The government should bring forward a new ‘Charity and Social Economy Bill’ containing various measures to grow the social investment market, according to senior lawyers from Bates Wells & Braithwaite.

Stephen Lloyd and Luke Fletcher have co-authored a report containing ten recommendations for growing social investment in the UK, and say the government should adopt these within a single item of legislation, described as a ‘Charity and Social Economy Bill’ or a ‘Social Economy Enabling Act’.

They say they want to “create a world-leading regulatory environment for social investment” and have submitted the report to the government’s Red Tape Challenge.

Ten reforms to grow the social investment market is published just a day before Lord Hodgson will publish his Charities Act Review, which Stephen Lloyd advised him on.  The review will include the place of social investment by and into charities.

The recommendations in the report include tax breaks for social investment and community interest companies; converting the CIC Regulator into a new a new Social Economy Commission with a much wider remit, and creating a new designation for companies with a social purpose. Further revision of the investment duties of charity and pension fund trustees are also mooted.

Luke Fletcher said: “We are living at a time when unprecedented strides are being made to link civil society with the capital markets. Couple this with technological innovation and it becomes clear that the law and regulation have failed to keep up with the pace of change.”

Lloyd added: “This is what we think is needed if the government is to achieve its ambitious vision for the social investment market and to make London and the UK a global hub of social investment expertise. In the absence of an enabling environment, the UK may lose out to other more nimble jurisdictions.”

Click here to read the full report.