Home / CY AIFM Law of 2013 / PART Ι – INTRODUCTORY PROVISIONS / Section 5 - Determination of the AIFM. 

Determination of the AIFM.

5.-(1) Each AIF managed within the scope of this Law, shall have a single AIFM, which shall be responsible for ensuring compliance with the provisions of this Law. The AIFM shall be either -

(a) an external manager, which is the legal person appointed by the AIF or on behalf of the AIF and which through this appointment is responsible for managing the AIF (external AIFM), or

(b) where the legal form of the AIF permits an internal management and where the AIF’s governing body chooses not to appoint an external AIFM, the AIF itself, which shall then be authorised as AIFM.

(2) In cases where an external AIFM is unable to ensure compliance with the requirements of this Law, for which an AIF or another entity on its behalf is responsible, it shall immediately inform the competent authority of its home Member State and, if applicable, the competent authority of the EU AIF concerned. In case the Commission, as the competent authority of the AIFM, is informed, the Commission shall require the AIFM to take the necessary steps to remedy the situation.

(3) If, notwithstanding the steps referred to in paragraph (2) being taken, the non-compliance persists, and in so far as it concerns an AIFM of the Republic or an EU AIF, the Commission shall require the AIFM to resign as AIFM of that AIF. In that case, the AIF shall no longer be marketed in the Union. If it concerns a non-EU AIFM managing a non-EU AIF, the AIF shall no longer be marketed in the Union. The Commission, as the competent authority of the home Member State of the AIFM shall immediately inform the competent authorities of the host Member States of the AIFM.