Part 2Regulation of Social Housing
Chapter 7Enforcement powers
Restrictions on dealings
256Restrictions on dealings during inquiry
1
The regulator may make an order under this section if—
a
an inquiry under section 206 is in progress in respect of a non-profit registered provider, and
b
either of the following cases applies.
2
Case 1 applies if the regulator has reasonable grounds for believing—
a
that the affairs of the registered provider have been mismanaged, and
b
that the interests of tenants of the registered provider, or its assets, require protection.
3
Case 2 applies if as a result of an inquirer’s interim report under section 207 the regulator is satisfied that the affairs of the registered provider have been mismanaged.
4
The regulator may order a bank or other person who holds money or securities on behalf of the registered provider not to part with the money or securities without the regulator’s consent.
5
The regulator may make an order restricting—
a
the transactions that may be entered into by the registered provider, or
b
the nature and amounts of payments that may be made by it.
6
An order under subsection (5) may in particular provide that transactions may not be entered into or payments made without the regulator’s consent.
7
The regulator may make an order in respect of a registered provider that is a registered charity only if it has received public assistance.
8
An order ceases to have effect at the end of the period of 6 months beginning with the day on which the inquirer’s final report under section 207 is made.
9
But the regulator—
a
may revoke the order before that time;
b
may by order extend it for a specified period of up to 6 months.
257Restrictions on dealings following inquiry
1
This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that the affairs of a non-profit registered provider have been mismanaged.
2
The regulator may order a bank or other person who holds money or securities on behalf of the registered provider not to part with the money or securities without the regulator’s consent.
3
The regulator may make an order restricting—
a
the transactions that may be entered into by the registered provider, or
b
the nature and amounts of payments that may be made by it.
4
An order under subsection (3) may in particular provide that transactions may not be entered into or payments made without the regulator’s consent.
5
The regulator may make an order in respect of a registered provider that is a registered charity only if it has received public assistance.
6
An order under this section has effect until revoked by the regulator.
258Restrictions on dealings: supplemental
1
Before making an order under section 256 or 257 the regulator must take all reasonable steps to give notice to—
a
the registered provider, and
b
in the case of an order under section 256(4) or 257(2), the person to whom the order is directed.
2
Contravention of an order under section 256(4) or 257(2) is an offence.
3
A person guilty of an offence is liable on summary conviction to a fine not exceeding level 5 on the standard scale.
4
Proceedings for an offence may be brought only by or with the consent of—
a
the regulator, or
b
the Director of Public Prosecutions.