Big Society Capital plans approved

Big Society Capital has been given the green light by the European Commission.
The wholesale investor, known formerly as the Big Society Bank, had been waiting for clearance from the Commission for its structure under state aid rules, which prevent countries providing unfair financial advantages to businesses.
Big Society Capital, which expects to have about £400 million of funds from dormant bank accounts and £200 million from four high-street banks over the next five years, will invest in social finance intermediaries such as Charity Bank and Big Issue Invest and initiatives such as the social impact bond.
The Big Lottery Fund has been holding funds on an interim basis while state aid approval was sought.
A statement from the Commission in December said it found the Big Society Capital plans to be "in line with EU state aid rules, in particular because its business model contains a number of safeguards to ensure that its investments do not distort competition at the level of the social investment finance intermediaries".
Nick O’Donohoe, chief executive of Big Society Capital, said the approval had come through quicker than expected. "We believe this reflects the general engagement in Brussels around the social investment agenda," he said. "We anticipate clearing our final regulatory hurdles in the New Year and being open for business by the end of the first quarter of 2012."

[from: Third Sector Online 22.12.11]