First Agreement Signed Following Elton Report
02/08/06 Media Contact: Naomi Evans 020 7393 2118 ref: 78/06
An agreement which sets out a closer working relationship between the Housing Corporation and the Office of the Regulator of Community Interest Companies has been made, becoming the first agreement signed after the Elton report.
The Memorandum of Understanding sets out how the Housing Corporation and the Office of the Regulator of Community Interest Companies will work together to develop joint working arrangements and share best practice to ensure tenants and stakeholders’ interests are protected.
Clarifying how regulators will manage when there is the potential for their regulatory regimes to overlap, the Memorandum of Understanding will also help to ensure that both regulators and regulated bodies understand what is required of them, and, act to ensure that they avoid unnecessary and inefficient duplication in their work.
Housing Corporation Chief Executive, Jon Rouse, said:
“The Housing Corporation is delighted to be able to work with the Regulator of Community Interest Companies and it is great to have signed the first agreement so quickly after the Elton report. The report recommended that we should ensure that we work in this way with a range of regulators and discussions are already underway to establish similar agreements with other regulators.”
John Hanlon, Regulator of Community Interest Companies, said:
“We welcome the opportunity presented by the Memorandum of Understanding to work closely with the Housing Corporation. We will work together to promote best practice, consistency of approach and minimum interference, with a view of reducing the regulatory burden on community interest companies.”
The Memorandum of Understanding is available on both the Housing Corporation website – www.housingcorp.gov.uk and within the following link –
Memorandum of Understanding for co-operation between the Housing Corporation and the Regulator of Community Interest Companies
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Notes to Editors
1) For further information, please contact Naomi Evans at the Housing Corporation on 020 7393 2118, or Phil Horrell at Community Interest Companies on
029 2034 6228
2) Community Interest Companies (CICs) are limited companies that operate for a social purpose and use their assets and profits to promote these aims. They also have additional features, which ensure the company's activities are carried out for the community benefit.
3) The purpose of the Memorandum of Understanding (MOU) is to set out the powers and responsibilities of the Regulator of Community Interest Companies and the Housing Corporation and the arrangements for exercising these powers with organisations which are subject to the requirements of both regulators.
4) The Elton report, published in March 2006, is the culmination of a four month review, commissioned by the Housing Corporation and chaired by Sir Leslie Elton, into the administrative burden placed on associations in meeting robust regulatory requirements.
5) The Memorandum of Understanding will be available on both the Housing Corporation and Community Interest Companies websites from Friday 4 August.
6) The Housing Corporation is the government agency responsible for investing in new affordable homes and regulating over 1,500 housing associations across England. Its biggest ever investment programme of £3.9 billion for 2006-08 will fund 84,000 homes; 49,000 of these will be for affordable rent, and 35,000 will be for affordable sale through the Government's new HomeBuy initiative, helping people to get a foot on the property ladder.