The action follows an independent investigation which identified “potential serious misconduct” and “systemic failures of governance amounting to mismanagement”.

The investigation highlighted a number of areas of serious concern including the inappropriate receipt of payments and benefits and also that Fairfield’s governing body had failed to establish and oversee an effective system of internal control.

It found evidence of widespread failures to comply with policies and procedures, financial regulations and delegated authorities for spending, poor procurement practices, failure to manage conflicts of interest and to uphold the standards of conduct expected of Registered Social Landlords.

Ian Brennan, director of regulation, said: “We have used our statutory powers to protect the interests of tenants and service users and to safeguard the reputation of the sector. In our judgment Fairfield is not complying with the regulatory standards of governance and financial management. There are serious and widespread compliance failures across all six Standards.

“We have directed the statutory manager to carry out further inquiries and take action to address any immediate risk to ensure Fairfield meets regulatory standards.”

The manager and seven members have been appointed for a period of six months.