http://www.legislation.gov.uk/anaw/2016/2/section/9ARegulation and Inspection of Social Care (Wales) Act 2016An Act of the National Assembly for Wales to make provision for the registration and regulation of persons providing care home services, secure accommodation services, residential family centre services, adoption services, fostering services, adult placement services, advocacy services and domiciliary support services; amending the Social Services and Well-being (Wales) Act 2014 in connection with the regulation of the social services functions of local authorities; for the renaming of the Care Council for Wales as Social Care Wales; for Social Care Wales to provide advice and other assistance to persons providing services involving care and support; for the registration, regulation and training of social care workers; and for connected purposes.texttext/xmlenStatute Law Database2026-04-29Expert Participation2026-04-01 PART 1REGULATION OF SOCIAL CARE SERVICESCHAPTER 2REGISTRATION <Abbreviation Expansion="et cetera" xml:lang="la">ETC.</Abbreviation> OF SERVICE PROVIDERS<Emphasis>Application for, variation of and cancellation of registration</Emphasis><Addition ChangeId="key-89a55828ef7ef0e74e7e73481942161f-1777376314657" CommentaryRef="key-89a55828ef7ef0e74e7e73481942161f">Fit and proper person test: financial arrangements relating to restricted children’s services</Addition>9A1For the purposes of the fit and proper person test in section 9, a financial arrangement falls within this section if it is an arrangement with or for the benefit of a relevant person that—ais unreasonable or disproportionate in all of the circumstances, andb(in consequence) may undermine the service provider’s pursuit of its objects or purposes (as‍ to which, see section 6A(3)).2When determining whether such a financial arrangement has been entered into, regard must be had to—athe size or value of the arrangement and its purpose (including the extent to which it relates to the provision of the restricted children’s service);bthe size or value of the arrangement relative to the amount of income the service provider receives from providing the restricted children’s service;cthe proportion of the service provider’s total income that comes from providing the restricted children’s service;dthe well-being of children who receive care and support (in the provision of the restricted children’s service).3For the purposes of section 9(7)(e) and this section—a“entering into a financial arrangement” includes but is not limited to making a payment or awarding any benefit (direct or indirect) that has monetary value (and references to a financial arrangement are to be read as including a series of arrangements);b“relevant person” means any of the following—ian employee, worker or officer of the service provider;iia person connected to an employee, worker or officer of the service provider;iiiwhere the service provider is part of a group of persons under common ownership or common control, any person within that group.Pt. 1 applied (with modifications) (29.4.2019) by The Regulated Fostering Services (Service Providers and Responsible Individuals) (Wales) Regulations 2019 (S.I. 2019/169), regs. 1(2), 71Pt. 1 applied (with modifications) (29.4.2019) by The Adult Placement Services (Service Providers and Responsible Individuals) (Wales) Regulations 2019 (S.I. 2019/163), regs. 1(2), 67(3)Pt. 1 applied (with modifications) (29.4.2019) by The Regulated Advocacy Services (Service Providers and Responsible Individuals) (Wales) Regulations 2019 (S.I. 2019/165), regs. 1(2), 58(3)Pt. 1 applied (with modifications) (29.4.2019) by The Regulated Adoption Services (Service Providers and Responsible Individuals) (Wales) Regulations 2019 (S.I. 2019/762), regs., 57(3)Pt. 1 applied (with modifications) (31.3.2024) by The Special School Residential Services (Service Providers and Responsible Individuals) (Wales) Regulations 2024 (S.I. 2024/388), regs. 1(2), 79(3)Ss. 9A, 9B inserted (1.4.2026) by Health and Social Care (Wales) Act 2025 (asc 1), ss. 6(3), 29(2); S.I. 2025/1257, art. 2(2)(a)