Regulation (EC) No 67/2010 of the European Parliament and of the Council (repealed)Show full title

ANNEX I Implementation modalities referred to in Article 3 (1)(e)

1. Conditions for a Community contribution to risk capital

Applications for financial aid under Article 3 (1)(e) shall include the following information, satisfactory to the Committee referred to in Article 18(1), as a basis for decisions to grant aid:

• an information memorandum containing the main provisions of the statutory documentation of the fund including its legal and management structure,

• its detailed investment guidelines including information on target projects,

• information on the involvement of private investors,

• information on geographical coverage,

• information on the financial viability of the fund,

• information on the rights of the investors to take remedial action in the event that the undertakings given to them are not honoured by the fund,

• information on the exit policies of the fund and arrangements for the termination of the fund,

• rights of representation in the committees of investors.

Before the decision to grant aid, the intermediary investment fund or other comparable financial institution must undertake to invest not less than a sum equivalent to two and a half times the Community contribution, into projects previously identified as projects of common interest in accordance with Article 155(1), first subparagraph, first indent, of the Treaty.

Community aid for investment funds or comparable financial undertakings, if granted in the form of a risk-capital participation, shall be granted, in principle, only if the Community contribution ranks pari passu in terms of risk with other investors in the fund.

Recipient investment funds or comparable financial undertakings have to follow sound financial principles.

2. Limits for intervention and maximum investment

Contributions under Article 3 (1)(e) R shall not exceed 1 % of the overall amount for the period referred to in Article 19. However this limit may be increased in accordance with the said Article 3 (1)(e).

Community aid under Article 3 (1)(e) shall not exceed 20 % of the total capital of an investment fund or comparable financial undertaking.

3. Management of the Community contribution

The management of the Community contribution will be ensured by the European Investment Fund (EIF). The detailed terms and conditions for implementing Community aid under Article 3 (1)(e), including its monitoring and control, shall be laid down in a Cooperation Agreement between the Commission and the EIF, taking into account the provisions laid down in this Annex.

4. Other provisions

The provisions applying to appraisal, monitoring and evaluation as specified in this Regulation shall apply in full to Article 3 (1)(e), including the provisions on conditions for Community aid, on financial control and the reduction, suspension and cancellation of aid. This shall, inter alia, be ensured by appropriate provisions in the Cooperation Agreement between the Commission and the EIF and appropriate agreements with investee funds or comparable financial undertakings stipulating the necessary controls at the level of individual projects of common interest. Appropriate arrangements will be made to allow the Court of Auditors to exercise its mission in particular in order to verify the regularity of payments made.

Payments under Article 3 (1)(e) shall be governed by Article 11(7), notwithstanding Article 11(6). After the end of the investment period or earlier as the case may be, any balances resulting from a return of invested capital or distribution of profits and capital gains and any and all other distributions due to investors shall be returned to the Community budget.

All decisions to provide risk-capital participations under Article 3 (1)(e) shall be submitted to the Committee referred to in Article 18(1).

The Commission will report regularly to the said Committee on the implementation of risk capital participations under Article 3 (1)(e).

Before the end of 2006, the Commission shall in the framework of Article 15 provide an evaluation of actions carried out under Article 3 (1)(e), in particular on its utilisation, its effects on the implementation of the trans-European network projects supported and the involvement of private investors in the projects financed.