Delegated Act

1. Delegated Act

2. CPR empowerments after 2 July trilogue • 32(10): Delegated act laying down additional specific rules on purchase of land and on combination of technical support with financial instruments • 33(5): Delegated act laying down additional specific rules on the role, liabilities and responsibility of bodies implementing financial instruments, related selection criteria and products that may be delivered through financial instruments. • 34(5): Delegated act concerning the management and control of financial instruments pursuant to Article 33(1)(b) of the CPRR, including controls to be performed by managing and audit authorities, arrangements for keeping supporting documents, elements to be evidenced by supporting documents, and management and control and audit arrangements. • 36(4): Delegated act laying down the specific rules concerning the establishment of a system of capitalisation of annual instalments for interest rate subsidies and guarantee fee subsidies. • 36(5): Delegated act on the rules for calculating management costs and fees and on the reimbursement of capitalised management costs and fees for equity-based instruments and micro-credit.

3. MS questions and COM replies (1) • PL and DE considered the 10% limit for the purchase of land insufficient (32(10)) • NL asked for clarification what "technical support" is, SK requested that it should be available for the monitoring and ex-post evaluation (32(10)) • BE, EL, PL, NL, SK asked questions regarding the selection of bodies implementing the financial instruments (e.g. Who are they? EIB-EIF aligned with the CPR? What is a robust and credible methodology? Up to MS to define the depth of assessment and weighting of criteria? Are organisations without experience excluded?) (33(5)) • NL asked what "they should act with the diligence of a professional manager and in good faith" means (33(5)) • SK asked questions on the direct financial liability (including from lost legal cases? Debt uptake? Reimbursement directly from body causing irregularity?) (33(5))

4. MS questions and COM replies (2) • PL, DE, EL had concerns on the audit at the level of final recipients and keeping of supporting documents (34(5)) – DA fiche changes • EL asked for clarification on the on-the-spot verifications and audits for EIB-EIF –implemented instruments (34(5)), and the term "final recipient" • SK asked who carries out the management verifications (34(5)) • BE, EL, DE sought further clarification on the performance-based management costs and fees (36(5)) • CZ, EL, PL, DE, NL, SK asked for less often information to the Managing Committee (36(5)) - DA fiche change • EL, DE, NL called for more information on the ceilings (36(5)) • NL feared that the new rules for remuneration, together with the phased contributions might have negative effects on the attractiveness of the FI and administrative burden (36(5)) • NL doubted about the feasibility and the need to take into account the quality of support and their contributions to the objectives of the programmes (36(5))

5. Changes in fiche 10 (1) • P. 7: "Eligible expenditure should be evidenced by adequate supporting documents, to be kept at the appropriate level of the operation until three years after closure (a non-exhaustive list of appropriate supporting documents will be proposed); supporting documents should be available to allow verification of the legality and regularity of the expenditure declared to the Commission. The bodies implementing financial instruments shall be responsible for ensuring that supporting documents are available and shall not impose on final recipients record-keeping requirements that go beyond what is necessary to enable them to fulfil this responsibility."

6. Changes in fiche 10 (2) • P. 7: "An adequate audit trail should be established for reporting and audit purposes; for Funds other than EAFRD, the bodies responsible for the audits of programmes should in the first instance carry out audits at the level of managing authorities and the bodies implementing financial instrument including funds of funds; However, there may be specific circumstances where the necessary documents to complete such audits are not available at the level of the managing authorities and the bodies implementing financial instruments or such documents do not represent a true and accurate record of support provided. In such specific cases certain provisions are necessary therefore to enable also audits at the level of final recipients; financial instruments should be audited throughout the programming period until closure; the audit rights of the ECA and OLAF would not be constrained.

7. Changes in fiche 10 (3) • P. 10: A performance-based calculation methodology for management costs and fees should be adopted, ensuring alignment of interest between the managing authority and bodies implementing financial instruments. This methodology should take into account the performance of the financial instrument, the quality of support provided to final recipients, as well as their contribution to the objectives and outputs attributable to the programme contributions. The methodology should be included in the relevant funding agreement and the monitoring committee is to be informed in advance of the proposed methodology. Every twelve months, the monitoring committee should receive regular reports on the management costs and fees effectively paid.