The investigation will also allow the watchdog, which does not investigate criminal allegations, to assess whether charity assets or beneficiaries are at risk and if any regulatory action is needed. “Serious allegations have been made about UK charities operating in illegal Israeli settlements in Palestine, so our first step is to establish the facts. "Only then can we determine if regulatory action is required, based on our findings and the evidence we see. “Our fact-finding will also help us develop regulatory guidance for charities, which will help to ensure public trust and confidence in charities.” The regulator said it has informed police and HMRC about the scope of its inquiry, which may be extended if any other regulatory issues arise during the investigation.