The Charity Commission has issued the following Press Release which we have thought it appropriate to share with our members as it provides examples of how the Commission will instigate a statutory enquiry into charities where there are concerns about the trustees’ general management as well as management of conflicts of interest.     

Regulator investigates charities over conflicts of interest

The Charity Commission has opened a statutory inquiry to examine ongoing regulatory concerns regarding the trustees’ management and administration of SOLEV CO LIMITED – 254623 which was established in 1967 with general charitable purposes. The regulator’s primary concerns focus on related-party transactions recorded in the charity’s accounts and whether conflicts of interest have been managed appropriately, particularly given that the trustees were, until recently, all part of the same family. The previous trustees were all closely related.  Trustees are expected to act in the best interests of the charity and properly manage any conflicts of interest.

The inquiry will also investigate why the charity has not submitted accounts and annual returns within the statutory timeframe for the past five years and is currently in default with their 2023 and 2024 accounts, which is a legal obligation for trustees.

The Commission has also opened an inquiry into HATZLOCHO LIMITED – 1082076 to examine similar concerns. The charity’s purposes include advancing the Orthodox Jewish faith, and relieving poverty.

Both inquiries will examine the administration, governance and management of the charity, in particular the extent to which:

  • the trustees have complied with their statutory reporting duties including the submission of the charity’s annual reports and accounts to the Commission
  • the trustees have acted in accordance with their legal duties, with particular regard to the composition of the trustee board, the management of the charity’s finances, related party transactions and conflicts of interest and/or loyalty
  • any failings or weaknesses identified in the administration of the charity are a result of misconduct and/or mismanagement by the trustees

The Commission may extend the scope of either inquiry if additional regulatory issues emerge.

It is the Commission’s policy, after it has concluded an inquiry, to publish a report detailing what issues the inquiry looked at, what actions were undertaken as part of the inquiry and what the outcomes were.  

posted 4 February 2025