The Charity Commission has launched a statutory inquiry into transgender charity Mermaids.

Despite the ongoing regulatory compliance investigation into the charity, following initial safeguarding concerns, “newly identified issues” around the charity’s “governance and management” triggered a formal inquiry.

In recent months, Mermaids has come under increasing scrutiny, leading to the chief executive, Susie Green, and trustee Dr Jacob Breslow stepping down. Critics of the charity argue that Mermaids have went beyond simply supporting children by encouraging many to transition if they don’t fulfil stereotypical gender norms.

The Charity Commission has stated that Mermaids’ response to the initial compliance case “has not provided the necessary reassurance or satisfied the commission at this stage”.

It stated further that the inquiry “will seek to determine whether the charity’s governance is appropriate in relation to the activities the charity carries out, which involve vulnerable children and young people, as well as their families.”

The investigator will examine whether trustees fulfilled their responsibility under charity law, particularly whether they had “sufficient oversight of the charity’s activities and compliance with its policies and procedures and in line with its charitable objects”.

As well as looking to see whether there has been any “misconduct or mismanagement” from the trustees, the inquiry will examine the leadership and culture of the charity.