Summary of CySEC's Circular C459
Memo #34-2021
CySEC Circular No: C459
Date: 29/07/2021
Subject: Reporting obligations (‘the AIFMD Reporting obligation’) under articles 4(3)(d) and 31(1), (2) and (4) of the Alternative Investment Fund
Managers Law (the ‘AIFM Law’) as further specified with articles 5(3) and 110 of the Commission Delegated Regulation (EU) No 231/2013
with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision (‘the Regulation’)
Purpose: To inform Authorised AIFMs and Registered AIFMs for their Reporting obligations as per the relevant legislation.
In Summary:
CySEC has issued the Circular C459 on 28/07/2021 to inform the Authorised Alternative Investment Fund Managers and Registered Alternative Investment Fund Managers about their Reporting obligations under articles 4(3)(d) and 31(1), (2) and (4) of the Alternative Investment Fund Managers Law (the ‘AIFM Law’) as further specified with articles 5(3) and 110 of the Commission Delegated Regulation (EU) No 231/2013 with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision (‘the Regulation’).
Following the Circular C404, the CySEC, with this Circular C459, draw the attention of the AIFMs to the following:
1. AIFMs are required to regularly review their policies and procedures in order to ensure compliance, at all times, with their Reporting obligations under the AIFM Law and the Regulation.
2. AIFMs should ensure timely submission the required information, in accordance with articles 31 of the Law and 110 of the Regulation or 4(3)(d) of the Law and 5(3) and 110(1) of the Regulation.
3. AIFMs are strongly recommended to review the applicable regulatory framework, the ESMA Guidelines on reporting obligations under Articles 3(3)(d) and 24(1), (2)
and (4) of the AIFMD (the ‘ESMA Guidelines’) and ESMA Questions and Answers on the application of the AIFMD (the ‘ESMA Q&As’).
4. AIFMs are responsible to review the feedback messages for each submitted report in order to ensure successful submission of both DATAMAN and DATAIF files.
Rejected submissions are not considered as submissions of the required information.
5. AIFMs should ensure that data reported to CySEC is complete, accurate, consistent, timely and not duplicated is of outmost importance in order to foster a smoother-functioning market.
6. CySEC further notes that AIFMs not complying with their Directive 2011/61/EU (AIFMD) reporting obligation will face enforcement action.
• Authorised Alternative Investment Fund Managers includes a) Cyprus based AIFMs and self-managed AIFs whose total assets 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 self-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.
• Registered Alternative Investment Fund Managers, Sub Threshold AIFMs as it is mentioned on CySEC’s Circulars C287 and C110, includes Cyprus based AIFMs and self-managed AIFs whose Total AuM do not exceed the thresholds of section 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 section 4(6) of the AIFM Law. For the avoidance of doubt, Registered AIFMs of the Republic comprise of: a) UCITs Management Companies; b) Cyprus Investment Firms; c) any company, which has been approved by CySEC pursuant to section 116(3)(ii)(b) of the AIF Law, to manage an AIFLNP under Part VI of the AIF Law; d) Self-managed AIFs under Part II of the AIF Law; and e) Self-managed AIFLNPs under Part VI of the AIF Law.
The ‘ESMA Guidelines’ can be found on the following link: https://www.esma.europa.eu/sites/default/files/library/2015/11/2014-869.pdf
The ‘ESMA Q&As’ can be found on the following link: https://www.esma.europa.eu/sites/default/files/library/esma34-32-352_qa_aifmd.pdf
