Part 2Accredited community development finance institutions
Application and criteria for accreditation
4(1)Applications for accreditation as a community development finance institution must be made to the Secretary of State in such form and manner as he may specify.
(2)The Secretary of State shall accredit a body if, and only if, he is satisfied—
(a)that the body’s principal objective is to provide (directly or indirectly)—
(i)finance, or
(ii)finance and access to business advice,
for enterprises for disadvantaged communities, and
(b)that the body satisfies such other criteria as may be specified in regulations made by the Treasury.
(3)For the purposes of this paragraph “enterprises for disadvantaged communities” include—
(a)enterprises located in disadvantaged areas, and
(b)enterprises owned or operated by, or designed to serve, members of disadvantaged groups.
(4)The criteria mentioned in paragraph (b) of sub-paragraph (2) may include criteria relating to the enterprises to which the body provides or proposes to provide finance or access to business advice.
(5)Regulations under that paragraph may—
(a)make the provision mentioned in that paragraph by reference to any material published by, or on behalf of, the Secretary of State (whether before or after the coming into force of this paragraph), and
(b)make different provision for different cases or circumstances or in relation to different areas.
(6)Without prejudice to the generality of sub-paragraph (5)(b), those regulations may, in particular, make different provision in the case of bodies whose principal objective in providing finance as mentioned in sub-paragraph (2)(a) is to invest directly in enterprises that use the money raised for the purposes of the business of the enterprise in cases where—
(a)that business does not include the provision of finance for other enterprises, or
(b)if it includes any such provision, the nature and extent of that provision satisfies such conditions as the Treasury may, by regulations, prescribe.
(7)Where the Secretary of State accredits a body of the kind mentioned in sub-paragraph (6), he shall specify in the accreditation that the body is accredited as a retail community development finance institution.
Terms and conditions of accreditation
5(1)An accreditation under this Schedule shall—
(a)be made on—
(i)such terms as regulations may require, and
(ii)such other terms as the Secretary of State considers appropriate, and
(b)be made conditional upon compliance with—
(i)such requirements as regulations may require, and
(ii)such other requirements as the Secretary of State considers appropriate.
(2)The requirements that may be imposed by virtue of sub-paragraph (1)(b) include requirements relating to the provision of information.
(3)Regulations may—
(a)make provision for appeals to the Special Commissioners against refusals to grant accreditation under this Schedule;
(b)make provision about the consequences of a failure to comply with any requirement of an accreditation, including—
(i)provision for the withdrawal of the accreditation with effect from the time of the failure or a later time; and
(ii)provision for the imposition of penalties;
(c)make provision for the making of decisions by the Secretary of State as to any matter required to be decided for the purposes of the regulations;
(d)make different provision for different cases or circumstances or in relation to different areas; and
(e)make such incidental, supplemental, transitional and consequential provision as appears to the Treasury to be necessary or expedient.
(4)In this paragraph “regulations” means regulations made by the Treasury.
Delegation of Secretary of State’s functions
6The Secretary of State may delegate any functions conferred on him by or under this Part.
Period of accreditation
7(1)An accreditation has effect for a period of three years beginning on such day as may be specified in the accreditation, being a day which is no earlier than—
(a)if the body is not accredited under this Schedule at the time the application is made, the day the accreditation is granted, and
(b)if the body is so accredited, the time the body’s current accreditation expires.
This is subject to sub-paragraphs (2) and (3).
(2)Where the application for an accreditation is made before 6th April 2003, the accreditation may specify that it is to have effect for a period—
(a)beginning on 17th April 2002 or such later day as may be specified in the accreditation, and
(b)ending immediately before the third anniversary of the day the accreditation is granted.
(3)Where the body is accredited at the time the application is made and it makes a request under this sub-paragraph, the new accreditation may specify that the existing accreditation is to be treated for the purposes of this Schedule (including sub-paragraph (1)(b) above) as expiring immediately before the grant of the new accreditation (if it would otherwise expire at a later time).
(4)This paragraph has effect subject to paragraph 5(3)(b) (power to provide for the withdrawal of accreditation).