The charity, which provided support to vulnerable inner-city children, closed earlier this month after the withdrawal of government funding. This led to warnings that local authorities would need to intervene to help the estimated 36,000 young people who were being supported by the organisation.
Following the closure, the commission said it would investigate concerns about the charity’s funding, financial stability and proposed governance changes.
In an updated statement published yesterday, the watchdog said its “live compliance case” is examining concerns about alleged financial management and governance issues.
The commission is waiting for the appointment of a liquidator for Kids Company before it can provide further details of possible regulatory actions.
“Our regulatory interest does not end with the closure of the charity. We have been in almost daily regulatory contact with the trustees since the charity announced its closure on Wednesday 5 August,” the commission stated.
“We are in contact with a number of statutory and public agencies in connection with these matters, including the Insolvency Service. Until a liquidator has been appointed by the court, we will not be able to provide further details of our regulatory actions and engagement,” it added.
Kids Company said it was forced to close due to lack of funding. Levels of financial support available in previous years had not been available this year, it stated. Although it had planned to restructure to operate on a lower turnover, it was unable to meet its ongoing liabilities due to “serious, as yet unsubstantiated, allegations”.
