37. (1) Subject to subsection (2), the Regulator shall, not later than 6 months from the date of coming into operation of this section, and thereafter as the Regulator considers necessary, or as the Minister may direct, prepare and submit to the Minister for the Minister’s approval, with or without amendment, draft standards relating to—

(a) the governance of AHBs,

(b) the financial management of, and financial reporting by, AHBs,

(c) property and asset management by AHBs, and

(d) tenancy management by AHBs.

(2) Draft standards prepared under subsection (1) may, in particular, provide for—

(a) in the case of the governance of an AHB—

(i) the membership and governance structure and the roles and responsibilities of the board, committee of management or the trustees, as the case may be, of an AHB,

(ii) the procedures for decision-making to ensure control and oversight of an AHB,

(iii) the management of conflicts of interest including a register of interests of the members of the board or committee of management, or of the trustees, as the case may be, of an AHB, and

(iv) a code of conduct for the board, committee of management or trustees, as the case may be, of an AHB,

(b) in the case of the financial management of, and financial reporting by, an AHB—

(i) the requirements for financial and risk control,

(ii) the procedures for monitoring and assuring the financial viability of the AHB,

(iii) the keeping of proper books of account that—

(I) correctly record and explain the transactions of the AHB,

(II) enable the financial position of an AHB to be determined with reasonable accuracy at any time, and

(III) enable the accounts of the AHB to be readily and properly audited,

(iv) the requirements for internal control and audit,

(v) the requirements for strategic planning, including the preparation of financial and business plans,

(vi) the procedures for monitoring performance, and

(vii) the requirements for the confirmation and verification of compliance with statutory obligations including, in particular, obligations arising under the Charities Act 2009 and the Act of 2014,

and

(c) in the case of property and asset management and tenancy management by AHBs, policies and procedures relating to—

(i) nominations to dwellings of tenants, and allocations of dwellings to tenants, by AHBs,

(ii) the management of dwellings by AHBs, and

(iii) communication by AHBs with their tenants.

(3) Draft standards prepared under subsection (1) may make different provision for different categories of AHBs and for that purpose shall have regard to at least the following matters:

(a) the nature, scale and complexity of the activities of each category of AHB, including the types of dwellings provided or managed, or both, as the case may be, by each category of AHB to meet the different accommodation needs of different categories of tenants;

(b) the number of dwellings provided or managed, or both, by each category of AHB;

(c) the level of borrowings of each category of AHB;

(d) the level of financial risk associated with each category of AHB.

(4) (a) The Regulator shall publish on its website and by such other means as the Regulator considers appropriate the draft standards proposed to be submitted to the Minister under subsection (1) and shall allow persons to make representations, in writing, to the Regulator in relation thereto.

(b) Representations may be made under paragraph (a) not more than 28 days from the date of their publication, or within such further period, not exceeding 28 days, as the Regulator thinks fit.

(c) The Regulator shall consider the representations (if any) made to it in accordance with paragraph (b) and may amend the proposed draft standards before they are submitted to the Minister under subsection (1).

(5) The Minister may give a direction to the Regulator to amend the draft standards submitted to the Minister in accordance with this section in the manner specified in the direction, and the Regulator shall comply with the direction and resubmit to the Minister the draft standards as so amended.

(6) When the Minister approves the draft standards submitted or resubmitted to the Minister in accordance with this section, the Regulator shall publish the approved standards on its website and by such other means as the Regulator considers appropriate.

(7) Standards standing approved and published under this section shall be admissible in evidence in any proceedings under this Act before a court or the Appeals Panel and, if any provision of the approved standard concerned appears to be relevant to any question arising in the proceedings it shall be taken into account in determining that question.

(8) An AHB shall comply with the approved standards.

(9) (a) The Regulator shall review the approved standards from time to time or as the Minister may direct and, as the Regulator considers necessary or as the Minister may direct, prepare amendments to the approved standards.

(b) This section shall, with all necessary modifications, apply to amendments to an approved standard, following a review under paragraph (a), as it applies to a draft standard.

(10) The Regulator shall publish any amendments approved by the Minister, to an approved standard, on its website and by such other means as the Regulator considers appropriate.