Summary of CySEC's Circular C380

Memo #28-2020

 CySEC Circular No: C380
   Date: 14/04/2020

Subject: COVID-19: ESMA’s Public Statement regarding the deadlines for the publication of periodic reports by fund managers – Other reporting obligations
Purpose: To draw the attention of Fund Managers to a Public Statement issued by ESMA regarding reporting deadlines and for other reporting obligations.

In Summary:

CySEC has issued the Circular C380 on 14/04/2020 in order to draw the attention of the UCITS Management Companies, Self-Managed UCITS Investment Companies, Authorised AIFMs, Non-EU AIFMS marketing AIFs pursuant to Article 42 of the AIFMD, EuVECA and EuSEF Managers (hereinafter jointly referred to as ‘Fund Managers’) to their periodic reporting obligations.

Specific, ESMA has issued on 9 April 2020 a Public Statement with reference number ESMA34-45-896 and subject ‘Actions to mitigate the impact of COVID-19 on the deadlines for the publication of periodic reports by fund managers’.

The purpose of the Public Statement is to promote coordinated action by NCAs in relation to the obligation of Fund Managers to publish annual and half yearly reports in respect of the funds they manage, in relation to reporting periods ending from 31 December 2019 to 30 April 2020 inclusive.

ESMA highlights that periodic information relating to investment funds is an important point of reference for investors’ economic decisions and that Fund Managers are expected to exercise their best efforts to prepare the annual reports and half-yearly reports and publish within the relevant legislative deadlines.

According to the Public Statement, considering that Fund Managers may be prevented from fulfilling the requirements due to COVID-19, ESMA expects NCAs to act in accordance with national rules set out in their Member States and when possible during this specific period not to prioritise supervisory actions against these market participants in respect of the upcoming deadlines set out in the UCITS Directive, the AIFMD, the EuSEF and EuVECA Regulations regarding:

1. Annual reports referring to a year-end occurring on or after 31 December 2019, but before 1 April 2020, for a period of two months following the relevant deadline;

2. Annual reports referring to a year-end occurring on or after 1 April 2020 but before 1 May for a period of one month following the relevant deadline; and

3. Half-yearly reports of UCITS referring to a reporting period ending on or after 31 January 2020 but before 1 April 2020 for a period of one month following the deadline set out in the UCITS Directive.

ESMA expects that Fund Managers, where they reasonably anticipate that publication of the annual reports and half-yearly reports will be delayed beyond the normal regulatory deadlines, to inform their NCA promptly of this and to inform investors as soon as practicable of the delay, the reasons for such a delay and to the extent possible the estimated publication date.

CySEC, taking into account the exceptional circumstances created by the COVID-19 outbreak, will follow the recommendation of ESMA as stated in the abovementioned public statement.

Furthermore, CySEC does not intend to prioritise supervisory actions against the following entities in respect of the upcoming deadlines set out in the National legal framework:

1. UCITS Management Companies, in respect of the upcoming deadlines set out in the Undertakings for Collective Investments Law regarding:

1.1. the availability and the submission of quarterly reports of UCITS (1st and 2nd quarter of 2020);

1.2. yearly and half-yearly reports referring to the reporting periods ending on 31 December 2019 and 30 June 2020 for a period of three months following the deadline set out in the UCI Law.

2. AIFMs and Sub-Threshold AIFMs in respect of the upcoming deadlines set out in the Alternative Investment Funds Law regarding half-yearly reports referring to the reporting periods ending on 30 June 2020 for a period of three months following the deadline set out in the AIF Law.

The Public Statement issued by ESMA can be found on the following link: https://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=55c423e3-6785-4862-81db-2d28865736bf

Read the CySEC Circular C380

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