Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 8: Special provisions / Part 2 - Fixed or variable capital investment companies / [64] Withdrawal of authorisation of an investment company.
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64. Withdrawal of authorisation of an investment company.
(1) The Securities and Exchange Commission may decide to withdraw the authorisation of an investment company when-
(a) the investment company has obtained the authorisation by making false statements or by any other irregular means; or
(b) the investment company does not raise the minimum assets within the timeframe provided for in article 14(1)(a); or
(c) the investment company does not raise the minimum assets within the extended timeframe provided for in article 14(1)(b); or
(d) the investment company has ceased the activity covered by its authorisation for a time period longer than six (6) months; or
(e) the investment company no longer fulfils the conditions under which authorisation was granted;
(f) the investment company expressly renounces the authorisation, informing the Securities and Exchange Commission in writing.
(2) The Securities and Exchange Commission may withdraw the authorisation of an investment company when-
(a) its external manager does not comply with the authorisation requirements of the investment company or its obligations deriving from the law governing its operation,
(b) the investment company no longer satisfies any of the conditions required or taken into consideration by the Securities and Exchange Commission for granting its authorisation.
(3) In the cases of section (2), the Securities and Exchange Commission shall set a timeframe to the external manager or the investment company to comply; if the external manager or the investment company fails to comply within the set timeframe, the Securities and Exchange Commission may decide to withdraw the license of the investment company.
(4) Without prejudice to the provisions of section (1), article 12 of the Alternative Investment Fund Managers Law applies in the case of withdrawal of authorisation of an AIFM, which is an internally managed AIF.
(5) In the cases of sections (1) to (4), the Securities and Exchange Commission shall communicate its decision regarding the withdrawal of the authorisation of the investment company to the external manager or the investment company, the Registrar and the competent authorities of the countries where the units of the investment company are marketed.
(6) Following the communication of the decision of the Securities and Exchange Commission regarding the withdrawal of the authorisation of the investment company to its external manager or itself, the investment company is dissolved and put into liquidation in accordance with article 63.
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