Monday June 10 2019
News Source: Fund Regulation
On 7th June 2019, the Cyprus Securities and Exchange Commission (‘the CySEC’) reminded the AIFMs on the requirement of raising capital from investors within twelve (12) months from the date when the funds under their management or itself, in case it is internally managed, were/was authorised.
A. Regulatory Framework
- The Law 124(I)/2018 (‘the AIF Law’) provides the following with regards to the requirement of an Alternative Investment Fund – AIF3, an Alternative Investment Fund with limited number of persons – AIFLNP4 and a Registered Alternative Investment Fund – RAIF5 (‘the Funds’) established in the Republic, to raise capital from investors.
B. Funds authorised/registered after the entry into force of the AIF Law
- Funds authorised/registered after the entry into force of the AIF Law, should raise from investors the amount of capital provided in articles 14, 129 and 136, depending on their type6, within twelve (12) months from the date of their authorisation/registration.
- When the required amount of raised capital is reached for each fund/investment compartment under management, AIFMs should notify CySEC the soonest possible by completing and submitting Form 124-00-02 (‘the Form’). It is provided that if no notification is received within 12 months from the date the fund’s/investment compartment’s authorisation/registration was granted, CySEC will start the procedure of withdrawing the authorisation according to Articles 53, 64, 75 and 133 of the AIF Law, whichever is applicable.
- AIFMs are advised to take into consideration the provisions of articles 14, 129 and 136 of the AIF Law when calculating the amount of capital raised.
- The Form should be accompanied by formal documentation evidencing the amount of capital raised.
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