The report sets out the reasons behind the intervention and what action the Regulator took to safeguard the interests of tenants and service users.

The Regulator first intervened at Thistle in August 2018 after it identified serious failures in governance and financial management at the Association. The Regulator appointed a statutory manager and eight members to the Association’s governing body. Following appointment, the manager and appointees identified further serious failures to comply with regulatory requirements, including serious failures to comply with health and safety obligations.

The Regulator then used its statutory powers to direct a transfer of the Association’s homes and assets to Sanctuary Scotland Housing Association in January last year. This came after a consultation with Thistle’s tenants and factored owners, and 92% of Thistle’s tenants who voted in an independent ballot saying ‘yes’ to the transfer.

The Regulator removed Thistle from the register of social landlords after Thistle’s homes and assets were transferred to Sanctuary Scotland in March last year.

Helen Shaw, director of regulation at the Regulator, said: “We intervened at Thistle because the issues at the Association presented a serious risk to the interests of its tenants and service users. We will only do this when we need to protect the interests of tenants and service users.

“This report explains the serious and extensive weaknesses in governance and financial management that led to our intervention and details the action we took to safeguard tenants’ interests.

“We are sharing this report so that governing bodies can consider the points in it when carrying out their regular assurance and assessment of their own compliance with the Regulatory Standards.”