Cloch completes separation process

Cloch Housing Association received confirmation on 1 April 2021 that their new rules had been registered by the Financial Conduct Authority to officially conclude the separation process from Oak Tree Housing Association.   

Since the SGM in December 2020, which followed an outstanding 95.5% favourable ballot to separate from their parent association, Cloch and Oak Tree have worked together to shape their shared service agreements for Finance and IT and secure lenders consent.  With the rules now registered by the FCA, the only steps remaining are notifications to OSCR and the regulator.     

Paul McVey, Director of Cloch, said: "It is quite unique to be separating from a group structure instead of joining one, and that steer has been supported by the 95% who voted in favour of the separation, and the drive of the Cloch Board and staff team to deliver on that mandate.  None of that would have been possible either, without the goodwill from Oak Tree Housing Association, the former parent, who supported the Cloch vision for separation and to restore our independent status.   

"For many associations, joining with another makes perfect sense. It certainly did for Cloch in 2012 when the financial and governance support from Oak Tree was crucial for Cloch's stability.   

"I would like to thank Oak Tree Housing Association for giving Cloch the space to flourish over the years and for our voice to be heard fully in the Options Appraisal and discussions which took place to kick start the separation process.  

"Our future is a result of Oak Tree stepping in and providing security at a time when it was needed and then stepping back out when the time is right. Returning independence to Cloch provides the association with full control over future strategic direction, investment, and service delivery.   

"With a new vision, set of values and strategic plan, we will continue to work closely with Oak Tree using a Shared Services Agreement for Finance and IT, which has worked really well in recent years."