Frequently Asked Questions

Throughout the Incentivised Switching Scheme and previous pools under the Capability and Innovation Fund, BCR built up a database of FAQ which have now been archived and can be found here

Below, you will find FAQs relevant to existing CIF awardees.

If the answer to your question cannot be found here or in the archives, please email us at enquiries@bcr-ltd.com.

CIF - Legal Documents

A: You should take your own legal advice on the terms of the CIF Agreement but no, these clauses apply irrespective of which company is applying for funding. The successful applicant is responsible for procuring compliance with the clauses by its group. 

A: You should take your own legal advice on the terms of the CIF Agreement, but your options, if you do not comply, would be to breach the contract or to repay the Funding Amount plus interest in accordance with clause 7.1(b) so that the CIF Agreement terminates under clause 10.1(B).

A: You should take your own legal advice on the terms of the CIF Agreement which can be found here. There are a number of decisions and determinations that BCR has the power to make. For example, clause 7.1 sets out the right for BCR to determine that a Material Breach has occurred and clause 5.7 allows for BCR to decide in its sole discretion whether to accept an Updated Business Case or a Revised Business Case. Clauses 8.4 and 8.5 make it clear that those decisions and determinations can be exercised by BCR at its own discretion without recourse under the CIF Agreement.

A: The circumstances in which BCR can clawback funds is set out in the CIF Agreement, which you should take your own legal advice on. You will see that the intention of the clawback mechanic is not to penalise successful applicants if their business cases, when implemented, are not ultimately successful. 

CIF - Other

A: BCR expects applicants to use all funds awarded in accordance with the approved Business Case and excess funds achieved through cost savings would not be generally available to the applicant for other purposes. The Business Case can be updated from time to time in accordance with the process set out in the CIF Agreement. So if cost savings are achieved then BCR would expect those funds to be used in accordance with the Business Case, and if the Business Case does not cater for the use of these funds BCR would expect the applicant to submit an amended Business Case for assessment by BCR. It is not anticipated that any cost savings would be returned to BCR, but this could happen where, for example, a Revised Business Case is not approved by BCR.

A: There are a number of occasions where funds might be repayable and these are set out in the Capability and Innovation Fund Agreement at clause 7. In summary, these occasions are:

In the event that an applicant is not able to use the funds in accordance with the business case that was submitted and any subsequent updated business case is not approved. In this instance, Banking Competition Remedies may request the repayment (in full or in part ) of the Funding amount in which case the Company will be expected to make the repayment (together with interest at an annual interest rate equal to 8% above the Bank of England base rate, compounded quarterly and accruing from the date Banking Competition Remedies paid the Funding Amount to the Company until the date of repayment) within 5 business days of the date of the demand.

In the case of a Material Breach which is not capable of remedy or the Company has not provided Banking Competition Remedies with evidence to our satisfaction that the Material Breach has been remedied within the period specified by Banking Competition Remedies. Material Breaches are any material breaches of the Capability and Innovation Fund Agreement and include i) failure to use the Funding Amount for Permitted Purposes or in accordance with the business case or ii) use of the Funding Amount for Prohibited Purposes. In this instance, Banking Competition Remedies may request the repayment (in full or in part) of the Funding Amount in which case the Company will be expected to make the repayment (together with interest at an annual interest rate equal to 8% above the Bank of England base rate, compounded quarterly and accruing from the date Banking Competition Remedies paid the Funding Amount to the Company until the date of repayment) within 5 business days of the date of the demand.

If there is a change of control of the company such that the Company’s parent undertaking or another subsidiary undertaking of such parent undertaking is a bank with an SME market share in the UK of more than 14%, the company shall within 10 business days of such change of control return to Banking Competition Remedies any part of the Funding Amount which it has not spent as at the date that the transaction which would give rise to the Change of Control is announced. 

A: As per section 2.8 of the Capability and Innovation Fund Terms and Conditions, “Applicants should seek their own legal, financial, tax, regulatory and/or accounting advice before making any decision to apply for funding from or to participate in the Capability and Innovation Fund.”

A: BCR recognises that applicants will need to provide confidential information to BCR in connection with the application process. BCR will use reasonable endeavours to keep that information confidential. BCR may share confidential information where required by applicable law or regulation. In addition, BCR may share confidential information with its employees, advisers, contractors, the monitor, HMT, the monitor’s and HMT’s employees, advisers and contractors, but will use reasonable endeavours to ensure that the recipient owes a duty of confidentiality in respect of that information.

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