Who is the CIC Regulator and what do they do?
Community interest companies (CICs) are limited companies that exist to benefit the community rather than private shareholders. In return for that status, they are supervised by a dedicated regulator. If you run a CIC, are thinking of setting one up, or sit on the board of one, it helps to know who the CIC Regulator is, what the office does, and what can happen when a CIC falls short.
Who is the CIC Regulator?
The Regulator of Community Interest Companies is an independent statutory officeholder created by the Companies (Audit, Investigations and Community Enterprise) Act 2004. The office opened in 2005, is appointed by the Secretary of State for Business and Trade, and is funded by the Department for Business and Trade.
In February 2026 the government appointed Andy King, Chief Executive of Companies House and Registrar of Companies for England and Wales, as CIC Regulator. He replaced Louise Smyth CBE, who retired. Combining the two roles follows the government’s March 2025 proposal to merge the Office of the Regulator of Community Interest Companies into Companies House. The office already sits in the Companies House building in Cardiff and is supported by a small team of Companies House staff.
For CICs themselves, the regulator has said it is business as usual: your obligations and duties have not changed.
What does the CIC Regulator do?
The regulator describes its approach as light-touch regulation with the minimum of interference. In practice, its main jobs are:
- Deciding eligibility. Every application to form a CIC, or to convert an existing company into one, is checked against the community interest test. If approved, the regulator notifies Companies House so the certificate can be issued.
- Keeping CICs on track. The regulator decides whether a company should remain a CIC, and reviews the annual community interest reports that CICs file.
- Handling complaints. Anyone can raise concerns about a CIC. The regulator can investigate and, where needed, refer matters to other enforcement bodies.
- Guidance. It publishes guidance on setting up and running CICs and promotes the CIC model for suitable enterprises.
There were more than 37,000 active CICs at 31 March 2025, so the regulator relies heavily on the annual filings and on complaints to spot problems.
The rules the regulator enforces
The community interest test
A CIC must show that a reasonable person would consider its activities are carried on for the benefit of the community. It must keep meeting this test throughout its life, not just at registration.
The asset lock
A CIC’s assets and profits are locked in for community benefit. Assets cannot be transferred for less than full value unless the transfer itself benefits the community or goes to another asset-locked body permitted by the articles, such as another CIC or a charity.
Caps on returns to investors
CICs limited by shares can pay dividends, but only within limits. Total dividends are capped at 35% of distributable profits. The old 20% per-share cap was removed in 2014, and interest on performance-related loans is capped at 20%.
The annual community interest report
Alongside its accounts, every CIC must file a community interest report (form CIC34) explaining how its activities benefited the community, who it consulted, what directors were paid, and any assets transferred, dividends or performance-related interest paid. Weak or missing reports are one of the most common reasons the regulator gets in touch.
What powers does the regulator have?
Where a CIC is not meeting the community interest test, there has been misconduct or mismanagement, or its property needs protecting, the regulator can step in. Its statutory powers include:
- investigating the company’s affairs, or appointing someone to do so
- requiring the accounts to be audited
- appointing or removing directors, or appointing a manager
- freezing or restricting the company’s property and payments, or transferring property to the Official Property Holder
- bringing civil proceedings in the CIC’s name
- petitioning for the company to be wound up, or restoring it to the register
These powers are used sparingly, but they are real, and directors can lose control of the company if the regulator loses confidence in how it is run.
What this means for CIC directors
- File on time and file properly. Your accounts and community interest report go to Companies House together. Treat the report as a genuine account of your community impact, not a box-ticking exercise.
- Respect the asset lock. Document why payments to directors, related parties and investors are at a fair value and within the caps.
- Remember the tax position. A CIC is not a charity. It pays corporation tax like any other company and does not get charitable tax reliefs, so plan for that from the start.
- Keep good records. If the regulator investigates, clear board minutes and accounting records are your best defence.
How we can help
At SilverThrone we prepare accounts and community interest reports for CICs, advise on structure and tax, and carry out audits and independent examinations for social enterprises and charities. If you are weighing up a CIC against a charity, you may also find our guide to the Charities SORP 2026 changes useful. To talk about your organisation, book an appointment.
This article reflects the position as at October 2026 and is for general information only. It is not a substitute for advice on your organisation’s circumstances.