Article 3 (Exemptions) and Article 24 (Transparency Requirements) of Directive 2011/61/EU on Alternative Investment Fund Managers require AIFMs to report specified information ("transparency information") to regulatory authorities about their activities and the funds they are managing and, where relevant, marketing.
The Cyprus Securities and Exchange Commission's review of the transparency information reported by AIFMs under its supervision for the year 2017 identified several common inconsistencies and discrepancies. In preparation for the 2018 reporting round, CySEC has issued a circular to regulated entities highlighting the main issues, so as to avoid them being repeated.
Cyprus-based AIFMs and self-managed AIFs whose total assets under management exceed the thresholds set out in the Alternative Investment Fund Managers Law, or who have opted into the reporting regime are subject to the requirements. The frequency of reporting varies according to aggregate assets under management, assets under management per fund and the degree of leverage of funds. Depending on these factors, reporting may be quarterly (quarters ending 31 March, 30 June, 30 September and 31 December), half-yearly or yearly. The information must be submitted to CySEC no later than one month after the end of the reporting period. An additional 15 days is allowed for a fund structured as a fund of funds. For newly-authorised AIFMs the reporting obligation begins on the date of the AIFM's licence, as published on CySEC's website.
Information as of the last business day of the reporting period must be provided for each AIF the AIFM manages, on a consistent basis. Where an AIF takes the form of an umbrella, the information should be reported at the level of each sub-fund or compartment.
AIFMs are required to take the guidance, the full version of which is available on the CySEC website, into account when preparing their AIFMD report for 2018 and subsequent years.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.