ECA campaigning leads to Treasury Consultation
The Government opens up debate around Charity Pooled Investments
After some pressure the Government is looking to hear from charities with interests in or knowledge of charity pooled investment and deposit funds on proposals that the responsibility for their regulation should be transferred from the Charity Commission to the Financial Services Authority.
This consultation, which closes on the 31st October, comes after concerns were raised at the time of the credit crunch last autumn by the Educational Centres Association, around the long term security of these funds and trustee liability, where investment strategies are deemed to be flawed.,
The matter came into prominence when none of the main regulatory bodies; the Treasury, Charity Commission and FSA nor advisory ones like NCVO, were able to clarify how their remit would be discharged in the event that one of the charity sector investors (i.e. those registered as charities themselves) of â€˜pooled fundsâ€™ made a flawed judgement and collapsed with the loss of billions of VCS sector finances.
As well as the proposal to achieve the full transfer of responsibility to the FSA it envisages preserving existing tax reliefs for charitable bodies.
The Full consultation report is available to download here
Date Added: October 22nd 2009