CHAPTER IIPROVISIONS SUPPLEMENTING PART TWO OF REGULATION (EU) No 1303/2013 APPLICABLE TO THE ESI FUNDS SUPPORT FOR RURAL DEVELOPMENT AND SUPPORT UNDER REGULATION 508/2014

SECTION IIFinancial instruments

Article 13Thresholds for management costs and fees(Article 42(5) and (6) of Regulation (EU) No 1303/2013)

F11.

For a body that implements a fund of funds, management costs and fees which can be declared as eligible expenditure pursuant to Article 42(1)(d) of Regulation (EU) No 1303/2013 shall not exceed the sum of:

(a)

3 % for the first 12 months after the signature of the funding agreement, 1 % for the next 12 months, thereafter 0,5 % per annum, of the programme contributions paid to the fund of funds, calculated pro rata temporis from the date of effective payment to the fund of funds until the end of the eligibility period, repayment to the managing authority or the date of winding up, whichever is earlier; and

(b)

0,5 % per annum of programme contributions paid by the fund of funds to financial intermediaries, calculated pro rata temporis from the moment of effective payment by the fund of funds until repayment to the fund of funds, the end of the eligibility period or the date of winding up, whichever is earlier.

2.

For bodies implementing financial instruments providing equity, loans, guarantees, as well as micro-credits, including when combined with grants, interest rate subsidies or guarantee fee subsidies in accordance with Article 37(7) of Regulation (EU) No 1303/2013, management costs and fees which can be declared as eligible expenditure F2pursuant to Article 42(1)(d) of that Regulation shall not exceed the sum of:

(a)

a base remuneration which shall be calculated as follows:

  1. (i)

    for a financial instrument providing equity, 2,5 % per annum for the first 24 months after the signature of the funding agreement, thereafter 1 % per annum, of programme contributions committed under the relevant funding agreement to the financial instrument, calculated pro-rata temporis from the date of signature of the relevant funding agreement until the end of the eligibility period, repayment of the contributions to the managing authority F3or to the fund of funds, or the date of winding up, whichever is earlier;

  2. (ii)

    for a financial instrument in all other cases, 0,5 % per annum of programme contributions paid to the financial instrument, calculated pro rata temporis from the date of effective payment to the financial instrument until the end of the eligibility period, the repayment to the managing authorityF4, or to the fund of funds, or the date of winding up, whichever is earlier; and

(b)

a performance-based remuneration which shall be calculated as follows:

  1. (i)

    for a financial instrument providing equity, 2,5 % per annum of the programme contributions paid F5within the meaning of Article 42(1)(a) of Regulation (EU) No 1303/2013 to final recipients in the form of equity, as well as of resources re-invested which are attributable to programme contributions, which have yet to be paid back to the financial instrument, calculated pro rata temporis from the date of payment to the final recipient until repayment of the investment, the end of the recovery procedure in the case of write-offs or the end of the eligibility period, whichever is earlier;

  2. (ii)

    for a financial instrument providing loans, 1 % per annum of the programme contributions paid F6within the meaning of Article 42(1)(a) of Regulation (EU) No 1303/2013 to final recipients in the form of loans, as well as of resources re-invested which are attributable to programme contributions, which have yet to be paid back to the financial instrument, calculated pro rata temporis from the date of payment to the final recipient until repayment of the investment, the end of the recovery procedure in the case of defaults or the end of the eligibility period, whichever is earlier;

  3. (iii)

    for a financial instrument providing guarantees, 1,5 % per annum of the programme contributions committed to outstanding guarantee contracts F7within the meaning of Article 42(1)(b) of Regulation (EU) No 1303/2013, as well as from re-used resources attributable to programme contributions, calculated pro rata temporis from the date of commitment until maturity of the guarantee contract, the end of the recovery procedure in the case of defaults or the end of the eligibility period, whichever is earlier;

  4. (iv)

    for a financial instrument providing micro-credit, 1,5 % per annum of the programme contributions paid F8within the meaning of Article 42(1)(a) of Regulation (EU) No 1303/2013 to final recipients in the form of micro-credit, as well as of resources re-invested which are attributable to programme contributions, which have yet to be paid back to the financial instrument, calculated pro rata temporis from the date of payment to the final recipient, until repayment of the investment, the end of the recovery procedure in the case of defaults or the end of the eligibility period, whichever is earlier;

  5. (v)

    for a financial instrument providing grants, interest rate subsidies or guarantee fee subsidies in accordance with Article 37(7) of Regulation (EU) No 1303/2013, 0,5 % of the grant amount paid F9within the meaning of Article 42(1)(a) of that Regulation for the benefit of final recipients.

F10The provisions of this paragraph shall apply to a body implementing a financial instrument providing guarantees notwithstanding that the same body is implementing a fund of funds, subject to the provisions of paragraph 4.

3.

The aggregate amount of management costs and fees over the eligibility period F11laid down in Article 65(2) of Regulation (EU) No 1303/2013 shall not exceed the following limits:

F12(a)

for a fund of funds, 7 % of the total amount of programme contributions paid to the fund of funds;

(b)

for a financial instrument providing equity, 20 % of the total amount of programme contributions paid to the financial instrument;

(c)

for a financial instrument providing loans, 8 % of the total amount of programme contributions paid to the financial instrument;

(d)

for a financial instrument providing guarantees, 10 % of the total amount of programme contributions paid to the financial instrument;

(e)

for a financial instrument providing micro-credit, 10 % of the total amount of programme contributions paid to the financial instrument;

(f)

for a financial instrument providing grants, interest rate subsidies or guarantee fee subsidies in accordance with Article 37(7) of Regulation (EU) No 1303/2013, 6 % of the total amount of programme contributions paid to the financial instrument.

F134.

Where the same body implements a fund of funds and a financial instrument, neither the amounts of eligible management cost and fees under paragraphs 1 and 2, nor the limits set out in paragraph 3 shall be cumulated for the same programme contributions or the same resources re-invested which are attributable to programme contributions.

F145.

Where the majority of the capital invested in financial intermediaries providing equity is provided by investors operating under the market economy principle and the programme contribution is provided pari passu with those investors, the management costs and fees shall conform to market terms and shall not exceed those payable by the private investors.

6.

The thresholds laid down in paragraphs F151, 2 and 3 may be exceeded where they are charged by a body implementing the financial instrumentF16, including, where applicable, when it implements the fund of funds, which has been selected through a competitive tender in accordance with the applicable rules and the competitive tender proved the need for higher management costs and fees.