Section 27 - Regulator; and Schedule 3 - Regulator of Community Interest Companies
197.This section creates the office of the Regulator and makes some general provisions about the Regulator’s functions and the way in which they are to be carried out.
198.The Regulator must be appointed by the Secretary of State (subsection (2)). Subsection (3) identifies the functions of the Regulator. One such function is the provision of guidance and assistance. Subsection (5) allows the Regulator to issue guidance or to provide assistance about any matter relating to CICs that he wishes. The Secretary of State can also compel the Regulator to provide such guidance or assistance (subsection (6)). Other functions are conferred or imposed on the Regulator in the Act, or provision is made for further functions to be imposed by regulations, in sections 28(6), 29(2), 30(4) to (8), 36(4) and (6), 38(3) and (5), 41 to 51, 55(3) and (5), 59(5), 61(3) and (5), and 62(3).
199.Subsection (4) imposes a duty on the Regulator to carry out all his statutory functions with regard to three specific factors, or ‘statutory objectives’, relating to good regulatory practice. This provision complements the common law requirements that apply to all those exercising administrative and regulatory functions, such as the requirement to act reasonably. It is intended to guide the Regulator towards a particular style of regulation which takes into account the nature of those affected by his actions. This intention is reflected in subsection (7), which sets out the approach that the Regulator is to take when carrying out his guidance and assistance function.
200.Subsection (8) gives effect to Schedule 3 which contains detailed provisions concerning the Regulator. Schedule 3 sets out the Regulator's terms of appointment (paragraph 1), and makes provisions about the Regulator’s remuneration, staffing, and financial and reporting framework (paragraphs 2 to 7). The Regulator's staff will be civil servants. Paragraphs 8 and 9 make the Regulator subject to investigation by the Parliamentary Commissioner, and disqualify the Regulator from membership of the House of Commons.
