The Charities Commission has approved of proposals to change the structure of the Charity Bank
Changes to banking regulations have disabled institutions from simultaneously acting as banks and charities as of 31 May 2013, requiring the Charity Bank to accept a change to its articles in order to maintain its current role. These changes ensure that though the Charity Bank will relinquish its charitable status, it will continue to be largely owned by charities, and its objectives will remain charitable. Significantly, the property currently held by the bank will be secured as charitable assets under section 197(2) of the Charities Act 2011. The legislation provides that these assets must continue to be used for charitable purposes as long as the organisation exists.
The changes have been approved by the Commission after discussions with the former FSA and the Charities Aid Foundation (CAF), the Charity Bank’s principal shareholder. To this end, the CAF will make a capital grant as a social investment to ensure the future of the organisation.
The Charity Bank has featured its own article and included responses from key commentators and stakeholders.
Date: 12th June, 2013
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