The regulator cites the charity's failure to ensure its governance, culture and practices kept pace with its growing size, demand for services and public profile, as a major factor that contributed to wider governance failings.
Mermaids' objects 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.
In September 2022, the Commission opened a regulatory compliance case into the charity after complaints were made by the public, and highlighted in the media. Concerns were raised around chest-binding services and online support offered to young people, and alleged ties between the charity's now former CEO and the Tavistock and Portman NHS Foundation Trust. As charity regulator, the Commission looked at matters that fell within its remit, in relation to the trustees' compliance with their duties and charity law.
The regulator escalated its engagement to a statutory inquiry in November 2022 after the findings of an Equity, Diversity and Inclusion (EDI) review commissioned by Mermaids highlighted multiple issues of concern relating to the charity's culture, operational management and processes. Today's report noted that the charity has addressed these with an action plan and has provided evidence of this to the Commission alongside additional steps that were recommended in a separate and wider external review of the charity's governance.
The inquiry examined the administration, governance and management of the charity, including its leadership and culture. It also sought to determine if trustees have fulfilled their duties under charity law, in line with the charity's purpose. This included assessing if there is sufficient oversight of the charity's activities and compliance with internal policies and procedures.
As part of its investigations, the inquiry met with charity representatives on multiple occasions to inspect records and obtain further information and documents. The charity's trustees, senior staff members and former CEO were all interviewed, and the inquiry reviewed the charity's complaints log and sampled calls, emails and online forum/web chat with users that took place between 2020 and 2023.
The inquiry report makes a number of findings of mismanagement, including around trustees failing to:
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address internal issues around culture and inclusivity at the charity
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carry out sufficient due diligence checks when recruiting trustees, which resulted in the recruitment of someone the charity said should "never have been appointed"
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properly adhere to their own internal HR policies when it came to the supervision of the former CEO and / or make clear to the former CEO and staff that the role did not fall into the charity's normal HR management policy
The inquiry also found the purpose of the information about puberty blockers published on the charity's website was unclear. Charities are by law required to ensure that information provided on an education basis is accurate, evidence-based and balanced. The inquiry provided statutory advice on this matter, which the trustees have since acted on.
The inquiry found that the charity had a detailed policy relating to its chest binder service and demonstrated compliance with this policy, though in a small number of cases could have been more transparent with service users when declining requests. Mermaids terminated the service in October 2023. However, the Commission has issued statutory advice to the charity requiring that, should it ever resume this service, its future policy and controls should reflect the recent Cass Review, or any future NHS guidelines on parental involvement.
The Commission did not uphold all concerns raised about the charity. The inquiry found no evidence that the charity:
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provided medical advice, which would have been outside its charitable purposes
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made medical referrals for young people without the approval of a parent or carer
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held inappropriate influence or ties to GIDS at the Tavistock and Portman NHS Foundation Trust or to private medical practices
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failed to have appropriate safeguarding policies in place.
Orlando Fraser, KC, Chair of the Charity Commission said:
"The provision of services to children affected by gender identity issues is a highly challenging area that requires great care and sensitivity. This is especially so for charities, given the authority that registered status will likely carry with children and their families.
"We have carefully scrutinised Mermaids' activities through a statutory inquiry and have found mismanagement in a number of areas. Mermaids cooperated with our investigation and has been actively addressing the various concerns raised.
"Additionally, following the Cass Review, we have required Mermaids to present a more accurate picture on its website as to the risks involved in the use of puberty blockers, and to follow Cass Review findings on the involvement of parents in social transitioning as regards any future provision of chest binders to children."
He added:
"As the report indicates, there are lessons for other charities working in these areas, including that they need to have regard to the findings, conclusions and recommendations of the Cass Review."
The full inquiry report, detailing all findings, is available on GOV.UK.
Notes:
- The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its ambition is to be an expert regulator that is fair, balanced, and independent so that charity can thrive. This ambition will help to create and sustain an environment where charities further build public trust and ultimately fulfil their essential role in enhancing lives and strengthening society.
