What's Happening?
The Building Safety Regulator (BSR) was alerted to the financial instability of Assent Building Compliance in June, but did not act on the warning. Assent has now ceased trading, and the Official Receiver has been appointed to wind down the company. This
development has caused significant disruption in the building control sector, affecting thousands of local building control applications and assessments previously managed by Assent's subsidiaries. The warning, issued via email, highlighted the potential collapse of Assent's subsidiaries, LB Building Control and Oculus, which could lead to industry-wide damage similar to the liquidation of Aedis Regulatory Services in 2019.
Why It's Important?
The cessation of Assent's operations and the subsequent industry disruption underscore the importance of financial oversight in the building control sector. The failure to act on early warnings about Assent's financial health has led to a significant backlog in building control applications, affecting stakeholders such as employees, creditors, and subcontractors. The situation highlights the need for robust financial viability assessments for companies registering as Registered Building Control Approvers (RBCAs) to prevent similar occurrences in the future. The BSR's handling of this case may prompt calls for improved regulatory practices and accountability.
What's Next?
The Official Receiver's appointment marks the beginning of the winding down process for Assent, with urgent notices issued for employees to return company assets and for creditors to register claims. The BSR is working to ensure continuity in building control assessments by securing resources and contacting registered building inspectors directly. The regulator's response to this situation may influence future policy changes and regulatory frameworks to enhance oversight and prevent similar disruptions.
Beyond the Headlines
The Assent case raises questions about the effectiveness of current regulatory frameworks in the building control industry. It may lead to discussions on the ethical responsibilities of regulators to act on warnings and the need for transparency in financial assessments. The long-term impact could include shifts in industry standards and practices to ensure financial stability and protect stakeholders from sudden disruptions.
