CITM3100 - Investment by CDFI: Retail CDFIs

SI2003/96 Schedule 1(9) & (10)

An investment by a retail Community Development Finance Institution (CDFI) (see CITM2050) is not a ‘relevant investment’ for the purposes of SI2003/96 Regulation 8 (see CITM3030) as a consequence of that investment, and for so long as -

either:

• the investment is in another CDFI or another body whose objective is to provide finance for enterprises within, or for, disadvantaged communities, and
• the amount invested in such bodies exceeds 10% of the amount of the CDFI’s investment fund (see CITM3010) at the anniversary of the accreditation date that immediately precedes the investment date, and
• that 10% limit is exceeded for a period longer than three months

or

• the investment exceeds £250,000 and is made in a non accredited body whose objective is to provide finance for enterprises within, or for, disadvantaged communities

For investments made during the first year following accreditation the 10% limit operates by reference to the amount of the investment fund at the time the investment by the CDFI is made.