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Changing powers
A guide to how regulation is changing
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What this guide is about
This guide explains how we will provide our service to registered social landlords during the
period when our legal powers change. Regulation does not stop and neither does your
business. That is why we are setting out in this guide how we will deal with the effect of
previous decisions and work which is ongoing at the time when our powers change.
We have to consider how best to protect this ongoing work and the decisions we have made in
the past using our old powers. The guide explains how we will do this. It also answers some
questions you might have about how we will carry out business that relates to the current
system of regulation.
The advice and examples in this guide cannot cover every situation. But we hope there is
enough information here to explain our approach and to make clear that we have considered
how changes to our powers will affect the people who have an interest in our work. This guide
is not part of our set of consultation documents, but you should read it with our document
about the new standards framework to gain a better understanding about our new approach.
Who this guide is for
We hope that this guide is informative and useful to everyone who has an interest in our work.
In particular, this guide might be helpful for:
landlord staff who are responsible for making sure their organisation keeps to its
corporate requirements
those people whose work brings them into regular contact with us
landlords’ professional advisers, and
anyone who has a particular interest in landlords’ transactions (for example, lenders and
funders).
Introduction to the Tenant Services Authority
Background to the Housing and Regeneration Act 2008
In December 2006, Professor Martin Cave was asked to carry out the most detailed review of
social-housing regulation since the early 1970s. The purpose of the Cave Review was to clarify
why social housing should be regulated and make proposals about how best to achieve this.
Professor Cave’s report, Every Tenant Matters, recommended that an independent regulator
should be set up with three main duties:
to make sure high-quality social housing continues to be provided
to protect tenants and give them more opportunities to influence how their
homes are managed, and
to expand on the choices available to tenants in all aspects of housing.
The report said that the new regulator’s responsibility should be to regulate all kinds of
social-housing provider in a broadly similar way, but flexibly enough to take account of specific
differences (for example, in arrangements relating to funding and how social-housing providers
are governed). The Government accepted these recommendations and introduced a new law to
reform how social housing in England is regulated.
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The Housing and Regeneration Act 2008 (referred to in this guide as ‘the 2008 Act’) established
the new regulator. Legally, we are known either as the ‘Office for Tenants and Social Landlords’
or as the ‘Regulator of Social Housing’, which are the names that should be used in any
documents referring formally to our legal powers. For everyday purposes, we are the ‘Tenant
Services Authority’ or ‘TSA’.
Overall approach to regulation
The 2008 Act provides a clear, well-focused set of powers to support what the law calls our
‘fundamental objectives’ (that is, the governing principles for how we use all our powers).
These new powers are not yet in force. They are very different to the powers we inherited from
the Housing Corporation (referred to in this guide as ‘the Corporation’) and we are carrying out
a detailed programme of consultation on the most effective way to put the new system of
regulation into practice.
We want to achieve our aims by making sure there is better co-operation between landlords
and tenants, working together with a shared goal to improve the standard of service both
nationally and locally. That is why we must involve landlords and tenants in developing the
system of regulation.
This means that we need to carry out detailed consultation to decide together how the new
system might look. Until we reach the point where we can introduce our new powers, we will
continue to regulate using the powers we inherited from the Corporation in December 2008.
These mainly come from the Housing Act 1996. In this guide, we refer to these as ‘the inherited
powers’.
Introduction to ‘transitional provisions’
Summary – what happens when our powers change
Our consultation is focused on two main tasks:
moving towards introducing the new system of regulation described in our consultation
documents, and
making sure the current social-housing sector continues to be strong and able to work
successfully.
There should be no break between the current system of regulation and the new one, as there
is no time when regulation can stop. In law, our new powers in the 2008 Act will come into
force and the inherited powers will be removed, both on the same day. However, in terms of
our work, we know that there will be unfinished business from the previous system and that,
legally, we have responsibility for all the action taken using the inherited powers.
When our organisation started work in December 2008, the landlords and other people we work
with were familiar with the inherited powers and felt reassured as a result. However, we accept
that there may be some uncertainty around how we plan to deal with unfinished business when
we move to our new powers. Landlords and other people who have an interest in our work
rightly expect to be reassured that transactions ongoing at the point when our powers change
will still be valid and be dealt with effectively. This guide sets out how we plan to provide that
reassurance about what will happen when the inherited powers are no longer in force.
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Ways to provide continuity – how these work in practice
When a public organisation’s powers change, there are special pieces of law which the
organisation can use to settle immediate unfinished business and deal with any issues that
might arise at a later date which refer to previous events. These special legal devices have a
variety of names, depending on their specific technical purpose. For convenience, we refer to
these legal devices in this guide as ‘transitional provisions’. More detailed guidance on how the
law works is available on the Parliamentary Counsel section of the Cabinet Office website at
www.cabinetoffice.gov.uk.
Transitional provisions have a number of practical uses. Appendix 1 gives more details about
how these terms are written to provide continuity. For example, they are used to make sure
that:
something started under an old law can be finished under that old law
when a new law has taken its place,
all previous action continues to be valid and that nothing is lost when the
organisation’s powers change, and
those transactions where a third party has acted in line with a law that is
no longer in force are still considered as having been properly carried out.
In this guide we say ‘third party’ to mean someone who does not have a
direct relationship with us but who has some business or activity that
relates to our powers. For example:
someone who may have bought a home from a landlord,
a bank that has lent money to a landlord, or
any person who has done something that follows on from an action
connected to one of our powers.
Local authorities
Our inherited powers do not apply to local authorities. When we start to regulate local-authority
housing, regulations made under section 114 of the 2008 Act will adjust or amend other laws to
make sure that any issues relating to the change of powers are dealt with. Communities and
Local Government (called CLG in this guide) has consulted on draft regulations.
The 2008 Act transfers certain powers from the Secretary of State for Communities and Local
Government to us, in relation to consent for selling or letting property that was once owned by
local authorities. CLG will consider whether appropriate transitional provisions are needed for
these transferred powers.
What we aim to achieve
Principles
We have some principles to help explain how we plan to carry out business during the switch to
the powers set out in the 2008 Act. These principles are as follows:
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We should focus on whether we are taking the right approach to providing
choice and protecting and involving tenants, not merely doing what is
convenient for our processes.
We should promote continuity and assurance and maintain our careful
assessments of market conditions, and not make early changes that might
harm people’s confidence in regulation.
We should make sure that those who invest in the sector are satisfied that
we will neither abandon previous protection that was in place under old
powers, nor interfere unnecessarily.
Aims
This table sets out the aims we want to achieve to support these principles. This is not a full set
of examples, but is meant to show why transitional provisions are needed and what they can
help us to do. In the ‘Examples’ column, references to ‘sections’, ‘schedules’ and ‘paragraphs’
relate to the Housing Act 1996.
Aim Purpose Examples of activities relating
to each aim
For our If actions and Our consent to sell or let
action to be decisions are valid at property issued under section 9.
valid the point when Determinations made under
powers change, they section 54.
continue to be valid. Registered Social Landlord
(called RSL in this guide)
directors removed under
paragraph 4 of schedule 1.
Permission to changes to
Industrial and Provident
Societies’ rules under paragraph
9 of schedule 1.
For our If things are in the A registration application being
action to process of being done considered under section 3.
continue at the point where A petition for winding up an RSL
powers change, we under paragraph 14 of schedule 1
have enough power to has been made but not decided
make sure these by the court.
things can be An inquiry directed under
completed. paragraph 20 of schedule 1 that
is ongoing.
For the Anything we or other The General Consent to sell or let
effect of people have started or property issued under section 9
the agreed that takes its and still in force.
inherited effect from the Where an RSL has entered the
powers to inherited powers insolvency procedure, proposals
continue should continue with agreed under section 45 with its
as the same effect as if creditors are being acted on.
necessary those powers were Action (including other action
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after those still available. taken by law) taken once an
powers are inquiry carried out under
switched paragraph 20 of schedule 1 is
off complete.
Third-party contracts and
agreements that take some effect
from the inherited powers
continue with the same effect.
For us to be We are able to take any Consent issued retrospectively
able to act action which we could (that is, it takes effect from a
have taken under the date in the past), under section 9,
inherited powers, to where a property has been sold
make sure there is or let without the right consent
proper regulation (if an being asked for or given at the
equivalent new power is time (including where the sale or
either not available or letting is not the type of
not appropriate). transaction which needs our
consent under the powers of the
2008 Act).
Under paragraph 2 of schedule 1,
recovering payments made to
RSL employees in past years
where those payments should not
have been made (if no equivalent
power is available in the 2008
Act).
Action (including other action
taken by law) taken after a
former RSL auditor gives us
information under paragraph 19A
of schedule 1, if that information
relates to past events.
Third-party transactions
Possible concerns
Our powers are not just about what we do. We know that other people (including those who
may not have a direct relationship with us) often rely on documents or carry out business that
links to our regulations. Obvious examples are landlords’ own rules and governing documents,
tenancy agreements and loan agreements. A landlord’s rules might, for example, tie its actions
to our regulations, or a loan agreement might contain terms that allow lenders to take action
where landlords do not meet our requirements.
Possible concerns that arise from this include the fact that landlords’ rules might not be
effective, or loan agreements may need to be renegotiated, if the change in our powers means
that terms in those rules or agreements no longer appear to have the same effect as before.
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How our approach protects third-party transactions
We must make sure that landlords’ transactions are properly protected. We do not want
landlords to have to change documents which refer to previous functions, processes or
expectations simply as a result of us switching to our new powers. That would go against our
legal duty to limit as much as possible our interference in landlords’ business.
The aim of our transitional provisions is to reduce uncertainty as much as possible, and the
assurances we provide must include those transactions which take only indirect effect from our
powers, including those where we do not have a relationship with the people concerned. We
will make sure that this aim is properly expressed in the transitional provisions we agree.
Grant and development documents
Though it falls outside our responsibilities, we are obviously aware that grant conditions,
funding contracts, planning materials and other development documents could refer to legal
powers and regulatory guidance or processes that may no longer apply after our new powers
come into force. When the Corporation’s powers transferred to us in December 2008, the
transitional provisions used at that time made sure that references to the Corporation in any
documents should be taken to mean the Tenant Services Authority or the Homes and
Communities Agency (called HCA in this guide), whichever applies.
In some circumstances, references to these inherited requirements could include both of the
new agencies. For example, in funding conditions relating to social-housing development, a
reference to ‘grant compliance’ would mean following the requirements HCA attach to the
funding provided. A reference in the same document to rent levels in grant-funded homes, or
the eligibility of housing applicants to be housed in those homes, would mean actions in line
with TSA’s standards. We will work with colleagues at HCA to make sure our approach to
inherited powers and documents is consistent.
Improvement
Guidance and good practice
We have continued to use the guidance and good-practice advice which we inherited from the
Corporation. Our new powers have a different focus and, as a general rule, we will no longer
rely on most of this inherited guidance once our new powers become available. We will consider
the guidance we need to support our standards and develop an approach which is appropriate
to the needs of our customers.
We will, however, identify what previous guidance we should keep if it helps us with using our
inherited powers. To be clear, when we are dealing with business relating to our inherited
powers, we will usually do so under the terms which applied at the time when the old powers
were in force. This means we may refer to any supporting guidance that was being used at that
time.
Inspection
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The 2008 Act gives us a new power to arrange for inspections of social landlords. For most
purposes, we will ask the Audit Commission (called AC in this guide) to carry out these
inspections. For local-authority housing, the AC is still the only authorised inspector.
At the point where our new powers are introduced, the AC will be inspecting RSLs under the old
arrangements, and we understand that the AC needs to be able to complete inspections that
are already in progress (including publishing and following up on reports). If there are
inspections which are at an advanced stage of planning, and a landlord has been told to expect
one, we want these to be able to go ahead. This will avoid wasted effort by landlords and
inspectors. We will work with the AC to make sure there is no interruption to ongoing or
planned inspections.
Inspection often identifies opportunities for improving performance and we know that a number
of landlords may be following action plans to put these opportunities into practice at the point
where powers change. The arrangements we put in place will protect inspection
recommendations in the same way as our own documents and activities.
If, at the point where powers change, a landlord is being or about to be inspected or is
following the recommendations of an inspection, they should understand that the switch to new
powers in no way removes the requirement to co-operate with the AC and to put action plans
into practice. If they fail to co-operate, they will be treated as having failed to meet the
requirements of our regulation.
Investigation and enforcement
The principle that there is no break either in regulation or the effect of regulation when we
move from the inherited powers to the new ones is particularly relevant in relation to
enforcement action and for those landlords where we have had to increase our involvement in
their affairs.
At the point when powers change, some landlords may be working to our very detailed
requirements. A formal investigation, known as a ‘statutory inquiry’, may be ongoing, we may
have appointed people to a landlord’s governing body, or a landlord may be following an action
plan which is designed to limit or avoid the need for further involvement.
Those landlords whose affairs we have become increasingly involved in should understand that
they must continue with all this action, and that any plans or approaches agreed with us must
remain in place. If they fail to co-operate, they will be treated as having failed to meet the
requirements of our regulation.
More information
This guide aims to offer assurance that we are taking steps to protect how we continue to use
our inherited powers and also protect landlords’ transactions and other transactions which rely
on those powers. We will publicise the transitional provisions when these are available and we
will consider whether we need to provide extra support for those people who have an interest
in our work. For more information, see the contacts listed on the inside back cover.
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Appendix 1
Frequently asked questions
This section of the guide uses frequently asked questions to show how we will protect your
transactions and maintain continuity.
How should we explain the changes to our tenants?
We have consulted tenants and providers of social housing as part of the National
Conversation. Landlords have provided support and help with this.
We plan to manage business relating to our inherited powers by not making any
major changes to those functions which have a direct effect on the people we work
with. Outstanding business will usually be dealt with as if the powers had not
changed.
We hope that this guide is useful to tenants as well as other people involved in our
work. We are happy to answer questions on this or any of our documents.
My organisation is merging with another landlord. Will the change to your
powers delay this?
There should not be any significant delay. We understand that time is often a vital
aspect of any merger and we are not proposing to suspend any transactions during
the switch to new powers. It will be for us to manage our internal processes
(including formal structures for approving business) so we do not cause unnecessary
delay or disruption to landlords. By law, we must manage the burdens we place on
those we regulate.
While our general principle is that what is started with inherited powers is completed
with legacy powers, if there are outstanding registration applications started under
the old system these will have to be completed as applications under the new
system because the old register will have been replaced by the new register.
We are carrying out a programme of ‘stock rationalisation’ to pass some
homes to another landlord. Will this have to stop while you put your new
processes in place?
It should not be the case that transactions have to be held up. We want to make the
system for getting consent for disposals as straightforward as possible, which is why
we will update the General Consent to reflect our new powers. We know that
uncertainty is harmful to property transactions and we will continue to give
permission for disposals to go ahead during the switch to our new powers. Again,
the general principle is that business started with inherited powers should be
completed with inherited powers.
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Our loan agreements refer to the need to meet Housing Corporation
requirements. Is this meaningless now?
Not at all. Only the context has changed, not the need to meet those requirements.
We work closely with lenders to provide assurance on the strength of our approach
to regulation. Landlords and their funders can be confident that nothing in the
switch to the powers set out in the 2008 Act is meant to cancel out the
requirements or the effect of loan agreements or other documents. In this case,
references to ‘the Corporation’ may mean ourselves in relation to regulatory
requirements, or the HCA in matters relating to grant funding and development.
You set your standard on rent before your new powers came into force.
Why did you do this and does the rent restructuring guidance continue to
apply?
Rent is one of our standards that we set in line with direction from the Secretary of
State. As the CLG consultation document on these directions made clear, the
direction aims to achieve the rent policy for RSLs which has been agreed since 2000
and set out in the Corporation guidance which we continue to work to.
Our powers in the 2008 Act to set standards, and the Secretary of State’s powers to
make directions in relation to some of those standards, allow us to make
preparations for introducing the new system of regulation. Certainty about rental
income and the system for setting rent are vital to social landlords. Many landlords
use a rent year that runs from April to March, which means that they need to give
tenants notice of rent increases in the early part of each calendar year. Given our
aim to begin the new system of regulation in April 2010, it is clear that we had to
tell landlords about our intentions relating to rent levels and setting rent before the
point where landlords have to give their tenants notice of rent increases.
You recently gave us consent to change our constitution. Do we need to
apply for this consent again?
No. The transitional provisions we put in place are designed to make sure that
everything done previously is still valid. This term covers our actions, and also the
actions of landlords and others whose transactions take effect from our powers.
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We manage services for a local authority. Our contract says that we
should work in line with a certain law that is now being withdrawn. On
what basis should we work, under the contract, when this law no longer
applies?
You will need to discuss this with the local authority, to understand what outcome
the authority is aiming to achieve by asking that you act in a certain way. There may
be a new law in the 2008 Act which completely or mainly replaces the law that is
being withdrawn. Depending on the precise terms of the contract, you or the
authority may have to get advice about how best to proceed.
Under our tenancy agreements, we must provide services in line with
Housing Corporation guidance. Will we need to change all our
agreements?
No, not at this stage, although you may want to consider updating your tenancy
agreements as part of any process you carry out to review your tenancies. Our
transitional provisions are designed to make sure there is ‘continuity of effect’. This
means that if laws have been withdrawn and a guidance document issued under
that law is no longer in use, the intended effect of that guidance should continue for
any third-party documents which rely on the guidance.
You have appointed me to sit on the board of a Registered Social
Landlord. What are my powers on the first day the new system comes into
force? How is my appointment affected by the change?
In this case, all decisions relating to the work you were appointed to do that you
made before the change in powers will still be valid. On the first day of the new
system, your powers and the terms of your appointment will be exactly as they were
on the last day of the old system.
We will offer support to anyone we have appointed, including board members and
people who are carrying out statutory inquiries, if their ability to act is questioned as
a result of us introducing our new powers.
We think that some time ago we might have accidentally sold or let
property without the correct permission. Can you put this right?
Yes. When our new powers are introduced, transitional provisions will make sure
that we can grant consent to sell or let property retrospectively (that is, from a date
in the past).
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Do we still need to send you our annual accounts in line with the
Accounting Determination?
Yes. The 2008 Act gives us new powers to specify what format landlords’ accounts
should be in and what they should contain. We will issue our new requirements as
soon as we can. To manage burdens effectively, we think it makes sense for the
existing arrangements to remain in place so that each landlord can complete their
reporting year under the inherited powers and then start their next reporting year
under the powers of the 2008 Act.
If we later receive any inquiries about accounts, we will deal with these according to
the requirements in place at the time.
We work with a lot of local authorities (for example, on Supporting
People) and rely heavily on the Regulatory Judgements documents you
issue about us. Can we still use these when your powers change?
Yes. Regulatory Judgements show our overall assessment of how an organisation
has met our requirements and whether the organisation is properly governed and
managed. We understand how important these documents are to landlords and their
partners.
Our transitional provisions will make sure that all Regulatory Judgements are valid
until they are reviewed in line with our new framework for standards and monitoring
performance.
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Appendix 2
Reading the law – what these terms say and what they mean
For clarity and to reassure the people who will be affected by changes in legal powers,
transitional provisions are usually drafted using standard forms of words. This helps avoid
uncertainty about whether any particular function or activity is protected by the terms. Using a
standard form of words also means that the courts are familiar with what is meant and so can
more easily make a decision on the intention behind a term if this is disputed.
Transitional provisions have a range of uses, including to make sure that a change in the law
does not affect the validity of action taken in the past. Here is a typical example, from the
Ministers of the Crown Transfer of Functions (Miscellaneous) Order 2008 (Statutory Instrument
no 1034 of 2008).
‘This Order does not affect the validity of anything done (or having effect as if done)
by or in relation to the First Secretary of State before the coming into force of this
Order.’
This is reasonably clear that where things have been done in the past by, or relating to, the
Secretary of State, nothing about the terms or intentions of the order changes those things.
This not only includes things done by or relating to the Secretary of State, but also things that
work as if they were done by or relating to the Secretary of State. All those things are still valid,
regardless of what else the order does.
Another way these terms are used is to allow an organisation to complete unfinished business,
even though the powers under which that business was started are no longer available. This
example is from the Housing and Regeneration Act 2008 (Consequential Provisions) Order 2008
(SI no 3002 of 2008).
‘Anything which, on the commencement date, is in the process of being done by or
in relation to the CNT may, so far as it relates to any function transferred by this
Order from the CNT to the HCA or the Welsh Ministers, be continued by or in relation
to the HCA or (as the case may be) the Welsh Ministers.’
This tells us that, on a given date, whatever is being done in England under functions relating
to a body called the Commission for the New Towns (which is what CNT means here) can
continue to be done by the HCA. In other words, the functions themselves continue unchanged
(unless they are altered in some way by other laws).
Terms that are meant to provide continuity often make a point of singling out ongoing legal
action for protection. This type of wording, from the Transfer of Functions, Property, Rights and
Liabilities from the Strathclyde Passenger Transport Executive to the Strathclyde Passenger
Transport Authority Order 2007 (Scottish SI no 232 of 2007), is very common.
‘Anything (including legal proceedings) which, at the time when the transfer takes
effect, is in the process of being done by or in relation to the Executive may, so far
as it relates to any functions, property, rights or liabilities transferred, be continued
to be done by or in relation to the Authority.’
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It is standard practice to specify legal proceedings. But, in these examples, the word ‘anything’
means just that – anything being done can be continued.
Sometimes when a law is withdrawn, a more specific term might be used, to make it clear that
a particular piece of business can continue to be dealt with, even though the law is no longer in
force. This example, also from Scotland, is about complaints against legal practitioners. It is
from the Legal Profession and Legal Aid (Scotland) Act 2007 (Transitional, Savings and
Consequential Provisions) Order 2008 (Scottish SI no 332 of 2008).
‘For the purposes of any complaint which is made under the 1980 Act before 1st
October 2008, any provision of that Act in force immediately before 1st October 2008
has effect and continues in force as it had effect at that time, so far as is necessary
to give full effect to any complaint process (including appeals and disciplinary
proceedings) provided for under that Act.’
What this is saying is that although the Solicitors (Scotland) Act 1980 is no longer in force after
1 October 2008, those sections of the Act that relate to a complaints process continue in force
after that date solely for the purpose of allowing ongoing complaints to be settled in line with
the process under which they were started.
This example, from the Transfer of Functions (Treasury and Minister for the Civil Service) Order
1995 (SI no 269 of 1995), demonstrates a slightly different approach, using a list of specific
activities.
‘Any approval, authorisation, consent, delegation, direction or appointment given or
made or other thing whatever done by the Treasury for the purposes of any of the
functions transferred by this Order shall, if in force at the Commencement of this
Order, continue in force and have effect as if similarly given, made or done by the
Minister.’
Comparing this with some of the other examples above, it is clear that what is meant here is
that anything done or in the process of being done can continue and is valid.
Transitional provisions are also used to protect references to a certain organisation or function,
where those references might appear in the law or some other document. Here is a good
example, from the Transfer of Housing Corporation Functions (Modifications and Transitional
Provisions) Order 2008 (SI no 2839 of 2008).
‘Any enactment, instrument or document passed or made before the coming into
force of this Order has effect, so far as necessary for the purposes of or in
consequence of the transfer of any function by this Order, as if any reference to the
Housing Corporation (however expressed) were a reference to the Regulator of
Social Housing or (as the case may be) the Homes and Communities Agency.’
This wording makes sure that references to the Corporation wherever they appear are read as
references to us or to the Homes and Communities Agency, as appropriate, unless the
reference really is about the Corporation because it refers to a particular function not
transferred by the order. As this order is a legal document it uses our formal name – the
Regulator of Social Housing – rather than saying TSA.
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Our transitional provisions
Our transitional provisions will be set out in a legal document called a ‘statutory
instrument’, which has to be approved by Parliament before it comes into force. We
expect that this statutory instrument will be placed in Parliament for approval before the
end of 2009. This will allow the new regulatory system to start in April 2010.
The new system that we are introducing is very different to the system which it replaces.
We also expect that there will be a variety of unfinished business when the new system
starts. Because of these two things, our transitional provisions are likely to be a mixture of
standard forms of words and terms that protect specific activities.
We do not yet know exactly what our transitional provisions will say. But we suggest that
there might be some general statements, for example, about references in other law to
RSLs and to our old powers which are intended to give overall assurance that everything
done in the past in relation to our old powers remains valid. With these general
statements, we think there might also be some specific terms about different types of
outstanding business (for example, about applications for registration or disposals of
homes), to make clear that important things that affect how you run your business have
been thought about and included.
We will publicise the details of our transitional provisions once we know them.
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For enquiries, contact us at:
Tel: 0845 230 7000
Fax: 0113 233 7101
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We can provide copies in large print, Braille and audio cassette, on request. Other language
versions may also be available.
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Changing powers
A guide to how regulation is changing
This guide explains how the Tenant Services Authority will provide its service to registered
social landlords during the period when its legal powers change. The guide sets out how the
TSA will deal with the effect of previous decisions and work which is ongoing at the time when
its powers change.
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