Home / CY AIF Law of 2018 / PART VIII: REGISTERED ALTERNATIVE INVESTMENT FUNDS / Chapter 1: Establishment of RAIFs / [137] RAIF units.

137.RAIF units.

(1)(a) Without prejudice to the case of RAIF units listed in a secondary market subject to section (2), the transfer of RAIF units shall be carried out under the conditions laid down in the fund rules or instruments of incorporation of the RAIF, and shall apply, in relation to the RAIF from the time the RAIF is notified in writing of such transfer, and in relation to a third party from the time of registration of the transfer in the Unitholders’ Register.

(b) The fund rules or instruments of incorporation of the RAIF may -

• provide for the approval, either prior or after the acquisition of units, of each new unitholder, under the relevant terms and procedures, specifying also the procedure for non-approval of the unitholder by the RAIF∙

• include a preference clause for the transfer of units to the rest of the unitholders or a specific unitholder or specific unitholders, specifying the relevant procedure to be followed in case the right holder of the preference right does not exercise his right:

It is provided that, in case of transfer of units which are not fully paid, until the day of the transfer, the transferor and the transferee shall be jointly and severally liable for the payment of the remaining amount, if this is provided in the fund rules or articles of association of the RAIF:

It is further provided that, the transfer of RAIF units shall be void in case the provisions of this section or a clause of the fund rules or instruments of incorporation regarding the transfer of units are not complied with.

(2)(a) The provisions of Part IV shall apply when a RAIF lists its units or a category of its units in a secondary market.

(b) In case the units of the RAIF have been listed in a secondary market, they may not be subject to a public takeover bid or an exchange.

(3) The prices of AIF units may be published at the Cyprus Stock Exchange or another secondary market, subject to the provisions of article 8(2).