Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 7: Subscriptions and redemptions of AIF units / [42] Redemption of AIF units.

42. Redemption of AIF units.

(1) (a) The redemption or repurchase of units of an AIF shall take place in accordance with the conditions stated in the fund rules or the instruments of incorporation of the AIF, as these may be further specified in its offering document.

(b) The units are redeemed at the redemption price of the next scheduled redemption date after the submission of the redemption application, as this price is specifically determined in the fund rules or instruments of incorporation of the AIF.

(c) The fund rules or instruments of incorporation of the AIF shall determine the final date for the submission of redemptions applications, so that the redeemed units are valued at the redemption price of the next scheduled redemption date following the submission of the application.

(2) For the redemption of units of the AIF, the unitholder shall submit a written or electronic application to the external manager or the AIF, in case it is internally managed.

(3) The value of the redeemed AIF units shall be paid in cash or in kind, if this is provided in the fund rules or instruments of incorporation of the AIF; in case of a traded AIF, the value of the redeemed AIF units shall be paid in securities related with the composition of the index replicated in the AIF’s portfolio. The relevant payment shall take place within the period provided in the fund rules or the instruments of incorporation of the AIF.

(4) An application to transfer a unitholder from one investment compartment of the AIF to another investment compartment of the same AIF, or from one AIF to another AIF, is equivalent with a redemption application for the units of the original AIF, or its investment compartment and with the subscription of units in the new AIF or the new investment compartment of the same AIF.