Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 6: AIF depositary / [33] Replacement of the depositary.

33. Replacement of the depositary.

(1) The replacement of the depositary of the AIF shall take place in accordance with the terms included in the contract between the depositary and the external manager or the AIF, in case it is internally managed, following the prior approval of the choice of the new depositary by the Securities and Exchange Commission.

(2) In case of a serious breach of the depositary’s obligations, or in order to protect the interests of the unitholders of the AIF in case the depositary fails to perform its tasks in the interests of the unitholders of the AIF, the Securities and Exchange Commission may demand from the external manager or the AIF, in case it is internally managed, to replace the depositary with a new depositary, following the prior approval of the choice of the new depositary by the Securities and Exchange Commission.

(3) An application for the replacement of the depositary can also be filed by the external manager, on behalf of the AIF’s unitholders, or the AIF, in case it is internally managed.

(4) Where the external manager or the AIF, in case it is internally managed, request the replacement of the depositary, they shall propose a new depositary which satisfies the provisions of articles 26(3) or (4), and inform the depositary under replacement of this.

(5) In the case of replacement of the depositary, the provisions of sections 32(4) to (7) shall apply proportionately.