Home / CY AIFM Law of 2013 / PART ΙΙ – AUTHORISATION OF AIFMs / Section 8 - Conditions for granting authorisation. 

Conditions for granting authorisation.

8.-(1) The Commission grants authorisation to AIFMs of the Republic in accordance with this section.

(2) The Commission shall not grant authorisation to an AIFM of the Republic, unless:

(a) it is satisfied that the AIFM will be able to meet the conditions of this Law; and

(b) the AIFM has sufficient initial capital and own funds in accordance with section 9; and

(c) the persons who effectively conduct the business of the AIFM are of sufficiently good repute and are sufficiently experienced also in relation to the investment strategies pursued by the AIFs managed by the AIFM, the names of those persons and of every person succeeding them in office being communicated forthwith to the Commission and the conduct of the business of the AIFM being decided by at least two persons meeting such conditions; and

(d) the shareholders or members of the AIFM that have qualifying holdings are suitable taking into account the need to ensure the sound and prudent management of the AIFM; and

(e) the head office and re registered office of the AIFM are located in the Republic.

(3) The Commission shall consult with the relevant competent authorities of the Member States involved before granting authorisation, in case the AIFM of the Republic is -

(a) a subsidiary of another AIFM, of a UCITS management company, of an investment firm, of a credit institution or of an insurance undertaking authorised in another Member State; or

(b) a subsidiary of the parent undertaking of another AIFM, of a UCITS management company, of an investment firm, of a credit institution or of an insurance undertaking authorised in another Member State; or

(c) a company controlled by the same natural or legal persons as those that control another AIFM, a UCITS management company, an investment firm, a credit institution or an insurance undertaking authorised in another Member State.

(4) The Commission shall refuse authorisation to AIFMs of the Republic, where the effective exercise of its supervisory functions is prevented by any of the following:

(a) close links between the AIFM and other natural or legal persons; or

(b) the laws, regulations or administrative provisions of a third country governing natural or legal persons with which the AIFM has close links; or

(c) difficulties involved in the enforcement of those laws, regulations and administrative provisions referred to in sub-paragraph (b).

(5) The Commission may restrict the scope of the authorisation granted, in accordance with this section, to an AIFM of the Republic, in particular as regards the investment strategies of the AIFs the AIFM of the Republic is allowed to manage.

(6)(a) The Commission shall inform the applicant AIFM of the Republic, in writing, within three months of the submission of a complete application, whether or not authorisation has been granted. The Commission may prolong this period for up to three additional months, where it considers it necessary due to the specific circumstances of the case and after having notified the AIFM accordingly.

(b) For the purpose of sub-paragraph (a), an application is deemed complete, if the AIFM of the Republic has, at least, submitted the information referred to in section 7(1)(a) to (d) and (2)(a) and (b).

(7) AIFMs of the Republic may start managing AIFs with investment strategies described in the application in accordance with section 7(2)(a), in the Republic, as soon as the authorisation is granted, but not earlier than one month after having submitted any information referred to in section 7(1)(e) and (2)(c), (d) and (e).

(8) The Commission may, by virtue of Directive, specify any of the following: (i)

(a) the requirements applicable to the AIFMs under paragraph (3);

(b) the requirements applicable to shareholders and members with qualifying holdings referred to in sub-paragraph (d) of paragraph (1);

(c) the qualifications and the procedure for certifying AIFM executives and employees.

(i) 8(I) of 2015