Home / CY AIFM Law of 2013 / PART VI – RIGHTS OF AIFMs TO MANAGE AND MARKET EU AIFs IN THE UNION / Section 38 - Marketing of units of EU AIFs in the Republic by AIFMs of the Republic. 

Marketing of units of EU AIFs in the Republic by AIFMs of the Republic.

38.-(1) An AIFM of the Republic, authorised by the Commission in accordance with the provisions of this Law, may market units of any EU AIF that it manages in the Republic, as soon as the conditions laid down in this section are met. Where the EU AIF is a feeder AIF, the right to market in the Republic is subject to the condition that the master AIF is also an EU AIF which is managed by an EU AIFM which is authorised in accordance with the Directive 2011/61/EU.

(2) The AIFM of the Republic, which intends to market units of an EU AIF in accordance with subsection (1) of this section, shall submit a notification to the Commission in respect of the relevant AIF and the following documents or information:

(a) a notification letter, including a programme of operations identifying the AIF the AIFM intends to market and information on where the AIF is established;

(b) the AIF rules or instruments of incorporation;

(c) identification of the depositary of the AIF;

(d) a description of, or any information on, the AIF available to investors;

(e) information on where the master AIF is established if the AIF is a feeder AIF;

(f) any additional information referred to in section 30(1) for each AIF the AIFM intends to market;

(g) where relevant, information on the arrangements established to prevent units or shares of the AIF from being marketed to retail investors, including the case where the AIFM relies on activities of independent entities to provide investment services in respect of the AIF.

(3) Subject to subsections (1) and (2) of section 67, an AIFM of the Republic may market the units of the AIFs that it manages only to professional investors.

(4) Within twenty days following receipt of a complete notification file pursuant to subsection (2), the Commission shall inform the AIFM of the Republic whether it may start marketing the AIF identified in the notification of subsection (2) in the Republic. The Commission shall prevent the marketing of the AIF only if the AIFM’s management of the AIF does not or will not comply with this Law or the AIFM otherwise does not or will not comply with this Law. In case of a positive decision, the AIFM may start marketing the AIF in the Republic from the date of the notification of the Commission to that effect. In so far as, the AIF is established in a Member State other than the Republic, the Commission shall also inform the competent authorities of the AIF that the AIFM may start marketing units of the AIF in the Republic.

(5) In the event of a material change to any of the particulars communicated in accordance with subsection (2), the AIFM shall give written notice of that change to the Commission, at least one month before implementing the change as regards any changes planned by the AIFM or immediate after the unplanned change has occurred.

(6) If, pursuant to a planned change, the AIFM’s management of the AIF would no longer comply with this Law, or, the AIFM would otherwise no longer comply with this Law, the Commission shall inform the AIFM without undue delay that it is not to implement the change.

(7) If a planned change is implemented notwithstanding the provisions of subsections (5) and/or (6) of this section, or if an unplanned change has taken place pursuant to which the AIFM’s management of the AIF no longer complies with this Law, or the AIFM otherwise no longer complies with this Law, the Commission shall take all due measures in accordance with section 71, including, if necessary, the express prohibition of marketing of the AIF.

(8) The Commission, may, by Directive, to determine any of the following:

(a) the form and content of a model for the notification letter referred to in subsection (2);

(b) the form of the written notice referred to in subsections (5) and (6) and of the notification of the measures taken in accordance with subsection (7).