Each year, we carry out a risk assessment process to decide which level of engagement we will have with each landlord. We set out the engagement we will have with each landlord in our regulation plans.
Our regulatory engagement
Each RSL falls into one of three broad categories of engagement: low, medium and high. We publish a regulation plan for each RSL that we need to have a high or medium level of engagement with. Each plan explains the RSL’s regulatory profile and sets out how we will engage with the organisation.
When we refer to high engagement, we mean that the profile for the RSL indicates we need an intensive or continuous engagement.
We will have medium engagement where we need further assurance than we can get from our information returns alone.
We will have a low engagement with the remaining RSLs, which means we will receive the standard returns including their audited accounts, Annual Return on the Charter (ARC) and five year financial projections. We do not publish regulation plans for RSLs that are low engagement.
We refer to a small number of RSLs as ‘systemically important’ because of their stock size, turnover or level of debt or because of their significance within their area of operation. We need to maintain a comprehensive understanding of how their business models operate and the risks they face, so we seek some additional assurance through our regulation plans. It is important to bear in mind that higher levels of regulatory engagement cannot therefore be equated to poor performance.
Our regulation plans
Note: Co-ownership societies were not included in the assessment this year.
Note: Where an RSL is a subsidiary of another RSL, we publish one regulation plan for the group which explains the engagement we will have with all members of the group.
Find out more about how we assess risk
In November 2015, we published a statement with information on the main risks and issues we considered in our 2015 risk assessment process. We set out how we assess risk in RSLs in How we work: How we assess risk in RSLs. You can find out more about how our overall approach to regulation of social housing in Scotland in our regulatory framework.