The Charities (Protection and Social Investment) Act 2016, which gives the regulator more powers, received Royal Assent last night and has become law.
It gives the Charity Commission wider powers, including the ability to issue official warnings and extends the range of offences which result in someone being automatically disqualified from being a trustee.
The Act also makes it easier to make social investments and makes provision for the government to set up a statutory fundraising regulator, or hand responsibility to the Charity Commission, if self-regulation fails.
The government introduced the Charities Bill in the House of Lords in May 2015 after a joint committee consulted on draft bill during the previous parliament. The Charity Commission asked for new powers after it was criticised by MPs for its handling of the Cup Trust case.
Minister for Civil Society Rob Wilson said: "The Charities (Protection and Social Investment) Bill 2016 is part of a big reform programme for charities and social enterprises which will support a sector that is more resilient, independent and sustainable.
"Through this Act, the Charity Commission will be better able to tackle abuses, charities will be supported to participate in social investment and the sector can take a more robust stance towards fundraising."
Read our analysis of the main points of the Act and how it affects the sector here.