05 November 2021
The Scottish Housing Regulator (SHR) and the Office of Scottish Charity Regulator (OSCR) have separate regulatory responsibilities for charitable Registered Social Landlords (RSLs).
On 29 October 2021, the SHR and OSCR published an updated Memorandum of Understanding (MoU) setting out how they intend to work together to regulate charitable RSLs going forward. This new MoU updates their previous MoU published in 2016.
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Lead Regulator Model
The 2021 MoU confirms the ‘lead regulator’ model used, which allows SHR to take the lead, in order to prevent duplications of regulation which could cause an unnecessary burden on charitable RSLs. Examples of where SHR will take the lead are given in the MoU:
Annual Return Process
- Charitable RSLs submit Annual Accounts only to the SHR (September);
- SHR will forward an electronic version to OSCR, so RSLs will not have to send Annual Accounts separately to OSCR (November);
- RSLs are still required to submit an annual return to OSCR (December) – a short online form requiring basic financial information and annual return questions.
Inquiries
- SHR and OSCR both have powers to investigate issues of regulatory concern and take appropriate action;
- SHR will take the lead role in carrying out an inquiry;
- SHR will notify OSCR if an inquiry discloses a serious concern around governance or financial mismanagement – OSCR may decide to take action.
Notifiable Events
- Both the SHR and OSCR asks that charities report Notifiable Events;
- However, charitable RSLs should report Notifiable Events to SHR and do not need to report to OSCR;
- Again, SHR will inform OSCR when it considers a Notifiable Event a serious matter which may result in OSCR considering regulatory action.
Organisational Changes
- RSLs are required to notify SHR of (1) the outcome of tenant consultations, (2) certain disposals of land and assets, and (3) constitutional and organisational changes;
- As well as considering its own regulatory requirements, the SHR will decide if changes are consistent with an RSL’s charitable status and advise OSCR of any concerns.
The full MoU can be found here: oscr-and-scottish-housing-regulator-mou-october-2021.pdf (housingregulator.gov.scot).
If you have any questions please contact our social housing team.
Contact:
Marion Davis, Senior Associate and Accredited Specialist in Charity Law T: 0141 221 8012 E: mda@bto.co.uk
Sophie Mills, Solicitor T: 0141 221 8012 E: smi@bto.co.uk