Policy paper

Practitioner and Interim Manager Code of Practice

Updated 27 April 2023

Applies to England and Wales

• Publication for Northern Ireland
• Publication for Scotland

1. Definitions

The Commission – the Charity Commission for England and Wales.

The Act – the Charities Act 2011.

Interim Manager – ‘IM’ – the Commission can, under section 76(3)(g) of the Act appoint an Interim Manager to act as a receiver and manager in respect of the property and affairs of a charity when:

• it has opened a statutory inquiry under section 46 of the Act, and
• it is satisfied either that there has been misconduct and/or mismanagement in the administration of a charity, or that it is necessary or desirable to protect the charity’s property

The appointment may set out specific functions or specific tasks or may require them to administer the charity to the exclusion of the charity trustees – section 78 (4)(a) and (b) of the Act refer.

Misconduct – includes, but is not limited to, any act, (or failure to act), that the person committing it knew (or ought to have known) was criminal, unlawful or improper.

Mismanagement – includes, but is not limited to, any act, (or failure to act), that may result in charitable resources being misused, or the people who benefit from the charity to be put at risk. A charity’s reputation may be regarded as the property or resources of the charity.

Practitioner – an individual who applies to join the Commission’s list of approved practitioners from which we usually make an IM appointment.

The List – the Commission’s list of approved practitioners from which we usually make an IM appointment.

The Regulations – the Charities Receiver and Manager Regulations 1992.

The Code – this Practitioner and Interim Manager Code of Practice.

2. Introduction

This Code sets out the principles of conduct between:

• the Commission and practitioners on the List
• the Commission and appointed IMs

Practitioners must sign the Code before joining the List. By signing this Code, practitioners are confirming their agreement to its terms.

The purpose of the Code is to ensure that:

• practitioners and IMs process information, including personal data, to an agreed standard and in accordance with the law
• IMs conduct themselves in accordance with the Regulations and that their work:
• is proportionate in terms of potential loss to charity funds, harm to beneficiaries, and damage to the reputation of the charity or charities generally
• is practical, robust, and performed in a consistent manner
• provides a sound basis to address and remedy the identified regulatory issues affecting a charity
• delivers measurable outcomes that demonstrate value for money
• demonstrates due professional care
• complies fully with the Commission’s appointment Order and any subsequent variations of its terms

3. Status

The appointment of an IM under the Act does not constitute a contract between the Commission and the IM, or the charity and the IM.

Individuals seeking appointment should be resident within England or Wales.

We will usually invite individuals from the approved practitioners list to tender for a specific IM appointment.

However approved status does not constitute any guarantee that they will be invited to tender or offered an appointment. On occasion, we may appoint an individual who is not on the List.

The appointment of an IM does not signal the end of the Commission’s statutory inquiry, which will remain open and progress in tandem with it.

The Commission cannot, except for some limited circumstances, legally exercise the functions of a charity trustee or be directly involved in the administration of a charity. However, under section 78(3) of the Act we have a statutory duty to supervise IMs to ensure that they satisfactorily discharge their functions as set out in the appointment Order.

4. The aim of an IM appointment

The aim of an IM appointment is to help resolve specific regulatory issues affecting a charity by, for example, detecting, preventing, or disrupting misconduct and/or mismanagement. As each charity subject to a statutory inquiry is different and has unique challenges, when setting out the functions of an IM appointment in an Order, we have flexibility to target the specific issues that need addressing.

We regularly review all IM appointments under section 76(6) of the Act. Following a review, we may amend their functions to reflect case developments.

5. The Commission’s supervision of IMs

The Regulations authorise the Commission to:

• require the IM to give evidence of their insurance to us
• decide the IM’s remuneration
• allow the IM to draw remuneration from the charity’s funds
• give notice where we are considering disallowing remuneration, removing the IM from office, or both, because the IM has failed to:
• give evidence of their insurance in the manner require, or
• discharge evidence of their insurance in the manner required, or
• discharge satisfactorily any function imposed on them, including the submission of reports

When we end an IM appointment for one of the above reasons, we will usually also remove that individual from the List. If we consider it appropriate, we may also remove their firm from the List. Further information in respect of the Commission’s policy to remove practitioners from the List is set out in section 10.

Under the Regulations an IM must report to the Commission (see section 14.3). We use these reports to monitor and assess the effectiveness of individual appointments. We may also carry out an evaluation at the end of each IM appointment to make sure that any lessons learnt are captured.

6. Applying to join the list of approved practitioners (‘the List’)

6.1 How to apply

Applications to join the List can be made annually between 1-31 May. We will not consider applications received after the stated deadline unless exceptional circumstances can be evidenced, such as a change in an IM appointment.

We will accept a minimum of two and a maximum of four applicants per firm. Firms must have the authority to send us this third-party data and must ensure that all named applicants have read the Commission’s Practitioner and Interim Manager Privacy Notice. An IM appointment is a personal appointment of an individual practitioner, however, they may draw on their firm’s expertise and resources to support them.

Firms should submit their application in a covering email, with the following documents, each of which must be a separate attachment to enable us to manage data protection issues:

• an overview of the firm and the additional required information, in a Word document of no more than eight pages (see section 6.2 and section 6.4)
• the completed application checklist - areas of expertise (see section 6.3)
• the practitioners’ applications – to include their CVs and biography, (maximum of two pages long each). There should be a separate attachment for each practitioner applying (see section 6.5 for details on what these should include)
• the complete Code of Practice individually signed by each practitioner applying
• a named contact of an individual for the firm who is not seeking inclusion onto the list but who will act as a point of contact should the Commission need to act to exclude a practitioner from the List

6.2 An overview of the firm

This should include:

• name
• telephone number
• email and postal address
• website link
• a summary of the firm’s field of work, experience and specialisms
• its size
• the reason the firm is willing to support the practitioners to be on the List

6.3 Areas of expertise

The circumstances where we are most likely to appoint an IM are set out below. Often an appointment will require an IM to have expertise in more than one of these areas. Those wanting to join the list of approved practitioners should complete the application checklist: areas of expertise, indicating (with an ‘X’) their areas of specialism and whether they have the capacity to operate on a national, regional, or international level. The application should also evidence experience and expertise relevant to these categories.

Legal, financial, and administrative expertise

• insolvency/dissolution/winding up and transferring business entities
• governance issues, including running board or committee elections, resolving internal disputes/managing conflicts of interest
• breaches of trust and recovery of charitable funds, if necessary, through legal proceedings
• financial management/ ensuring proper internal controls
• charity law expertise, including: trustee benefits; the public benefit requirement; self-dealing issues; compliance with disposal of charity property requirements and trustee duties and responsibilities

Specialist charity or sector experience, such as issues connected with:

• safeguarding issues, particularly in connection with children and at-risk beneficiaries
• delivery of humanitarian aid overseas, particularly in conflict zones
• care home expertise
• animal welfare

Trading and fundraising

• charitable and non-charitable trading issues (trading subsidiaries)/ improving complex group structures
• management of fundraising and control of associated costs
• managing investments/property portfolios

Other areas (not exclusive)

• accountancy, internal or external audit/ business planning/ advisory work to trustees/ risk management
• dealing with HMRC/Police and law enforcement agencies, particularly relating to financial mismanagement

6.4 Additional information

Case management

Applications should explain:

• the appointment supervision processes (such as case reviews) and how necessary corrective action would be identified and promptly acted on
• how conflicts of interest would be identified and managed
• how effective cover would be provided for IM appointments should individuals working on a case be unexpectedly absent

Staff management

Applications should explain how anyone appointed as an IM would monitor and supervise any other staff at the firm who are supporting them in their appointment. They must ensure that these individuals have ready access to appropriate information in relation to an IM appointment, and that they receive timely updates about any relevant changes in regulatory policy, practice and the law as required.

Fee and discount structures

We acknowledge that certain professional service providers, for example legal and accountancy firms, typically calculate fees based on the time spent by the individual working on the case. However, we expect IMs to work to pre-planned and approved budgets, even if assessed on total hours worked. Details of fee structures for an individual IM appointment are discussed during the tender process.

Applicants to the List should therefore indicate the charging bands and discount structures that they would apply to hourly rates, based on seniority and specialism.

Office management

Applicants must be able to deal with business electronically, on secure systems, and use only the firm’s email when communicating via email.

Comprehensive procedures must be in place to ensure proper standards of document management. Applicants should explain how they would identify all documents relating to IM work and how they would ensure that these are properly stored, readily accessible and securely disposed of.

Applicants must have a system in place to ensure that time-recording and billing would be attributed accurately and should describe how this would be verified.

Data handling

Applicants should explain how they would process data, and in particular, sensitive, special category, or criminal conviction and offences data, in accordance with the UK General Data Protection Regulations (‘GDPR’) and the law. This should include as a minimum:

• the technical and organisational measures in place to safeguard personal data
• how compliance with the principles of the UK GDPR (Article 5) will be achieved
• a description of the training undertaken by staff who will be processing personal data
• what provisions exist to comply with data subject rights and how data incidents that threaten to compromise the confidentiality, integrity and availability of personal data will be managed

Complaints procedure

Applicants should summarise their firm’s complaints procedure and confirm that this is publicly available.

6.5 Firms’ named applicants’ information

Contact details

• name
• job title
• telephone number
• email

Suitability

A CV and biography summarising the applicants’ overall capability and suitability. This should include applicants’ relevant experience; qualifications; expertise; specialisms, and management and supervision capability, with specific supporting examples and evidence. It should also state if they have previously held an IM appointment.

7. Where to send applications

Send completed applications by email to: IMrosterenquiries@charitycommission.gov.uk

8. The assessment process to join the List

We form an assessment panel to review applications to join the List. This comprises Commission senior managers and a Commission lawyer.

We assess an applicant’s overall capability by considering their:

• experience and expertise
• management and supervision capability
• fee and discount structures

We also consider the following factors:

• track record
• experience of charity law and dealing with the charitable and public sectors
• experience of assignment or project-based work
• professional qualifications and/or recognition of expertise, including relevant awards or publications
• any other relevant indicators

9. Requirements for firms in the event of a merger or practitioner change

Approved practitioners have a responsibility to inform us, via IMrosterenquiries@charitycommission.gov.uk, if their firm merges with another firm. If the practitioners want to remain on the List and the new firm supports this, they can continue to do so until the next annual application window, when the firm will need to submit a fresh application to the Commission. This also applies if there is a current IM appointment at the time of the merger, in which case the IM should immediately inform the relevant Commission case officer.

An approved practitioner should inform us if they leave the firm or want to be removed from the List. If as a result, the firm’s number of approved practitioners falls below the minimum requirement of two, and the firm wants to continue to have practitioners on the List, then it should apply for at least one additional practitioner to join. This should be done during the annual application window.

10. Exclusion from the List

We retain the right to exclude a practitioner, now or at a later date, as set out in this chapter.

10.1 Automatic removal from the List

A practitioner will automatically be removed from the List if they are:

• involved in disciplinary action by the practitioner’s professional body, which results in their removal or disqualification or suspension from the profession (for example, an accountant subject to disciplinary action by the ICAEW)
• declared bankrupt – until the bankruptcy order is discharged
• subject to an IVA (individual voluntary arrangement) – until the IVA is discharged
• disqualified as a company director – for the period of disqualification
• on the sex offenders’ register
• have an unspent conviction for an offence that automatically disqualifies them from acting as a charity trustee or holding a role in a charity with senior management functions by virtue of section 178 and 178A of the Act

10.2 Discretionary removal from the List

A practitioner will be considered for removal from the List if they:

• are fined by, or are the subject of adverse finding by, their professional body and this information is in the public domain
• fail to act in accordance with the Receiver and Manager Regulations 1992 during an IM appointment, which includes:
  • giving security within such time or in such form as we have specified
  • complying fully with the Commission’s appointment Order and any subsequent variations of its terms
  • providing the Commission with timely reports as set out in section 5 of the Receiver and Manager Regulations 1992
• do not deliver measurable outcomes that demonstrate value for money
• fail to demonstrate due professional care (for example poor standard of decision making, service and/or service to the charity
• do not respond in a timely manner to the Commission’s reasonable requests for information
• are subject to a criminal conviction – until the conviction is spent
• are linked to other issues in connection with the reputation or standing of the practitioner and/or their firm, which if known publicly, may impact adversely on public trust and confidence in the sector
• are involved in any other conduct which would raise concerns about the ability of a practitioner to discharge trustee duties

Prior to their removal the practitioner will have the opportunity to highlight any mitigating factors and may submit representations within 10 working days.

Where the Commission decides to proceed with removing a practitioner from the list, in the case of either automatic or discretionary removal (after any representations have been considered), and if the practitioner wishes to challenge this decision, they can submit further representations in writing to the Commission within 10 working days.

The Commission will notify the relevant practitioner of the outcome of its decision, once any representations have been considered, as to whether it will proceed with their removal from the List.

Practitioners and their firms will not be invited to tender whilst the Commission is considering a removal from List. This only applies if the number of practitioners at a firm falls below the number of two required practitioners as set out in the Regulations.

The Commission will inform the practitioner that it is their responsibility to inform the remaining approved practitioners at their firm that they are no longer on the List and are no longer an approved practitioner. The Commission will ask the practitioner to notify their firm within a deadline of 10 working days and to confirm this to the Commission. After this time the Commission will notify the firm that the practitioner is no longer on the List, although we will not disclose details of the removal.

Where the removal of a practitioner means that their firm will have less than the minimum requirement of two practitioners, the firm will be removed from the List unless an additional practitioner applies to join the List.

A removed practitioner may apply to be put back on the List after the reason for automatic disqualification ends (for example, once a bankruptcy order is discharged).

The timeframe for when a removed practitioner will be eligible to reapply to re-join the List after discretionary disqualification ends, will be considered on a case by case basis. Should an individual remain dissatisfied with the outcome they have the option to submit a complaint about the standard of service they have received through the Commission’s complaints handling procedures.

The list of approved practitioners is published on the Commission’s website and updated after the yearly refresh exercise which takes place in May.

List of Approved Practitioners from which the Commission usually makes an IM appointment

Following the refresh exercise the Commission will update the List and may inform the firm’s named contact accordingly.

11. Confidentiality and Privacy

11.1 Privacy and the right to be informed

We will treat all sensitive information provided by and relating to applicants, practitioners on the List, and appointed IMs, in strict confidence. We will process the personal data of practitioners in accordance with UK data legislation. Our general Privacy Notice provides information about how the Commission processes personal data. This is supplemented by our Practitioner and Interim Manager Privacy Notice.

11.2 Published information about individual appointments

A charity’s entry on the public Register of Charities will be updated as and when appropriate, to show that we have appointed an IM. This:

• provides the IM’s name and contact details
• links to our press statement, (if published on our website), about the IM appointment. This also provides an IM’s name, firm and reason for appointment

We remove this information from the charity’s Register entry at the end of the IM appointment and in its place, we usually link to our published ‘statement of results of the inquiry’. This published statement generally names the IM and includes a summary of the IM’s findings, fees and disbursements. It remains on our website for two years, after which time it is archived and the Register link removed.

12. Requirements of practitioners and appointed IMs

12.1 Requirements of practitioners on the List

List of Approved Practitioners from which the Commission usually makes an IM appointment

Please note that the external list is only updated yearly in June, once the window for the Interim manager refresh exercise ends, 1-31 May.

Practitioners:

• should inform us immediately if their contact information changes
• must sign the Code annually, and within one month of our request
• should respond promptly to our invitations to tender for a specific IM appointment by submitting case proposals. If this is not possible, they should give reasons for not doing so (for example, conflicts of interest or lack of capacity/availability to undertake work)
• must comply with their statutory obligations under the UK GDPR and the Data Protection Act 2018 with respect to any case information that we provide as part of an invitation to express an interest or a tender exercise for a specific IM appointment. Wherever possible we will seek to minimise personal data, for example through redaction or anonymisation, and only include what is necessary for the purpose of the selection process
• must, if not appointed, immediately destroy, through secure means, any case information that we have provided as part of the invitation process and confirm this to us in writing
• must ensure that they maintain and adhere to any specific professional standards. They should inform us immediately if they:
  • are subject to regulatory action by their professional body or other public authority
  • have an unspent criminal conviction
  • become bankrupt
  • on the sex offenders’ register

Any data provided to practitioners for the purposes of the tender process is provided in confidence and should not be revealed to any third party and/or used for any other purpose without the Commission’s express authority.

12.2 Requirements of appointed IMs

12.2.1 Data protection

In most circumstances, an IM will be a data controller in respect of the personal data they process that is held by the charity to which they have been appointed. IMs must comply with their statutory obligations as a data controller under the UK GDPR and the Data Protection Act 2018 with respect to all case and charity information relating to the IM appointment.

IMs should maintain adequate records and information documenting their compliance with UK data protection legislation. They must also ensure that appropriate organisational and technical measures are in place to safeguard the personal data that they process during their appointment.

IMs must comply with legal and professional requirements concerning confidentiality and disclosure. Disclosures will include report requirements under the Terrorism Act 2000, the Proceeds of Crime Act 2002, and the Money Laundering Regulations 2020.

Information obtained through an IM appointment should not be used for personal or commercial gain.

12.2.2 General requirements

IMs should:

• demonstrate their integrity through honest and fair dealings with the charity community and all external contacts
• undertake not to receive (or agree to receive) or offer to give to any person, any gift or consideration as an inducement or reward for doing or not doing anything, or for showing favour or disfavour, in the discharge of their functions
• establish and maintain effective lines of communication with the Commission’s case officer
• provide concise written information and reports in a timely manner and meet deadlines
• give sufficient resource, time and commitment to the appointment and put in place contingency arrangements to ensure the continuity of work, including emergency cover for individuals’ unplanned absence
• ensure that donors’ trust in the charity is not misplaced
• where possible and appropriate keep donors informed, either on a collective or individual basis, regarding the current and future position of the charity
• inform us immediately if they or a person assisting them to carry out their IM appointment, is subject to regulatory action by their professional body or other public authority, or are convicted of a criminal offence, or become bankrupt, are on the sex offenders’ register, have an unspent conviction for an offence involving dishonesty or deception, or are subject to any action which would impact on their ability to continue to act as an IM. They are not required to disclose details of the regulatory action

When an IM appointment is discharged, if the charity wants to instruct the same approved practitioner to carry out additional services, this relationship will be managed by the contract between both parties, and the Commission will not be involved in any way. It will be the practitioner’s responsibility to ensure that any potential conflicts of interest are identified and managed.

Appointed IMs should be aware that they may be required to attend and give evidence to the First Tier Tribunal (Charity) or to the courts, either during their appointment, or after they have been discharged. Unless associated costs have been agreed by the Commission in advance, and the appeal is unsuccessful, they will not be able to charge for this work.

12.2.3 Conflicts of interest

IMs and anyone involved in assisting them in their appointment should be sufficiently independent to perform the work impartially. Objectivity is presumed to be impaired, and a conflict of interest must be declared, when an individual or firm has within the last three years:

• acted as the auditor, reporting accountant, or independent examiner for the charity or any of its related parties
• been retained to act as a professional advisor or consultant to the charity or any of its related parties (for any purpose)
• been a connected person in respect of the charity, its assets or its trustees (see Section 118 and Section 188 of the Act)

Adequate records and checks should be in place to identify potential conflicts of interest before individuals are nominated for case appointments.

12.2.4 Cases involving at-risk beneficiaries

Certain cases involving children and at-risk beneficiaries will require checks of individuals through the Disclosure and Barring Service (‘DBS’).

Practitioners should be willing to obtain a DBS check appropriate to the role of the particular IM appointment (which will be set out in the scope of the appointment) and to disclose this to the Commission. The appointed IM should also ensure that appropriate DBS checks are obtained and disclosed to the Commission for those on their team, who because of the role they will be undertaking, are also eligible for a specific level of DBS check.

12.2.5 Discrimination

In performing their roles, IMs should respect the sensitivity, customs and diversity of a charity’s community and its representatives.

Appointed IMs must not engage in unfair discrimination on any basis proscribed by law. This includes not behaving in a way that is harassing or demeaning based on factors such as age; gender; gender identity; race; religion or belief; marriage and civil partnership; religion; sexual orientation; disability; pregnancy and maternity.

13. Application process for IM appointments

13.1 Invitation to tender

When we have identified that a charity requires an IM appointment, we form an assessment panel comprising a selection of Commission staff to agree the scope of the appointment and to identify the skill set required. We take into account:

• the type of charity and the regulatory concerns
• the match of experience, qualifications, and expertise of practitioners
• the prevailing fee options, fee structure, and maximum fee rates
• regional/ national/ international considerations and needs
• timing and availability
• whether the appointment is to the exclusion of the trustees or for a specific task where the IM can work alongside the trustees

We will then usually invite a small number of approved practitioners to tender for the appointment. This may be after an initial expression of interest exercise. Our invitation will include general information about the charity, which might not, at this stage be identified, and our regulatory concerns.

13.2 Response to an invitation to tender for an IM appointment

Practitioners who have been invited to tender for an IM appointment should:

• detail their approach to the work and ability to achieve the Commission’s case specification within the given timeframe
• provide details of the lead nominated IM(s) and of individuals who would also conduct the work, including their respective roles
• provide a full costing proposal for the specified work which should represent good ‘value for money’ and where appropriate identify various possible exit strategies with costings for each
• confirm that potential conflicts of interest have been reviewed and that no conflict exists for the specified work
• provide, when requested, relevant DBS checks
• explain how, when required, they will obtain legal, accountancy, or other professional advice, including a breakdown of any additional costs anticipated. If this advice will be from an external firm, (which may not necessarily be on the Commission’s List), practitioners should include that firm’s estimated fees in the tender documentation. However, practitioners must obtain our prior approval before disclosing to any third parties the case information that we have provided. They and the third party must comply with the UK GDPR and the Data Protection Act 2018 when processing the case information.

Practitioners tendering for appointments may then be invited to demonstrate their knowledge, skills and experience at Commission case selection interviews.

No individual should tender for, accept, or perform work that they are not competent, or do not have the time and capacity, to undertake.

Where a practitioner decides not to tender for an appointment, where they have been invited to do so, the Commission expects the practitioner to provide a reason for this.

13.3 Professional indemnity arrangements

Approved practitioners should ensure that their firm has the appropriate insurance in place to indemnify a charity against loss by negligent administration or by misappropriation of funds.

Prior to any Order for an appointment, the practitioner should provide us with evidence of this insurance.

14. Supervision of IM appointments

14.1 Obtaining instructions

We will make the IM appointment by an Order under section 76(3)(g) of the Act. The Order will name the appointed individual(s) and set out the scope of the appointment and the functions to be discharged. We will send to the appointed IM a copy of the appointment Order; a Statement of Reasons (as required by section 86 of the Act); and a copy of the Regulations that govern IM appointments.

14.2 Commission undertakings

We will supervise IM appointments by:

• providing case information and updates in a timely manner
• conducting regular case reviews
• conducting formal reviews of the appointment Order as required by section 76(6) of the Act, and will inform the IM and charity of the outcome of the review
• assessing the impact of decisions in terms of the future of the charity
• considering reports provided by the IM
• maintaining open communications with the IM
• monitoring case outcomes
• holding a debrief with the IM at the end of the appointment

We:

• confirm that the IM is independent of the Commission and has a duty to form their own views
• may offer general advice based on our experience to inform the IM’s views
• may, on request by the IM, give advice or our opinion on any matter affecting the discharge of their duties under section 78(5)(a) of the Act

14.3 IM Reporting

IMs must comply with the reporting requirements to the Commission relating to their appointment as set out in the Regulations.

The Charities (Receiver and Manager) Regulations 1992

In addition the Commission requires IMs to submit an initial report to the case officer within one month of the start of appointment, thereafter every month on an ongoing basis.

The initial report should:

• provide an estimate of the total value of the property
• set out the strategy for discharging the functions (the ‘exit strategy’)
• incorporate information about the property and affairs (the ‘status report’)
• include particulars of any matters to be brought to the attention of the Commission case officer (the ‘highlight’ report)

IMs should then provide monthly reports, to be submitted within 12 days of each month end, that:

• update the status report and property value estimates (as necessary)
• include a monthly highlight report
• provide a statement of charity funds spent in the month on their appointment

To comply with the Regulations an anniversary report must be submitted one month after each anniversary of the IM appointment and a final report should be submitted no later than 3 months post discharge.

IMs should also attend regular progress review meetings with the case officer as required. Any substantive change to the IM’s exit strategy should also be discussed.

14.4 IM fees

The charging structure is split into:

• IM fees – these are the charges for discharging the role, including carrying out the functions set out in the appointment Order
• IM disbursements – this is the incidental expenditure incurred by the IM when discharging the role (for example, travel costs)
• professional expenses – these are additional costs incurred to facilitate the discharge of the role, and usually conducted by professional third parties (e.g. lawyers and accountants) on behalf of the IM. These don’t include any professional fees that the charity would normally have incurred, such as paying an accountant to draft and submit the charity’s accounts. In first instance, IMs must comply with the charities’ procurement policy. If no policy is available, there will be a need for quotes and the IM will need to demonstrate value for money
• routine office administrative costs (such as photocopying and postage) are considered a normal part of an IM’s overheads and will not be chargeable to the charity

Some appointments might attract a fixed or capped fee, or a fee which is a fixed percentage of the value of funds recovered on the charity’s behalf.

Others may be on a ‘no win/ no fee’ arrangement. This may be used where there is anticipated litigation to recover charity money, and we appoint an IM on the basis that they will receive payment only if the anticipated litigation is successful. This type of fee arrangement is typically used when the charity cannot meet the cost of the appointment. In the event of success, it is likely that the IM would receive an enhanced fee in recognition of the inherent risks of a no win/ no fee arrangement.

IMs must obtain our prior written approval before increasing the maximum fee rate, for example, if the scope of the appointment needs to be expanded, or if they want to change the fee structure. Fee rates must not be adjusted retrospectively.

IM billing information should contain enough detail and be presented in such a way that fees, expenses and disbursements can be verified against the original cost proposal.

Remuneration may be paid:

• as a staged progression of the appointment
• upon completion of a specific action
• upon formal discharge of the appointment

We will supervise and authorise the following fees:

• fees which the charity would have incurred. Quotes may potentially be required if new contracts being entered into, or if IMs are using in house teams and can demonstrate value for money with discounted rates and conflicts managed
• fees that are included in the original fee structure
• fees which are unexpected and not included in fee structure. We will expect quotes unless the IM is using in house team at discounted rates and can prove value for money

Our assessment of an IM’s remuneration will form part of our on-going case monitoring and scheduled case reviews. We may disallow remuneration under the Regulations if an IM has failed to:

• give us evidence of their insurance in the manner specified
• discharge satisfactorily any function imposed on them, including the submission of reports

IM appointments can be appealed to the Tribunal and can be quashed. If the Tribunal quashes the Order, the IM will be paid for fees/costs incurred for work carried out during the appointment in accordance with Regulation 3 of The Charities (Receiver and Manager) Regulations 1992.

14.5 Dealing with complaints

An IM and the Commission both agree to acknowledge, record and disseminate any complaints resulting from the IM appointment, and commit to a timetable for response in accordance with the Commission’s complaints handling procedures.

14.6 Debriefing

We may hold a debriefing meeting with an IM after we discharge them. The purpose of this is to consider:

• the impact of the appointment, including reviewing the case outcomes against the exit strategy
• the IM’s use of resources and timeliness
• challenges encountered and lessons learnt
• opportunities for continuous improvement in the IM process to inform our policy and practice

14.7 Signatory to the Code

Declaration: I declare that I have read in full and understand the content of the 2023 Code of Conduct.

Name of practitioner:

Signature:

Name of firm:

Position within the firm:

Date: