Law Commission consultation on Social Investment: DSC Response

In June 2014 DSC responded to a consultation from the Law Commission on charities and social investment, a consultation which would inform the Charities (Protection and Social Investment) Bill in 2015.

In our response to the consultation DSC puts forward the following points:

  • The power to make social investment already exists, both from unrestricted
    reserves and (to a lesser extent) permanent endowment.
  •  However, we agree with the Law Commission that this power is not
    necessarily clear in the law.
  • We therefore agree with the proposed new power to make social investments,
    subject to two important reservations:

    • Firstly, that the new power is introduced only with sufficient
      safeguards – we do not think the current proposals provide adequate
      safeguards at present.
    • Secondly, that the new power is not extended to covering permanent
      endowment. We are in agreement with the Commission on this matter.
  • We recommend keeping Charity Commission guidance CC14 under regular
    review after the introduction of a new social investment power. Social
    investment remains a relatively new field and reforms to the law may increase
    participation. It is important the guidance remains relevant and up-to-date with
    practice.

Read our full response here.

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