Summary of CySEC's Circular C460
Memo #33-2021
CySEC Circular No: C460
Date: 27/07/2021
Subject: ESMA Guidelines on Article 25 of Directive 2011/61/EU
Purpose: To inform AIFMs that ESMA has issued Guidelines on Article 25 of Directive 2011/61/EU.
In Summary:
CySEC has issued the Circular C460 on 26/07/2021 to inform the Alternative Investment Fund Managers (‘AIFMs’) that the European Securities and Markets Authority (‘ESMA’), issued on 23/06/2021 Guidelines (‘the Guidelines’), on Article 25 of Directive 2011/61/EU (‘the Directive’).
The reference number of the Guidelines is ESMA34-32-701 EN.
The Guidelines apply to National Competent Authorities (‘NCAs’).
Section 32(1) of Law 56(Ι)/2013, the Alternative Investment Fund Managers Law of 2013 (‘the Law’), transposes the provisions of Article 25 of the Directive. Based on Section 32(1) of the Law, CySEC uses the information collected under section 31 of the Law, for the purposes of identifying the extent to which the use of leverage contributes to the built-up of systemic risk in the financial system, risks of disorderly markets or risks to the long-term growth of the economy.
The objectives of these Guidelines are to establish consistent, efficient and effective supervisory practices within the European System of Financial Supervision and to ensure the common, uniform and consistent application of Article 25 of the Directive.
The Guidelines apply from 23/08/2021 for the AIFMs that have a reporting obligation under Section 31 of the Law.
CySEC notes that has adopted the Guidelines and urges the AIFMs reporting under Section 31 of the Law, to make every effort to comply with the reporting obligations of the Law, within the set deadlines.
The Guidelines ESMA34-32-701 EN can be found on the following link: https://www.esma.europa.eu/sites/default/files/library/esma34-32-701_guidelines_on_article_25_aifmd.pdf
