Home / CY AIFM Law of 2013 / PART ΙΙ – AUTHORISATION OF AIFMs / Section 11 - Suspension of the authorisation. 

Suspension of the authorisation.

11.-(1) The Commission may suspend the authorisation of an AIFM of the Republic, if it assesses, at its full discretion, that by continuing its activities may jeopardise the interests of the AIFs it manages, its clients or the investors, or in general the smooth operation or the integrity of the market -

(a) in connection with the procedure of withdrawal of authorisation of the AIFM, for the time period until a decision regarding the withdrawal is taken; or

(b) upon decision of the Chairman or the Vice-Chairman of the Commission, who notify the Board of the Securities and Exchange Commission during its upcoming session, when there are suspicions of possible infringement of this Law or of another legal provision that regulates the provision of services by the AIFM or of a provision of the relevant legislation, for the time period during which it is assessed that the above interests are jeopardised.

(2) The Commission may suspend the authorisation in accordance with paragraph (1) of this section, partly or completely. In case of partial suspension, according to which the authorisation is suspended in accordance with the activities of paragraph (a) of subsection (6) of section 6, the Commission shall also suspend the activities mentioned in paragraph (b) of subsection (6) of section 6.

(3) In case of suspension of authorisation in accordance with sub-paragraph (b) of paragraph (1), the Commission, with its decision for suspension, may set to the AIFM a reasonable deadline to remedy the situation. This deadline may not be longer than one month, starting from the date of communication of the decision for the suspension to the AIFM.

(4) The AIFM shall inform the Commission about the remedy of the situation, within the deadline of paragraph (3), where -

(a) if the Commission judges that the reasons for the suspension of authorisation no longer exist, revokes the suspension and communicates the fact to the AIFM; or

(b) if the AIFM omits to notify the Commission, or if the Commission judges that there was no remedy of the situation or that the interests mentioned in paragraph (1) are still jeopardised, it extends the suspension of authorisation and initiates the procedure for withdrawal of the authorisation, where the suspension applies until the decision for withdrawal of authorisation is taken.

(5) In case of suspension according to paragraph (1), the AIFM does not provide those services or perform those activities for which the authorisation is suspended.

(6) The Commission may specify, by Directive, the procedure to be followed for the implementation of this section.

(7) In the event of infringement of the provisions of paragraph (5) by an AIFM, the Commission may impose to the AIFM an administrative fine of up to EUR 350,000.