Chapter 4: Open-Ended Undertakings for Collective Investment (UCI) Laws 2016-2016 Flashcards
When should the summarized statement of assets and expenses be submitted to CySEC?
Summarized statement of assets for the first, second and third quarter, within 15 days of the end of the quarter.
What should the notification sent by the Management Companies authorized in the Republic intended to establish a branch in another member state contain?
The name of the member state and business plan.
Where do UCITS collect funds from?
The public.
How much is a feeder UCITS allowed to invest on ancillary liquidity assets?
At least 15% of its total net assets.
What should UCITS prospectus contain in regards to its portfolio composition or portfolio management techniques?
When the NAV of a UCITS is likely to have high volatility due to its portfolio composition.
What is the reason the value of the redemption or repurchase of shares is different from the NAV?
The amount of commission of the management company.
What is the reason CySEC may refuse the application of a management company, authorized in another member state that manages UCITS, to operate in the Republic?
The company is not authorized by the competent authorities in its home member state to manage the type of UCITS it has applied for.
In the date of valuation of UCITS assets, a closing price isn’t available for the same day. What value should be used for the calculations?
The previous working day’s closing price.
Can a master UCITS charge subscription, redemption or repurchase fees for the purchase or transfer of its units from the feeder UCITS?
No
What is the required initial capital of a management company?
The management company must have a fully paid up initial capital of at least 125.000 euros.
Up to how much of the required additional capital maybe provided in the form of a guarantee from a credit institution operating in the Republic or one of the other member states?
Up to 50% of the capital.
How does a VCIC decrease its share capital?
By repurchasing old shares without resorting to a capital decrease under Comaly Laws
How does a VCIC increase its share capital?
By issuing new shares.
How much a UCITS may increase the investment with a single issuer if the securities are issued or guaranteed by a member state?
35%
How much can a UCITS increase the investment with a single issuer when investing in bonds which are issued by a regulated and supervised credit institution in another member state?
25%
How much exposure can a UCITS have in an OTC derivative transaction when the counterparty is a credit institution?
10%
How much exposure can a UCITS have in an OTC derivative transaction when the counterparty is not a credit institution?
5%
A feeder UCITS is a UCITS that has been approved to invest how much of its total net assets in UCITS or other collective investment funds?
At least 85%
In which language must the Key Investor Information Document (KIID) be available?
In the official language of the member state the UCITS is issued or in both the official language and English.
What should a UCITS authorized in the Republic do if it wants to market units to another member state?
Submit a notification letter to CySEC prior doing so.
When can an authorized UCITS from another member state market its units in the Republic?
After CySEC has received a notification letter from the competent authorities of the UCITS home state.
Which condition must be met for the grant of an operational license of a management company?
A minimum of two Directors appointed.
How long does a management company has to settle its obligation after having its license revoked?
3 months
Which function the management company cannot delegate?
The monitoring.
What needs to be included in the notification to CySEC by a management company who wishes to gain operation license in the Republic by establishing a branch?
A complete business plan.
What steps should CySEC follow when a management company providing cross-border services in the Republic from another member state breaches rules of the Republic?
- CySEC will request that the management company rectifies the situation, if not
- The competent authority of the home member state will be requested to take the necessary steps.
- CySEC will stop the management from undertaking activities within the Republic and inform the EC and ESMA.
