Home / CY AIF Law of 2018 / PART VΙI: ALTERNATIVE INVESTMENT FUNDS WITH LIMITED NUMBER OF PERSONS / [126] Granting AIFLNP authorisation. 

126. Granting AIFLNP authorisation. 

(1) The operation of an AIFLNP is subject to the prior granting of authorisation and notification of the authorisation by the Securities and Exchange Commission, only if the Securities and Exchange Commission approves -

(a) the relevant application,

(b) the AIFLNP’s instruments of incorporation,

(c) the choice of its external manager, or in case of an internally managed AIFLNP, the persons who effectively conduct the business of the AIFLNP, and

(d) the choice of its depositary, where one is appointed.

(2) The Securities and Exchange Commission shall neither require the external manager of the AIFLNP to be established in the Republic as a condition for authorisation, nor the delegation of the portfolio management of the AIFLNP to an external manager established in the Republic.

(3) The Securities and Exchange Commission shall not grant an AIFLNP authorisation if -

(a) It considers that its external manager, which is established in the Republic, does not satisfy the conditions of -

• the Open Ended Undertakings for Collective Investments Law, if the external manager is a UCITS management company established in the Republic∙

• a legislation of the Republic subject to which an AIF management company is authorised, for the investment management of AIFs, whose assets under management do not exceed the thresholds of article 4(2) of the Alternative Investment Funds Manager Law, if the external manager is a company referred to in article 125(1)(b)(iii)∙

• articles 24(2) and 125(4), if the external manager is an IF∙

•  articles 129(4) and 13, if the external manager is a company referred to in article 125(1)(b)(v)∙

(b) the external manager of the AIFLNP, established in another Member State, does not meet the requirements of articles 125(1)(b)(vi), (vii) or (viii)∙

(c) the depositary of the AIFLNP, if one is appointed, does not meet the requirements laid down in this Law, or the person or persons appointed by the depositary as responsible for monitoring the activity of the AIFLNP, are not of good repute or they do not possess sufficient experience, among others, in relation to the type of the AIFLNP subject to authorisation∙

(d) the effective exercise of the Securities and Exchange Commission’s supervisory functions is prevented by any of the following-

• close links between the AIFLNP and other natural or legal persons∙ or

• the laws, regulations or administrative provisions of a third country governing natural or legal persons with which the AIFLNP has close links∙ or

• difficulties involved in the enforcement of those laws, regulations and administrative provisions referred to in sub-section (ii).

(4) The Securities and Exchange Commission shall inform the external manager of the AIFLNP or the AIFLNP, in case it is internally managed, within six (6) months of the submission of a complete application file in accordance with sections 12(4) to (6), whether authorisation has been granted:

It is provided that, in case the Securities and Exchange Commission refuses to grant authorisation the reasons for such a decision shall be duly justified and shall also be communicated to the Registrar.

(5) The Securities and Exchange Commission may, by means of a directive, regulate any technical matter or detail regarding the application of this article, as well as any matter relevant to the operation of AIFLNPs in the Republic, specify the information, data and documents submitted to the Securities and Exchange Commission for the granting of authorisation in accordance with section (1) and determine standard forms, templates and procedures for the provision of such information.