Mermaids: Why oversight cannot be overlooked
February 2023

In late November, The Charity Commission opened a statutory inquiry into Mermaids, after identifying concerns about its governance and management.
The decision, and the subsequent appointment of an interim chief executive to replace the incumbent, reflect the challenging times that a charity “was once the darling of the charity world” according to The Spectator, now faces.
Not long ago Starbucks sold Mermaids-branded cookies and famous faces including Emma Watson publicly supported the transgender organisation.
But 2022 has been an annus horribilis.
In September, Mermaids arrived in court to appeal the Charity Commission’s decision to register the LGB Alliance – thought to be the first time a charity has challenged the registration of another in such a way. A decision on that case awaits.
In the meantime, disquiet was being expressed in other quarters about governance practices at Mermaids itself and the Charity Commission had opened a regulatory compliance case into the charity in the same month after safeguarding allegations were raised. It subsequently formalised its engagement by opening the statutory inquiry, due to “newly identified issues about the charity’s governance and management”.
That was elevated to a statutory inquiry on 28 November.
Mermaids started in 1995 as a ‘a small group of concerned parents sitting around the kitchen table, coming together to share experiences, find answers and look for ways to keep our children safe and happy.’
Its stated objectives are to relieve the mental and emotional stress of children and young people affected by gender identity issues and their families, and to advance public education about the same.
Charities Commission investigates Mermaids
However, The Commission confirmed that it will investigate the regulatory issues to determine whether they indicate serious systemic failing in the charity’s governance and management. It said in its statement that the trustees had fully cooperated with the regulator’s case, but their response had not provided the necessary reassurance or satisfied the Commission at this stage.
As a result, the regulator is seeking to determine whether the charity’s governance is appropriate in relation to the activities the charity carries out, which involve vulnerable children and young people, as well as their families.
The inquiry is examining:
- The administration, governance and management of the charity by the trustees including its leadership and culture;
- Whether the trustees have complied with and fulfilled their duties and responsibilities as trustees under charity law; in particular, whether they had sufficient oversight of the charity’s activities and compliance with its policies and procedures and in line with its charitable objects;
- Whether there has been any misconduct and/or mismanagement by the trustees.
The inquiry was opened under section 46 of the Charities Act 2011 and will seek to collect further information and establish the facts, potentially through use of statutory powers in order to inform its decisions about what regulatory action may be appropriate.
Management changes at Mermaids
Mermaids has appointed as interim chief executive, Lauren Stoner, to replace Susie Green after six years in her post and Stoner has pledged to address the “root causes” of the transgender children’s charity’s challenges, with the aim of implementing a “clear plan” by the end of March 2023.
Mermaids recently revealed that an independent external report it commissioned highlighted a number of significant challenges.
Stoner has spent most of her career working in health and social care with a focus on person-centred support, rights, and voice. Her career has focused on fundraising and policy change, ensuring that disabled people and abuse survivors have the right support.
She has also been involved in developing and supporting partnerships with providers, commissioners and others across the statutory, voluntary, and community sector.
In a letter, Stoner said: “It’s a difficult time for the organisation and for the people we support and there are challenges ahead. In addition to supporting the statutory inquiry, I’ll start by listening to everyone with a stake in what we do and understanding their views, and review that alongside the work that’s already been done.”
Charities and governance
“Charities are governed by a raft of legislation including the Charities Act 2011, the Trustee Acts 1925 and 2000, and are regulated by the Charity Commission. Additionally, charitable companies (those incorporated as a company limited by guarantee) must also comply with the provisions of the Companies Act 2006,” says Bridgehouse consultant Jo Steel.
Jo adds: “The Charity Commission now has the power to automatically disqualify someone from serving as a charity trustee. Those who have been disqualified will not be allowed to occupy a senior management position in a charity or be actively involved in managing a corporate charity.
“The Commission’s enhanced regulatory powers include the power to issue an official warning to charities. Consequently, it is important that charities comply with applicable legislation and are run in accordance with the principles of good governance.
“Particularly in charities supporting children and vulnerable adults, safeguarding should be at the centre of everything that the charity and its trustees do. Obviously, there is a need for strong written policies and guidance as well as robust risk identification and management, but trustees also need to be satisfied that policies are followed in practice and that there is a strong culture of safeguarding in place – do they see it in action? Trustees shouldn’t shy away from asking questions and looking for evidence of strong safeguarding, outside of the board room.”

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