Home / Regulatory Developments / Circular C216 (“the Circular”) dated 22.06.17 regarding changes in the persons who effectively direct the business of CIF

Circular C216 (“the Circular”) dated 22.06.17 regarding changes in the persons who effectively direct the business of CIF

Through the Circular, CySEC informs the CIFs and the persons who effectively direct the business of CIF of the obligations provided in Article 32 of the Investment Services and Activities and Regulated Markets Law, as amended (‘the Law’), which include:

  1. “(1) A CIF must notify the Commission, along with all information needed to assess whether the new persons to be appointed are of sufficiently good repute and sufficiently experienced, at least one month before the change is brought about. […]
  1. (3) The persons that effectively direct the business of a CIF must notify in writing without undue delay, to the Commission and the CIF, of any new detail with regards their person, that could affect the sound and prudent management of the CIF. It is provided that the CIF bears the same obligation, if it knows or ought to have known of the new relevant details.”

CySEC’s expects that: A CIF is obliged, as soon as it is informed of the resignation of a person who effectively directs the CIF’s business, to immediately notify CySEC of this resignation. Therefore, the CIF should not expect that this vacancy is filled prior to notifying the resignation to CySEC. We indicatively note that the appointment of a new person who effectively directs the business of the CIF should be notified to CySEC as soon as possible and the latest within fifteen (15) days from the day the CIF is notified of the aforementioned resignation.

According to Article 32 (3) of the Law, the persons who effectively direct the CIF’s business should notify CYSEC in writing and without undue delay, of any new detail with regards their person that could affect the sound and prudent management of the CIF.

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