Just to support Shakeel on this—filing a report with the Commission doesn’t necessarily imply a risk of insolvency. To quote the Commission:
”What is a serious incident?
A serious incident is an adverse event, whether actual or alleged, which results in or risks significant:
harm to your charity’s beneficiaries, staff, volunteers or others who come into contact with your charity through its work (who are collectively referred to throughout this guidance as people who come into contact with your charity through its work)
loss of your charity’s money or assets
damage to your charity’s property
harm to your charity’s work or reputation
For the purposes of this guidance, “significant” means significant in the context of your charity, taking account of its staff, operations, finances and/or reputation.”
In my experience (~15 years on charitable trustee Boards or running charities, most of it in the UK), the FTX scandal would clearly qualify as a serious incident, with or without a risk of CEA becoming insolvent. There are clearly risks that fraud may have taken place which could harm people in contact with CEA; that significant reputational damage may occur or has occurred already etc..
Obviously I’m not in a position to rule out serious financial damage, but there are clearly conceivable reasons to submit this report even if CEA is in rude financial health.
Just to support Shakeel on this—filing a report with the Commission doesn’t necessarily imply a risk of insolvency. To quote the Commission:
”What is a serious incident?
A serious incident is an adverse event, whether actual or alleged, which results in or risks significant:
harm to your charity’s beneficiaries, staff, volunteers or others who come into contact with your charity through its work (who are collectively referred to throughout this guidance as people who come into contact with your charity through its work)
loss of your charity’s money or assets
damage to your charity’s property
harm to your charity’s work or reputation
For the purposes of this guidance, “significant” means significant in the context of your charity, taking account of its staff, operations, finances and/or reputation.”
In my experience (~15 years on charitable trustee Boards or running charities, most of it in the UK), the FTX scandal would clearly qualify as a serious incident, with or without a risk of CEA becoming insolvent. There are clearly risks that fraud may have taken place which could harm people in contact with CEA; that significant reputational damage may occur or has occurred already etc..
Obviously I’m not in a position to rule out serious financial damage, but there are clearly conceivable reasons to submit this report even if CEA is in rude financial health.