Charities (Protection and Social Investment) Bill [HL]

Page 2, line 6,
leave out “how” and insert “when and where”

Page 2, line 15,
at end insert—

“( )   The Charity Commission may call for and randomly or
systematically check the Disclosure and Barring Service checks
undertaken by charities on trustees.”

Insert the following new Clause—

“Reporting misdemeanours

A trustee must report to the Charity Commission any serious incident that

results in, or risks causing, significant harm to their charity’s work,
beneficiaries or reputation.”

Page 2, line 39,
leave out “privy to” and insert “participated in”

Page 3, leave out lines 3 to 6

Page 6, line 38,
after “unwilling)” insert—

“(a)   
in subsection (1)(a) after “unwilling” insert “or unable”;

(b)   ”

Page 7, line 21,
at end insert—

P has been found guilty of a sexual offence or has been placed on
the sex offenders register.”

Page 8, leave out lines 26 and 27

Page 10, line 43,
leave out “privy to” and insert “participated in”

Page 11, leave out lines 9 to 13

Page 11, line 29,
at end insert—

“( )   The Charity Commission may by order under subsection (1)
disqualify all trustees of a charity where it has sufficient reason to
believe there is a collective failure of all trustees to ensure the safety
and protection of children who are direct beneficiaries of the
charity.”

Insert the following new Clause—

“Disposal of assets

Charities may not, and may not be compelled to, use or dispose of their
assets in a way which is inconsistent with their charitable purposes.”

Insert the following new Clause—

“Regulation of fundraising

(1)     All fundraising charities must be members of the Fundraising Standards
Board and abide by their Code of Fundraising Practice.

(2)     In section 64A of the Charities Act 1992, as inserted by section 69 of the
Charities Act 2006 (reserve power to control fund-raising by charitable

institutions)—

(a)   in the title omit “Reserve”;

(b)   
in subsection (1) for “may” substitute “must”.”

Insert the following new Clause—

“Power to make representations

(1)     A charity may undertake political campaigning or political activity in the
context of supporting the delivery of its charitable purposes.

(2)     A charity may campaign to ensure support for, or to oppose, a change in
the law, policy or decisions of central government, local authorities or other
public bodies.”

Insert the following new Clause—

“Charity Commission annual report to refer to principles of best regulatory
practice

(1)     Schedule 1 to the Charities Act 2011 is amended as follows.

(2)     
In paragraph 11(c), after “16)” insert “including the extent to which, in its
opinion, it acted in a proportionate, accountable, consistent, transparent
and targeted manner (see section 16(4))”.”

Page 16, line 10,
leave out “both” and insert “primarily”

Page 16, line 11, leave out “directly”

Page 16, line 11,
leave out “and” and insert “while also”

Page 17, line 18,
at end insert “including, where it is reasonable, from beneficiaries
and other stakeholders;”

Page 17, line 18,
at end insert—

Page 17, line 24,
leave out “social”

Page 17, line 24,
at end insert “and make this review publicly available, including
an assessment of how this use of funds furthers the charity’s purpose”

Insert the following new Clause—

“Appeals and applications to Tribunal

(1)     The Charities Act 2011 is amended as follows.

(2)     
For section 319(2)(b) substitute—

(3)     
For section 321(2)(b) substitute—

(4)     Omit column 2 of Schedule 6.”

Insert the following new Clause—

“Marketing of social investments

(1)     The Financial Services and Markets Act 2000 (Financial Promotion) Order
2005 (S.I. 15929/2005) is amended as follows.

(2)     
For article 35, substitute—

(3)     In Part II of Schedule 1, omit paragraph 14(2)(b) and (3)(c).”

Insert the following new Clause—

“New rules for social sector organisations

(1)     The Secretary of State may by regulations made by statutory instrument set

out rules for the communication of financial promotions by—

(a)   a charity,

(b)   any other body regulated under the Charities Act 2011.

(2)     
The organisations set out in subsection (1) shall be defined as “social sector
organisations”.

(3)     In making any such regulations, the Secretary of State shall have regard

to—

(a)   the desirability of creating rules which are proportionate to the
nature, scale and capacity of social sector organisations and which
are easy to understand and follow;

(b)   the desirability of creating rules which support the growth,
development and financing of social sector organisations and
which are enabling and facilitative;

(c)   the desirability of facilitating, where appropriate, direct investment
on the part of consumers in social sector organisations which are
local to the consumer;

(d)   the desirability of a consistency of approach in the regulatory
treatment of communications made by different forms of social
sector organisations;

(e)   the differing expectations that consumers may have in relation to
different kinds of investment or other transaction; and

(f)   the desirability, where appropriate, of the Financial Conduct
Authority exercising its functions in a way that recognises
differences in the nature of, and objectives of, businesses carried on
by different persons subject to requirements imposed by or under
the Financial Services and Markets Act 2000.”

Page 18, line 6,
at end insert—

“( )     The Chancellor of the Exchequer and the Minister for the Cabinet Office
must carry out a review into the operation of this Act as it relates to social

investment, including—

(a)   the effectiveness of the social investment market;

(b)   public understanding of how funds are used by charities for the
purposes of investment;

(c)   the interaction between grant-making and social investment.”

Page 18, line 11,
at end insert—

“( )   any other areas deemed relevant by the Minister”

Page 18, line 14,
leave out “5” and insert “3”

Page 18, line 15,
leave out “5” and insert “3”