The Regulator directed the transfer in January following consultation with Thistle’s tenants and factored owners. This followed an independent ballot which saw 92% of Thistle’s tenants voting ‘yes’ to the transfer.

The Regulator first intervened in Thistle in August 2018 after it identified serious failures in governance and financial management at the Association. Following intervention it identified further breaches of regulatory requirements, including failures to comply with health and safety obligations relating to tenants, residents and employees.

Ian Brennan, director of regulation, said: “We’ve ended our statutory manager appointment at Thistle as the transfer of tenants’ homes to Sanctuary Scotland is now complete.

“Thistle’s tenants voted overwhelmingly in favour of the transfer and our own consultation confirmed the depth and strength of tenants views.

“We have decided to continue our eight statutory appointments to Thistle’s management committee to ensure the proper management of Thistle’s affairs as it progresses de-registration.”

“We will continue to engage with Sanctuary Scotland about the integration of Thistle into Sanctuary Scotland and as it continues to deliver on the commitments it made to Thistle’s former tenants and factored owners. This includes Sanctuary Scotland’s plans to address problems caused by the mismanagement of a major works contract and Thistle’s health and safety and compliance failures.”

The Regulator has published updated engagement plans for Thistle and Sanctuary Scotland. These are available on its website.