Home / CY AIFM Law of 2013 / PART ΙΧ – SUPERVISION RULES / CHAPTER 1 - Designation, powers and redress procedures / Section 72 - Obligations of the Commission to ESMA and to other authorities.

Obligations of the Commission to ESMA and to other authorities.

72.-(1) All the information exchanged under this Law, between the Commission, ESMA, ESRB or other competent authorities shall be considered confidential, except where ESMA or the competent authority states at the time of communication that such information may be disclosed or where such disclosure is necessary for legal proceedings.

(2) In accordance with paragraph (4) of Article 47 of Directive 2011/61/EU, the Commission, after ESMA’s request shall take or renew any of the following measures, as appropriate:

(a) prohibit the marketing of units of AIFs managed by non-EU AIFMs or units of non-EU AIFs managed by EU AIFMs, without the authorisation required in section 49 of this Law, or without the notification required in sections 44, 45 and 59 to 63 of this Law, or without being allowed to do so by the competent authorities of relevant Member States in accordance with section 66 of this Law∙

(b) impose restrictions on non-EU AIFMs relating to the management of an AIF in case of excessive concentration of risk in a specific market on a cross-border basis;

(c) impose restrictions on non-EU AIFMs relating to the management of an AIF where its activities potentially constitute an important source of counterparty risk to a credit institution or other systemically relevant institutions;

(3) The measures taken by the Commission pursuant to subsection (2) shall -

(a) effectively address the threat to the orderly functioning and integrity of the financial market or to the stability of the whole or a part of the financial system in the Union or significantly improve the ability of the Commission to monitor the threat; and

(b) not create a risk of regulatory arbitrage; and

(c) not have a detrimental effect on the efficiency of the financial markets, including reducing liquidity in those markets or creating uncertainty for market participants, in a way that is disproportionate to the benefits of the measures;

(4) The Commission being the Competent authority of the Republic may act in accordance with paragraph 10 of Article 47 of Directive 2011/61/EU.