Regulator investigates charities over conflicts of interest
Source: gov.uk (2025-02-03)

The Charity Commission has opened a statutory inquiry to examine ongoing regulatory concerns regarding the trustees’ management and administration of Solev Co Limited.

SOLEV CO LIMITED - 254623 (https://register-of-charities.charitycommission.gov.uk/en/charity-search/-/charity-details/254623) was established in 1967 with general charitable purposes. The regulator’s primary concerns focus on related-party transactions recorded in the charity’s accounts and whether conflicts of interest have been managed appropriately, particularly given that the trustees were, until recently, all part of the same family. The previous trustees were all closely related. Trustees are expected to act in the best interests of the charity and properly manage any conflicts of interest.

The inquiry will also investigate why the charity has not submitted accounts and annual returns within the statutory timeframe for the past five years and is currently in default with their 2023 and 2024 accounts, which is a legal obligation for trustees.

The Commission has also opened an inquiry into HATZLOCHO LIMITED - 1082076 (https://register-of-charities.charitycommission.gov.uk/en/charity-search/-/charity-details/3971159) to examine similar concerns. The charity’s purposes include advancing the Orthodox Jewish faith, and relieving poverty.

Both inquiries will examine the administration, governance and management of the charity, in particular the extent to which:
- the trustees have complied with their statutory reporting duties including the submission of the charity’s annual reports and accounts to the Commission
- the trustees have acted in accordance with their legal duties, with particular regard to the composition of the trustee board, the management of the charity’s finances, related party transactions and conflicts of interest and/or loyalty
- any failings or weaknesses identified in the administration of the charity are a result of misconduct and/or mismanagement by the trustees
The Commission may extend the scope of either inquiry if additional regulatory issues emerge.

It is the Commission’s policy, after it has concluded an inquiry, to publish a report detailing what issues the inquiry looked at, what actions were undertaken as part of the inquiry and what the outcomes were.

ENDS

Notes to editors
- The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its ambition is to be an expert regulator that is fair, balanced, and independent so that charity can thrive. This ambition will help to create and sustain an environment where charities further build public trust and ultimately fulfil their essential role in enhancing lives and strengthening society. Find out more: About us - The Charity Commission - GOV.UK (https://www.gov.uk/government/organisations/charity-commission/about)
- The Charity Commission opened statutory inquiries into the charities under section 46 of the Charities Act 2011 as a result of its regulatory concerns that there is or has been misconduct and/or mismanagement in their administration. The inquiry into Solev Co Limited (254623) opened on 13 December 2024. The separate inquiry into Hatzlocho Limited (1082076) opened on 19 December 2024.
- A statutory inquiry is a legal power enabling the Commission to formally investigate matters of regulatory concern within a charity and to use protective powers for the benefit of the charity and its beneficiaries, assets, or reputation. An inquiry will investigate and establish the facts of the case so that the Commission can determine the extent of any misconduct and/or mismanagement; the extent of the risk to the charity, its work, property, beneficiaries, employees or volunteers; and decide what action is needed to resolve the concerns.
- Please note that the Commission has not made any conclusions, and the opening of the inquiry is not a finding of wrongdoing.
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