Monday October 26 2020

News Source: Fund Regulation

Focus: AIFMD

Type: General

Country: Cyprus




The Cyprus Securities and Exchange Commission (“CySEC”) has proceeded (through on-site inspections) to evaluate the policies/procedures established and implemented by AIFMs regarding their compliance with some operational aspects relating to the organisational requirements and the delegation of functions (“the Inspections”).

Legal Framework:

The Inspections covered requirements of Articles II and III of the Law, as well as the relevant supplementary provisions included in the “Commission Delegated Regulation (EU) no. 231/2013 supplementing Directive 2011/61/EU of the European Parliament and of the Council” (“the Regulation”).

Deficiencies Found:

  • Risk Management Function
  • Valuation of the AIF’s Assets Function
  • Portfolio Management Function
  • Compliance Function
  • Responsibility of the external AIFM regarding managed AIFs in the form of a company/partnership.
  • Organisational and operational matters of the AIFM and human resources’ professional expertise

Best Practice Standards:

  • Control of the AIFM by the Board of Directors
  • Control from Senior Management
  • Organisation of the AIFM and human resources’ professional expertise

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