Home / CY AIFM Law of 2013 / PART Ι – INTRODUCTORY PROVISIONS / Section 4 - Specific scope of application of this Law. 

Specific scope of application of this Law.

4.-(1) This Law shall not apply to AIFMs, in so far as they manage one or more AIFs, whose only investors are the AIFM or the parent undertakings, or the subsidiaries of the AIFM or other subsidiaries of those parent undertakings, provided that none of those investors is itself an AIF.

(2) Without prejudice to the application of section 71, only paragraphs (3), (4), (5) and (6) of this section apply to the following AIFMs:

(a) AIFMs which, either directly or indirectly, through a company with which the AIFM is linked by common management or control, or by a substantive direct or indirect holding, manage portfolios of AIFs whose assets under management, including any assets acquired through use of leverage, in total do not exceed a threshold of EUR 100million; or

(b) AIFMs which, either directly or indirectly, through a company with which the AIFM is linked by common management or control, or by a substantive direct or indirect holding, manage portfolios of AIFs whose assets under management in total do not exceed a threshold of EUR 500 million when the portfolios of AIFs that are unleveraged and have no redemption rights exercisable during a period of 5 years following the date of initial investment in each AIF.

(3) AIFMs referred to in paragraph (2) -

(a) are subject to registration with the competent authorities of their home Member State; and

(b) at the time of registration, identify themselves and the AIFs that they manage to the competent authorities of their home Member State; and

(c) at the time of registration, provide information on the investment strategies of the AIFs that they manage to the competent authorities of their home Member State; and

(d) regularly provide the competent authorities of their home Member State with information on the main instruments in which they are trading and on the principal exposures and most important concentrations of the AIFs that they manage in order to enable the competent authorities to monitor systemic risk effectively; and

(f) notify the competent authorities of their home Member State in the event that they do no longer meet the conditions referred to in paragraph (2).

(4) Paragraphs (2) and (3) shall apply without prejudice to any stricter rules adopted with respect to AIFMs referred to in paragraph (2).

(5) In case an AIFM no longer meets the conditions set out in paragraph (2), the AIFM shall apply for authorisation within 30 calendar days in accordance with the relevant procedures laid down in this Law.

(6) AIFMs referred to in paragraph (2) shall not benefit from any of the rights granted under this Law, unless they choose to opt in under this Law. Where AIFMs opt in, this Law shall become applicable in its entirety.

(7) The Commission may issue a Directive specifying the procedures for AIFMs which choose to opt in under this Law in accordance with paragraph (6).