Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 8: Special provisions / Part 1 - Common fund / [53] Withdrawal of common fund authorisation.

53. Withdrawal of common fund authorisation.

(1) The Securities and Exchange Commission may decide to withdraw the authorisation of the common fund when-

(a) it has obtained the authorisation by making false statements or by any other irregular means; or

(b) in case the minimum assets are not raised within the timeframe provided for in article 14(1)(a); or

(c) in case the minimum assets are not raised within the extended timeframe provided for in article 14(1)(b).

(2) The Securities and Exchange Commission may revoke the authorisation of a common fund:

(a) if its external manager does no longer complies with the terms of authorisation of the common fund or with its obligations as these derive from –

• the Alternative Investment Fund Managers Law or the legislation of another Member State which harmonises Directive 2011/61/EE respectively, in case the external manager is an AIFM, or

• the Open Ended Undertakings on Collective Investments Law or the legislation of another Member State which harmonises Directive 2009/65/EC respectively, in case the external manager is a UCITS management company, or

• the legislation of the Republic or the legislation of a Member State 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 or the corresponding Article 3, paragraph 2 of Directive 2011/61/EU, or

• the provisions of this Law, in all other cases, or

(b) if the common fund no longer satisfies the required conditions or the conditions taken into consideration for its authorisation by the Securities and Exchange Commission.

(3) In the cases of section (2), the Securities and Exchange Commission may set a deadline to the external manager of the common fund to comply. Where the external manager fails to comply within the set deadline, the authorisation of the common fund may be revoked.

(4) The Securities and Exchange Commission, in the cases of sections (1) to (3), shall communicate its decision regarding the withdrawal of the authorisation, to the external manager of the common fund and to the competent authorities where the units of the common fund are marketed.

(5) Following the communication of the decision of the Securities and Exchange Commission regarding the withdrawal of the authorisation of the common fund to its external manager, the common fund is dissolved and put into liquidation in accordance with article 52.