48 law Welcome review for Charities Act


This year sees the scheduled five-year review of the Charities Act 2006, something which is being viewed as an opportunity to make changes that better reflect the very different world we live in


The banking crisis and subsequent economic downturn, the advent of the Big Society and the way we all interact through social media are creating new challenges for charities – challenges they need to be well- equipped to deal with if they are to survive.


Potentially, the review could produce a strong and effective framework within which charities can work and encourage the public to be more confident in their support by tackling issues such as ‘chuggers’ (charity muggers).


The legal review will have two main purposes: whether changes can be made to improve the legal and regulatory framework in which charities operate, and whether or not the Act is effective.


Led by Conservative peer Lord Hodgson of Astley Abbotts, it will have to account for economic, political, social and technological changes in the voluntary sector since the Act was introduced. The review has to adopt a “broad approach” and has to answer the following questions:


• what is a charity and what are the roles of charities?


• what do charities need to do in order to deliver those roles?


• what should the legal framework for charities look like in order to meet those needs?


Budget cuts mean the Charity Commission will no longer offer the same level of free support and advice as it has done previously. Diane Yarrow, partner and specialist in charity law at B P Collins LLP, says that this is another reason why charities


need to adopt a much more businesslike and commercial approach to survive in future.


This will include seeking professional advice when required, something which Yarrow says is up to the legal profession (and other advisers) to demonstrate needn’t be as difficult as they may think. The review of the role of the regulator should help to reinforce this in the minds of charities.


The review will also look at issues such as measures to reduce red tape and bureaucracy on smaller charities, the licensing regime for public charitable collections, charity registration thresholds and how charity trustees operate.


Welcoming the review, Yarrow says she hopes it will help charities clarify issues which need to be addressed, such as public benefit


Law firms could face £5,000 fines as new EPC regulations are enforced from April 6


The UK’s largest independent provider of Energy Performance Certificates (EPC) and Energy Surveys, The National EPC Company, is advising law firms to comply with new EPC regulations in order to avoid fines of up to £5,000. It is likely that Trading Standards officers will increase enforcement, and issuing of penalties, following these new regulatory changes.


This follows amendments to the EU Energy Performance of Buildings Directive in January this year. The changes not only place a duty on sellers and landlords, but also a new duty on persons acting on their behalf to satisfy themselves that an EPC is available or has been commissioned before the marketing process has begun.


There is concern that some law firms are unfamiliar with the new regulations that took effect from April 6. This may lead to firms facing financial penalties of up to £5,000 per breach, depending on the rateable value of a commercial property. A £200 penalty per breach will continue to apply to residential properties not possessing an EPC during the marketing process.


Business development director James Dodd www.businessmag.co.uk


from The National EPC Company said: “The new legislation aims to clarify the issue surrounding the requirement for an EPC. We are aware that some law firms still believe that the provision of an EPC can legitimately be delayed until shortly before the parties enter into a contract. This is no longer the case.


“Orders for commercial EPCs have more than doubled this month. However, the issue is that the commercial property industry is starting from a low compliance rate. The EPC accreditation body, National Energy Services (NES), estimates this figure to be around the 30% mark. We’re concerned that the message regarding compliance simply isn’t reaching the legal profession.


“Furthermore, as compliance grows, there will be a huge demand for energy assessors to meet the reduced timescale in which to provide an EPC report. It’s therefore important for conveyancing solicitors to bring this to the attention of the seller or landlord at the earliest opportunity.”


The most important changes to the regulations affect commercial properties and the reduced timescale introduced for obtaining an EPC. The revised regulations


now apply to commercial properties, in addition to residential ones.


There is a requirement for sellers, landlords and persons acting on their behalf, such as property agents and conveyancing solicitors, to ensure an EPC is commissioned and in place within seven days of marketing a property. If this is not possible, but reasonable steps have been taken to obtain one, then a further period of 21 days is permitted. If, after 28 days, the property remains on the market without an EPC then Trading Standards may serve a penalty notice, even if there is a legitimate reason for delay.


The revised regulations have been introduced to provide clear guidance to those working in the legal profession and the commercial and residential property sector. They will allow prospective buyers and tenants to have sight of an EPC much earlier in the process.


The 2011 Regulations will amend the existing Energy Performance of Buildings (Certificate and Inspections) (England and Wales) Regulations 2007.


Details: www.nepcco.co.uk THE BUSINESS MAGAZINE – THAMES VALLEY – MAY 2012


and personal liability of trustees. There is, however, concern that the scope of the review is so broad, those involved may have bitten off more than they can chew. Describing it as an “ideal opportunity” to move with the times, she hopes it will actually achieve change, rather than the opportunity being wasted by simply making cosmetic changes, which is a criticism levied at the Charities Act 2011.


Clearly whether the Government and Parliament will be minded to implement the changes that may be recommended as part of the review is another question entirely.


The government consultation closed on April 16 and the review is due to report during summer 2012. If you are part of a charity or not-for-profit organisation and seek professional advice on running your business, see details below.


Details: Diane Yarrow 01753-889995 charitylaw@bpcollins.co.uk


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