enforcing performance standards, and
(ii) resources).
(1) Before acting under section 247(2) the regulator must give the registered provider a notice—
(a) specifying grounds on which action might be taken under that section,
(b) warning the provider that the regulator is considering action under that section, and
(c) explaining the effect of this section.
(2) The notice must specify a period during which the registered provider may make representations to the regulator.
(3) The period must—
(a) be a period of at least 28 days, and
(b) begin with the date on which the registered provider receives the notice.
(4) The regulator must send a copy of a notice under subsection (1) to—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(za) the HCA,
(aa) the Greater London Authority (if the notice is given to a registered provider who owns land in Greater London),
(b) the Secretary of State (if the notice is given to a local authority), and
(c) any other persons the regulator thinks appropriate.
(5) A notice under subsection (1) must—
(a) refer to section 125 (voluntary undertaking), and
(b) indicate whether or to what extent the regulator would accept a voluntary undertaking instead of, or in mitigation of, action under section 247(2).
(6) Notice under subsection (1) may be combined with notice under one or more of sections 230, 242, 250 and 252.
(7) In imposing a requirement the regulator must have regard to views of—
(a) relevant tenants,
(b) the registered provider,
(ba) the HCA,
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(ca) the Greater London Authority (if the notice is given to a registered provider who owns land in Greater London),
(d) the Secretary of State (if the registered provider is a local authority), and
(e) if the regulator thinks it appropriate, any relevant local housing authority.
(8) If the regulator imposes a requirement it must send a copy—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(za) the HCA,
(aa) in the case of a requirement imposed on a registered provider who owns land in Greater London, to the Greater London Authority, and
(b) in the case of a requirement imposed on a local authority, to the Secretary of State.
(9) A registered provider may appeal to the High Court against a requirement under section 247(2).
(10) An appeal under this section must be brought within the period of 28 days beginning with the day on which the regulator notifies the registered provider of the imposition of a requirement on the provider under section 247(2).
(1) This section applies if as a result of an inquiry under section 206 or an audit under section 210 or 210A the regulator is satisfied that—
(a) the affairs of a registered provider have been mismanaged in relation to social housing, ...
(b) a transfer of certain of a registered provider's management functions would be likely to improve the management of some or all of its social housing , or
(c) the registered provider has failed to meet a standard under section 193, 194 or 194C.
(2) The regulator may by notice require the registered provider to transfer management functions to a specified person.
(3) A requirement to transfer management functions may be imposed only with the Secretary of State's consent (both as to the transfer and the terms).
(4) A requirement may relate to—
(a) the registered provider's affairs generally in so far as they relate to social housing, or
(b) specified affairs relating to social housing.
(5) Transfer shall be on terms and conditions (including as to remuneration) specified in, or determined in accordance with, the requirement.
(6) A transferee manager shall have—
(a) any power specified in the requirement, and
(b) any other power in relation to the registered provider's affairs required by the manager for the purposes specified in the requirement (including the power to enter into agreements and take other action on behalf of the registered provider).
(1) Before acting under section 249(2) the regulator must give the registered provider a notice—
(a) specifying grounds on which action might be taken under that section,
(b) warning the provider that the regulator is considering action under that section, and
(c) explaining the effect of this section.
(2) The notice must specify a period during which the registered provider may make representations to the regulator.
(3) The period must—
(a) be a period of at least 28 days, and
(b) begin with the date on which the registered provider receives the notice.
(4) The regulator must send a copy of a notice under subsection (1) to—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(za) the HCA,
(aa) in the case of a notice given to a registered provider who owns land in Greater London, the Greater London Authority,
(b) in the case of a notice given to a local authority, the Secretary of State, and
(c) any other persons the regulator thinks appropriate (having regard, in particular, to any person who provided information as a result of which the notice is given).
(5) A notice under subsection (1) must—
(a) refer to section 125, and
(b) indicate whether or to what extent the regulator would accept a voluntary undertaking under that section instead of, or in mitigation of, action under section 249(2).
(6) Notice under subsection (1) may be combined with notice under one or more of sections 230, 242, 248 and 252.
(7) In imposing a requirement the regulator must have regard to views of—
(a) relevant tenants,
(b) the registered provider,
(ba) the HCA,
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(ca) if the requirement would be imposed on a registered provider who owns land in Greater London, the Greater London Authority,
(d) if the requirement would be imposed on a local authority, the Secretary of State, and
(e) if the regulator thinks it appropriate, any relevant local housing authority.
(8) If the regulator imposes a requirement it must send a copy—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(za) the HCA,
(aa) in the case of a requirement imposed on a registered provider who owns land in Greater London, to the Greater London Authority, and
(b) in the case of a requirement imposed on a local authority, to the Secretary of State.
(9) A registered provider may appeal to the High Court against a requirement under section 249(2).
(10) An appeal under this section must be brought within the period of 28 days beginning with the day on which the regulator notifies the registered provider of the imposition of a requirement on the provider under section 249(2).
(1) This section makes further provision about the application of sections 247 and 249 in a case where the registered provider is a local authority.
(2) The regulator may act under those sections even if the local authority already has a management agreement in place.
(3) But while a section 247 or 249 arrangement is in force, the local authority may not give effect to a management agreement as respects functions of the authority which are the subject of the arrangement.
(4) Any duty the local authority may have to consult with respect to the exercise of its management functions (for example, a duty arising by virtue of section 27BA of the Housing Act 1985) does not apply so far as it is acting pursuant to a requirement imposed on it under section 247 or 249.
(5) A section 247 or 249 arrangement—
(a) is not to be considered a management agreement, but
(b) subsections (13) and (15) of section 27 of the Housing Act 1985 apply to it as they apply to a management agreement.
(6) In this section—
“management agreement” has the meaning given by section 27(2)(a) and 27B(4) of the Housing Act 1985;
“section 247 or 249 arrangement” means an arrangement which is entered into pursuant to a requirement imposed on a local authority under section 247 or 249 and by which functions of the authority are to be exercised by a manager on its behalf.
251 Appointment of manager of private registered provider
(1) This section applies if the regulator is satisfied that—
(a) a private registered provider has failed to meet a standard under section 193, 194 or 194C,
(aa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) the affairs of a private registered provider have been mismanaged in relation to social housing.
(2) The regulator may by notice to the registered provider —
(a) appoint ... a manager of the registered provider, or
(b) require the registered provider to appoint ... a manager.
(3) An appointment or requirement may relate to a manager—
(a) of the registered provider's affairs generally in so far as they relate to social housing, or
(b) of specified affairs relating to social housing.
(4) Appointment shall be on terms and conditions (including as to remuneration) specified in, or determined in accordance with, the appointment or requirement.
(5) A manager shall have—
(a) any power specified in the appointment or requirement, and
(b) any other power in relation to the registered provider's affairs required by the manager for the purposes specified in the appointment or requirement (including the power to enter into agreements and take other action on behalf of the registered provider).
(1) Before acting under section 251(2) the regulator must give the registered provider a notice—
(a) specifying grounds on which action might be taken under that section,
(b) warning the provider that the regulator is considering action under that section, and
(c) explaining the effect of this section.
(2) The registered provider may make representations to the regulator about the notice within the period of 5 days beginning with the day on which the provider receives the notice.
(2A) Unless the registered provider consents, the regulator may not take action under section 251(2) before the expiry of the period within which the provider may make representations.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) The regulator must send a copy of a notice under subsection (1) to—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(za) the HCA,
(aa) the Greater London Authority (if the notice is given to a registered provider who owns land in Greater London), and
(b) any other persons it thinks appropriate (having regard, in particular, to any person who provided information as a result of which the notice is given).
(5) A notice under subsection (1) must—
(a) refer to section 125 (voluntary undertaking), and
(b) indicate whether or to what extent the regulator would accept a voluntary undertaking instead of, or in mitigation of, action under section 251(2).
(6) Notice under subsection (1) may be combined with notice under one or more of sections 230, 242, 248 and 250.
(6A) The regulator must notify the HCA of an appointment or requirement under section 251(2).
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7A) The regulator must notify the Greater London Authority of an appointment or requirement under section 251(2) in respect of a registered provider who owns land in Greater London.
(8) The regulator may require a manager to report to the regulator on the affairs specified in the appointment or requirement under section 251(3).
(9) A private registered provider may appeal to the High Court against an appointment or requirement under section 251(2).
(10) An appeal under this section must be brought within the period of 28 days beginning with the day on which—
(a) the regulator notifies the registered provider of an appointment made under section 251(2)(a) (in the case of an appeal against an appointment), or
(b) the regulator notifies the registered provider of the imposition of a requirement on the provider under section 251(2)(b) (in the case of an appeal against a requirement).
(1) This section applies to a registered provider which is a local authority.
(2) The power in subsection (3) is exercisable if the regulator is satisfied—
(a) that it is necessary to exercise it for the proper management of the authority’s affairs so far as they relate to the provision of social housing (its “social housing affairs”), ...
(b) that it is desirable to exercise it in the interests of securing better services for the authority’s tenants,
(c) that the authority—
(i) does not have a health and safety lead designated under section 126A, or
(ii) has failed to meet a requirement under section 126C(1),
(d) that the functions of the health and safety lead are not being carried out,
(e) that the authority has failed to meet a standard under section 193, 194 or 194C , or
(f) that the authority has failed to comply with a performance improvement plan notice.
(3) The regulator may—
(a) appoint one or more advisers to assist the authority in relation to its social housing affairs (or a particular aspect of those affairs), or
(b) require the authority to appoint one or more advisers for that purpose.
(4) Appointment shall be on terms and conditions (including as to remuneration) specified in, or determined in accordance with, the appointment or requirement.
(5) A requirement under subsection (3)(b) may specify a process which the authority is required to implement for selecting and appointing advisers.
(6) The authority must cooperate with any advisers appointed by virtue of this section.
253 Transfer of land by private registered provider
(1) This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that—
(a) the affairs of a private registered provider have been mismanaged in relation to social housing, ...
(b) a transfer of land by a private registered provider would be likely to improve the management of the land , or
(c) the registered provider has failed to meet a standard under section 193, 194 or 194C.
(2) The regulator may require the registered provider to transfer specified land—
(a) to the regulator, or
(b) to another specified private registered provider.
(3) A requirement may be imposed on a profit-making registered provider only in relation to its social housing and associated land.
(4) For the purposes of subsection (3) land is associated with social housing if the regulator thinks that it is used in connection with the social housing or its management.
(5) A requirement may not be imposed on a non-profit registered provider requiring it to transfer land to a profit-making registered provider.
(6) A requirement may not be imposed on a registered charity.
(7) A requirement may be imposed on a charity which is not registered (C1), but only for transfer to another charity (C2) whose objects the regulator thinks are similar to those of C1.
(1) A transfer under section 253 shall be on terms specified in, or determined in accordance with, the requirement.
(2) The price shall be not less than an amount certified by the district valuer as the amount the property would fetch if sold by a willing seller to another registered provider.
(3) The terms shall include provision as to the payment of any debts or liabilities in respect of the land (whether or not secured on it).
(4) A requirement to transfer land may be imposed only with the Secretary of State's consent (both as to the transfer and the terms).
(5) Where land is transferred to the regulator under section 253(2)(a)—
(a) the regulator may dispose of it only to a registered provider, and
(b) if it is transferred by a non-profit registered provider, the regulator may dispose of it only to a non-profit registered provider.
(1) This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that—
(a) the affairs of a non-profit registered provider which is a registered society have been mismanaged in relation to social housing, ...
(b) the management of social housing owned by a non-profit registered provider which is a registered society would be improved if the provider were amalgamated with another registered society , or
(c) the registered provider has failed to meet a standard under section 193, 194 or 194C.
(2) The regulator may make and execute on behalf of the society an instrument providing for the amalgamation of the society with another registered society.
(3) The regulator may act under subsection (2) only with the Secretary of State's consent.
(4) An instrument providing for the amalgamation of a society (“S1”) with another has the same effect as a resolution by S1 under section 109 of the Co-operative and Community Benefit Societies Act 2014 (amalgamation of societies by special resolution).
(5) A copy of an instrument shall be sent to and registered by the Financial Conduct Authority.
(6) An instrument does not take effect until the copy is registered.
(7) The copy must be sent for registration during the period of 14 days beginning with the date of execution; but a copy registered after that period is valid.
(8) Any body created by virtue of an amalgamation—
(a) must be registered by the regulator and designated as a non-profit organisation, and
(b) pending registration shall be treated as registered and designated as a non-profit organisation.
(1) The regulator may make an order under this section if—
(a) an inquiry under section 206 is in progress in respect of a private registered provider, and
(b) either of the following cases applies.
(2) Case 1 applies if the regulator is satisfied—
(a) that the affairs of the registered provider have been mismanaged, and
(b) that the interests of tenants of the registered provider, or its assets, require protection.
(3) Case 2 applies if as a result of an inquirer's interim report under section 207 the regulator is satisfied that—
(a) the affairs of the registered provider have been mismanaged, or
(b) the registered provider has failed to meet a standard under section 194.
(4) The regulator may order a bank or other person who holds money or securities on behalf of the registered provider not to part with the money or securities without the regulator's consent.
(5) The regulator may make an order restricting—
(a) the transactions that may be entered into by the registered provider, or
(b) the nature and amounts of payments that may be made by it.
(6) An order under subsection (5) may in particular provide that transactions may not be entered into or payments made without the regulator's consent.
(6A) If the registered provider is a registered charity, the regulator must notify the Charity Commission if it makes an order under this section.
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) An order ceases to have effect at the end of the period of 6 months beginning with the day on which the inquirer's final report under section 207 is made.
(9) But the regulator—
(a) may revoke the order before that time;
(b) may by order extend it for a specified period of up to 6 months.
(1) This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that—
(a) the affairs of a private registered provider have been mismanaged, or
(b) a private registered provider has failed to meet a standard under section 194.
(2) The regulator may order a bank or other person who holds money or securities on behalf of the registered provider not to part with the money or securities without the regulator's consent.
(3) The regulator may make an order restricting—
(a) the transactions that may be entered into by the registered provider, or
(b) the nature and amounts of payments that may be made by it.
(4) An order under subsection (3) may in particular provide that transactions may not be entered into or payments made without the regulator's consent.
(4A) If the registered provider is a registered charity, the regulator must notify the Charity Commission if it makes an order under this section.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) An order under this section has effect until revoked by the regulator.
(1) Before making an order under section 256 or 257 the regulator must take all reasonable steps to give notice to—
(a) the registered provider, and
(b) in the case of an order under section 256(4) or 257(2), the person to whom the order is directed.
(2) Contravention of an order under section 256(4) or 257(2) is an offence.
(3) A person guilty of an offence is liable on summary conviction to a fine ....
(4) Proceedings for an offence may be brought only by or with the consent of—
(a) the regulator, or
(b) the Director of Public Prosecutions.
(1) The regulator may make an order under this section if—
(a) an inquiry under section 206 is in progress in respect of a private registered provider, and
(b) any of the following cases applies.
(2) Case 1 applies if the regulator is satisfied—
(a) that the affairs of the registered provider have been mismanaged, and
(b) that the interests of tenants of the registered provider, or its assets, require protection.
(3) Case 2 applies if as a result of an inquirer's interim report under section 207 the regulator is satisfied that—
(a) the affairs of the registered provider have been mismanaged, or
(b) the registered provider has failed to meet a standard under section 193, 194 or 194C.
(3A) Case 3 applies if the regulator is satisfied that an officer, employee or agent of the registered provider is obstructing, or failing to co-operate with, the inquiry.
(4) The regulator may by order—
(a) where Case 1 or Case 2 applies, suspend any officer, employee or agent of the registered provider who it thinks has contributed to the mismanagement or failure, or
(b) where Case 3 applies, suspend the officer, employee or agent who it thinks is obstructing, or failing to co-operate with, the inquiry.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) An order ceases to have effect at the end of the period of 6 months beginning with the day on which the inquirer's final report under section 207 is made.
(7) But the regulator may revoke an order before the end of that period.
(7A) If the regulator makes an order, the regulator must—
(a) take all reasonable steps to notify the person suspended, and
(b) notify the registered provider.
(8) The regulator shall notify the Charity Commission if it suspends an officer, employee or agent of a registered charity.
(1) This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that—
(a) the affairs of a private registered provider have been mismanaged, or
(b) a private registered provider has failed to meet a standard under section 193, 194 or 194C.
(2) The regulator may by order remove any officer, employee or agent of the registered provider who—
(a) it thinks has contributed to the mismanagement or failure, or
(b) it thinks obstructed, or failed to co-operate with, the inquiry under section 206.
(3) Pending a decision whether to remove an officer, employee or agent, the regulator may by order suspend the person for a specified period of up to 6 months.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) Before making an order the regulator must take all reasonable steps to give at least 14 days' notice to—
(a) the person, and
(b) the registered provider.
(5A) If the regulator makes an order, the regulator must—
(a) take all reasonable steps to notify the person removed or suspended, and
(b) notify the registered provider.
(6) The regulator shall notify the Charity Commission if it removes or suspends an officer, employee or agent of a registered charity.
261 Suspension under section 259 or 260: supplemental
(1) This section applies where the regulator suspends an officer, employee or agent of a registered provider under section 259 or 260.
(2) The regulator may give directions to the registered provider about—
(a) the performance of the suspended person's functions, and
(b) any other matter arising from the suspension.
(3) The regulator may appoint a person to perform the suspended person's functions.
(1) A person is disqualified from acting as an officer of a registered provider if the person has been removed under—
(a) section 260, or
(b) paragraph 24(2)(a) of Schedule 1 to the Housing Act 1996 (c. 52), section 30(1)(a) of the Housing Associations Act 1985 (c. 69) or section 20(1)(a) of the Housing Act 1974 (c. 44) (other similar provisions).
(2) The regulator may waive a disqualification either generally or in relation to a particular registered provider or class of registered providers.
(3) A waiver may be granted only on an application by the disqualified person.
(4) The regulator shall notify a person whose disqualification is waived.
(5) If a disqualified person acts as an officer of a registered provider, the person's acts are not invalid by reason only of the disqualification.
(1) The regulator shall maintain a register of persons disqualified under section 262.
(2) The register must show details of any waivers.
(3) The regulator shall make the register available for inspection by the public.
(1) It is an offence for a person to act as an officer of a registered provider in respect of which the person is disqualified under section 262.
(2) A person guilty of an offence is liable—
(a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine ... or both;
(b) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine or both.
(3) Proceedings for an offence may be brought only by or with the consent of—
(a) the regulator, or
(b) the Director of Public Prosecutions.
(4) In relation to an offence committed before 2 May 2022 the reference in subsection (2)(a) to the general limit in a magistrates’ court shall have effect as if it were a reference to 6 months.
(1) This section applies where the regulator is satisfied that a person—
(a) has acted as an officer of a registered provider in respect of which the person is disqualified under section 262, and
(b) in doing so, has received payments or other benefits from the registered provider.
(2) The regulator may require the person to repay the sum or, as the case may be, a specified amount representing the whole or part of the value of the benefit.
(3) If a person fails to comply with a requirement the registered provider may recover the sum or specified amount as a debt.
(1) The regulator may by order remove an officer of a private registered provider if a Case listed in this section applies to the officer.
(2) Case 1 applies to a person who has been made bankrupt.
(3) Case 2 applies to a person who has made an arrangement with creditors.
(4) Case 3 applies to a person who is subject to a disqualification order or a disqualification undertaking under the Company Directors Disqualification Act 1986 (c. 46) or equivalent legislation in Northern Ireland.
(5) Case 4 applies to a person who is subject to an order under section 429(2) of the Insolvency Act 1986 (c. 45) (disabilities on revocation of county court administration order).
(6) Case 5 applies to a person who is disqualified under section 178 of the Charities Act 2011 from being a charity trustee.
(7) Case 6 applies to a person who is incapable of acting by reason of mental disorder.
(8) Case 7 applies to a person who is impeding the proper management of the registered provider by reason of absence or failure to act.
(9) Case 8 applies to a person who is obstructing the regulator, or failing to co-operate with the regulator, in the performance of the regulator’s functions under this Part.
(1) Before making an order under section 266 in respect of an officer the regulator must take all reasonable steps to give at least 14 days' notice to—
(a) the officer, and
(b) the registered provider.
(1A) If the regulator makes an order, the regulator must—
(a) take all reasonable steps to notify the person removed, and
(b) notify the registered provider.
(1B) The regulator must notify the Charity Commission if it makes an order removing an officer of a registered charity.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) A person removed or suspended under section 259, 260 or 266 may appeal to the High Court.
(2) An appeal under this section must be brought within the period of 28 days beginning with the day on which the registered provider concerned is notified of the removal or suspension.
(1) The regulator may by order appoint a person as an officer of a private registered provider—
(a) to replace an officer removed by order under section 266,
(b) where there are no officers, ...
(ba) in the case of a registered provider which is a registered charity, registered society or registered company, if none of the officers is a board member,
(bb) if the regulator is satisfied that the registered provider has failed to meet a standard under section 193, 194 or 194C, or
(c) if the regulator is satisfied an additional officer is necessary to ensure that the registered provider's affairs are managed in accordance with legal requirements (imposed by or under an Act or otherwise).
(1A) In subsection (1)(ba), “board member” means—
(a) in the case of a registered charity which is not a registered company, a charity trustee within the meaning given by section 177 of the Charities Act 2011;
(b) in the case of a registered society, a member of its committee within the meaning given by section 149 of the Co-operative and Community Benefit Societies Act 2014;
(c) in the case of a registered company, a director within the meaning given by section 250 of the Companies Act 2006.
(2) The regulator may appoint more than a minority of the officers of a registered provider only if—
(a) the provider has fewer officers than required by its constitution, or
(b) its constitution does not specify a minimum number of officers.
(3) Subsection (1) overrides any restriction on eligibility or numbers of officers imposed by the body's constitution.
(4) An order appointing an officer shall specify the period for which, and the terms on which, the office is to be held; but—
(a) ... the regulator may by order renew the appointment (on any number of occasions), and
(b) the officer may resign or retire in accordance with the registered provider's constitution.
(5) An officer appointed by order has the same rights, powers and obligations as an officer appointed under the registered provider's constitution.
(6) The regulator may exercise the power in subsection (1) in respect of a registered charity only if—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) the regulator notified the Charity Commission of its intention to do so .
269A Local authorities: censure during or following inquiry
(1) The regulator may give a censure notice to a local authority if—
(a) an inquiry under section 206 is in progress in respect of the authority, and
(b) either of the following cases applies.
(2) Case 1 applies if the regulator is satisfied—
(a) that the affairs of the authority have been mismanaged, and
(b) that the interests of tenants of the authority, or its assets, require protection.
(3) Case 2 applies if as a result of an inquirer’s interim report under section 207 the regulator is satisfied that—
(a) the affairs of the authority have been mismanaged, or
(b) the authority has failed to meet a standard under section 193, 194 or 194C.
(4) The regulator may also give a censure notice to a local authority if, as a result of an inquiry under section 206, the regulator is satisfied that—
(a) the affairs of the authority have been mismanaged, or
(b) the authority has failed to meet a standard under section 193, 194 or 194C.
(5) A censure notice is a notice identifying an employee or agent of the authority who the regulator thinks has contributed to the failure or mismanagement.
(6) The notice must include the regulator’s reasons.
(7) The regulator shall send a copy of the notice to the employee or agent concerned.
(8) No more than one employee or agent may be identified in a censure notice (but this does not prevent several notices being given in respect of the same failure or mismanagement).
(9) Members of local authorities may not be identified in censure notices.
(1) A local authority to whom a censure notice is given under section 269A must respond to the regulator in writing within 28 days of receipt of the notice.
(2) The response must—
(a) explain what action (if any) the authority has taken or proposes to take in relation to the employee or agent,
(b) explain why the authority does not think the employee or agent has contributed to the failure or mismanagement, or
(c) explain why the authority does not think its affairs have been mismanaged or it has failed to meet the standard (as the case may be).
The Table gives the meaning of “officer” in relation to registered providers.
private registered provider | Meaning of “officer”
Registered charity which is not a registered company | Trustee, secretary or treasurer
Registered society | “Officer” within the meaning given by section 149 of the Co-operative and Community Benefit Societies Act 2014 (including a person co-opted to serve on the society's committee)
Registered company | “Officer” within the meaning given by section 1173 of the Companies Act 2006
Limited liability partnership | A member of the limited liability partnership
(1) A person (“A”) is a subsidiary of another person (“B”) if—
(a) A is a subsidiary undertaking in relation to B for the purposes of the Companies Acts (see section 1162 of, and Schedule 7 to, the Companies Act 2006), or
(b) A would be a subsidiary undertaking in relation to B for those purposes if “undertaking” were defined for those purposes to mean any person.
(6) “Associate” of a provider means—
(a) a body of which the provider is a subsidiary, and
(b) any other subsidiary of that body.
(1) For the purposes of this Part one person is a member of the family of another if—
(a) they are, or live together as if they were, spouses or civil partners, or
(b) one is the parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew or niece of the other.
(2) For those purposes—
(a) a relationship by marriage or civil partnership shall be treated as a relationship by blood (and, in particular, P's stepchild shall be treated as P's child), and
(b) a relationship by half-blood shall be treated as a relationship by whole blood.