- Volume 3 (2015), Issue 2
- Vol. 3 (2015), No. 2
- >
- Pages 69 - 82
- pp. 69 - 82
Management Costs for Financial Instruments
The Commission’s New Approach and How to Calculate It
In the programming period 2014-2020 the Commission introduced a new approach on management costs and fees. Performance based remuneration plays a more important role than before and is subject to new and more detailed thresholds. Now we are in the phase when the managing authorities have to set-up funding agreements. At this point of time concrete questions arise among others on how to calculate a remuneration compliant with both European Structural and Investment Funds (ESIF) and State aid frameworks. With the draft guidance on management costs and fees the Commission provides well defined additional explanations regarding the threshold calculation in articles 13 (1), (2) and (3) CDR. However there remain questions regarding the implementation of the requirements concerning performance and market confirmity. This article is a hands-on orientation for practioneers (professionals) analysing the implications of recent regulations and guidance of the Commission on this subject. Further, it should give hands-on guidance how to determine the management costs and fees compliant with both ESIF and State aid frameworks.