Luminus Group downgraded from G1 to G3 by social housing regulator
The social housing regulator has downgraded the Luminus Group for poor governance in a damning regulatory judgement.
Luminus, which owns and managed some 7,300 properties, and is based in Huntingdon, Cambridgeshire, was downgraded from G1 to a non-compliant G3 rating, meaning it does not meet the regulator’s requirements on governance.
“[T]he regulator lacks assurance that the board is maintaining effective control over Luminus and its activities,” the HCA’s regulatory judgement said. “The systems in place to monitor and manage delivery of its plans and associated risks are not adequate and are not operating effectively.
“The board is receiving inadequate information, and has not demonstrated it is sufficiently challenging in considering the information it does receive. It has been unable to provide adequate assurance it is compliant with its chosen Code of Governance. There is a lack of effective oversight of performance of investment in external bodies. The board is not exercising its role with appropriate skill or diligence.”
Furthermore, the regulator found that the organisation lacks an effective system of risk management. The judgement said the regulator said the housing provider had also “not assured the regulator that it understand adequately the risks it faces”. The regulator also said that Luminus does not have an effective system of internal control.
However, Luminus Group remains compliant with the regulator’s viability requirements and is graded V2.