The Regulator is engaging with Weslo about its governance, financial health and its development and investment plans.

In July this year, Weslo revealed it had commissioned an independent investigation after it identified weaknesses in its governance and performance management.

In an updated engagement plan, the Regulator said the report on the findings and recommendations resulting from the investigation identified serious weaknesses and concerns in several areas.

The Association has also undertaken an independent review of its governance and financial management to assess compliance against the Regulatory Standards.

The Regulator said: “Weslo’s chief executive officer has recently retired and the board has decided that it will undertake a full options appraisal into Weslo’s future strategic direction. Weslo will appoint an interim chief executive officer to support it in completing this work.

“Weslo’s board has told us it understands the extent and seriousness of the issues it is facing and is willing to address the underlying causes. Weslo continues to work openly and collaboratively with us on these matters.

“We will engage with Weslo to get additional assurance around its long term financial position, the results of the investigation and review of compliance with the Regulatory Standards, the options appraisal it is commissioning and progress towards meeting the Regulatory Standards.”

Kate Dewar, chair of Weslo, told Scottish Housing News: “As stated in the engagement plan we continue to work openly and collaboratively with the Regulator on the matters to be addressed. We will meet the Regulator’s reporting requirements and the company is determined to achieve compliance with the Regulatory Standards well within the timeframe set out and agreed by the Regulator.”

Meanwhile, Wheatley Group has been requested to provide regular updates on the integration of DGHP, which was formally completed this week, and the delivery of the commitments made to tenants.

The Regulator regards Wheatley as a systemically important landlord and is also keeping tabs on the group’s development plans and its subsidiaries.

In an updated engagement plan, the Regulator said Wheatley must provide an update on DGHP’s progress towards achieving full compliance with the Regulatory Standards and requirements by March 2020 and continue to provide copies of its board and audit committee minutes as they become available.