FOREWORD GENERAL PURPOSE 1.VERIFICATION OF THE LEGAL EXISTENCE AND LEGAL STATUS/CATEGORY 1.1.Principles 1.1.1.Confidentiality and protection of data 1.1.2.Legal Existence 1.1.3.Legal status according to the Rules for Participation for FP7...1.1.3.1.Definitions 1.1.4.Requested data and documents 1.1.5.Effective date of the legal existence and the legal status/category...1.The date on which the legal existence and the legal...2.When there is no act of constitution or incorporation, the...3.The effective date of SME status shall be the account...1.2.Implementation of the verification of legal existence and legal status/category...1.2.1.Provisions regarding cases of incomplete, contradictory or false declarations and/or...1.All evidence is presumed to be truthful and provided in...2.In the following cases, namely 3.In case of refusal of validation or of refusal of...4.In case of irregularities and/or false declarations the validation services...1.2.2.Information on the outcome of the validation and the validated...1.2.3.Declaration on the correctness of the basic data in the...1.2.4.Legal Entity Appointed Representative (LEAR) 1.2.5.Modification of validations 1.2.5.1.Modifications of validations due to an error of the initial...1.2.5.2.Modifications of validations due to a change of the legal...1.2.5.3.Changes of the indirect cost method (ICM) (1)Changes of the legal status of the participant (2)Changes in the accounting system of the participant: (3)If a mistake regarding the ICM has been made during...1.2.6.Administrative review of validations 1.Prior to any request for review, the applicant shall ask...2.Requests for review of validations may be addressed in writing...3.The validation services shall acknowledge the receipt of the request...1.2.7.The Validation Panel 2.VERIFICATION OF THE OPERATIONAL CAPACITY 2.1.Principles 2.2.Implementation 2.2.1.At proposal stage 2.2.2.At negotiation stage 3.VERIFICATION OF THE FINANCIAL CAPACITY: RULES OF IMPLEMENTATION 3.1.Principles 3.2.Reasons for a concise financial analysis as a general rule...3.3.Categories of legal entities subject to (or exempted from) a...Decision tree on financial capacity verification 3.4.Requested data and documents 3.4.1.Legal persons 3.4.2.Natural persons 3.4.3.Other remarks 3.5.Financial viability check 3.5.1.Purpose 3.5.2.Used ratios and noteworthy value Equity flag 3.5.3.Thresholds 3.5.4.Particular case of natural persons 3.5.4.1.Used ratios 3.5.4.2.Thresholds 3.6.Co-financing capacity check 3.6.1.Purpose 3.6.2.Used ratios and noteworthy value Financial exposure flag: 3.6.3.Thresholds 3.6.4.Particular case of natural persons 3.6.4.1.Used ratios 3.6.4.2.Thresholds 4.VERIFICATION OF THE FINANCIAL CAPACITY: CONCLUSION OF THE ANALYSIS (CHECKS)...4.1.Assessment of the results of the concise analysis 4.2.Actions to be taken in case of ‘weak’ result 4.2.1.A more in-depth financial analysis 4.2.1.1.For legal persons 4.2.1.2.For natural persons 4.2.2.Protection measures 4.3.Additional protection measures, including sanctions

Commission Decision

of 18 December 2012

on the adoption of the Rules to ensure consistent verification of the existence and legal status of participants, as well as their operational and financial capacities, in indirect actions supported through the form of a grant under the Seventh Framework Programme of the European Community for research, technological development and demonstration activities and under the Seventh Framework Programme of the European Atomic Energy Community for nuclear research and training activities

(Text with EEA relevance)

(2012/838/EU, Euratom)

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to the Treaty establishing the European Atomic Energy Community,

Having regard to Regulation (EC) No 1906/2006 of the European Parliament and of the Council of 18 December 2006 laying down the rules for the participation of undertakings, research centres and universities in actions under the Seventh Framework Programme and for the dissemination of research results (2007-2013)1, and in particular Article 16(4),

Having regard to Council Regulation (Euratom) No 1908/2006 of 19 December 2006 laying down the rules for the participation of undertakings, research centres and universities in action under the Seventh Framework Programme of the European Atomic Energy Community and for the dissemination of research results (2007 to 2011)2, and in particular Article 15(4),

Whereas:

(1)

By Decision C(2007) 2466 of 13 June 2007 on the adoption of the Rules to ensure consistent verification of the existence and legal status of participants, as well as their operational and financial capacities, in indirect actions supported through the form of a grant under the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007-2013) and under the Seventh Framework Programme of the European Atomic Energy Community (Euratom) for nuclear research and training activities (2007-2011), the Commission has drawn up the rules ensuring consistent verification of the existence and legal status of participants, as well as their operational and financial capacities, in indirect actions supported through the form of a grant under Decision No 1982/2006/EC of the European Parliament and the Council of 18 December 2006 concerning the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007-2013)3 and Council Decision 2006/970/Euratom of 18 December 2006 concerning the Seventh Framework Programme of the European Atomic Energy Community (Euratom) for nuclear research and training activities (2007 to 2011)4 (hereinafter ‘the Rules’).

(2)

Those Rules were designed to establish a clear and transparent framework to be implemented in a homogeneous manner by all services involved in the management of grants awarded under Decision No 1982/2006/EC and Decision 2006/970/Euratom. Those Rules aimed to ensure a coherent approach across the Programmes established by those Decisions, and for the duration of those Programmes, while allowing a measure of flexibility where necessary.

(3)

Those Rules should be modified in order to specify some elements and codify the practice up to date, such as definitions of legal statuses/categories and provisions on requested documents and the effective date, cases of incomplete, contradictory or false declarations and/or supporting documents, the Legal Entity Appointed Representative, the modification and the review of validations and the Validation Panel.

(4)

It is necessary that those Rules are changed to guarantee a uniform implementation and interpretation by introducing specific cases. In addition, the section on protection measures needs to be reinforced.

(5)

At the same time, those Rules should be brought in line with the Treaty on the Functioning of the European Union.

(6)

For reasons of clarity and legal security, Decision C(2007) 2466 should therefore be replaced,

HAS ADOPTED THIS DECISION: