Consultation outcome

Draft guidance note 14: Section 255 바카라 사이트“ Amalgamation (enforcement power)

Updated 29 February 2024

Applies to England

	Applicable
PRP (For profit)	no
PRP (Not for profit)	yes
PRP (Registered charity)	no
Local authority	no

Type of power: enforcement power 

Scope 

1 - This power enables the regulator to require two not for profit private registered providers which are registered societies (바카라 사이트˜NPRP바카라 사이트™) to amalgamate. 

When the regulator will use this power 

2 - Section 255(1) of the Act sets out three specific grounds under which the regulator may exercise this power. They are where, as a result of an inquiry under Section 206 of the Act or an extraordinary audit under section 210 of the Act, the regulator is satisfied that: 

• the affairs of a NPRP have been mismanaged in relation to social housing ^{[footnote 1]} 

• the management of social housing owned by a NPRP would be improved if the NPRP were amalgamated with another NPRP; or  

• the NPRP has failed to meet a standard under section 193, 194 or 194C of the Act. 

Process for using the power 

3 - If, after considering findings following a statutory inquiry or extraordinary audit of a registered society (바카라 사이트˜NPRP1바카라 사이트™), the regulator is satisfied that the grounds in section 255(1) of the Act are met, the regulator will identify a suitable NPRP which is a registered society (바카라 사이트˜NPRP2바카라 사이트™) for NPRP1 to amalgamate with. 

4 - In assessing NPRP2바카라 사이트™s suitability, the regulator will consider all relevant factors including but not limited to NPRP2바카라 사이트™s: 

• quality and management of services to residents 

• quality of governance systems 

• financial viability

• general regulatory compliance; and 

• management and financial capacity. 

5 - NPRP2 will be expected to take the amalgamation forward and this shall be overseen by the regulator. This process will involve but is not limited to: 

• NPRP2 undertaking due diligence 
• both NPRP1 and NPRP2 consulting with relevant stakeholders and obtaining any necessary consents 
• NPRP2 preparing a business plan and the governing document (바카라 사이트˜rules바카라 사이트™) for the registered society created by the amalgamation (바카라 사이트˜NPRP3바카라 사이트™) for approval by NPRP1 and the regulator 
• both NPRP1 and NPRP2 preparing a report setting out all the details for the amalgamation, which also covers the outcome of the consultation and due diligence, business and operational planning for NPRP3 and the new rules for NPRP3.  

6 - If the regulator agrees to the proposal for amalgamation, it will seek the Secretary of State바카라 사이트™s consent.  

7 - Following receipt of the Secretary of State바카라 사이트™s consent, the regulator will prepare an instrument of amalgamation (바카라 사이트˜instrument바카라 사이트™) and send it to the Financial Conduct Authority for registration in accordance with section 255(5) to (7) of the Act.  

8 - The amalgamation does not take effect until the instrument is registered by the Financial Conduct Authority. The regulator will notify NPRP3 of the registration of the instrument.  

9 - NPR3 must be registered with the regulator and designated as non-profit. Pending registration, it shall be treated as registered and designated non-profit.  

Appeal process  

10 - There is no statutory right of appeal or appeals바카라 사이트™ process in accordance with the Regulator바카라 사이트™s appeals scheme.

1. Mismanagement has a specific meaning in the Act and is defined in s.275: Mismanagement in relation to the affairs of a registered provider means managed in breach of any legal requirements (imposed by or under an Act or otherwise). ↩