Today we’re publishing a set of principles to guide behaviour and actions at a time when a recovery and resolution plan is needed.
These have been developed in close consultation with the intermediaries in our portfolio.
Why do we need principles?
As the number of intermediaries in the UK increases, and more social investments are made into charities and social enterprises, it is inevitable that situations will emerge where a recovery or resolution plan is needed.
It is worth stating from the outset that prevention will always be the preferred course of action. In order to lessen the chances of situations of enacting a recovery or resolution plan, we must continuously work to ensure honest, trusting and open relationships are developed between the key stakeholders so that all parties feel comfortable sharing potential problems and working together around possible solutions, before they develop into something more serious.
However, sometimes that won’t be enough.
We recognize that every situation will have its own nuances, and so have steered clear of overcomplicating matters with a theoretical step by step guide covering the course of action that is instantly deemed useless the first time it’s put to the test. Instead we hope that the principles can guide behaviour and are adaptive enough for a variety of situations.
Fundamentally the principles seek to encourage more transparent, open lines of communications between all stakeholders involved to ensure the best outcome is reached with the minimal amount of service loss to beneficiaries who need it most. While taking fiduciary constraints into account, parties should look for solutions that strike the right balance between social impact and financial return.
We welcome any feedback on them.