Explanatory note

These Regulations make provision for the conversion of certain types of incorporated body into a Charitable Incorporated Organisation (“CIO”). A CIO is a legal form created specifically to meet the needs of charities under the Charities Act 2006 (the provisions have now been consolidated into the Charities Act 2011).

Part 1 applies regulation 7 of the Charitable Incorporated Organisations (General) Regulations 2012 (Applications for registration: communications with Commission) to applications for conversion under these Regulations.

Part 2 of the Regulations allows for the conversion of a community interest company (a CIC) into a CIO. A CIC is a type of limited company which is registered at Companies House and is regulated by the Regulator of Community Interest Companies. A CIC cannot be a charity. The application process for a CIC to convert into a CIO broadly replicates sections 228 to 233 of the Charities Act 2011 (process for a charitable company to convert into a CIO).

Part 3 of the Regulations supplements sections 228 to 233 of the Charities Act 2011 by making further provision in relation to the conversion of a charitable company into a CIO. The provisions set out additional information to be provided with an application to convert and circumstances where it is not appropriate for the Charity Commission to grant an application.

Part 4 sets out financial reporting requirements for CIOs in respect of financial years before and after conversion.

An impact assessment has been prepared for this instrument and has been laid before Parliament together with this instrument.