Summary of CySEC's Circular C554
Memo #10-2023
CySEC Circular No: C554
Date: 23/03/2023
Subject: Suspension of redemption of UCITS and AIF units on 7 and 10 April 2023
Purpose: To inform Regulated Entities that the redemption of UCITS and AIF units is suspended on 7 and 10 April 2023.
In Summary:
CySEC has issued the Circular C554 on 23/03/2023 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 7 and 10April 2023.
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 reached this decision after taking into consideration:
• The provision of article 20(1) of the Open-Ended Undertakings for Collective Investment (UCI) Law (the “UCI Law”).
• The provision of article 43(3) of the Alternative Investment Funds Law (the “AIF Law”).
• The fact that 7 and 10 April 2023 are public holidays due to the Catholic Easter in most international stock markets.
• The fact that the settlement system for payments TARGET2 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 C554
Read more news at Regulatory News
