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Charities: Investment

Volume 485: debated on Tuesday 16 December 2008

To ask the Chancellor of the Duchy of Lancaster if he will publish the list of financial institutions that charities could place investments and deposits in which was approved by the Charity Commission and in effect in September 2008. (241596)

The information requested falls within the responsibility of the Charity Commission. I have asked the Commission to reply.

Letter from Andrew Hind:

As the Chief Executive of the Charity Commission, I have been asked to respond to your written Parliamentary Question on whether the Charity Commission, prior to the Icelandic banking crisis, approved and issued a list of financial institutions suitable for use by charities.

Our role as the Regulator of Charities is to offer general advice and support to trustees on their duty to control and manage a charity's finances and investments. We do not recommend, promote or endorse any banks or financial services to charities, and we have neither approved or issued a list of financial services where charities could place investments and deposits.

We offer advice, guidance and support to charities but are not able to act in their administration except in certain cases involving misconduct or mismanagement.

Immediately following the Icelandic banking crash, we issued information on our website specifically for charities that were affected. This may be the source of the misunderstanding which has arisen regarding the advice we have given. The main aim of this guidance was to help charities identify which were likely to be eligible to claim compensation for their lost deposits through the Financial Services Compensation Scheme (FSCS). The guidance will be updated with any new or additional information that might be of help to these charities.

I hope this is helpful.