LR 16.3 Continuing obligations

In addition to the requirements of LR 9.8, a venture capital trust must include in its annual report and accounts:

1. (1)

   a list of all investments with a value of greater than 5% of the total assets of the venture capital trust and at least the 10 largest investments stating, with respect to each investment so listed:

   1. (a)

      a brief description of the business;

   2. (b)

      the proportion of capital owned or intended to be owned;

   3. (c)

      the voting rights attributable to the shares owned;

   4. (d)

      the cost of the investment;

   5. (e)

      the value of the investment at the latest practicable date;

   6. (f)

      the method of valuation; and

   7. (g)

      brief details of the results and assets and liabilities taken from the most recent audited accounts, including at least profit before tax, profit or loss for the period, total assets and total equity and liabilities;

2. (2)

   details of:

   1. (a)

      the total of provisions made against unlisted investments;

   2. (b)

      the amounts written off such investments in each of the latest three financial years; and

   3. (c)

      any individual provision or write off which exceeded 5% of the total assets of the venture capital trust;

3. (3)

   a full description of the methods of valuation used including a justification of any method of valuation which does not conform with the Guidelines for the Valuation and Disclosure of Venture Capital Portfolios issued by the British Venture Capital Association; and

4. (4)

   details of any investments made in any company in which other funds managed by the same investment manager have also invested.

A venture capital trust must notify the FSA as soon as possible if it loses its tax status under section 842AA of the Income and Corporations Taxes Act 1988.