New charity disqualification rules to include senior management positions

New rules are being introduced from 1 August 2018 to strengthen existing disqualification rules which currently only apply to trustees. The changes introduce new types of disqualification and also extend the scope to include those who act in some senior management positions at charities such as Chief Executives and Chief Finance Officers. The Charity Commission has published guidance which identifies the position within the charity that the new rules apply to.

Anyone who will be disqualified under these new rules can apply for a waiver by completing the application form which is available on the Charity Commission website.

The main reasons for disqualification are still bankruptcy related, and also include unspent convictions for crimes involving dishonesty and deception. The new reasons include being on the sex offenders register and certain unspent convictions such as terrorism or money laundering.

Charities will need to review their recruitment procedures to avoid appointing or retaining disqualified individuals as trustees or senior management positions.

Charities should also have systems in place for identifying trustees and relevant senior management who become disqualified after they have been appointed. If not already in place, charities should consider getting signed declarations from trustees and senior management as a safeguard against this risk.

Whilst hopefully this won’t be an issue for most charities, it is a risk that should be taken into consideration and therefore appropriate action is necessary.

To learn more, please feel free to drop Susan an email here, or call +44 (0)330 124 1399.

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