Commission Delegated Regulation (EU) No 1268/2012 (repealed)Show full title

Article 217 Content of the delegation agreement with entities entrusted with the implementation of financial instruments in indirect management(Article 139 of the Financial Regulation)

In addition to the requirements listed in Article 40, delegation agreement with entities entrusted with the implementation of financial instruments shall include appropriate arrangements for ensuring compliance with the principles and conditions set out in Article 140 of the Financial Regulation. In particular, the delegation agreements shall contain:

(a)

the description of the financial instrument, including its investment strategy or policy, the type of support provided, the criteria for eligibility for financial intermediaries and final recipients as well as additional operational requirements transposing the policy objectives of the instrument;

(b)

the requirements for a target range of values for the leverage effect;

(c)

a definition of non-eligible activities and exclusion criteria;

(d)

provisions ensuring alignment of interest and addressing possible conflicts of interest;

(e)

provisions for the selection of financial intermediaries pursuant to the second subparagraph of Article 139(4) of the Financial Regulation and for the establishment of dedicated investment vehicles, if applicable;

(f)

provisions on the liability of the entrusted entity and of other entities involved in the implementation of the financial instrument;

(g)

provisions on the settlement of disputes;

(h)

provisions on the governance of the financial instrument;

(i)

provisions regarding the use and reuse of the Union contribution in compliance with Article 140(6) of the Financial Regulation;

(j)

provisions for the management of contributions from the Union and of fiduciary accounts, including counterparty risks, acceptable treasury operations, responsibilities of parties concerned, remedial actions in the event of excessive balances on fiduciary accounts, record keeping and reporting;

(k)

provisions on the remuneration of the entrusted entity, including management fee rates and on the calculation and payment of management costs and fees to the entrusted entity in accordance with Article 218;

(l)

where appropriate, provisions on a framework of conditions for the contributions from the funds referred to in Article 175 of the Financial Regulation, in particular the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural development and the Future Fisheries Fund (hereinafter ‘CSF Funds’);

(m)

provisions on the duration, possibility of extension, and termination of the financial instrument, including the conditions for early termination and, where appropriate, exit strategies;

(n)

provisions on the monitoring of the implementation of support to financial intermediaries and final recipients including reporting by the financial intermediaries;

(o)

where applicable, type and nature of any hedging operations referred to in Article 219.