Blog

Governance, regulation and compliance

2 February 2018, 13:54

Charity finance professionals need to be aware of new automatic disqualification rules

From 1st August 2018, chief finance officers, finance directors, finance managers and other similar roles in charities may face automatic disqualification from serving in these positions if they have committed certain criminal ...

Post byAndrew O'Brien

Where next?

Events »

Monday, 28 September 2020
Large Charities Conference More »

News »

Wednesday, 9 September 2020
'Tax after coronavirus’ – joint charity sector response More »

From 1^st August 2018, chief finance officers, finance directors, finance managers and other similar roles in charities may face automatic disqualification from serving in these positions if they have committed certain criminal offences.

What is the change in the law?

This follows the passage of the Charities (Protection and Social Investment) Act which broaden the range of offences that could lead to automatic disqualification and broaden it to include senior managers in charities. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/673797/Auto_disqualification_table_v1.1.pdf Charity Commission guidance says that automatic disqualification covers Chief Finance Officers or equivalent positions if they are report only to Chief Executives and trustees and are responsible for the overall management and control of the charity’s finances. The Charity Commission has also produced a decision tree which can help you figure out if your role is impacted. Other senior managers that do not have overall control of the charity’s finances are not caught by the rules, according to the Commission. According to the charity Unlock 11m people in the country have a criminal record – so the potential pool of people covered by this disqualification is significant. Thousands of charities will have finance professionals occupying senior roles in their organisation. As a consequence it is important that all charities take the appropriate checks to ensure that they are complying with the law. Unlock has produced comprehensive guidance for charities on changes to the rules and how that may impact recruiting trustees or senior managers with criminal records.

There is a waiver process if you have a criminal record and want to continue in your role

The good news is that you can apply for a waiver to continue working as a senior finance professional in your charity, but you need to do so quickly. The Charity Commission has produced guidance on how the waiver process will work, what factors they will consider and other issues related to the process. There are no guarantees that you will get a waiver, but it is important to understand the rules.

The most important thing is to check the rules and take appropriate action

Charities need to look carefully at the rules and make a decision about what steps they need to take. Remember, you should also check your own governing document to see if certain types of individuals are already disqualified from serving as trustees in your charity, beyond the current legal changes. If you have any further questions please contact policy@cfg.org.uk for more information. « Back to all blog posts

Blog

Charity finance professionals need to be aware of new automatic disqualification rules

What is the change in the law?

There is a waiver process if you have a criminal record and want to continue in your role

The most important thing is to check the rules and take appropriate action

Related Content

Finance Focus September

Finance Focus August

Finance Focus July

Charity Commission guidance on Serious Incident Reporting during the coronavirus pandemic

How to guide: Covid 19 Charities SORP Committee Guidance

Charities and insolvency

Top ten tips for how to handle the year end in a pandemic

Caron Bradshaw appointed as a member of new SORP Committee

Has the Charity Commission has taken the wrong tone in its election guidance

Why does the narrative around public 'trust' makes me feel so uncomfortable?

Civil society asks of the Spending Review 2019

Five takeaways from August’s Inflation Report

The lessons for Oxfam and the wider sector

Finance Focus July 2019

BEIS Review of the Financial Reporting Council

CFG Annual Handbook 2019

How the best boards do it, from preparation to meeting execution

Seeing the wood for the trees

CFG responds to the Charity Commission’s consultation on the SORP-making process

What the recent SCOTUS judge controversy can teach us about the Charities’ SORP

Annual Report 2017-18: Empowering Your People

Changes to the CFG Board of Trustees

Finance Focus May 2018

The key to good governance - truly understanding the business

Essential Charity Finance for Trustees Guide

Does your charity follow serious incident reporting guidelines?

How big a threat is property to your charity?

Money is not the issue when it comes to charging for Charity Commission

How can charity investors perform better in a volatile market?

A stairway to heaven on business rates for the charity sector?

Investing in financial governance is one of the most cost effective ways to help your charity

Sarah Atkinson - Have your say on the annual return for charities

New report raises concerns about complacency on financial governance

Trustee Survey Report

Time to review your risks? An update from the experts...

Where are the ‘automatic stabilisers’ for charities income?

6 simple steps your charity can take to help protect themselves from fundraising fraud

Do I need a fraud response plan?

Fraud and the 3 C's

Three new Charity Finance Group trustees elected

How can charities ensure they work towards gender equality in their organisation?

What can charities learn from the recent fraud cases?

CFG launches Counter Fraud Campaign

Record Management Toolkit Launch Roundup

What can charities learn from the international cyber attack?

NCVO Almanac points to fundamental shifts in the charity operating environment

Better partnerships needed between finance and fundraising teams

Annual Report 2016-17

We must not see a rush to charging charities for regulation – House of Lords report

IFS 2017 Green Budget – the good, the bad, and the worrying?

Responsible Record Keeping: what do voluntary organisations need to know?

Trustee Week: Working to inspire good leadership

Charging charities for regulation isn’t inevitable but it is risky and inefficient

Let's talk about the F-word

Tony Armstrong looks at Devolution: working with local organisations to transform public services

Devolution is our chance to advocate for the most vulnerable

How will the 'devolution revolution' be financed?

Caron asks: 'Why does the voluntary sector need a devolution summit?'

Do charities need to become social enterprises to survive?

Ten things you should know about the new power to make social investments

New report should prompt major re-evaluation of social investment

EU Referendum: Keep watching this space…

CFG's SORP Survey

Guest blog: Stamp duty increase reinforces case for charity investors to invest in stamp-exempt funds

Guest blog: SAVE Financial Planning

Guest blog: Insights into charity investment practices

EU Referendum: What could this mean for charities?

You don’t need to be a charity to do good…but it helps!

Another day, another opportunity for charities to engage in a consultation

Friday Afternoon Fraud

Is the SORP FRS 102 working for you?

ACF, CFG and NCVO raise concerns on draft guidance for funding non-charities

Annual Report 2015-16

Employment Status 2016