The Charities (Regulation and Administration) (Scotland) Act 2023 has introduced new rules on the automatic disqualification of individuals from acting in Scottish charities, which will apply from 31 August 2025.
What is changing?
- The 'automatic disqualification' criteria will now also apply to individuals in senior management roles - covering employees and volunteers regardless of job title, not just charity trustees. Detailed guidance outlines which roles are affected [OSCR | Disqualification criteria for charity trustees].
- There is extended automatic disqualification criteria which disqualifies individuals from serving as a charity trustee or holding a senior management function in a charity if, for example, they have been convicted of terrorism-related offences or listed on the sex offenders register.
What about the current disqualification rules?
These changes are in addition to the current restrictions which prevent individuals from acting as trustees of a charity, including individuals who:
- have an unspent conviction for an offence involving dishonesty or an offence under the Charities and Trustee Investment (Scotland) Act 2005
- are an undischarged bankrupt (sequestration)
- have granted a Protected Trust Deed
- have entered into an Individual Voluntary Arrangement (IVA) in England and Wales
- have been removed by a court from being a charity trustee
- have been disqualified from being a company director
Disqualification is automatic in these circumstances, and it is a criminal offence to become or continue to act as a charity trustee while these conditions apply.
Are there any exemptions to the disqualification?
Individuals who are disqualified may apply to OSCR for a waiver, which can be granted in respect of an existing disqualification for a specific charity, a category of charities, or charities in general. Each application will be considered on its individual merits. OSCR will begin accepting waiver applications under the new criteria from 30 June 2025, prioritising individuals who are currently in post and were in post prior to the implementation of the new rules.
Conclusion
With these new automatic disqualification rules coming into force on 31 August 2025, Scottish charities must act now to review their governance and management structures in terms of their appointment, removal and recruitment processes. Charities should carefully assess all current and prospective trustees and senior staff against the updated rules and consider waiver applications where appropriate. Early preparation will help ensure compliance as these important changes take effect.
This article was co-written by Marnie Richmond, Trainee Solicitor.
