The Regulator initially made the statutory appointment of a manager and three appointees to the governing body in February 2016 after it identified serious weaknesses in the Association’s governance and financial management and failures to comply with Regulatory Standards.

An independent investigation commissioned by Ferguslie Park at the time highlighted a number of serious concerns including inappropriate payments being made without the proper delegated authority. A Section 72 notice was also sent to the Regulator from external auditors notifying it of inappropriate payments.

In an updated regulation plan for Ferguslie Park, the Regulator revealed that the Association has addressed the immediate risks and has carried out wider reviews of its governance, financial management processes and procedures and internal controls.

These reviews concluded that significant improvement is required in a range of areas in Ferguslie Park’s governance and financial management.

The Regulator said it took the action because these areas of concern “posed significant and immediate risks” to the interests of tenants, to public and private funders’ confidence and to the reputation of registered social landlords.

Christine Macleod, director of governance and performance, said: “We have seen positive action and progress by Ferguslie Park in addressing its serious weaknesses. Our statutory appointments will continue to support Ferguslie Park to finish the important work needed to secure a good future for the Association’s tenants.”

The appointment of the statutory manager will be reviewed in August 2017 and the governing body appointees in July 2017.