Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 1: General characteristics and distinctions of AIFs / [10] Conversion of AIF to umbrella AIF and vice versa.
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10. Conversion of AIF to umbrella AIF and vice versa.
(1) (a) An AIF which is not an umbrella AIF may convert to an umbrella AIF, upon the amendment of its fund rules or instruments of incorporation subject to the provisions of article 9(4), and provided that it complies with the provisions of this Law.
(b) Without prejudice to the provisions of this section, in case an AIF converts into an umbrella AIF, the rights of unitholders and the claims of creditors or the liabilities of the AIF are assigned to the investment compartment of the umbrella AIF in which the assets belonging to the AIF, pre-existing its conversion into an umbrella AIF, are allocated to:
It is provided that, any lawsuits and other legal proceedings initiated on behalf of or against to the AIF and any administrative actions taken against the AIF before converting into an umbrella AIF shall continue to apply and bear the investment compartment in which the assets belonging to the AIF, pre-existing its conversion into an umbrella AIF, are allocated to∙ the external manager shall inform in writing the Securities and Exchange Commission in relation to the investment compartment in which the assets belonging to the AIF, pre-existing its conversion into an umbrella AIF, are allocated to.
(c) Unless the unitholder and/or the creditor have agreed otherwise, when an AIF converts into an umbrella AIF and the provisions of article 9(3)(b) are applicable, the unitholders and creditors of the AIF can request that any rights and claims they may have or liabilities arisen against the AIF are satisfied by the assets of the investment compartments of the umbrella AIF into which the assets belonging to the AIF, pre-existing its conversion into an umbrella AIF, are allocated to:
It is provided that, any lawsuits and other legal proceedings initiated on behalf of or against to the AIF and any administrative actions taken against the AIF before converting into an umbrella AIF shall continue to apply and bear the investment compartments in which the assets belonging to the AIF, pre-existing its conversion into an umbrella AIF, are allocated to∙ the external manager shall inform in writing the Securities and Exchange Commission in relation to the investment compartments in which the assets belonging to the AIF, pre-existing its conversion into an umbrella AIF, are allocated to.
(2) An umbrella AIF may convert to an AIF that is not an umbrella AIF -
(a) upon an amendment of its fund rules or instruments of incorporation,
(b) upon the dissolution and liquidation of all of its investments compartments but one, applying proportionately the provisions of article 9(7), and
(c) provided that it complies with the provisions of this Law.
(3) The prior approval of the Securities and Exchange Commission is required in order to proceed to any of the actions of sections (1) and (2).
(4) The Securities and Exchange Commission may, by means of a directive, regulate any technical matters and details regarding the application of this article.
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