Summary of CySEC's Circular C377

Memo #25-2020

   CySEC Circular No: C377
   Date: 09/04/2020

Subject: Actions to be taken with regards to Funds Digital Record (FDR)
Purpose: To remind AIFMs, sub-threshold AIFMs and UCITS Management Companies of the FDR implementation and to inform them for further actions that should take to this matter.

In Summary:

CySEC has issued the Circular C377 on 08/04/2020 in order to remind Alternative Investment Fund Managers (AIFMs), Sub-threshold Alternative Investment Fund Managers (sub-threshold AIFMs) and UCITS Management Companies, of the implementation of Funds Digital Record (FDR) and to inform them for further actions that should take with regards to this matter.

CySEC has issued on 28/01/2020 the Circular C348 informing the above mentioned Regulated Entities on the expansion of CySEC Portal to include Funds Digital Record (FDR) and the requirement to submit to CySEC via the FDR data relevant to their activities.

This Circular C377 is address to:

i. Alternative Investment Fund Managers (AIFMs) which includes Cyprus based AIFMs and internally managed AIFs whose total asset under management (AuM) exceed the thresholds of Articles 4(2)(a) or 4(2)(b) of the Alternative Investment Fund Managers Law (AIFM Law) as the case may be, and b) Cyprus based AIFMs and internally managed AIFs whose Total AuM do not exceed the thresholds of Articles 4(2)(a) or 4(2)(b) of the AIFM Law, as the case may be, but have exercised the ‘opting-in’ possibility of Article 4(6) of the AIFM Law.

ii. Sub-threshold Alternative Investment Fund Managers (sub-threshold AIFMs) which includes Cyprus based AIFMs and internally managed AIFs whose total AuM do not exceed the thresholds of article 4(2)(a) or 4(2)(b) of the AIFM Law, as the case may be, and have not exercised the ‘opting-in’ possibility of article 4(6) of the AIFM Law. For the avoidance of doubt, sub-threshold AIFMs of the Republic comprise of: a) Cyprus Management Companies, b) Cyprus Investment Firms, c) the companies referred to in article 125(1)(b)(v) of the AIF Law, d) Self-managed AIFs under Part II of the AIF Law and e) Self-managed AIFLNPs under Part VII of the AIF Law.

iii. UCITS Management Companies which includes Cyprus based Management Companies of Common Funds and/or Variable Capital Investment Companies and internally managed UCITS in accordance with the provisions of Law 78(Ι)/2012 (UCITS Law).

In particular, this Circular provides information about the following matters: 

1) Submission and Monitoring of Data in the FDR

2) Compliance Officer Duty

3) Confirmation regarding the content of the Regulated Entities’ FDR

With regards to the first implementation of the FDR, CySEC expects from the above mentioned Regulated Entities to submit to CySEC a letter via email to supervision.uci@cysec.gov.cy, by the end of July and not later than, 31 July 2020, confirming that the data submitted by the Regulated Entity to CySEC via the FDR, are complete, accurate and up to date.

The CySEC expects that Regulated Entities, fully comprehend the importance of maintaining a complete, accurate and up to date FDR and that they continually monitor and take necessary actions to this end.

Read the CySEC Circular C377

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