# Regulation (EU) No 1290/2013 of the European Parliament and of the CouncilShow full title

Regulation (EU) No 1290/2013 of the European Parliament and of the Council of 11 December 2013 laying down the rules for participation            and dissemination in "Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020)" and repealing Regulation            (EC) No 1906/2006 (Text with EEA relevance)         

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# Regulation (EU) No 1290/2013 of the European Parliament and of the Council

# of 11 December 2013

# laying down the rules for participation and dissemination in "Horizon 2020 - the Framework Programme for Research and Innovation                        (2014-2020)" and repealing Regulation (EC) No 1906/2006                     

# (Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 173, 183, and the second                           paragraph of Article 188 thereof,                        

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the Court of Auditors(1),                        

Having regard to the opinion of the European Economic and Social Committee(2),                        

Acting in accordance with the ordinary legislative procedure(3),                        

Whereas:

(1)"Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020)" ("Horizon 2020") is established by Regulation                              (EU) No 1291/2013 of the European Parliament and of the Council(4). That Regulation needs to be complemented by rules for participation in indirect actions undertaken under Horizon 2020, and                              for exploitation and dissemination of the results of those actions.

(2)Horizon 2020 should be implemented with a view to contributing directly to creating industrial leadership, growth and employment                              as well as citizens' welfare in Europe, and should reflect the strategic vision of the Commission Communication of 6 October                              2010 entitled "Europe 2020 Flagship Initiative Innovation", in which the Commission commits itself to radically simplify access                              for participants.

(3)Horizon 2020 should support the achievement and functioning of the European Research Area in which researchers, scientific                              knowledge and technology circulate freely, by strengthening cooperation both between the Union and the Member States, and                              among the Member States, in particular through the application of a coherent set of rules.

(4)The rules for participation, exploitation and dissemination in Horizon 2020 laid down in this Regulation ("the Rules") should                              adequately reflect the recommendations of the European Parliament in its resolution of 11 November 2010 on simplifying the                              implementation of the Research Framework Programmes(5), and of the Council with regard to the simplification of the administrative and financial requirements of the research framework                              programmes. The Rules should provide continuity to the simplification measures already implemented under Decision No 1982/2006/EC                              of the European Parliament and of the Council(6). They should take up the recommendations made in the final report of the Expert Group entitled 'Interim Evaluation of the                              7th Framework Programme' of 12 November 2010 and they should enable further progress in reducing the administrative burden                              for participants and the complexity of the financial provisions in order to facilitate participation and reduce the number                              of financial errors. The Rules should also duly reflect the concerns raised and recommendations made by the research community                              resulting from the debate initiated by the Commission Communication of 29 April 2010 entitled "Simplifying the implementation                              of the research framework programmes", and the subsequent Green Paper of 9 February 2011 entitled "From Challenges to Opportunities:                              Towards a Common Strategic Framework for EU Research and Innovation funding".

(5)The interim evaluation of Horizon 2020 should include an evaluation of the new funding model, including its impact on funding                              levels, on participation in Horizon 2020 and on the attractiveness of Horizon 2020.

(6)The Commission or the relevant funding body should ensure that guidance and information is made available to all potential                              participants at the time of publication of the call for proposals.

(7)In order to ensure coherence with other Union funding programmes, Horizon 2020 should be implemented in accordance with Regulation                              (EU, Euratom) No 966/2012 of the European Parliament and of the Council(7), and Commission Delegated Regulation (EU) 1268/2012(8), taking due account of the specific nature of research and innovation activities.

(8)An integrated approach should be ensured by bringing together activities covered by the Seventh Framework Programme for research,                              technological development and demonstration activities (2007-2013) adopted by Decision No 1982/2006/EC, the Competitiveness                              and Innovation Framework Programme established by Decision No 1639/2006/EC of the European Parliament and of the Council(9) and the European Institute of Innovation and Technology (the EIT) established by Regulation (EC) No 294/2008 of the European                              Parliament and of the Council(10) to make participation easier, create a more coherent set of instruments and increase the scientific and economic impact,                              while avoiding duplication and fragmentation. Common rules should apply in order to ensure a coherent framework which should                              facilitate participation in programmes receiving Union financial contributions from the budget of Horizon 2020, including                              participation in programmes managed by the EIT, joint undertakings or any other structures under Article 187 of the Treaty                              on the Functioning of the European Union (TFEU), and participation in programmes undertaken by Member States pursuant to Article                              185 TFEU.However, flexibility to adopt specific rules should be ensured when justified by the specific needs of the respective actions.                              In order to take into account the specific operating needs as identified in the framework of the relevant basic act of the                              bodies set up under Article 187 TFEU, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the                              Commission. It is of particular importance that the Commission carry out appropriate consultations during its preparatory                              work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure the simultaneous,                              timely and appropriate transmission of relevant documents to the European Parliament and to the Council.

(9)Actions which fall within the scope of this Regulation should respect fundamental rights and observe the principles acknowledged                              in particular by the Charter of Fundamental Rights of the European Union. Such actions should be in conformity with any legal                              obligation including international law and with any relevant Commission decisions such as the Commission notice of 28 June                              2013(11), as well as with ethical principles, which include avoiding any breach of research integrity.

(10)In line with the objectives of international cooperation as set out in Articles 180 and 186 TFEU, the participation of legal                              entities established in third countries and of international organisations should be promoted. The implementation of the Rules                              should be in conformity with the measures adopted in accordance with Articles 75 and 215 TFEU and should be in compliance                              with international law. Moreover, the implementation of the Rules should duly take into account the conditions for the participation                              of Union entities in third countries' corresponding programmes.

(11)The Rules should provide a coherent, comprehensive and transparent framework to ensure the most efficient implementation possible,                              taking into account the need for easy access by all participants through simplified procedures, in particular with regard                              to micro-, small-, and medium-sized enterprises (SMEs). The financial assistance from the Union could be provided in various                              forms.

(12)In line with the principle of transparency and in addition to the publicity requirement set out in Regulation (EU, Euratom)                              No 966/2012 and in Regulation (EU) No 1268/2012, the Commission should publish open calls for proposals on the internet pages                              of Horizon 2020, through specific information channels, and should ensure their wide dissemination, including via national                              contact points and upon request in accessible formats, where practicable.

(13)The selection and award criteria laid down in this Regulation should be applied in a transparent way and based on objective                              and measurable parameters, taking into account the overall aim of Horizon 2020 to achieve a well-functioning European Research                              Area.

(14)In general, the period between the final date for the submission of complete proposals and the signing of grant agreements                              with applicants or notifying grant decisions to them should be shorter than the period provided for in Regulation (EU, Euratom)                              No 966/2012. In duly justified cases and for actions of the European Research Council a longer period should be allowed.

(15)The Commission should continue its efforts to simplify the procedures in ways made possible by the improvement of IT systems,                              such as the further expansion of the portal for participants which should function as the single entry point from the moment                              of publication of the calls for proposals, through submission of proposals, until implementation of the action, with the aim                              of establishing a one-stop shop. The system may also provide feedback to applicants on the progress and the timeline of their                              applications.

(16)The handling of confidential data and classified information should be governed by all relevant Union law, including the Institutions'                              internal rules, such as Commission Decision 2001/844/EC, ECSC, Euratom(12) which lays down the provisions on security of European Union classified information.

(17)It is necessary to establish the minimum conditions for participation, both as a general rule and with regard to the specificities                              of the actions under Horizon 2020. In particular, rules should be laid down regarding the number of participants and their                              places of establishment. In the case of an action without the participation of an entity established in a Member State, the                              attainment of the objectives laid down in Articles 173 and 179 TFEU should be pursued.

(18)Pursuant to Council Decision 2001/822/EC(13), legal entities of overseas countries and territories are eligible to participate in Horizon 2020 subject to the specific                              conditions laid down in the latter.

(19)The Commission should consider the timings of calls for proposals and requests for information taking into account, where                              possible, standard holiday periods.

(20)In the case of unsuccessful proposals, the Commission should give feedback to the applicants concerned.

(21)Clear and transparent mechanisms to develop calls for proposals on specific topics should enable a level playing field, increase                              the attractiveness of Horizon 2020 and increase participation.

(22)The Commission should in all aspects of Horizon 2020 act in accordance with the principles of the European Code of Good Administrative                              Behaviour as set out in the annex to Commission Decision 2000/633/EC, ECSC, Euratom(14).

(23)It is appropriate to establish the terms and conditions for providing Union funding to participants in actions under Horizon                              2020. In order to reduce the complexity of the existing funding rules, a simplified cost reimbursement system should be adopted                              with enhanced use of lump sums, flat rates and unit costs.

(24)The reimbursement rates in this Regulation are referred to as maximums in order to comply with the non-profit requirement                              and the co-financing principle, and to allow participants to request a lower rate. In principle, the reimbursement rates should                              however be 100 % or 70 %.

(25)The OECD definitions regarding Technological Readiness Level (TRL) should be taken into account in the classification of technological                              research, product development and demonstration activities.

(26)Specific challenges in the area of research and innovation should be addressed through new forms of funding such as prizes,                              pre-commercial procurement, public procurement of innovative solutions, the SME Instrument and the Fast Track to Innovation                              actions, which require specific rules.

(27)In order to maintain a level playing field for all undertakings active in the internal market, funding provided by Horizon                              2020 should be designed in accordance with State aid rules so as to ensure the effectiveness of public spending and prevent                              market distortions such as crowding-out of private funding, the creation of ineffective market structures or the preservation                              of inefficient firms. Care should be taken to ensure that funding of innovation actions neither distorts competition nor leads                              to market interference without sufficient cause.

(28)The financial interests of the Union should be protected through proportionate measures throughout the expenditure cycle,                              ensuring an appropriate balance between trust and control.

(29)In accordance with Regulation (EU, Euratom) No 966/2012, the Rules should provide the basis for a wider acceptance of the                              usual cost accounting practices of the beneficiaries.

(30)The participant Guarantee Fund set up under Regulation (EC) No 1906/2006 of the European Parliament and of the Council(15) and managed by the Commission has proved to be an important safeguard mechanism which mitigates the risks associated with                              the amounts due and not reimbursed by defaulting participants. Therefore, a new participant Guarantee Fund ("the Fund") should                              be established. In order to ensure more efficient management and better coverage of participants' risk, the Fund should cover                              actions under the programme set up under Decision No 1982/2006/EC, under the programme set up by Council Decision 2006/970/Euratom(16), under the programme set up by Council Decision 2012/93/Euratom(17) as well as actions under Horizon 2020 and Regulation (Euratom) No 1314/2013 of the Council(18). Programmes managed by entities other than Union funding bodies should not be covered by the Fund.

(31)In order to enhance transparency, the names of experts that have assisted the Commission or relevant funding bodies in the                              application of this Regulation should be published. Where the publication of the name would endanger the security or integrity                              of the expert or would unduly prejudice his or her privacy, the Commission or funding bodies should be able to refrain from                              the publication of such names.

(32)Personal data relating to the experts should be processed in accordance with Regulation (EC) No 45/2001 of the European Parliament                              and of the Council(19).

(33)Rules governing the exploitation and dissemination of results should be laid down to ensure that participants protect, exploit                              and disseminate those results as appropriate, and to provide for the possibility of additional exploitation conditions in                              the European strategic interest. Participants that have received Union funding, and that plan to exploit the results generated                              with such funding primarily in third countries not associated with Horizon 2020, should indicate how the Union funding will                              benefit Europe's overall competitiveness (reciprocity principle), as set out in the grant agreement.

(34)In the case of research with the potential for further development into a novel medical technology (such as drugs, vaccines                              and medical diagnostics), measures should be taken to ensure the immediate exploitation and dissemination of the results,                              where appropriate.

(35)Despite the success of existing Union debt and equity financial instruments for research, development, innovation and growth,                              access to risk finance remains a key issue, in particular for innovative SMEs. In order to allow their most effective use,                              debt and equity financial instruments should be allowed to be combined with each other and with grants funded under the Union                              budget, including under Horizon 2020. Moreover, the Commission should, in particular, ensure continuity of the Risk-Sharing                              Finance Facility (RSFF) set up under Decision No 1982/2006/EC and the early stage part of the High-Growth and Innovative SME                              Facility (GIF1) set up under Decision No 1639/2006/EC within their succeeding debt and equity financial instruments under                              Horizon 2020, respectively the 'Union loan & guarantee service for Research and innovation' and the 'Union Equity Instruments                              for research and innovation'. In this context, revenues and repayments generated by any of those financial instruments should                              directly benefit the financial instruments set up under Horizon 2020.

(36)The Commission should ensure sufficient complementarities between the SME instrument under Horizon 2020 and the financial                              instruments under Horizon 2020 and the COSME programme established under Regulation (EU) No 1287/2013 of the European Parliament                              and of the Council(20), as well as with schemes and instruments set up jointly with Member States, such as the Eurostars Joint Programme(21).

(37)For reasons of legal certainty and clarity, Regulation (EC) No 1906/2006 should be repealed,

HAVE ADOPTED THIS REGULATION:

## TITLE IU.K.**INTRODUCTORY PROVISIONS**

### Article 1U.K.Subject matter and scope

1.This Regulation lays down specific rules for participation in indirect actions undertaken under Regulation (EU) No 1291/2013,                        including participation in indirect actions funded by funding bodies in accordance with Article 9(2) of that Regulation.                  

This Regulation also lays down the rules governing the exploitation and dissemination of results.

2.Subject to the specific rules laid down in this Regulation, the relevant rules of Regulation (EU, Euratom) No 966/2012 and                        Regulation (EU) No 1268/2012 shall apply.                  

3.Regulation (EC) No 294/2008 or any basic act which entrusts budget implementation tasks to a funding body under Article 185                        TFEU may establish rules which depart from those laid down in this Regulation. In order to take into account their specific                        operating needs and subject to the rules established in the relevant basic act, the Commission shall be empowered to adopt                        delegated acts in accordance with Article 56, with regard to funding bodies set up under Article 187 TFEU concerning:                  

(a)the conditions for participation in calls for proposals issued by funding bodies established in the area of aeronautics with                        a view to reducing the minimum number of participants set out in Article 9(1);                  

(b)the eligibility for funding as set out in Article 10, allowing funding bodies established in the area of bio-based industries                        and of innovative medicines to limit the eligibility for funding to specific types of participants;                  

(c)the rules governing exploitation and dissemination of results, allowing funding bodies established in the area of innovative                        medicines to:                  

extend the possibilities of transfer and licensing of results and background for affiliated entities, purchasers and any successor                              entity, in accordance with the grant agreement and without the consent of other participants referred to in Article 44(1)                              and (2);                           

allow for specific agreements for access rights to background for developing results for commercialisation or commercialising                              results themselves (direct exploitation) referred to in Article 48(2) to (4);                           

complement the rules by introducing provisions on ownership and access to data, knowledge and information which are outside                              of the objectives of an action and which are not needed for implementing and exploiting the action (sideground) referred to                              in Article 41(2) and Articles 45 to 48;                           

extend rules on exploitation to other purposes than implementing the action (research use) or developing results for commercialisation                              or commercialising results themselves (direct exploitation) referred to in Article 48;                           

set out specific criteria for allowing sub-licensing from one participant to another participant in the same action referred                              to in Article 46(2);                           

extend, under the conditions defined in the consortium agreement referred to in Article 24(2), the access rights of participants,                              their affiliated entities and third parties as licensees to results or background for purposes other than implementing the                              action (research use) under appropriate conditions including financial terms, or developing results for commercialisation                              or commercialising results themselves (direct exploitation), as referred to in Articles 46 to 48;                           

make access rights for direct exploitation conditional upon the agreement of the participants concerned, as referred to in                              Article 48;                           

render optional the dissemination through scientific publication in the form of open access, as referred to in Article 43(2);

(d)the funding of the actions, allowing funding bodies in the area of electronic components and systems to apply reimbursement                        rates different to those set out in Article 28(3) in cases where one or more Member States co-fund a participant or an action.                  

A funding body entrusted with budget implementation tasks under points (i) or (ii) of point (c) of Article 58(1) of Regulation                     (EU, Euratom) No 966/2012, may apply rules which depart from those laid down in this Regulation, subject to the consent of                     the Commission, if its specific operating needs so require. The Commission shall give its consent in such cases only if those                     rules are in compliance with the general principles established in this Regulation.                  

4.This Regulation shall not apply to direct actions carried out by the Joint Research Centre (JRC).                  

### Article 2U.K.Definitions

1.For the purposes of this Regulation, the following definitions apply:                  

'access rights' means rights to use results or background under the terms and conditions laid down in accordance with this                              Regulation;                           

'affiliated entity' means any legal entity that is under the direct or indirect control of a participant, or under the same                              direct or indirect control as the participant, or that is directly or indirectly controlling a participant. Control may take                              any of the forms set out in Article 8(2);                           

'associated country' means a third country which is party to an international agreement with the Union, as identified in Article                              7 of Regulation (EU) No 1291/2013;                           

'background' means any data, know-how or information whatever its form or nature, tangible or intangible, including any rights                              such as intellectual property rights, which is: (i) held by participants prior to their accession to the action; (ii) needed                              for carrying out the action or for exploiting the results of the action; and (iii) identified by the participants in accordance                              with Article 45;                           

'basic act' means a legal act adopted by the Union institutions in the form of a regulation, a directive or a decision within                              the meaning of Article 288 TFEU which provides a legal basis for the action;                           

'innovation action' means an action primarily consisting of activities directly aimed at producing plans and arrangements                              or designs for new, altered or improved products, processes or services. For this purpose they may include prototyping, testing,                              demonstrating, piloting, large-scale product validation and market replication;                           

'coordination and support action' means an action consisting primarily of accompanying measures such as standardisation, dissemination,                              awareness-raising and communication, networking, coordination or support services, policy dialogues and mutual learning exercises                              and studies, including design studies for new infrastructure, and may also include complementary activities of networking                              and coordination between programmes in different countries;                           

'dissemination' means the public disclosure of the results by any appropriate means (other than resulting from protecting                              or exploiting the results), including by scientific publications in any medium;                           

'exploitation' means the use of results in further research activities other than those covered by the action concerned, or                              in developing, creating and marketing a product or process, or in creating and providing a service, or in standardisation                              activities;                           

'fair and reasonable conditions' means appropriate conditions, including possible financial terms or royalty-free conditions,                              taking into account the specific circumstances of the request for access, for example the actual or potential value of the                              results or background to which access is requested and/or the scope, duration or other characteristics of the exploitation                              envisaged;                           

'funding body' means a body or authority, other than the Commission, as referred to in point (c) of Article 58(1) of Regulation                              (EU, Euratom) No 966/2012, to which the Commission has entrusted budget implementation tasks in accordance with Article 9(2)                              of Regulation (EU) No 1291/2013;                           

'international European interest organisation' means an international organisation, the majority of whose members are Member                              States or associated countries, and whose principal objective is to promote scientific and technological cooperation in Europe;                           

'legal entity' means any natural person, or any legal person created and recognised as such under national law, Union law                              or international law, which has legal personality and which may, acting in its own name, exercise rights and be subject to                              obligations;                           

'non-profit legal entity' means a legal entity which by its legal form is non-profit-making or which has a legal or statutory                              obligation not to distribute profits to its shareholders or individual members;                           

'participant' means any legal entity carrying out an action or part of an action under Regulation (EU) No 1291/2013 having                              rights and obligations with regard to the Union or another funding body under this Regulation;                           

'programme co-fund action' means an action funded through a grant the main purpose of which is supplementing individual calls                              or programmes funded by entities, other than Union funding bodies, managing research and innovation programmes. A programme                              co-fund action may also include complementary activities of networking and coordination between programmes in different countries;                           

'pre-commercial procurement' means the procurement of research and development services involving risk-benefit sharing under                              market conditions, and competitive development in phases, where there is a clear separation of the research and development                              services procured from the deployment of commercial volumes of end-products;                           

'public procurement of innovative solutions' means procurement where contracting authorities act as a launch customer for                              innovative goods or services which are not yet available on a large-scale commercial basis, and may include conformity testing;                           

'results' means any tangible or intangible output of the action, such as data, knowledge or information, that is generated                              in the action, whatever its form or nature, whether or not it can be protected, as well as any rights attached to it, including                              intellectual property rights;                           

'SME' means micro-, small- and medium-sized enterprises, as defined in Commission Recommendation 2003/361/EC(22);                           

'work programme' means the document adopted by the Commission for the implementation of the specific programme in accordance                              with Article 5 of Council Decision 2013/743/EU of 3 December 2013(23);                           

'work plan' means the document similar to the Commission work programme adopted by funding bodies entrusted with part of the                              implementation of Horizon 2020 in accordance with Article 9(2) of Regulation (EU) No 1291/2013.                           

2.For the purposes of this Regulation, an entity which does not have legal personality under the applicable national law shall                        be considered as being assimilated to a legal entity provided that the conditions set out in Article 131(2) of Regulation                        (EU, Euratom) No 966/2012 and Article 198 of Regulation (EU) No 1268/2012 are complied with.                  

3.For the purposes of this Regulation, grant recipients shall not be considered to be funding bodies.                  

### Article 3U.K.Confidentiality

Subject to the conditions established in the implementing agreements, decisions or contracts, any data, knowledge and information                     communicated as confidential in the framework of an action shall be kept confidential, taking due account of Union law regarding                     the protection of and access to classified information.                  

### Article 4U.K.Information to be made available

1.Without prejudice to Article 3, the Commission shall, upon request, make available to the Union institutions, bodies, offices                        or agencies, any Member State or associated country, any useful information in its possession concerning results generated                        by a participant in an action that has received Union funding, provided that both the following conditions are met:                  

(a)the information concerned is relevant to public policy;                  

(b)the participants have not provided sound and sufficient reasons for withholding the information concerned.                  

In actions under the specific objective 'Secure societies - Protecting freedom and security of Europe and its citizens', the                     Commission shall upon request make available to Union institutions, bodies, offices or agencies or to Member States' national                     authorities any useful information in its possession concerning results generated by a participant in an action that has received                     Union funding. The Commission shall notify the participant of such communication. Where a Member State or Union institution,                     body, office or agency requests the communication of information, the Commission shall also notify such communication to all                     Member States.                  

2.The provision of information pursuant to paragraph 1 shall not be deemed to transfer to the recipient any rights or obligations                        of the Commission or of the participants. However, the recipient shall treat any such information as confidential unless it                        becomes public or is made available publicly by the participants, or unless it was communicated to the Commission without                        restrictions concerning confidentiality. The Commission rules on security shall apply regarding classified information.                  

### Article 5U.K.Guidance and information for potential participants

In accordance with Regulation (EU, Euratom) No 966/2012 and Regulation (EU) No 1268/2012, the Commission or the relevant funding                     body shall ensure that sufficient guidance and information is made available to all potential participants at the time of                     publication of the call for proposals, in particular the applicable model grant agreement.                  

## TITLE IIU.K.**RULES FOR PARTICIPATION**

### *CHAPTER I*U.K.***General provisions***

#### Article 6U.K.Forms of funding

In accordance with Article 10 of Regulation (EU) No 1291/2013, funding may take one or several of the forms provided for by                     Regulation (EU, Euratom) No 966/2012, in particular grants, prizes, procurement or financial instruments.                  

#### Article 7U.K.Legal entities that may participate in actions

1.Any legal entity, regardless of its place of establishment, or international organisation may participate in an action provided                        that the conditions laid down in this Regulation have been met, together with any conditions laid down in the relevant work                        programme or work plan.                  

2.The relevant work programme may restrict the participation in Horizon 2020 or parts thereof of legal entities established                        in third countries where conditions for the participation of legal entities from Member States, or of their affiliated entities                        established in a third country, in the third country's research and innovation programmes are considered to be prejudicial                        to the Union's interests.                  

3.The relevant work programme or work plan may exclude entities unable to provide satisfactory security guarantees, including                        as regards personnel security clearance if justified by security reasons.                  

4.The JRC may participate in actions with the same rights and obligations as a legal entity established in a Member State.                  

#### Article 8U.K.Independence

1.Two legal entities shall be regarded as independent of each other where neither is under the direct or indirect control of                        the other or under the same direct or indirect control as the other.                  

2.For the purposes of paragraph 1, control may, in particular, take either of the following forms:                  

(a)the direct or indirect holding of more than 50 % of the nominal value of the issued share capital in the legal entity concerned,                        or of a majority of the voting rights of the shareholders or associates of that entity;                  

(b)the direct or indirect holding, in fact or in law, of decision-making powers in the legal entity concerned.                  

3.For the purposes of paragraph 1, the following relationships between legal entities shall not in themselves be deemed to constitute                        controlling relationships:                  

(a)the same public investment corporation, institutional investor or venture-capital company has a direct or indirect holding                        of more than 50 % of the nominal value of the issued share capital or a majority of voting rights of the shareholders or associates;                  

(b)the legal entities concerned are owned or supervised by the same public body.                  

### *CHAPTER II*U.K.***Grants***

#### *Section I*U.K.***Award procedure***

##### Article 9U.K.Conditions for participation

1.The following minimum conditions shall apply:                  

(a)at least three legal entities shall participate in an action;                  

(b)three legal entities shall each be established in a different Member State or associated country; and                  

(c)the three legal entities referred to in point (b) shall be independent of each other within the meaning of Article 8.                  

2.For the purposes of paragraph 1, where one of the participants is the JRC, or an international European interest organisation                        or an entity created under Union law, it shall be deemed to be established in a Member State or associated country other than                        any Member State or associated country in which another participant in the same action is established.                  

3.By way of derogation from paragraph 1, the minimum condition shall be the participation of one legal entity established in                        a Member State or associated country, in the case of:                  

(a)European Research Council (ERC) frontier research actions;                  

(b)the SME instrument, where the action has a clear European added value;                  

(c)programme co-fund actions; and                  

(d)justified cases provided for in the work programme or work plan.                  

4.By way of derogation from paragraph 1, in the case of coordination and support actions and training and mobility actions,                        the minimum condition shall be the participation of one legal entity.                  

5.Where appropriate and duly justified, work programmes or work plans may provide for additional conditions according to specific                        policy requirements or to the nature and objectives of the action, including inter alia conditions regarding the number of                        participants, the type of participant and the place of establishment.                  

##### Article 10U.K.Eligibility for funding

1.The following participants are eligible for funding from the Union:                  

(a)any legal entity established in a Member State or associated country, or created under Union law;                  

(b)any international European interest organisation;                  

(c)any legal entity established in a third country identified in the work programme.                  

2.In the case of a participating international organisation or in the case of a participating legal entity established in a                        third country, neither of which are eligible for funding according to paragraph 1, funding from the Union may be granted provided                        that at least one of the following conditions is fulfilled:                  

(a)the participation is deemed essential for carrying out the action by the Commission or the relevant funding body;                  

(b)such funding is provided for under a bilateral scientific and technological agreement or any other arrangement between the                        Union and the international organisation or, for entities established in third countries, the country in which the legal entity                        is established.                  

##### Article 11U.K.Calls for proposals

1.Calls for proposals shall be issued in accordance with Regulation (EU, Euratom) No 966/2012 and Regulation (EU) No 1268/12,                        taking account in particular of the need for transparency and non-discrimination, and for flexibility appropriate to the diverse                        nature of the research and innovation sectors.                  

2.As an exception and without prejudice to the other cases provided for in Regulation (EU, Euratom) No 966/2012 and Regulation                        (EU) No 1268/2012, calls for proposals shall not be issued for coordination and support actions and programme co-fund actions                        to be carried out by legal entities identified in the work programmes or work plans provided that the action does not fall                        within the scope of a call for proposals.                  

3.In accordance with the relevant rules of Regulation (EU, Euratom) No 966/2012 and Regulation (EU) No 1268/2012, sufficient                        time periods for preparing proposals shall be provided, with reasonable notice of upcoming calls for proposals through the                        publication of a work programme and a reasonable time period between the publication of a call for proposals and the deadline                        for submitting a proposal.                  

##### Article 12U.K.Joint calls with third countries or with international organisations

1.Joint calls for proposals with third countries or their scientific and technological organisations and agencies or with international                        organisations may be issued to jointly fund actions in priority areas of common interest and expected mutual benefit where                        there is a clear added value for the Union. Proposals shall be evaluated and selected through joint evaluation and selection                        procedures to be agreed upon. Such evaluation and selection procedures shall ensure compliance with the principles set out                        in Title VI of Regulation (EU, Euratom) No 966/2012 and involve a balanced group of independent experts appointed by each                        party.                  

2.Legal entities receiving funding from the Union shall conclude a grant agreement with the Union or the relevant funding body.                        That grant agreement shall include a description of the work to be done by those participants and by the participating legal                        entities from the third countries involved.                  

3.Legal entities receiving funding from the Union shall conclude a coordination agreement with the participating legal entities                        receiving funding from the relevant third countries or international organisations.                  

##### Article 13U.K.Proposals

1.Proposals shall include a draft plan for the exploitation and dissemination of the results, where provided for in the work                        programme or work plan.                  

2.Any proposal for research on human embryonic stem cells shall include, as appropriate, details of licensing and control measures                        that will be taken by the competent authorities of the Member States concerned as well as details of the ethical approvals                        that will be provided. As regards the derivation of human embryonic stem cells, institutions, organisations and researchers                        shall be subject to strict licensing and control in accordance with the legal framework of the Member States concerned.                  

3.A proposal which contravenes ethical principles or any applicable legislation, or which does not fulfil the conditions set                        out in Decision No 2013/743/EU, in the work programme, in the work plan or in the call for proposals may be excluded from                        the evaluation, selection and award procedures at any time.                  

4.Where relevant and specified in the work programme or the work plan, proposals shall explain how and to what extent gender                        analysis is relevant to the content of the intended project.                  

##### Article 14U.K.Ethics review

1.The Commission shall systematically carry out ethics reviews for proposals raising ethical issues. That review shall verify                        the respect of ethical principles and legislation and, in the case of research carried out outside the Union, that the same                        research would have been allowed in a Member State.                  

2.The Commission shall make the process of the ethics review as transparent as possible and ensure that it is carried out in                        a timely manner avoiding, where possible, the resubmission of documents.                  

##### Article 15U.K.Selection and award criteria

1.The proposals submitted shall be evaluated on the basis of the following award criteria:                  

(a)excellence;                  

(b)impact;                  

(c)quality and efficiency of the implementation.                  

2.Only the criterion referred to in point (a) of paragraph 1 shall apply to proposals for ERC frontier research actions.                  

3.The criterion referred to in point (b) of paragraph 1 may be given a higher weighting for proposals for innovation actions.                  

4.The work programme or work plan shall lay down further details of the application of the award criteria laid down in paragraph                        1, and specify weightings and thresholds.                  

5.The Commission shall take into account the possibility of a two-stage submission procedure provided for in Regulation (EU,                        Euratom) No 966/2012 and Regulation (EU) No 1268/2012, where appropriate and consistent with the objectives of the call for                        proposals.                  

6.Proposals shall be ranked according to the evaluation results. The selection shall be made on the basis of that ranking.                  

7.The evaluation shall be carried out by independent experts.                  

8.In the case of a legal entity referred to in Article 11(2) or in other duly justified exceptional circumstances, the evaluation                        may be carried out in a manner derogating from paragraph 7. In each case of such evaluation the Commission shall provide the                        Member States with detailed information on the evaluation procedure used and its outcome.                  

9.In cases where the requested funding from the Union for the action is equal or superior to EUR 500 000, the Commission or                        the relevant funding body shall, by means compatible with national law, verify in advance the financial capacity of only the                        coordinators. Furthermore, whenever there are grounds to doubt the financial capacity of the coordinator or other participants                        on the basis of available information, the Commission or the relevant funding body shall verify their financial capacity.                  

10.The financial capacity shall not be verified either in respect of legal entities whose viability is guaranteed by a Member                        State or an associated country or in respect of higher and secondary education establishments.                  

11.Financial capacity may be guaranteed by any other legal entity, whose financial capacity shall in turn be verified in accordance                        with paragraph 9.                  

##### Article 16U.K.Evaluation review procedure

1.The Commission or the relevant funding body shall provide a transparent evaluation review procedure for applicants which consider                        that the evaluation of their proposal has not been carried out in accordance with the procedures set out in this Regulation,                        the relevant work programme, work plan or the call for proposals.                  

2.A request for review shall relate to a specific proposal, and shall be submitted by the coordinator of the proposal within                        30 days of the date on which the Commission or the relevant funding body informs the coordinator of the evaluation results.                  

3.The Commission or the relevant funding body shall be responsible for the examination of the request referred to in paragraph                        2. The examination shall cover only the procedural aspects of the evaluation, and not the merits of the proposal.                  

4.An evaluation review committee composed of Commission staff or of staff of the relevant funding body shall provide an opinion                        on the procedural aspects of the evaluation process. It shall be chaired by an official of the Commission or of the relevant                        funding body, from a department other than that responsible for the call for proposals. The committee may recommend one of                        the following:                  

(a)re-evaluation of the proposal primarily by evaluators not involved in the previous evaluation;                  

(b)confirmation of the initial evaluation.                  

5.On the basis of the recommendation referred to in paragraph 4, a decision shall be taken by the Commission or the relevant                        funding body and notified to the coordinator of the proposal. The Commission or the relevant funding body shall take such                        decision without undue delay.                  

6.The review procedure shall not delay the selection process of proposals which are not the subject of requests for review.                  

7.The review procedure shall not preclude any other actions the participant may take in accordance with Union law.                  

##### Article 17U.K.Enquiries and complaints

1.The Commission shall ensure the existence of a procedure for participants to make enquiries or complaints about their involvement                        in Horizon 2020.                  

2.The Commission shall ensure that information on how to register concerns, enquiries or complaints is made available to all                        participants and is published on-line.                  

##### Article 18U.K.Grant agreement

1.The Commission shall, in close cooperation with the Member States, draw up model grant agreements between the Commission or                        the relevant funding body and the participants in accordance with this Regulation. If a significant modification of a model                        grant agreement is required, the Commission shall, in close cooperation with the Member States, revise it as appropriate.                  

2.The Commission or the relevant funding body shall enter into a grant agreement with the participants. The removal or substitution                        of an entity before signature of the grant agreement shall be duly justified.                  

3.The grant agreement shall establish the rights and obligations of the participants and of either the Commission or the relevant                        funding body in compliance with this Regulation. It shall also establish the rights and obligations of legal entities which                        become participants during the implementation of the action, as well as the role and tasks of a consortium coordinator.                  

4.On the basis of a requirement in a work programme or work plan, the grant agreement may establish rights and obligations of                        the participants with regard to access rights, exploitation and dissemination, in addition to those laid down in this Regulation.                  

5.The grant agreement shall, where appropriate and to the extent possible, reflect the general principles laid down in the Commission                        Recommendation on the European Charter for Researchers and the Code of Conduct for the Recruitment of Researchers, principles                        of research integrity, the Commission Recommendation on the management of intellectual property in knowledge transfer activities,                        the Code of Practice for universities and other public research institutions as well as the gender equality principle laid                        down in Article 16 of Regulation (EU) No 1291/2013.                  

6.The grant agreement shall, where appropriate, contain provisions ensuring the respect of ethical principles, including the                        establishment of an independent ethics board and the right of the Commission to carry out an ethics audit by independent experts.                  

7.In duly justified cases, specific grants for actions may form part of a framework partnership in accordance with Regulation                        (EU, Euratom) No 966/2012 and Regulation (EU) No 1268/2012.                  

##### Article 19U.K.Grant decisions

Where appropriate, and in duly justified cases, the Commission, in accordance with Article 121(1) of Regulation (EU, Euratom)                     No 966/2012, or the relevant funding body, may notify grant decisions instead of entering into grant agreements. The provisions                     of this Regulation referring to grant agreements shall apply mutatis mutandis.                  

##### Article 20U.K.Time to grant

1.In accordance with Article 128(2) of Regulation (EU, Euratom) No 966/2012, calls for proposals shall specify the planned date                        by which all applicants shall be informed of the outcome of the evaluation of their application and the indicative date for                        the signature of grant agreements or the notification of grant decisions.                  

2.The dates referred to in paragraph 1 shall be based on the following periods:                  

(a)for informing all applicants of the outcome of the scientific evaluation of their application, a maximum period of five months                        from the final date for submission of complete proposals;                  

(b)for signing grant agreements with applicants or notifying grant decisions to them, a maximum period of three months from the                        date of informing applicants they have been successful.                  

3.The periods referred to in paragraph 2 may be exceeded for actions of the ERC and in exceptional, duly justified cases, in                        particular where actions are complex, where there is a large number of proposals or where requested by the applicants.                  

4.Participants shall be given reasonable time to submit the information and documentation required for the signature of the                        grant agreement. The Commission shall make decisions and requests for information as promptly as possible. Where possible,                        resubmission of documents shall be avoided.                  

##### Article 21U.K.Time to Pay

Participants shall be paid in a timely manner in accordance with Regulation (EU, Euratom) No 966/2012. When a payment has                     been made to the coordinator, the Commission or the relevant funding body shall notify the participants thereof.                  

##### Article 22U.K.Secure electronic system

All exchanges with participants, including the conclusion of grant agreements, the notification of grant decisions and any                     amendments thereto, may be made through an electronic exchange system set up by the Commission or by the relevant funding                     body, as stipulated in Article 179 of Regulation (EU) No 1268/2012.                  

#### *Section II*U.K.***Implementation***

##### Article 23U.K.Implementation of actions

1.Participants shall implement actions in compliance with all the conditions and obligations set out in this Regulation, Regulation                        (EU, Euratom) No 966/2012, Regulation (EU) No 1268/2012, Decision 2013/743/EU, the work programme or work plan, the call for                        proposals and the grant agreement.                  

2.Participants shall make no commitments which are incompatible with this Regulation or the grant agreement. Where a participant                        fails to comply with its obligations regarding the technical implementation of the action, the other participants shall comply                        with the obligations without any additional Union funding unless the Commission or the relevant funding body expressly relieves                        them of that obligation. In the event of a participant defaulting, the Commission may, in accordance with point (a) of Article                        39(3) transfer the amount due from the Participant Guarantee Fund referred to in Article 38 to the coordinator of the action.                        The financial responsibility of each participant shall be limited to its own debt subject to the provisions relating to the                        Participant Guarantee Fund. Participants shall ensure that the Commission or the relevant funding body is informed in due                        time of any event which might significantly affect the implementation of the action or the interests of the Union.                  

3.Participants shall implement the action and shall take all necessary and reasonable measures to that end. They shall have                        the appropriate resources as and when needed for carrying out the action. Where it is necessary for the implementation of                        the action, they may call upon third parties, including subcontractors, to carry out work under the action or may use resources                        made available by third parties by means of contributions in kind, according to the conditions set out in the grant agreement.                        Participants shall retain responsibility towards the Commission or the relevant funding body and towards the other participants                        for the work carried out.                  

4.The award of subcontracts for carrying out certain elements of the action shall be limited to the cases provided for in the                        grant agreement and to duly justified cases that could not be clearly foreseen at the time of entry into force of the grant                        agreement.                  

5.Third parties other than subcontractors may carry out work under the action under the conditions laid down in the grant agreement.                        The third party and the work to be carried out by it shall be identified in the grant agreement.                  

Costs incurred by those third parties may be deemed eligible if the third party meets all the following conditions:

(a)it would be eligible for funding if it were a participant;                  

(b)it is an affiliated entity or has a legal link to a participant implying a collaboration not limited to the action;                  

(c)it is identified in the grant agreement;                  

(d)it abides by the rules applicable to the participant under the grant agreement with regard to eligibility of costs and control                        of expenditure;                  

(e)it accepts joint and several liability with the participant for the Union contribution corresponding to the amount declared                        by the third party, if required by the Commission or the relevant funding body.                  

6.Third parties may also make available resources to a participant by means of contributions in kind to the action. Costs incurred                        by third parties in relation to such contributions which are made free of charge are eligible for funding provided they meet                        the conditions established in the grant agreement.                  

7.The action may involve financial support to third parties under the conditions established in Regulation (EU, Euratom) No 966/2012                        and Regulation (EU) No 1268/2012. The amounts referred to in point (c) of Article 137(1) of Regulation (EU, Euratom) No 966/2012                        may be exceeded where it is necessary to achieve the objectives of an action.                  

8.The action carried out by participants which are contracting authorities within the meaning of Directive 2004/17/EC of the                        European Parliament and of the Council(24), Directive 2004/18/EC of the European Parliament and of the Council(25) and Directive 2009/81/EC of the European Parliament and of the Council(26) may involve or have as their primary aim the pre-commercial procurement and procurement of innovative solutions, where provided                        for in a work programme or a work plan and required for its implementation. In such cases, the rules set out in Article 51(2),                        (4) and (5) of this Regulation shall apply to the procurement procedures carried out by the participants.                  

9.Participants shall comply with national legislation, regulations and ethical rules in the countries where the action will                        be carried out. Where appropriate, participants shall seek the approval of the relevant national or local ethics committees                        prior to the start of the action.                  

10.Work using animals shall be carried out in accordance with Article 13 TFEU and shall comply with the requirement to replace,                        reduce and refine the use of animals for scientific purposes in accordance with Union law and in particular with Directive                        2010/63/EU of the European Parliament and of the Council(27).                  

##### Article 24U.K.Consortium

1.The members of any consortium wishing to participate in an action shall appoint one of them to act as coordinator, which shall                        be identified in the grant agreement. The coordinator shall be the principal point of contact between the members of the consortium                        in relations with the Commission or the relevant funding body, unless specified otherwise in the grant agreement, or in the                        event of non-compliance with its obligations under the grant agreement.                  

2.The members of a consortium participating in an action shall conclude an internal agreement ("the consortium agreement") establishing                        their rights and obligations with respect to the implementation of the action in compliance with the grant agreement, except                        in duly justified cases provided for in the work programme or work plan or call for proposals. The Commission shall publish                        guidelines on the main issues that may be addressed by participants in the consortium agreement.                  

3.The consortium agreement may stipulate inter alia the following:                  

(a)the internal organisation of the consortium;                  

(b)the distribution of the Union funding;                  

(c)rules on dissemination, use and access rights, additional to those in Title III, Chapter I of this Regulation, and to the                        provisions in the grant agreement;                  

(d)arrangements for settling internal disputes;                  

(e)liability, indemnification and confidentiality arrangements between the participants.                  

The members of the consortium may make any arrangements in the consortium they deem fit to the extent that those arrangements                     are not in conflict with the grant agreement or this Regulation.                  

4.The consortium may propose to add or remove a participant or change the coordinator in accordance with the relevant provisions                        of the grant agreement, provided that the change is in conformity with the conditions for participation, does not adversely                        affect the implementation of the action and is not contrary to the principle of equal treatment.                  

#### *Section III*U.K.***Forms of grants and funding rules***

##### Article 25U.K.Forms of grants

Grants may take any of the forms provided for in Article 123 of Regulation (EU, Euratom) No 966/2012, taking into account                     the objectives of the action.                  

##### Article 26U.K.Eligibility of costs

1.Conditions for eligibility of costs are defined in Article 126 of Regulation (EU, Euratom) No 966/2012. Costs incurred by                        third parties under the action may be eligible according to the provisions of this Regulation and of the grant agreement.                  

2.Ineligible costs are those not complying with the conditions of paragraph 1, including, in particular, provisions for possible                        future losses or charges, exchange losses, costs related to return on capital, costs reimbursed in respect of another Union                        action or programme, debt and debt service charges and excessive or reckless expenditure.                  

##### Article 27U.K.Direct eligible personnel costs

1.Without prejudice to the conditions laid down in Article 26, direct eligible personnel costs shall be limited to salaries                        plus social security charges and other costs included in the remuneration of personnel assigned to the action, arising from                        national law or from the employment contract.                  

2.Without prejudice to the conditions laid down in Article 26, additional remuneration to personnel of participants that are                        non-profit legal entities assigned to the action, including payments on the basis of supplementary contracts regardless of                        their nature, may also be considered as direct eligible personnel costs, up to the amount set out in paragraph 3, if they                        fulfil the following additional conditions:                  

(a)it is part of the usual remuneration practices of the participant and is paid in a consistent manner whenever the same kind                        of work or expertise is required;                  

(b)the criteria used to calculate the supplementary payments are objective and of general application by the participant, independent                        of the source of funding used.                  

3.Additional remuneration may be eligible up to EUR 8 000 per year and per person. In relation to a person not working exclusively                        for the action, a limit per hour shall apply. The limit per hour shall be calculated by dividing EUR 8 000 by the number of                        annual productive hours calculated in accordance with Article 31.                  

##### Article 28U.K.Funding of the action

1.The funding of an action shall not exceed the total eligible costs minus the receipts of the action.                  

2.The following shall be considered as receipts of the action:                  

(a)resources made available by third parties to the participants by means of financial transfers or contributions in kind free                        of charge, the value of which has been declared as eligible costs by the participant, provided that they have been contributed                        by the third party specifically to be used in the action;                  

(b)income generated by the action, except income generated by the exploitation of the results of the action;                  

(c)income generated from the sale of assets purchased under the grant agreement up to the value of the cost initially charged                        to the action by the participant.                  

3.A single reimbursement rate of the eligible costs shall be applied per action for all activities funded therein. The maximum                        rate shall be fixed in the work programme or work plan.                  

4.The Horizon 2020 grant may reach a maximum of 100 % of the total eligible costs, without prejudice to the co-financing principle.                  

5.The Horizon 2020 grant shall be limited to a maximum of 70 % of the total eligible costs for innovation actions and programme                        co-fund actions.                  

By way of derogation from paragraph 3, the Horizon 2020 grant may, for innovation actions, reach a maximum of 100 % of the                     total eligible costs for non-profit legal entities, without prejudice to the co-financing principle.                  

6.The reimbursement rates determined in this Article shall also apply in the case of actions where flat rate, unit or lump-sum                        financing is fixed for the whole or part of the action.                  

##### Article 29U.K.Indirect costs

1.Indirect eligible costs shall be determined by applying a flat rate of 25 % of the total direct eligible costs, excluding                        direct eligible costs for subcontracting and the costs of resources made available by third parties which are not used on                        the premises of the beneficiary, as well as financial support to third parties.                  

2.By way of derogation from paragraph 1, indirect costs may be declared in the form of a lump sum or unit costs when provided                        for in the work programme or work plan.                  

##### Article 30U.K.Evaluation of the funding levels

The interim evaluation of Horizon 2020 shall include an evaluation of the impact of the various features introduced by the                     new funding levels laid down in Articles 27, 28 and 29 of this Regulation, with the aim of evaluating whether the new approach                     has led to undesired situations adversely affecting the attractiveness of Horizon 2020.                  

##### Article 31U.K.Annual productive hours

1.Eligible personnel costs shall cover only the actual hours worked by the persons directly carrying out work under the action.                        Evidence regarding the actual hours worked shall be provided by the participant, usually through a time recording system.                  

2.For persons working exclusively for the action, no time recording is required. In such cases, the participant shall sign a                        declaration confirming that the person concerned has worked exclusively for the action.                  

3.The grant agreement shall contain:                  

(a)the minimum requirements for the time recording system;                  

(b)the option to choose between a fixed number of annual productive hours and the method for establishing the number of annual                        productive hours to be used for the calculation of the hourly personnel rates, taking account of the participant's usual accounting                        practices.                  

##### Article 32U.K.Owners of SMEs and natural persons without a salary

The owners of SMEs who do not receive a salary, and other natural persons who do not receive a salary, may charge personnel                     costs on the basis of a unit cost.                  

##### Article 33U.K.Unit costs

1.In accordance with Article 124 of Regulation (EU, Euratom) No 966/2012, the Commission may establish methods to determine                        unit costs based on:                  

(a)statistical data or similar objective means;                  

(b)auditable historical data of the participant.                  

2.Direct eligible personnel costs may be financed on the basis of unit costs determined according to the participant's usual                        cost accounting practices, provided that they comply with the following cumulative criteria:                  

(a)they are calculated on the basis of the total actual personnel costs recorded in the participant's general accounts which                        may be adjusted by the participant on the basis of budgeted or estimated elements according to the conditions defined by the                        Commission;                  

(b)they comply with Articles 26 and 27;                  

(c)they ensure compliance with the non-profit requirement and the avoidance of double funding of costs;                  

(d)they are calculated with due regard to Article 31.                  

##### Article 34U.K.Certificate on the financial statements

The certificate on the financial statements shall cover the total amount of the grant claimed by a participant under the form                     of reimbursement of actual costs and under the form of unit costs referred to in Article 33(2), excluding the amounts declared                     on the basis of lump sums, flat rates and unit costs other than those determined according to the participant's usual cost                     accounting practices. The certificate shall be submitted only when that amount is equal to or greater than EUR 325 000 at                     the time of claiming the payment of the balance of the grant.                  

##### Article 35U.K.Certificate on the methodology

1.Participants that calculate and claim direct personnel costs on the basis of unit costs in accordance with Article 33(2) may                        submit to the Commission a certificate on the methodology. That methodology shall comply with the conditions set out in Article                        33(2) and meet the requirements of the grant agreement.                  

2.Where the Commission accepts a certificate on the methodology, it shall be valid for all actions financed under Regulation                        (EU) No 1291/2013 and the participant shall calculate and claim costs on the basis of it. Once the Commission has accepted                        a certificate on the methodology, it shall not attribute any systemic or recurrent error to the accepted methodology.                  

##### Article 36U.K.Certifying auditors

1.The certificates on the financial statements and on the methodology referred to in Articles 34 and 35 shall be established                        by an independent auditor qualified to carry out statutory audits of accounting documents in accordance with Directive 2006/43/EC                        of the European Parliament and of the Council(28) or similar national regulations, or by a competent and independent public officer in whom the relevant national authorities                        have vested the legal capacity to audit the participant and who has not been involved in the preparation of the financial                        statements.                  

2.Upon request by the Commission, the Court of Auditors or the European Anti-fraud Office (OLAF), the auditor who delivers the                        certificate on the financial statements and on the methodology shall grant access to the supporting documents and audit working                        papers on the basis of which a certificate on the financial statements or on the methodology was issued.                  

##### Article 37U.K.Cumulative funding

An action for which a grant from the Union budget has been awarded may also give rise to the award of a grant on the basis                     of Regulation (EU) No 1291/2013, provided that the grants do not cover the same cost items.                  

#### *Section IV*U.K.***Guarantees***

##### Article 38U.K.Participant Guarantee Fund

1.A participant guarantee fund (the "Fund") is hereby established and shall cover the risk associated with non-recovery of sums                        due to the Union under actions financed through grants by the Commission under Decision No 1982/2006/EC and by the Commission                        or Union funding bodies under "Horizon 2020" according to the rules set out in this Regulation. The Fund shall replace and                        succeed the Participant Guarantee Fund set up under Regulation (EC) No 1906/2006.                  

2.The Fund shall be operated in accordance with Article 39. Any financial interest generated by the Fund shall be added to the                        Fund and shall serve exclusively for the purposes set out in Article 39(3).                  

3.Where interest is insufficient to cover the operations described in Article 39(3), the Fund shall not intervene and the Commission                        or the relevant Union funding body shall recover directly from participants or third parties any amount owed.                  

4.The Fund shall be considered a sufficient guarantee under Regulation (EU, Euratom) No 966/2012. No additional guarantee or                        security may be accepted from participants or imposed upon them except in the case described in paragraph 3 of this Article.                  

5.Participants in actions under Horizon 2020 whose risk is covered by the Fund shall make a contribution of 5 % of the Union                        funding for the action. At the end of the action the amount contributed to the Fund shall be returned to the participants,                        via the coordinator.                  

6.The rate of the participants' contribution to the Fund set out in paragraph 5 may be reduced on the basis of the interim evaluation                        of Horizon 2020.                  

##### Article 39U.K.Operation of the Fund

1.The Fund shall be managed by the Union, represented by the Commission acting as executive agent on behalf of the participants,                        in accordance with the conditions established by the grant agreement.                  

The Commission may manage the Fund directly or entrust the financial management of the Fund either to the European Investment                     Bank or to an appropriate financial institution ("the depository bank"). The depository bank shall manage the Fund pursuant                     to the instructions of the Commission.                  

2.The participants' contribution to the Fund may be offset from the initial pre-financing and be paid to the Fund on behalf                        of the participants.                  

3.Where amounts are due to the Union by a participant, the Commission may, without prejudice to penalties which may be imposed                        on the defaulting participant, take either of the following actions:                  

(a)transfer, or order the depository bank to transfer, directly the amount due from the Fund to the coordinator of the action.                        That transfer shall be made after the termination or withdrawal of the participation of the defaulting participant if the                        action is still ongoing and if the remaining participants agree to implement it according to the same objectives. Amounts                        transferred from the Fund shall be regarded as Union funding;                  

(b)recover effectively that amount from the Fund.                  

The Commission shall issue a recovery order against that participant or third party to the benefit of the Fund. The Commission                     may adopt to that end a recovery decision in accordance with Regulation (EU, Euratom) No 966/2012.                  

4.The amounts recovered shall constitute revenue assigned to the Fund within the meaning of Article 21(4) of Regulation (EU,                        Euratom) No 966/2012. Once the implementation of all grants whose risk is covered by the Fund is complete, any sums outstanding                        shall be recovered by the Commission and entered into the budget of the Union, subject to decisions of the legislative authority.                  

### *CHAPTER III*U.K.***Experts***

#### Article 40U.K.Appointment of independent experts

1.The Commission and, where appropriate, funding bodies may appoint independent experts to evaluate proposals in accordance                        with Article 15 or to advise on or assist with:                  

(a)the evaluation of proposals;                  

(b)the monitoring of the implementation of actions carried out under Regulation (EU) No 1291/2013 as well as of previous Research                        and/or Innovation Programmes;                  

(c)the implementation of Union research and innovation policy or programmes including Horizon 2020, as well as the achievement                        and functioning of the European Research Area;                  

(d)the evaluation of Research and Innovation Programmes;                  

(e)the design of the Union research and innovation policy, including the preparation of future programmes.                  

2.Independent experts shall be chosen on the basis of their skills, experience and knowledge appropriate to carry out the tasks                        assigned to them. In cases where independent experts have to deal with classified information, the appropriate security clearance                        shall be required before appointment.                  

Independent experts shall be identified and selected on the basis of calls for applications from individuals and calls addressed                     to relevant organisations such as research agencies, research institutions, universities, standardisation organisations, civil                     society organisations or enterprises with a view to establishing a database of candidates.                  

The Commission or the relevant funding body may, if deemed appropriate and in duly justified cases, select in a transparent                     manner any individual expert with the appropriate skills not included in the database.                  

When appointing independent experts, the Commission or the relevant funding body shall take appropriate measures to seek a                     balanced composition within the expert groups and evaluation panels in terms of various skills, experience, knowledge, geographical                     diversity and gender, and taking into account the situation in the field of the action. Where appropriate, private-public                     sector balance shall also be sought.                  

The Commission or the relevant funding body may call upon the advice of advisory bodies for the appointment of independent                     experts. In the case of ERC frontier research actions, the Commission shall appoint experts on the basis of a proposal from                     the Scientific Council of the ERC.                  

3.The Commission or the relevant funding body shall ensure that an expert faced with a conflict of interest in relation to a                        matter on which the expert is required to provide an opinion does not evaluate, advise or assist on the specific matter in                        question.                  

4.All exchanges with independent experts, including the conclusion of contracts for their appointment and any amendment thereto,                        may be done through electronic exchange systems set up by the Commission or by the relevant funding body as stipulated in                        Article 287(4) of Regulation (EU) No. 1268/2012.                  

5.The names of experts appointed in a personal capacity, who have assisted the Commission or the funding bodies in implementation                        of Regulation (EU) No 1291/2013 and Decision 2013/743/EU shall be published, together with their area of expertise, at least                        once a year on the internet site of the Commission or the relevant funding body. Such information shall be collected, processed                        and published in accordance with Regulation (EC) No 45/2001.                  

## TITLE IIIU.K.**RULES GOVERNING THE EXPLOITATION AND DISSEMINATION OF RESULTS**

### *CHAPTER I*U.K.***Grants***

#### *Section I*U.K.***Results***

##### Article 41U.K.Ownership of results

1.Results shall be owned by the participant generating them.                  

2.Where participants in an action have jointly generated results, and where their respective contribution to the joint results                        cannot be ascertained, or where it is not possible to separate such joint results for the purpose of applying for, obtaining                        or maintaining the relevant intellectual property rights protection, they shall have joint ownership of those results. The                        joint owners shall establish an agreement regarding the allocation and terms of exercise of that joint ownership in accordance                        with their obligations under the grant agreement. The joint owners may agree not to continue with joint ownership but decide                        on an alternative regime, inter alia by transferring their ownership shares to a single owner with access rights for the other                        participants, once the results have been generated.                  

Unless otherwise agreed in the joint ownership agreement, each joint owner shall be entitled to grant non-exclusive licences                     to third parties to exploit the jointly owned results, without any right to sub-license, subject to the following conditions:                  

(a)prior notice shall be given to the other joint owners;                  

(b)fair and reasonable compensation shall be provided to the other joint owners.                  

3.If employees or any party working for a participant are entitled to claim rights to the results generated, the participant                        concerned shall ensure that it is possible for those rights to be exercised in a manner compatible with its obligations under                        the grant agreement.                  

##### Article 42U.K.Protection of results

1.Where results are capable of or may reasonably be expected to be capable of commercial or industrial exploitation, the participant                        owning those results shall examine the possibility of protecting them. The participant shall, if possible, reasonable and                        justified given the circumstances, adequately protect them for an appropriate period of time and with an appropriate territorial                        coverage, having due regard to its legitimate interests, and the legitimate interests, particularly the commercial interests,                        of the other participants in the action.                  

2.Where a participant that has received Union funding intends not to protect results generated by it for reasons other than                        impossibility under Union or national law or the lack of potential for commercial or industrial exploitation, and unless the                        participant intends to transfer them to another legal entity established in a Member State or associated country in view of                        their protection, it shall inform the Commission or the relevant funding body before any dissemination relating to those results                        takes place. The Commission, on behalf of the Union, or the relevant funding body may, with the consent of the participant                        concerned, assume ownership of those results and take the necessary steps for their adequate protection.                  

The participant may refuse consent only if it demonstrates that its legitimate interests would suffer significant harm. No                     dissemination relating to those results may take place until the Commission or the relevant funding body has taken a decision                     not to assume ownership of the results or has decided that it will assume ownership and has taken the necessary steps to ensure                     their protection. The Commission or the relevant funding body shall make such decision without undue delay. The grant agreement                     shall lay down time-limits in this respect.                  

3.Where a participant that has received Union funding intends to abandon the protection of results or intends not to seek the                        extension of such protection for reasons other than the lack of potential for commercial or industrial exploitation within                        a period that shall not exceed five years following the payment of the balance, it shall inform the Commission or the relevant                        funding body, which may continue or extend protection by assuming ownership thereof. The participant may refuse consent only                        if it demonstrates that its legitimate interests would suffer significant harm. The grant agreement shall lay down time-limits                        in this respect.                  

##### Article 43U.K.Exploitation and dissemination of results

1.Each participant that has received Union funding shall use its best efforts to exploit the results it owns, or to have them                        exploited by another legal entity, in particular through the transfer and licensing of results in accordance with Article                        44.                  

Any additional exploitation obligations shall be laid down in the grant agreement. In the case of research with the potential                     to address major societal challenges, additional exploitation obligations may include licensing on non-exclusive terms. Any                     such additional obligations shall be indicated in the work programme or work plan.                  

2.Subject to any restrictions due to the protection of intellectual property, security rules or legitimate interests, each participant                        shall through appropriate means disseminate the results it owns as soon as possible. The grant agreement may lay down time-limits                        in this respect.                  

Any additional dissemination obligations shall be laid down in the grant agreement and indicated in the work programme or                     work plan.                  

With regard to the dissemination of results through scientific publications, open access shall apply under the terms and conditions                     laid down in the grant agreement. Costs relating to open access to scientific publications that result from research funded                     under Horizon 2020, incurred within the duration of an action, shall be eligible for reimbursement under the conditions of                     the grant agreement. With due regard to Article 18 of Regulation (EU) No 1291/2013, the grant agreement shall not stipulate                     conditions regarding open access to publications which would result in additional publishing costs after the completion of                     an action.                  

With regard to the dissemination of research data, the grant agreement may, in the context of the open access to and the preservation                     of research data, lay down terms and conditions under which open access to such results shall be provided, in particular in                     ERC frontier research and FET (Future and Emerging Technologies) research or in other appropriate areas, and taking into consideration                     the legitimate interests of the participants and any constraints pertaining to data protection rules, security rules or intellectual                     property rights. In such cases, the work programme or work plan shall indicate if the dissemination of research data through                     open access is required.                  

Prior notice of any dissemination activity shall be given to the other participants. Following notification, a participant                     may object if it demonstrates that its legitimate interests in relation to its results or background would suffer significant                     harm by the intended dissemination. In such cases, the dissemination may not take place unless appropriate steps are taken                     to safeguard those legitimate interests. The grant agreement shall lay down time-limits in this respect.                  

3.For the purposes of monitoring and dissemination by the Commission or the relevant funding body, participants shall provide                        any information on their exploitation and dissemination related activities, and provide any documents necessary in accordance                        with the conditions laid down in the grant agreement. Subject to the legitimate interests of the participants which have provided                        the information, such information shall be made publicly available. The grant agreement shall, inter alia, lay down time-limits                        with respect to such reporting obligations.                  

4.All patent applications, standards, publications or any other dissemination, including those in electronic form, relating                        to results shall, if possible, include a statement, which may include visual means, that the action received financial support                        from the Union. The terms of that statement shall be established in the grant agreement.                  

##### Article 44U.K.Transfer and licensing of results

1.Where a participant transfers ownership of results, it shall pass on its obligations under the grant agreement regarding those                        results to the transferee, including the obligation to pass them on in any subsequent transfer.                  

Without prejudice to confidentiality obligations arising from laws or regulations in the case of mergers and acquisitions,                     where other participants still enjoy access rights or may still request the granting of access rights to the results to be                     transferred, a participant which intends to transfer the results shall give prior notice to the other participants, together                     with sufficient information concerning the intended new owner of the results, to permit the other participants to analyse                     the effect of the intended transfer on the possible exercise of their access rights.                  

Following notification, a participant may object to the transfer of ownership if it demonstrates that the intended transfer                     would adversely affect the exercise of its access rights. In such a case, the transfer may not take place until agreement                     has been reached between the participants concerned. The grant agreement shall lay down time-limits in this respect.                  

The other participants may by prior written agreement waive their right to prior notice and to object to transfers of ownership                     from one participant to a specifically identified third party.                  

2.Provided that access rights to the results can be exercised, and that any additional exploitation obligations are complied                        with by the participant which owns the results, the latter may grant licences or otherwise grant the right to exploit them                        to any legal entity, including on an exclusive basis. Exclusive licences for results may be granted subject to consent by                        all the other participants concerned that they will waive their access rights thereto.                  

3.With regard to results which are generated by participants that have received Union funding, the grant agreement may provide                        that the Commission or the relevant funding body may object to transfers of ownership or to grants of an exclusive licence                        to third parties established in a third country not associated with Horizon 2020, if it considers that the grant or transfer                        is not in accordance with the interests of developing the competitiveness of the Union economy, or is inconsistent with ethical                        principles or security considerations.                  

In such cases, the transfer of ownership or grant of exclusive licence shall not take place unless the Commission or the relevant                     funding body is satisfied that appropriate safeguards will be put in place.                  

Where appropriate, the grant agreement shall provide that the Commission or the relevant funding body is to be notified in                     advance of any such transfer of ownership or grant of an exclusive licence. The grant agreement shall lay down time-limits                     in this respect.                  

#### *Section II*U.K.***Access rights to background and results***

##### Article 45U.K.Background

Participants shall identify the background for their action in any manner in a written agreement.

##### Article 46U.K.Access rights principles

1.Any request to exercise access rights or any waiving of access rights shall be made in writing.                  

2.Unless otherwise agreed by the owner of the results or background to which access is requested, access rights shall not include                        the right to sub-license.                  

3.Participants in the same action shall inform each other before their accession to the grant agreement of any legal restriction                        or limit to granting access to their background. Any agreement concluded thereafter by a participant regarding background                        shall ensure that any access rights may be exercised.                  

4.The termination of the participation in an action shall not affect the obligation of such a participant to grant access under                        the terms and conditions established in the grant agreement.                  

5.The consortium agreement may stipulate that where a participant defaults on its obligations and such default is not remedied,                        such a defaulting participant shall no longer enjoy access rights.                  

##### Article 47U.K.Access rights for implementation

1.A participant shall enjoy access rights to the results of another participant in the same action if those results are needed                        by the former to carry out its work under the action.                  

Such access shall be granted on a royalty-free basis.

2.A participant shall enjoy access rights to background of another participant in the same action if this background is needed                        by the former to carry out its work under the action, and subject to any restrictions or limits pursuant to Article 46(3).                  

Such access shall be granted on a royalty-free basis, unless otherwise agreed by the participants before their accession to                     the grant agreement.                  

##### Article 48U.K.Access rights for exploitation

1.A participant shall enjoy access rights to the results of another participant in the same action if those results are needed                        by the former to exploit its own results.                  

Subject to agreement, such access shall be granted under fair and reasonable conditions.

2.A participant shall enjoy access rights to background of another participant in the same action if this background is needed                        by the former to exploit its own results, and subject to any restrictions or limits pursuant to Article 46(3).                  

Subject to agreement, such access shall be granted under fair and reasonable conditions.

3.An affiliated entity established in a Member State or associated country shall, unless otherwise provided for in the consortium                        agreement, also have access rights to results and, subject to any restrictions or limits pursuant to Article 46(3), to background                        under fair and reasonable conditions if those results and background are needed to exploit the results generated by the participant                        to which it is affiliated. Such access rights shall be requested and obtained directly from the participant owning the results                        or background unless otherwise agreed in accordance with Article 46(2).                  

4.A request for access under paragraphs 1, 2 or 3 may be made up to one year after the end of the action, unless the participants                        agree on a different time-limit.                  

##### Article 49U.K.Access rights for the Union and the Member States

1.The Union institutions, bodies, offices or agencies shall, for the duly justified purpose of developing, implementing and                        monitoring Union policies or programmes, enjoy access rights solely to the results of a participant that has received Union                        funding. Such access rights are limited to non-commercial and non-competitive use.                  

Such access shall be granted on a royalty-free basis.

2.Regarding actions under the specific objective 'Secure societies - Protecting freedom and security of Europe and its citizens'                        set out in Part III of Annex I to Regulation (EU) No 1291/2013, Union institutions, bodies, offices and agencies, as well                        as Member States' national authorities, shall, for the purpose of developing, implementing and monitoring their policies or                        programmes in this area, enjoy the necessary access rights to the results of a participant that has received Union funding.                        Such access rights shall be limited to non-commercial and non-competitive use. Such access rights shall be granted on a royalty-free                        basis and upon bilateral agreement defining specific conditions aimed at ensuring that those rights will be used only for                        the intended purpose and that appropriate confidentiality obligations will be in place. Such access rights shall not extend                        to the participant's background. The requesting Member State, Union institution, body, office or agency shall notify all Member                        States of such requests. The Commission rules on security shall apply regarding classified information.                  

## TITLE IVU.K.**SPECIFIC PROVISIONS**

### Article 50U.K.Prizes

1.Union funding may take the form of prizes as defined in Title VII of Regulation (EU, Euratom) No 966/2012 and Regulation (EU)                        No 1268/2012.                  

2.Any prize awarded shall be conditional upon the acceptance of the appropriate publicity obligations. Regarding the dissemination                        of results, Title III of this Regulation shall apply. The work programme or work plan may contain specific obligations regarding                        exploitation and dissemination.                  

### Article 51U.K.Procurement, pre-commercial procurement and public procurement of innovative solutions

1.Any procurement carried out by the Commission on its own behalf or jointly with Member States shall be subject to the rules                        on public procurement set out in Regulation (EU, Euratom) No 966/2012 and Regulation (EU) No 1268/2012.                  

2.Union funding may take the form of pre-commercial procurement or the procurement of innovative solutions carried out by the                        Commission or the relevant funding body on its own behalf or jointly with contracting authorities from Member States and associated                        countries.                  

The procurement procedures:

(a)shall comply with the principles of transparency, non-discrimination, equal treatment, sound financial management, proportionality,                        with competition rules and, where applicable, with Directives 2004/17/EC, 2004/18/EC and 2009/81/EC, or, where the Commission                        acts on its own behalf, with Regulation (EU, Euratom) No 966/2012;                  

(b)may provide for specific conditions such as the place of performance of the procured activities being limited for pre-commercial                        procurement, to the territory of the Member States and of countries associated to Horizon 2020 where duly justified by the                        objectives of the actions;                  

(c)may authorise the award of multiple contracts within the same procedure (multiple sourcing);                  

(d)shall provide for the award of the contracts to the tender(s) offering best value for money.                  

3.Unless otherwise stipulated in the call for tenders, results generated by procurement carried out by the Commission shall                        be owned by the Union.                  

4.Specific provisions regarding ownership, access rights and licensing shall be laid down in the contracts regarding pre-commercial                        procurement to ensure maximum uptake of the results and to avoid any unfair advantage. The contractor generating results in                        pre-commercial procurement shall own at least the attached intellectual property rights. The contracting authorities shall                        enjoy at least royalty-free access rights to the results for their own use and the right to grant, or require the participating                        contractors to grant, non-exclusive licences to third parties to exploit the results under fair and reasonable conditions                        without any right to sub-license. If a contractor fails to commercially exploit the results within a given period after the                        pre-commercial procurement as identified in the contract, it shall transfer any ownership of the results to the contracting                        authorities.                  

5.Specific provisions regarding ownership, access rights and licensing may be laid down in the contracts regarding public procurement                        of innovative solutions to ensure maximum uptake of the results and to avoid any unfair advantage.                  

### Article 52U.K.Financial Instruments

1.Financial instruments may take any of the forms referred to in, and shall be implemented in accordance with, Title VIII of                        Regulation (EU, Euratom) No 966/2012 and may be combined with each other and with grants funded under the Union budget, including                        under Regulation (EU) No 1291/2013.                  

2.By way of derogation from the second subparagraph of Article 140(6) of Regulation (EU, Euratom) No 966/2012, both revenues                        and annual repayments generated by a financial instrument established under Regulation (EU) No 1291/2013 shall be assigned,                        in accordance with Article 21(4) of Regulation No 966/2012, to that financial instrument.                  

3.By way of derogation from the second subparagraph of Article 140(6) of Regulation (EU, Euratom) No 966/2012, both revenues                        and annual repayments generated by the Risk Sharing Finance facility set up under Decision No 1982/2006/EC and the early stage                        part of the High-Growth and Innovative SME Facility (GIF1) set up under Decision No 1639/2006/EC, shall be assigned, in accordance                        with Article 21(4) of Regulation (EU, Euratom) No 966/2012, to the succeeding financial instruments under Regulation (EU)                        No 1291/2013.                  

### Article 53U.K.SME Instrument

1.Only SMEs may apply for calls for proposals issued under the dedicated SME instrument referred to in Article 22 of Regulation                        (EU) No 1291/2013. They may cooperate with other companies, and with research organisations or universities.                  

2.Once a company has been validated as an SME, that legal status shall be assumed to prevail for the entire duration of the                        project, even in cases where the company, due to its growth, later exceeds the ceilings of the SME definition.                  

3.In the case of the SME instrument or grants by funding bodies or by the Commission targeting SMEs, the grant agreement may                        lay down specific provisions, in particular on ownership, access rights, exploitation and dissemination.                  

### Article 54U.K.Fast Track to Innovation

1.In accordance with Article 7, any legal entity may participate in a Fast Track to Innovation ("FTI") action. Actions funded                        under FTI shall be innovation actions. The FTI call shall be open to proposals relating to any technology field under the                        specific objective "Leadership in enabling and industrial technologies" set out in point 1 of Part II of Annex I to Regulation                        (EU) No 1291/2013 or to any of the specific objectives under the priority "Societal challenges" set out in points 1 to 7 of                        Part III of Annex I to that Regulation.                  

2.Proposals may be submitted at any time. The Commission shall set three cut-off dates per year to evaluate proposals. The period                        between a cut-off date and signature of the grant agreement or notification of the grant decision shall not exceed six months.                        Proposals shall be ranked according to the impact, quality and efficiency of implementation and excellence, with the criterion                        of impact given a higher weighting. No more than five legal entities shall participate in any one action. The amount of the                        grant shall not exceed EUR 3 million.                  

### Article 55U.K.Other specific provisions

1.In the case of actions involving security-related activities, the grant agreement may lay down specific provisions, in particular                        on pre-commercial public procurement, procurement of innovative solutions, changes to the consortium's composition, classified                        information, exploitation, dissemination, open access to research publications, transfers and licences of results.                  

2.In the case of actions to support existing or new research infrastructures, the grant agreement may lay down specific provisions                        relating to users of the infrastructure and to the users' access to them.                  

3.In the case of ERC frontier research actions, the grant agreement may lay down specific provisions, in particular on access                        rights, portability and dissemination, or relating to participants, researchers and any party concerned by the action.                  

4.In the case of training and mobility actions, the grant agreement may lay down specific provisions on commitments relating                        to the researchers benefiting from the action, ownership, access rights and portability.                  

5.In the case of coordination and support actions, the grant agreement may lay down specific provisions, in particular on ownership,                        access rights, exploitation and dissemination of results.                  

6.In the case of the Knowledge and Innovation Communities of the EIT, the grant agreement may lay down specific provisions,                        in particular on ownership, access rights, exploitation and dissemination.                  

## TITLE VU.K.**FINAL PROVISIONS**

### Article 56U.K.Exercise of the delegation

1.The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.                  

2.The power to adopt delegated acts referred to in Article 1(3) shall be conferred on the Commission for the duration of Horizon                        2020.                  

3.The delegation of power referred to in Article 1(3) may be revoked at any time by the European Parliament or by the Council.                        A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the                        day following the publication of the decision in the *Official Journal of the European Union* or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.                  

4.As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the                        Council.                  

5.A delegated act adopted pursuant to Article 1(3) shall enter into force only if no objection has been expressed either by                        the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament                        and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission                        that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of                        the Council.                  

### Article 57U.K.Repeal and transitional provisions

1.Regulation (EC) No 1906/2006 is repealed with effect from 1 January 2014.                  

2.Without prejudice to paragraph 1, this Regulation shall not affect the continuation or modification, including the total or                        partial termination, of the actions concerned, until their closure, or until the award of financial assistance by the Commission                        or funding bodies under Decision No 1982/2006/EC or any other legislation applying to that assistance on 31 December 2013,                        which shall continue to apply to the actions concerned until their closure.                  

3.Any sums from the participant Guarantee Fund set up by Regulation (EC) No 1906/2006 as well as all its rights and obligations                        shall be transferred to the Fund as of 31 December 2013. The participants in actions under Decision No 1982/2006/EC signing                        grant agreements after 31 December 2013 shall make their contribution to the Fund.                  

## Article 58U.K.

This Regulation shall enter into force on the third day following that of its publication in the *Official Journal of the European Union*.                  

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Strasbourg, 11 December 2013.

*For the European Parliament*                            

*The President*                            

M. Schulz                            

*For the Council*                            

*The President*                            

V. Leškevičius                            

1

OJ C 318, 20.10.2012, p. 1.                           

2

OJ C 181, 21.6.2012, p. 111.                           

3

Position of the European Parliament of 21 November 2013 (not yet published in the Official Journal)

4

Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 –                              The Framework Programme for Research and Innovation (2014 to 2020) and repealing Decision 1982/2006/EC (See page 104 of this                              Official Journal).                           

5

OJ C 74E, 13.3.2012, p. 34.                           

6

Decision No 1982/2006/EC of the European Parliament and of the Council of 18 December 2006 concerning the Seventh Framework                              Programme of the European Community for research, technological development and demonstration activities (2007-2013) (OJ L 412, 30.12.2006, p. 1).                           

7

Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules                              applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).                           

8

Commission Delegated Regulation (EU) No 1268/2012 of 29.10.2012 on the rules of application of Regulation (EU, Euratom) No 966/2012                              of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (OJ L 362, 31.12.2012, p. 1).                           

9

Decision No 1639/2006/EC of the European Parliament and of the Council of 24 October 2006 establishing a Competitiveness and                              Innovation Framework Programme (2007 to 2013) (OJ L 310, 9.11.2006, p. 15).                           

10

Regulation (EC) No 294/2008 of the European Parliament and of the Council of 11 March 2008 establishing the European Institute                              of Innovation and Technology (OJ L 97, 9.4.2008, p. 1).                           

11

OJ C 205, 19.7.2013, p. 9.                           

12

2001/844/EC,ECSC,Euratom: Commission Decision of 29 November 2001 amending its internal Rules of Procedure (OJ L 317, 3.12.2001).                           

13

Council Decision 2001/822/EC of 27 November 2001 on the association of the overseas countries and territories with the European                              Community ('Overseas Association Decision') (OJ L 314, 30.11.2001, p. 1).                           

14

2000/633/EC, ECSC, Euratom: Commission Decision of 17 October 2000 amending its Rules of Procedure (OJ L 267, 20.10.2000, p. 63).                           

15

Regulation No 1906/2006/EC of the European Parliament and of the Council of 18 December 2006 laying down the rules for the                              participation of undertakings, research centres and universities in actions under the Seventh Framework Programme and for                              the dissemination of research results (2007-2013) (OJ L 391, 30.12.2006, p. 1).                           

16

Council Decision 2006/970/Euratom of 18 December 2006 concerning the Seventh Framework Programme of the European Atomic Energy                              Community (Euratom) for nuclear research and training activities (2007 to 2011) (OJ L 400, 30.12.2006, p. 60).                           

17

2012/93/Euratom: Council Decision of 19 December 2011 concerning the Framework Programme of the European Atomic Energy Community                              for nuclear research and training activities (2012 to 2013) (OJ L 47, 18.2.2012, p. 25).                           

18

Regulation (Euratom) No 1314/2013 of the Council on the Research and Training Programme of the European Atomic Energy Community                              (2014-2018) complementing Horizon 2020 - the Framework Programme for Research and Innovation (See page 948 of this Official                              Journal).                           

19

Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals                              with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data                              (OJ L 8, 12.1.2001, p. 1).                           

20

Regulation (EU) No 1287/2013 of the European Parliament and of the Council of 11 December 2013 establishing a Programme for                              the Competitiveness of Enterprises and small and medium-sized enterprises (COSME) (2014 - 2020) and repealing Decision No 1639/2006/EC                              (See page 33 of this Official Journal).                           

21

Decision No 743/2008/EC of the European Parliament and of the Council of 9 July 2008 on the Community's participation in a                              research and development programme undertaken by several Member States aimed at supporting research and development performing                              small and medium-sized enterprises (OJ L 201, 30.7.2008, p. 58).                           

22

Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises                              (OJ L 124, 20.5.2003, p. 36).                           

23

Council Decision 2013/743/EU of 11 December 2013 establishing the Specific Programme Implementing Horizon 2020 - The Framework                              Programme for Research and Innovation (2014 - 2020) (See page 965 of this Official Journal).                           

24

Directive 2004/17/EC of the European Parliament and of the Council of 31 March 2004 coordinating the procurement procedures                              of entities operating in the water, energy, transport and postal services sectors (OJ L 134, 30.4.2004, p. 1).                           

25

Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for                              the award of public works contracts, public supply contracts and public service contracts (OJ L 134, 30.4.2004, p. 114).                           

26

Directive 2009/81/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of procedures for the                              award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields                              of defence and security, and amending Directives 2004/17/EC and 2004/18/EC (OJ L 216, 20.8.2009, p. 76).                           

27

Directive 2010/63/EU of the European Parliament and of the Council of 22 September 2010 on the protection of animals used                              for scientific purposes (OJ L 276, 20.10.2010, p. 33).                           

28

Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and                              consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC (OJ L 157, 9.6.2006, p. 87).