After regulation 12 insert—

“Notice of first investment in a CDFI12A.

(1)

A CDFI must notify the Secretary of State in writing of the date the first investment is made in the CDFI, no later than three months after that date.

(2)

A CDFI that does not comply with paragraph (1) is liable to a penalty of £500 payable to the Department for Business, Innovation and Skills.

(3)

But paragraph (2) does not apply if in the opinion of the Secretary of State the CDFI had a reasonable excuse for failing to comply with paragraph (1).”