OSCR Welcomes Minister's Announcement
14 November 2006
OSCR has welcomed an announcement from Deputy Minister for Communities, Johann Lamont, regarding trustee indemnity insurance.
The Minister has given a commitment to remove restrictions on its provision, through amendment of the relevant provisions in the Charity and Trustee Investment (Scotland) Act 2005.
The announcement came in response to a Parliamentary question and will see the Regulator working with Ministers and the charity sector to agree the precise details of the legislative changes required.
Read OSCR's Statement on Trustee Indemnity Insurance.
OSCR’s Chief Executive, Jane Ryder, said that the announcement demonstrated the benefits of the independent Regulator advising Ministers on relevant matters.
‘We identified at an early stage that this issue was of considerable concern to the charity sector and advised Ministers accordingly,’ she said. ’We published our own view and our approach to this issue in May this year and have maintained a consistent position throughout,’ she added.
‘I can confirm that OSCR will continue to act proportionately and we look forward to working with Ministers to achieve a practical outcome,’ she said.
OSCR will continue to make new charities aware of the requirements of Section 67 of the Act, but will not take action against charities, nor turn down new applications for charitable status simply because trustee indemnity insurance is provided.
Johann Lamont’s answer to the Parliamentary Question reads as follows:
Following consideration of the issue, it is clear that the restrictions the 2005 Act places on the provision of trustee indemnity insurance are the cause of considerable concern within the charity sector. The issue of the provision of trustee indemnity insurance was not raised during the development or passage of the Bill, and the difficulties arising from the restrictions on its provision were therefore unintended.
We have decided that we will take action to address the problem and remove these restrictions on the provision of indemnity insurance through amendment to the provisions in the Charity and Trustee Investment (Scotland) Act 2005. There are no suitable legislative vehicles in the remainder of the Parliamentary session to effect such an amendment and it is not possible at this point to commit to firm plans for legislation in advance of the parliamentary election next year. However we will work with the Office of the Scottish Charity Regulator (OSCR) and the charitable sector to determine the precise nature of the legislative change that would be required, with a view to developing proposals which can form the basis of legislation to be brought forward when a suitable opportunity arises.
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