Summary of CySEC's Circular C493
Memo #09-2022
CySEC Circular No: C493
Date: 23/03/2022
Subject: Suspension of redemption of UCITS and AIF units on 15 and 18 April 2022
Purpose: To inform Regulated Entities that the redemption of UCITS and AIF units is suspended on 15 and 18 April 2022.
In Summary:
CySEC has issued the Circular C493 on 22/03/2022 to inform the Alternative Investment Fund Managers (‘AIFMs’), UCITS Management Companies (‘UCITS MC’), Self-Managed UCITS (‘SM UCITS’), Self-Managed Alternative Investment Funds (‘SM AIFs’), Self-Managed Alternative Investment Funds with Limited Number of Persons (‘SM AIFLNP’), Companies with sole purpose the management of AIFLNPs, Small AIFMs and CIFs, that the redemption of UCITS and AIF units is suspended on 15 and 18 April 2022.
CySEC notes that the suspension refers to UCITS and AIFs that hold assets in transferable securities listed in regulated markets and whose net asset value is calculated on a daily basis.
CySEC notes that has reached to this decision after taking into consideration the following:
1) The provision of a) article 20(1) of the UCI Law and b) article 43(3) of the AIF Law, that in summary provide that CySEC may decide the suspension of the redemption or repurchase of UCITS units and AIF units.
2) The fact that 15 and 18 April 2022 are public holidays due to the Catholic Easter in most international stock markets.
3) The fact that the settlement system for payments TARGET2 is closed on those days.
4) 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 C493
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