RSH publishes regulatory notice for Auxesia Homes Limited in relation to a breach of the economic standards
Auxesia Homes Limited has breached the regulator's Governance and Financial Viability standard
In a regulatory notice published today (8 December 2022), the Regulator of Social Housing concluded that Auxesia Homes Limited has breached the governance and financial viability standard.
Following a reactive investigation, the regulator found that Auxesia’s board has not demonstrated effective oversight and management of its key risks. This includes failing to have access to sufficient liquidity at all times, and failing to carry out appropriate stress testing when taking on new liabilities.
In response to the regulator’s findings, Auxesia has agreed to implement a plan to improve its governance arrangements. This includes working with external consultants to identify additional board members, appointing a new permanent finance director, and improving its approach to financial monitoring and reporting.
Harold Brown, RSH’s Senior Assistant Director for Investigations and Enforcement, said:
Our investigation found significant weaknesses in Auxesia’s governance which it needs to address. This includes failing to manage its key risks appropriately, and not having effective financial monitoring processes in place.
We will continue to monitor Auxesia as it works to resolve its failings and return to compliance with our standards.
Notes to editors
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Auxesia Homes Limited is a for-profit registered provider. Based on the most recent statistical data return, Auxesia Homes Limited had fewer than 1,000 units, and is therefore classed as a small provider and does not have governance and financial viability grades. The regulator does not publish regulatory judgements for providers which fall into this category. Instead, in the interests of transparency, the regulator publishes a Regulatory Notice where it has evidence that a small registered provider is not meeting the regulatory standards. This notice is published under those arrangements.
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RSH placed Auxesia Homes Limited on its gradings under review list on 9 August 2022 to indicate that it was investigating the provider’s compliance with the Governance and Financial Viability Standard.
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RSH promotes a viable, efficient and well-governed social housing sector able to deliver and maintain homes of appropriate quality that meet a range of needs. It does this by undertaking robust economic regulation focusing on governance, financial viability and value for money that maintains lender confidence and protects the taxpayer. It also sets consumer standards and may take action if these standards are breached and there is a significant risk of serious detriment to tenants or potential tenants.
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