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SCHEDULES

SCHEDULE 1E+W+S Registered social landlords: regulation

Part IVE+W Inquiry into affairs of registered social landlords

InquiryE+W

20(1)The [F1Relevant Authority] may direct an inquiry into the affairs of a registered social landlord if it appears to the [F1Relevant Authority] that [F2the registered social landlord may have failed to comply with a requirement imposed by or under an enactment.] E+W

F3...

(2)Any such inquiry shall be conducted by one or more persons appointed by the [F1Relevant Authority].

F4(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)If the [F1Relevant Authority] so directs, or if during the course of the inquiry the person or persons conducting the inquiry consider it necessary, the inquiry shall extend to the affairs of any other body which at any material time is or was a subsidiary or associate of the registered social landlord.

[F5(4A)The person or persons conducting the inquiry may determine the procedure to be followed in connection with the inquiry.]

(5)The person or persons conducting the inquiry may, if they think fit during the course of the inquiry, make one or more interim reports on such matters as appear to them to be appropriate.

(6)On completion of the inquiry the person or persons conducting the inquiry shall make a final report on such matters as the [F1Relevant Authority] may specify.

(7)An interim or final report shall be in such form as the [F1Relevant Authority] may specify. [F6 , and the Relevant Authority may arrange for the whole or part of an interim or final report to be published in such manner as it considers appropriate. ]

[F7(8)A local authority may, if they think fit, contribute to the expenses of the Relevant Authority in connection with any inquiry under this paragraph.]

Textual Amendments

F1Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F3Words in Sch. 1 para. 20(1) omitted (18.10.2011) by virtue of Housing (Wales) Measure 2011 (nawm 5), s. 90(2), Sch. para. 18; S.I. 2011/2475, arts. 1(2), 2(v)

F5Sch. 1 para. 20(4A) inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 24(2)

F6Words in Sch. 1 para. 20(7) added (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 24(3)

F7Sch. 1 para. 20(8) inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 24(4)

Modifications etc. (not altering text)

[F8EvidenceE+W

Textual Amendments

F8 Sch. 1 para. 20A and cross-heading inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 25

20A(1)For the purposes of an inquiry the person or persons conducting it may serve a notice on an appropriate person directing him to attend at a specified time and place and do either or both of the following, namely—E+W

(a)give evidence;

(b)produce any specified documents, or documents of a specified description, which are in his custody or under his control and relate to any matter relevant to the inquiry.

(2)The person or persons conducting such an inquiry—

(a)may take evidence on oath and for that purpose administer oaths, or

(b)instead of administering an oath, require the person examined to make and subscribe a declaration of the truth of the matters about which he is examined.

(3)In this paragraph—

(4)A person may not be required under this paragraph to disclose anything that, by virtue of section 30(4), he could not be required to disclose under section 30.

(5)Section 31 (enforcement of notice to provide information, &c) applies in relation to a notice given under this paragraph by the person or persons conducting an inquiry as it applies in relation to a notice given under section 30 by the Relevant Authority, but subject to sub-paragraph (6).

(6)A person guilty of an offence under section 31(1) as it applies in accordance with sub-paragraph (5) is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or both.

(7)Any person who, in purported compliance with a notice given under this paragraph by the person or persons conducting an inquiry, knowingly or recklessly provides any information which is false or misleading in a material particular commits an offence and is liable to the penalties mentioned in sub-paragraph (6).

(8)Proceedings for an offence under sub-paragraph (7) may be brought only by or with the consent of the Relevant Authority or the Director of Public Prosecutions.]

Power of appointed person to obtain informationE+W

21(1)A person appointed by the [F9Relevant Authority] under paragraph 20 to conduct an inquiry (or, if more than one person is so appointed, each of those persons) has, for the purposes of the inquiry, the same powers as are conferred on the [F9Relevant Authority] by section 30 (general power to obtain information).E+W

(2)Where by virtue of a notice under that section given by an appointed person any documents are produced to any person, the person to whom they are produced may take copies of or make extracts from them.

(3)Section 31 (enforcement of notice to provide information, &c.) applies in relation to a notice given under this paragraph by an appointed person as it applies in relation to a notice given under section 30 by the [F9Relevant Authority]. [F10 , but subject to sub-paragraph (4). ]

[F11(4)A person guilty of an offence under section 31(1) as it applies in accordance with sub-paragraph (3) is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or both.

(5)Any person who, in purported compliance with a notice given under this paragraph by an appointed person, knowingly or recklessly provides any information which is false or misleading in a material particular commits an offence and is liable to the penalties mentioned in sub-paragraph (4).

(6)Proceedings for an offence under sub-paragraph (5) may be brought only by or with the consent of the Relevant Authority or the Director of Public Prosecutions.]

Textual Amendments

F9Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F10Words in Sch. 1 para. 21(3) added (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 26(2) (with Sch. 11 para. 26(4))

F11Sch. 1 para. 21(4)-(6) inserted (18.1.2005) by Housing Act 2004 (c. 34), s. 270(3)(c), Sch. 11 para. 26(3) (with Sch. 11 para. 26(4))

Extraordinary audit for purposes of inquiryE+W

22(1)For the purposes of an inquiry under paragraph 20 the [F12Relevant Authority] may require the accounts and balance sheet of the registered social landlord concerned, or such of them as the [F12Relevant Authority] may specify, to be audited by a qualified auditor appointed by the [F12Relevant Authority].E+W

(2)A person is a qualified auditor for this purpose if he would be eligible for appointment as auditor of the ordinary accounts of the registered social landlord.

(3)On completion of the audit the appointed auditor shall make a report to the [F12Relevant Authority] on such matters and in such form as the [F12Relevant Authority] may specify.

(4)The expenses of the audit, including the remuneration of the auditor, shall be paid by the [F12Relevant Authority].

(5)An audit under this paragraph is additional to, and does not affect, any audit made or to be made under any other enactment.

Textual Amendments

F12Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

Powers exercisable on interim basisE+W

23(1)The [F13Relevant Authority] may make an order under this paragraph—E+W

(a)where an inquiry has been directed under paragraph 20 and the [F13Relevant Authority] has reasonable grounds to believe—

[F14(i)that a registered social landlord has failed to comply with a requirement imposed by or under an enactment, and]

(ii)that immediate action is needed to protect the interests of the tenants of the registered social landlord or to protect the assets of the landlord; or

(b)where an interim report has been made under paragraph 20(5) as a result of which the [F13Relevant Authority] is satisfied that [F15a registered social landlord has failed to comply with a requirement imposed by or under an enactment.]

(2)The orders that may be made under this paragraph are—

(a)an order suspending any officer, employee or agent of the registered social landlord who appears to the [F13Relevant Authority] to have been responsible for or privy to the [F16failure] or by his conduct to have contributed to or facilitated it;

(b)an order directing any bank or other person who holds money or securities on behalf of the registered social landlord not to part with the money or securities without the approval of the [F13Relevant Authority];

(c)an order restricting the transactions which may be entered into, or the nature or amount of the payments which may be made, by the registered social landlord without the approval of the [F13Relevant Authority].

[F17(2A)Before making an order under sub-paragraph (2)(b) or (c) the Welsh Ministers must take all reasonable steps to give notice to the registered social landlord and, in the case of an order under sub-paragraph (2)(b), to the person to whom the order is directed.]

(3)An order under this paragraph, if not previously revoked by the [F13Relevant Authority], shall cease to have effect six months after the making of the final report under paragraph 20(6) unless the [F13Relevant Authority] renews it, which it may do for a further period of up to six months.

(4)A person suspended by an order under sub-paragraph (2)(a) may appeal against the order to the High Court.

(5)Where a person is suspended by such an order, the [F13Relevant Authority] may give directions with respect to the performance of his functions and otherwise as to matters arising from his suspension.

The [F13Relevant Authority] may, in particular, appoint a named person to perform his functions.

(6)A person who contravenes an order under sub-paragraph (2)(b) commits an offence and is liable on summary conviction to a fine not exceeding level 5 on the standard scale or imprisonment for a term not exceeding three months, or both.

Proceedings for such an offence may be brought only by or with the consent of the [F13Relevant Authority] or the Director of Public Prosecutions.

Textual Amendments

F13Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F17Sch. 1 para. 23(2A) inserted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 79, 90(2); S.I. 2011/2475, arts. 1(2), 2(r)

Powers exercisable as a result of final report or auditE+W

24(1)Where the [F18Relevant Authority] is satisfied, as the result of an inquiry under paragraph 20 or an audit under paragraph 22, that [F19a registered social landlord has failed to comply with a requirement imposed by or under an enactment], it may make an order under this paragraph.E+W

(2)The orders that may be made under this paragraph are—

(a)an order removing any officer, employee or agent of the registered social landlord who appears to the [F18Relevant Authority] to have been responsible for or privy to the [F20failure] or by his conduct to have contributed to or facilitated it;

(b)an order suspending any such person for up to six months, pending determination whether he should be removed;

(c)an order directing any bank or other person who holds money or securities on behalf of the registered social landlord not to part with the money or securities without the approval of the [F18Relevant Authority];

(d)an order restricting the transactions which may be entered into, or the nature or amount of the payments which may be made, by the registered social landlord without the approval of the [F18Relevant Authority].

(3)Before making an order under sub-paragraph (2)(a) the [F18Relevant Authority] shall give at least 14 days’ notice of its intention to do so—

(a)to the person it intends to remove, and

(b)to the registered social landlord concerned.

Notice under this sub-paragraph may be given by post, and if so given to the person whom the [F18Relevant Authority] intends to remove may be addressed to his last known address in the United Kingdom.

[F21(3A)Before making an order under sub-paragraph (2)(c) or (d) the Welsh Ministers must take all reasonable steps to give notice to the registered social landlord and, in the case of an order under sub-paragraph (2)(c), to the person to whom the order is directed.]

(4)A person who is ordered to be removed under sub-paragraph (2)(a) or suspended under sub-paragraph (2)(b) may appeal against the order to the High Court.

(5)Where a person is suspended under sub-paragraph (2)(b), the [F18Relevant Authority] may give directions with respect to the performance of his functions and otherwise as to matters arising from the suspension.

The [F18Relevant Authority] may, in particular, appoint a named person to perform his functions.

(6)A person who contravenes an order under sub-paragraph (2)(c) commits an offence and is liable on summary conviction to a fine not exceeding level 5 on the standard scale or imprisonment for a term not exceeding three months, or both.

Proceedings for such an offence may be brought only by or with the consent of the [F18Relevant Authority] or the Director of Public Prosecutions.

[F22(7)An order under sub-paragraph (2)(c) or (d) has effect until revoked by the Welsh Ministers.]

Textual Amendments

F18Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F21Sch. 1 para. 24(3A) inserted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 80(2), 90(2); S.I. 2011/2475, arts. 1(2), 2(r)

Disqualification as officer of registered social landlord.E+W

25[F23(1)A person is disqualified from acting as an officer of a registered social landlord if the person has been removed under—E+W

(a)paragraph 24(2)(a) (removal F24...), or

(b)section 260 of the Housing and Regeneration Act 2008, section 30(1)(a) of the Housing Associations Act 1985 or section 20(1)(a) of the Housing Act 1974 (other similar provisions).]

(2)The [F25Relevant Authority] may, on the application of any such person, waive his disqualification either generally or in relation to a particular registered social landlord or particular class of registered social landlord.

(3)Any waiver shall be notified in writing to the person concerned.

(4)For the purposes of this paragraph the [F25Relevant Authority] shall keep, in such manner as it thinks fit, a register of all persons who have been removed from office by the [F25Relevant Authority] under the provisions mentioned in sub-paragraph (1).

[F26(4A)The register must show details of any waivers.]

(5)The register shall be available for public inspection at all reasonable times.

Textual Amendments

F25Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F26Sch. 1 para. 25(4A) inserted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 81(1), 90(2); S.I. 2011/2475, arts. 1(2), 2(r)

Persons acting as officer while disqualified.E+W

26(1)A person who acts as an officer of a registered social landlord while he is disqualified under paragraph 25(1) commits an offence.E+W

A person guilty of such an offence is liable—

(a)on summary conviction, to imprisonment for a term not exceeding [F27the general limit in a magistrates’ court] or to a fine not exceeding the statutory maximum, or both;

(b)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or both.

[F28(1A)In relation to an offence committed before [F292 May 2022] the reference in sub-paragraph (1)(a) to [F30the general limit in a magistrates’ court] has effect as if it were a reference to 6 months.]

(2)Proceedings for an offence under sub-paragraph (1) may be brought only by or with the consent of the [F31Relevant Authority] or the Director of Public Prosecutions.

(3)Acts done as an officer of a registered social landlord by a person who is disqualified under paragraph 25(1) are not invalid by reason only of that disqualification.

(4)Where the [F31Relevant Authority] is satisfied—

(a)that a person has acted as an officer of a registered social landlord while disqualified under paragraph 25(1), and

(b)that while so acting he has received from the registered social landlord any payments or benefits in connection with his so acting,

it may by order direct him to repay to the registered social landlord the whole or part of any such sums or, as the case may be, to pay to it the whole or part of the monetary value (as determined by it) of any such benefit.

[F32(5)If a person fails to comply with an order directing repayment, the registered social landlord or the Welsh Ministers (as the case may be) may recover the sum or specified amount as a debt.]

Textual Amendments

F28Sch. 1 para. 26(1A) inserted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), ss. 82(3), 90(2); S.I. 2011/2475, arts. 1(2), 2(r)

F31Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

Power to direct transfer of landE+W

27(1)Where as a result of an inquiry under paragraph 20 or an audit under paragraph 22 the [F33Relevant Authority] is satisfied as regards a registered social landlord—E+W

[F34(a)that it has failed to comply with a requirement imposed by or under an enactment, and]

(b)that the management of its land would be improved if its land were transferred in accordance with the provisions of this paragraph,

F35F36the [F33Relevant Authority] may, . . . direct the registered social landlord to make such a transfer . ...

(2)Where the registered social landlord concerned is a charity, the [F33Relevant Authority] may only direct a transfer to be made to another registered social landlord—

(a)which is also a charity, and

(b)the objects of which appear to the [F33Relevant Authority] to be, as nearly as practicable, akin to those of the registered social landlord concerned.

(3)In any other case the [F33Relevant Authority] may direct a transfer to be made to the [F33Relevant Authority] or to another registered social landlord.

(4)The transfer shall be on such terms as the [F33Relevant Authority] may direct on the basis of principles determined by it.

F37...

(5)The price shall not be less than the amount certified by the district valuer to be the amount the property would command if sold by a willing seller to another registered social landlord.

(6)The terms shall include provision as to the payment of debts and liabilities (including debts and liabilities secured on the land).

Textual Amendments

F33Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F35Words in Sch. 1 para. 27(1) repealed (1.11.1998) by 1998 c. 38, ss. 140, 152, Sch. 16 para. 96(6)(a), Sch. 18 Pt.VI (with ss. 137(1), 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

Modifications etc. (not altering text)

Commencement Information

I1Sch. 1 para. 27 wholly in force at 1.10.1996; Sch. 1 para. 27 not in force at Royal Assent see s. 232(3); Sch. 1 para. 27(4) in force for certain purposes at 1.8.1996 by S.I. 1996/2048, art. 3; Sch. 1 para. 27 in force at 1.10.1996 to the extent that it is not already in force, by S.I. 1996/2402, art. 3 (subject to the transitional provisions and savings in the Sch. of that S.I.)

Availability of powers in relation to registered charities.E+W

28(1)The [F38Relevant Authority] may exercise its powers under paragraphs 20 to 26 in relation to a registered charity only if the charity has [F39 received public assistance]F40...E+W

F41(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)In relation to a registered charity paragraphs 20 to 26 have effect with the following adaptations—

(a)references to its affairs are confined to its housing activities and such other activities (if any) as are incidental to or connected with its housing activities;

(b)references to its accounts do not include revenue accounts which do not relate to its housing activities, except so far as such accounts are necessary for the auditing of revenue accounts which do so relate or of the balance sheet;

(c)a person is a qualified auditor for the purpose of paragraph 22 (extraordinary audit) only if he is an auditor qualified for the purposes of paragraph 18 (accounting and audit requirements for charities).

(4)The [F38Relevant Authority] shall notify the [F42Charity Commission] upon the exercise in relation to a registered charity of its powers under—

(a)paragraph 20(1) (inquiry into affairs of registered social landlord),

(b)paragraph 23(2)(a) (interim suspension of person F43...), or

(c)paragraph 24(2)(a) or (b) (removal of person F44... or suspension with a view to removal).

Textual Amendments

F38Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.

F40Words in Sch. 1 para. 28(1) omitted (18.10.2011) by virtue of Housing (Wales) Measure 2011 (nawm 5), s. 90(2), Sch. para. 20(a)(ii); S.I. 2011/2475, arts. 1(2), 2(v)

F41Sch. 1 para. 28(2) omitted (18.10.2011) by virtue of Housing (Wales) Measure 2011 (nawm 5), s. 90(2), Sch. para. 20(b); S.I. 2011/2475, arts. 1(2), 2(v)

F42Words in Sch. 1 para. 28(4) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 192(5); S.I. 2007/309, art. 2, Sch.

29E+WThe [F45Relevant Authority] may not exercise its powers under paragraph 27 in relation to a registered charity.

Textual Amendments

F45Words in Pt. I substituted (1.11.1998) by 1998 c. 38, s. 140, Sch. 16 para. 82(1)(2) (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art.5.