Home / CY AIF Law of 2018 / PART IV LISTED AIFs / [106] Special rules for AIF units' pricing.

106. Special rules for AIF units’ pricing.

(1) Traded AIF units shall be traded on the secondary market where they were listed, at a price set by the net asset value of the AIF, increased or reduced, as the case may be, by the corresponding expense or commission relating to the issue or redemption of units.

(2) The AIF shall employ proper control mechanisms ensuring that the traded AIF units price is does not significantly deviate, as defined in article 102(4), from the net asset value of the AIF.

(3) (a) In the extraordinary case of significant deviation, as defined in article 102(4), of the price of traded AIF units on the one hand and net asset value and the indicative Net Asset Value of the AIF, despite any actions taken to prevent such deviation, the external manager or the AIF, in case it is internally managed, ensures that the units can be sold by the unitholder off the market in which they are being traded or can be redeemed at a price corresponding to the net asset value of the AIF, after the deduction of any justified commissions and expenses.

(b) The offering document of the AIF shall describe the procedure followed in the case of paragraph (a), as well as the indicative cost for the unitholder.