The Financial Transparency (EC Directive) Regulations 2009

PART 2 PUBLIC UNDERTAKINGS

Maintenance of records

3.—(1) A public undertaking shall maintain records of any public funds made available to it—

(a) directly by a public authority, or

(b) by a public authority through another public undertaking or financial institution.

(2) For the purposes of paragraph (1) the activities regarded as making public funds available to a public undertaking shall include—

(a) the setting-off of operating losses;

(b) the provision of capital;

(c) the provision of non-refundable grants or loans on privileged terms;

(d) the granting of financial advantages by forgoing profits or recovery of sums due;

(e) the forgoing of a normal return on public funds; or

(f) the provision of compensation for financial burdens imposed by a public authority.

(3) Nothing in paragraph (2) shall be construed as affecting the generality of paragraph (1).

(4) A public undertaking which receives public funds in relation to which it is required to maintain records under paragraph (1) shall maintain a record of the use to which those public funds are put.

(5) The obligations in paragraphs (1) and (4) shall not apply—

(a) where a public authority makes public funds available to another public authority;

(b) in relation to any public funds received by a public undertaking in relation to services supplied by a public undertaking which are not liable to affect trade between Member States within the meaning of the Treaty to an appreciable extent;

(c) to the Bank of England;

(d) to deposits of public funds placed with a public credit institution by a public authority on normal commercial terms;

(e) to a public undertaking, other than a public credit institution, whose total annual net turnover—

(i) in each of the two financial years preceding any financial year in which the funds referred to in paragraph (1) are made available, in relation to the obligation in paragraph (1), or

(ii) in each of the two financial years preceding any financial year in which the funds referred to in paragraph (1) are used, in relation to the obligations in paragraph (4),

is less than 40 million euros; or

(f) to a public credit institution whose balance sheet total—

(i) in each of the two financial years preceding any financial year in which the funds referred to in paragraph (1) are made available, in relation to the obligation in paragraph (1), or

(ii) in each of the two financial years preceding any financial year in which the funds referred to in paragraph (1) are used, in relation to the obligation in paragraph (4),

is less than 800 million euros.

Retention of records by public undertakings

4.—(1) A public undertaking shall retain the records which are required to be maintained under regulation 3(1) from the time that the public funds are provided until a period of five years has elapsed from the last day of the financial year in which the public funds were last used.

(2) A public undertaking shall retain the records which are required to be maintained under regulation 3(4) from the time that the public funds are used until a period of five years has elapsed from the last day of the financial year in which the public funds were last used.

Provision of information by public undertakings

5.  Within 28 days of receipt of a written request by the Secretary of State, a public undertaking shall provide the Secretary of State with—

(a) such information, in such form, as is requested concerning the records (this may include copies of the records) which the undertaking is required to maintain under regulation 3(1) and 3(4); and

(b) such further information as is requested and considered necessary by the Secretary of State to fulfil the United Kingdom’s obligations under the Financial Transparency Directive.