Read the CySEC Circular C623
Memo #11-2024
CySEC Circular No: C623
Date: 20/03/2024
Subject: Suspension of redemption of UCITS and AIF units on 29 March and 1 April 2024
Purpose: To inform Regulated Entities that the redemption of UCITS and AIF units is suspended on 29 March and 1 April 2024.
In Summary:
CySEC has issued the Circular C623 on 19/03/2024 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 29 March and 1 April 2024.
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 29 March and 1 April 2024 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 C623
Read more news at Regulatory News
