Summary of CySEC's Circular C477

Memo #50-2021
CySEC Circular No: C477
Date: 15/12/2021
Subject: Suspension of redemption of UCITS and AIF units on 24 December 2021
Purpose: To inform the Regulated Entities that the redemption of UCITS and AIF units is suspended for the 24 December 2021.

In Summary:

CySEC has issued the Circular C477 on 15/12/2021 to inform the Undertakings Collective Investment in Transferable Securities (UCITS) - Management Companies and the Alternative Investment Funds (‘AIF’) – AIF Managers, that the redemption of UCITS and AIF units is suspended for the 24 December 2021.

It is provided that the suspension refers to UCITS and AIFs that hold assets in transferable securities listed in regulated markets and whose net assets are calculated on a daily basis.

CySEC informs that reached to the decision for the suspension after taking into consideration:

• The provisions of article 20 of the Open-Ended Undertakings for Collective Investment (UCI) Law (the “UCI Law”).
• The provisions of article 43(3) of the Alternative Investment Funds Law (the “AIF Law”).
• The fact that the 24 December 2021 is a full or part – day public holiday in most international stock markets.
• The need to safeguard the interests of unit-holders of UCITS and AIFs and the proper functioning of the market.

CySEC further 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 C477

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