Summary of CySEC's Circular C376
Memo #24-2020
CySEC Circular No: C376
Date: 07/04/2020
Subject: Suspension of redemption of UCITS and AIF units on 10 and 13 April 2020
Purpose: To inform UCITS - Management Companies and AIF – AIF Managers that the redemption of UCITS and AIFs units is suspended for the 10th and 13th of April 2020.
In Summary:
CySEC has issued the Circular C376 on 07/04/2020 in order to inform the Undertakings Collective Investment in Transferable Securities (UCITS) - Management Companies and the Alternative Investment Funds (AIF) – AIF Managers that the redemption of UCITS and AIFs units is suspended for the 10th and 13th of April 2020.
It is provided that the suspension refers to UCITS and AIFs that hold assets in transferable securities listed in regulated markets.
CySEC reached to this decision for the suspension after taking into consideration the following:
• The provision of the relevant article of the Open-Ended Undertakings for Collective Investment (UCI) Law (the “UCI Law”) and of the Alternative Investment Funds Law (the “AIF Law”), that in summary refers that CySEC may decide the suspension of redemption UCITS units and AIF units, accordingly.
The relevant articles are the article 20(1) of the UCI Law and the article 43(3) of the AIF Law.
• The fact that the 10th and 13th of April 2020 are public holidays in most international stock markets.
• The fact that the settlement system for payments Target 2 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 also notes that the obligations under article 20(2) of the UCI Law and article 43 of the AIF Law continue to apply.
Read the CySEC Circular C376
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