According to the engagement plan, Ore Valley notified the Regulator in April 2026 of ongoing human resources issues.

The Regulator’s engagement on these issues identified weaknesses in governance, including areas of potential material non-compliance with regulatory requirements, potential breaches of the code of conduct, and the management of ongoing conflicts of interest. It said Ore Valley was also unable to provide appropriate assurances that it was fully complying with its constitutional requirements.

The Regulator said Ore Valley provided an outline plan to address staffing and governance weaknesses, but its assessment was that the plan did not sufficiently address the extent of the weaknesses or give assurance that the Association could address its challenges within a reasonable timescale.

The Regulator discussed concerns with Ore Valley’s governing body and asked it to carry out a full, independent review of its governance and compliance with the standards. Ore Valley commissioned an internal audit review of its governance, but the Regulator said the review did not assess compliance with the standards.

Ore Valley has also established an internal HR and Governance Sub-committee to oversee improvements in governance, human resources management and wider communication. The Regulator said Ore Valley has not provided sufficient assurance about its capacity to identify and deliver the necessary improvements.

In reaching its decision, the Regulator said it considered the seriousness and significance of the weaknesses, including concerns relating to board oversight, decision-making, the management of staff grievances and investigations, and the handling of potential conflicts of interest. It said it is not assured that Ore Valley has been fully complying with its constitutional requirements.

The regulator assessed the association as non-compliant with three Regulatory Standards:

• Standard 1, which requires the governing body to lead and direct the landlord to achieve good outcomes for tenants and other service users. The Regulator said the concerns lead it to question whether the governing body has exercised effective leadership and oversight.
• Standard 4, which requires the governing body to base its decisions on good quality information and advice and to identify and mitigate risks to the organisation’s purpose. The Regulator said the matters identified indicate serious weaknesses in governance oversight and assurance arrangements.
• Standard 5, which requires the landlord to conduct its affairs with honesty and integrity. The Regulator said it requires further assurance that the association’s affairs have been, and continue to be, conducted in line with the standard.

The Regulator said it has also been engaging with Ore Valley to obtain assurance about its level of gearing and debt exposure and how it manages its relationships with its subsidiaries. It has asked for the association’s current business plan as part of this work.

Summing up, the Regulator described Ore Valley as non-compliant and working towards compliance.

Nick Clark, chief executive officer at Ore Valley Housing Association, told Scottish Housing News that the Association welcomes the scrutiny from the regulator and views it as an opportunity to improve.

“We have been engaging heavily with the Regulator over the last few months and will continue to do so until we return to full compliance,” he added.