Home / CY AIFM Law of 2013 / PART ΙΧ – SUPERVISION RULES / CHAPTER 1 - Designation, powers and redress procedures / Section 71 - Powers of the Commission.

Powers of the Commission.

71.-(1) The Commission has all supervisory and investigatory powers that are necessary for the exercise of its functions. Such powers shall be exercised in any of the following ways:

(a) directly;

(b) in collaboration with other authorities;

(c) under its responsibility by delegation to entities to which tasks have been delegated;

(d) by application to the competent judicial authorities.

(2) The Commission has the power to:

(a) have access to any document in any form and to receive a copy of it;

(b) require information from any person related to the activities of the AIFM or the AIF and if necessary to summon and question a person with a view to obtaining information;

(c) carry-out on site inspections with or without prior announcements;

(d) request existing telephone and existing data traffic records;

(e) require the cessation of any practice that is contrary to the provisions adopted in the implementation of this Law or any regulatory act developed pursuant to the Law;

(f) request the freezing or the sequestration of assets;

(g) request the temporary prohibition of professional activity in accordance with the following procedure:

• where the Commission determines that a person violates the provisions of this Law or Regulation issued pursuant to this Law, may impose to this person a temporary prohibition of professional activity for a period that does not exceed five days, with the possibility of extension for one or more times for a period of less than five days, for the termination of violation; and

• the person subject to the prohibition, during the prohibition period, shall make all reasonable actions to revoke the reasons for which the prohibition of professional activity has been imposed; and

• if the Commission is satisfied that the reasons for which the prohibition has been imposed, are revoked before the end of the first or any five day period, may allow the exercise of professional activity before the expiry of the prohibition period;

(h) require authorised AIFM, depositaries or auditors to provide information;

• adopt any type of measure to ensure that AIFMs or depositaries continue to comply with the requirements of this Law applicable to them;

(j) by directive, determine the procedure with which the Commission may require the suspension of the issue, repurchase or redemption of units in the interest of the unit-holders and/or the public;

(k) withdraw the authorisation granted to an AIFM and/or AIF depositary;

(l) refer matters to the General Attorney of the Republic for criminal prosecution of persons violated a rule of criminal nature, in relation to matters concerning the application of this Law;

(m) request that auditors or experts carry out verifications and/or investigations.

(3) The provisions of the Cyprus Securities and Exchange Commission (Constitution and Terms of Reference) Law, as subsequently amended, governing the supervisory function of the Commission, its power to collect information, to carry out inspections, to impose sanctions, to cooperate with other competent authorities and bodies of other states and, in general, all its powers, responsibilities and duties pursuant to the said Law, apply supplementary to the supervision that the Commission exercises in accordance with the provisions of this Law.

(4) Where the Commission, as the competent authority of the Republic which is the Member State of reference of a non-EU AIFM, considers that an authorised non-EU AIFM is in breach of its obligations under this Law, it shall notify ESMA, the soonest possible, setting out full reasons as soon as possible.

(5) The Commission may take all measures required in order to ensure the orderly functioning of markets in those cases where the activity of one or more AIFs in the market for a financial instrument could jeopardise the orderly functioning of the market.