PART ONEU.K. COMMON PROVISIONS

TITLE VIIIU.K. FINANCIAL INSTRUMENTS

Article 222U.K.Conditions for the use of financial instruments(Article 140 of the Financial Regulation)

1.Financial instruments shall address market imperfections or failures or sub-optimal investment situations and provide support only to final recipients that are deemed potentially economically viable at the time of the Union support through a financial instrument.

2.Financial instruments shall provide support to final recipients in a proportionate manner. In particular, preferential treatment of investors providing co-investment or risk-sharing should be justified, proportionate to the risks taken by the investors in a financial instrument and limited to the minimum necessary to ensure their investment or risk-sharing.