Relevant to: All Regulated Entities1
Circular C554 (“the Circular”) dated 23/03/2023 informs regarding the Suspension of redemption of UCITS and AIF units on 7 and 10 April 2023
Through Circular C554, CySEC wishes to inform Regulated Entities that the redemption of UCITS and AIF units is suspended on 7 and 10 April 2023.
The key takeaways from CySEC’s C554 circular can be found below:
- CySEC notes that the suspension refers to UCITS and AIFs that hold assets in transferable securities listed in regulated markets and whose net asset value is calculated on a daily basis.
- CySEC reached this decision after taking into consideration:
- The provision of article 20(1) of the Open-Ended Undertakings for Collective Investment (UCI) Law (the “UCI Law”).
- The provision of article 43(3) of the Alternative Investment Funds Law (the “AIF Law”).
- The fact that 7 and 10 April 2023 are public holidays due to the Catholic Easter in most international stock markets.
- The fact that the settlement system for payments TARGET2 is closed on those days.
- The need to safeguard the interests of unit-holders of UCITS and AIFs and the proper functioning of the market.
CySEC notes that the obligations under article 20(2) of the UCI Law and article 43 of the AIF Law continue to apply.
Should you need more information or assistance you can email us at info@mnkriskconsulting.com or call us at 25-508201.
[1]Alternative Investment Fund Managers (‘AIFMs’), UCITS Management Companies (‘UCITS MC’), Self-Managed UCITS (‘SM UCITS’), Self-Managed Alternative Investment Funds (‘SM AIFs’), Self-Managed Alternative Investment Funds with Limited Number of Persons (‘SM AIFLNP’), Companies with sole purpose the management of AIFLNPs, Small AIFMs and Cyprus Investment Firms (‘CIFs’).