Charity automatic disqualification rules

From 1 August 2018, the law changed to extend the scope of who will be disqualified from running a charity. The two key changes to the regulations are:

1) An increase in the number of legal reasons that disqualify someone from acting as a trustee. The new reasons include being on the sex offenders register, and certain unspent convictions — such as for terrorism or money laundering;

2) People who are disqualified from acting as a trustee are also disqualified from holding certain senior manager positions at a charity.

We recommend you check the procedures currently in place at your charity for appointing new trustees and senior members of staff which ensure they’re not disqualified from acting under the current automatic disqualification rules. You can fulfil this requirement by asking prospective senior managers/trustees to sign a declaration to confirm they’re not disqualified. The Charity Commission has produced sample declarations which can be used.

In addition to ensuring your charity has the necessary pre-appointment procedures in place, you should also review the procedures for ensuring people who are already in post haven’t become disqualified under the new regulations. As with pre-appointment, this can be fulfilled by requesting fresh declarations to be signed at reasonable intervals. As well as obtaining declarations, you should also be checking the relevant public registers which record the names of people disqualified from acting as trustees.

For further information on the disqualification rules or help with ensuring you have the necessary procedures in place, contact your usual Moore Stephens adviser or contact Tracey Moore.

Links to the example declarations can be found here.

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