Charity Commission Opens Investigation Into FIA Foundation – Here’s Why

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The Charity Commission, the regulator of charities in England and Wales, has opened a statutory inquiry into FIA Foundation. The regulator announced the inquiry on X on January 26, citing concerns about the charity’s property and governance practices.

Charity Commission Investigates FIA Foundation Over Administration And Governance Issues

The FIA Foundation, a UK charity promoting road safety and environmental protection, is now under investigation by the Charity Commission. The regulator issued a temporary protective order, restricting the foundation and its trustees from making certain transactions without approval.

According to the press release, the commission opened the inquiry on January 22, under section 46 of the Charities Act 2011. The investigation will examine whether trustees have complied with their legal duties regarding the administration, governance, and management of the charity.

The inquiry focuses on examining potential conflicts of interest between the FIA Foundation and the Fédération Internationale de L’Automobile (FIA). Additionally, the commission aims to determine whether the charity’s property has been or remains at risk.

This follows a leadership change at the foundation last year, which raised questions about the charity’s independence. Mohammed Ben Sulayem, president of the FIA, replaced David Richards, head of Motorsport UK, as chair of the foundation.

This investigation adds to growing regulatory oversight of charitable organizations in England and Wales. It mirrors previous regulatory actions, including when the Charity Commission issued warnings to Church of England dioceses over governance breaches.

Foundation Denies Wrongdoing, Pledges Full Cooperation

According to the BBC, an FIA Foundation spokesperson responded to the inquiry announcement, stating that the regulator’s engagement is not a finding of wrongdoing. The trustees expressed confidence that the foundation’s affairs have been conducted properly and committed to full cooperation with the commission.

“The trustees of the Foundation are confident that its affairs have been properly conducted, and they intend to co-operate fully with the Commission to achieve a speedy resolution of the Commission’s concerns,” the spokesperson said.

Conflict Of Interest Concerns At Heart Of Investigation

Under UK law, charities must operate independently and solely to further their charitable purposes without external control. The Charities Act 2011 requires trustees to remain free from undue influence and conflicts of interest from outside parties.

The Commission’s inquiry will examine grants awarded by the charity and assess whether conflicts of interest have been appropriately identified and managed. At least nine of the 12 FIA Foundation trustees hold senior roles elsewhere within the FIA, raising concerns about the charity”s independence.

The foundation’s governance structure includes the FIA president serving ex officio, along with three FIA nominees. However, all trustees regardless of their appointment method, carry identical duties and must act in the charity’s best interests.

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