Summary of CySEC's Circular C420
Memo #62-2020
CySEC Circular No: C420
Date: 09/12/2020
Subject: Suspension of redemption of UCITS and AIF units on 24 December 2020
Purpose: To inform Regulated Entities for suspension of redemption of UCITS and AIF units.
In Summary:
CySEC has issued the Circular C420 on 09/12/2020 to inform the Undertakings Collective Investment in Transferable Securities (UCITS) - Management Companies and the Alternative Investment Funds (‘AIF’) – AIF Managers that redemption of UCITS and AIF units is suspended for the 24 December 2020.
CySEC notes that the suspension refers to UCITS and AIFs that hold assets in transferable securities listed in regulated markets and whose net assets are calculated on a daily basis.
For the suspension of redemption of UCITS and AIF units for the 24 December 2020, CySEC has taken into consideration:
1. The provisions of article 20 of the Open-Ended Undertakings for Collective Investment (UCI) Law (the “UCI Law”).
2. The provision of article 43(3) of the Alternative Investment Funds Law (the “AIF Law”).
3. The fact that the 24 December 2020 is a full or part – day public holiday in most international stock markets.
4. The need to safeguard the interests of unit-holders of UCITS and AIFs and the proper functioning of the market.
CySEC further notes that the obligations under article 20(2) of the UCI Law and article 43 of the AIF Law continue to apply.
