after subsection (4), insert—

“(4A)

A duty on the Regulator to consult in accordance with paragraph (i) or (ii) of subsection (4)(a) does not apply where the Regulator considers that—

(a)

the registered social landlord's viability is in jeopardy for financial reasons,

(b)

a person could take a step in relation to the registered social landlord which would require to be notified to the Regulator under section 73,

(c)

the direction would substantially reduce the likelihood of a person taking such a step, and

(d)

there is insufficient time to comply with that duty and make a direction which would substantially reduce that likelihood.

(4B)

The Regulator must—

(a)

issue guidance on subsection (4A), such guidance to include—

(i)

the circumstances in which it considers that subsection (4A) is likely to apply,

(ii)

the actions it expects to take in those circumstances, and

(iii)

how, in those circumstances, it intends to communicate with any of the persons mentioned in paragraph (b) who are affected by its actions, and

(b)

before issuing or revising any guidance, consult—

(i)

tenants of registered social landlords or their representatives,

(ii)

registered social landlords or their representatives, and

(iii)

secured creditors of registered social landlords or their representatives.

(4C)

Where the Regulator proposes to direct a transfer of some (but not all) of a registered social landlord's assets, the Regulator must—

(a)

before making a direction, obtain an independent valuation of those assets, and

(b)

when making a direction, have regard to that valuation.”,