NCVO has set up a new group to review whether fraud prevention measures are fair and effective for charities.

The Task and Finish Group will review the regulatory powers that the Charity Commission and HM Revenue & Customs have over charities in relation to fraud.

It will pay particular attention to any potential duplication between the two bodies’ responsibilities. It will also examine whether the measures taken by HMRC are proportionate, transparent and effective when applied to the sector.

NCVO created the group in the wake of concerns over whether certain measures introduced to protect charities from fraud are fit for purpose. The Fit and Proper Persons Test, introduced by the Finance Act 2010 in April, has attracted particular criticism as it adds an extra administrative burden and there is no right of appeal against it.

Lord Raymond Plant, former president of NCVO and chair of the group, said:

“I am delighted that NCVO asked me to lead on this initiative. Charities have enormous potential to provide support and services. But they can be hampered by unduly onerous regulation. I want this new Group to help ensure the best possible operating environment for the sector.”

The Task and Finish Group will hold its first meeting on Wednesday 24 November. It will seek evidence to inform its work from a range of stakeholders, including charities.

The Group will produce a report in early 2011 detailing its findings. It will operate in parallel with and provide evidence to the Government Deregulation Taskforce recently launched by the Office for Civil Society and the Department for Business, Innovation and Skills.

Members of the Group are: Baroness Browning of Whimple; Baroness Sherlock of Durham; Sir Stuart Etherington, chief executive of NCVO; Sir David Varney, former chairman of HM Revenue & Customs; Lindsay Driscoll, consultant at Bates, Wells and Braithwaite; John Stoker, former chief commissioner at the Charity Commission; and Caron Bradshaw, chief executive of CFDG.