Why we are engaging with Milnbank
We are engaging with Milnbank about its governance, financial management and stock quality.
Since 2017, we have been engaging with Milnbank regarding its governance and financial management. Milnbank has undertaken a range of actions including carrying out a review of compliance with the Regulatory Standards of Governance and Financial Management and putting in place a Governance and Financial Management Review Action Plan (Action Plan). Milnbank has kept us up to date with progress in addressing the matters identified in its Action Plan and has advised us that all actions have now been completed.
Following the review of compliance with the Regulatory Standards of Governance and Financial Management Milnbank developed a new Business Plan. We reviewed the Business Plan and we have been engaging with it to gain assurance about its approach to financial planning and asset management.
We have also sought assurance from Milnbank regarding its compliance with regulatory guidance on Notifiable Events and its handling of specific payments and benefits issues. We engaged with Milnbank regarding the assurances we required and are considering its responses.
What Milnbank must do
In order to allow us to complete our review of its regulatory status Milnbank must:
- provide us with any further information we require regarding its approach to financial planning and asset management; and
- provide us with any further information we require regarding its compliance with regulatory guidance on Notifiable Events and its handling of payments and benefits issues.
What we will do
To allow us to consider our review of its regulatory status we will:
- consider Milnbank’s responses to the issues we have raised regarding its financial planning and asset management;
- consider Milnbank’s responses to the issues we have raised regarding its compliance with regulatory guidance on Notifiable Events and its handling of payments and benefits issues; and
- update Milnbank’s regulatory status when we have completed our inquiries.
Regulatory returns
Milnbank must provide us with the following annual regulatory returns and alert us to notifiable events as appropriate:
- Annual Assurance Statement;
- audited financial statements and external auditor’s management letter;
- loan portfolio return;
- five year financial projections; and
- Annual Return on the Charter.
It should also notify us of any material changes to its Annual Assurance Statement, and any tenant and resident safety matter which has been reported to or is being investigated by the Health and Safety Executive or reports from regulatory or statutory authorities or insurance providers, relating to safety concerns.