Home / CY AIFM Law of 2013 / PART ΙΧ – SUPERVISION RULES / CHAPTER 1 - Designation, powers and redress procedures / Section 70 - Responsibilities of the Commission and the competent authorities of the home and host Member State of the AIFM.
Embedded Files
Responsibilities of the Commission and the competent authorities of the home and host Member State of the AIFM.
70.-(1) The Commission shall be responsible for the prudential supervision of an AIFM of the Republic, whether the AIFM manages and/or markets AIFs in another Member State or not, without prejudice to those provisions of Directive 2011/61/EU which confer the responsibility for supervision on the competent authorities of the host Member State of the AIFM.
(2) Where the Republic is the host Member State of an AIFM, the Commission shall supervise the compliance of the AIFM with sections 13 and 15, so long as it manages and/or markets units of AIFs, through a branch, in the Republic.
(3) Where an AIFM of the Republic manages and/or markets AIFs through a branch in the territory of another Member State, the supervision of the AIFM’s compliance with Articles 12 and 14 of Directive 2011/61/EU shall be responsibility of the competent authorities of the host Member State of the AIFM.
(4) Where the Republic is the host Member State of an AIFM, the Commission may require an AIFM managing or marketing AIFs in its territory, whether or not through a branch, to provide the information necessary for the supervision of the AIFM’s compliance with the applicable rules for which the Commission is responsible. Those requirements shall not be more stringent than those which the applicable law of the Republic imposes on AIFMs of the Republic for monitoring of their compliance with the same rules.
(5) Where the Republic is the host Member State of an AIFM and the Commission ascertains that the AIFM managing and/or marketing AIFs in the Republic, whether or not through a branch, is in breach of one of the rules in relation to which it has responsibility for supervising compliance, the Commission shall require the AIFM concerned to put an end to that breach and inform the competent authorities of the home Member State thereof.
(6) If the AIFM referred to in subsection (5) refuses to provide the Commission with information falling under its responsibility, or fails to take the necessary steps to put an end to the breach referred to in subsection (5), the Commission shall inform the competent authorities of its home Member State thereof.
(7) Where the Commission, as the competent authority responsible for the supervision of an AIFM of the Republic, is informed by the competent authorities of the host Member State of the AIFM, that it refuses to provide them with information falling under their responsibility or fails to take the necessary steps to put an end to the breach of one of the rules of the host Member State, it shall, at the earliest opportunity -
(a) take all appropriate measures to ensure that the AIFM concerned provides the information requested by the competent authorities of its host Member State, or puts an end to the breach and shall communicate those measures to the competent authorities of the host Member State of the AIFM; and
(b) request the necessary information from the relevant supervisory authorities in the third country.
The Commission shall communicate the nature of the measures referred to in paragraph (a), to the relevant competent authorities of the host Member State of the AIFM
(8) If, despite the measures taken by the competent authorities of the home Member State of the AIFM pursuant to paragraph 5 of Article 45 of the Directive 2011/61/EU, or because such measures prove to be inadequate or are not available in the Member State in question, the AIFM continues to refuse to provide the information requested by the Commission pursuant to subsection (4) of this section, or persists in breaching the applicable legal or regulatory provisions in force and in relation to which the Commission has the responsibility of supervising compliance in accordance with this Law, the Commission may, after informing the competent authorities of the home Member State of the AIFM, take appropriate measures, including those laid down in sections 71 and 74 of this Law, to prevent or penalise further irregularities, and in so far as necessary, to prevent that AIFM from imitating any further transactions in the Republic. Where the function carried out in the Republic is the management of AIFs, the Commission may require the AIFM to cease managing those AIFs.
(9) Where the Republic is the host Member State of an AIFM, if the Commission has clear and demonstrable grounds for believing that the AIFM is in breach of the obligations arising from rules in relation to which it has no responsibility for supervising compliance, it shall refer those findings to the competent authorities of the home Member State of the AIFM, which shall take appropriate measures in accordance with paragraph 7 of Article 45 of Directive 2011/61/EU.
(10) Where the Commission, as the competent authority responsible for the supervision of an AIFM of the Republic, is informed by the competent authorities of the host Member State of the AIFM, that they have clear and demonstrable grounds for believing that the AIFM is in breach of the obligations arising from rules in relation to which they have no responsibility for supervising compliance, it shall take appropriate measures, including, if necessary request additional information from the relevant supervisory authorities in third countries.
(11) If, despite the measures taken by the competent authorities of the home Member State of the AIFM referred to in subsection (9), or because such measures prove to be inadequate or because the competent authorities of the home Member State of the AIFM fail to act within reasonable time, the AIFM persists in acting in a manner that is clearly prejudicial to the interests of the investors of the relevant AIF in the Republic, the financial stability or the integrity of the market in the Republic, as the host Member State of the AIFM, the Commission, may, after informing the competent authorities of the home Member State of the AIFM, take all appropriate measures needed in order to protect the investors of the relevant AIF in the Republic, the financial stability or the integrity of the market in the Republic, including the possibility of preventing the AIFM concerned to further market the units of the relevant AIF in the Republic.
(12) The procedure laid down in subsections (9), (10) and (11) shall also apply in the event that the Commission, as the competent authority of the Republic, which is the host Member State of the AIFM, has clear and demonstrable grounds for disagreement with the authorisation of a non-EU AIFM by the Member State of reference.
(13) The Commission, being the competent authority of the Republic, may act in accordance with paragraph 10 of Article 45 of Directive 2011/61/EU.
Page updated
Report abuse