The Cyprus Securities and Exchange Commission (CySEC) has announced that the redemption of units in certain collective investment schemes will be suspended on December 24, 2025, citing market conditions and the need to protect investors in Cyprus and abroad.

The decision applies to UCITS and alternative investment funds that hold assets in transferable securities listed on regulated markets and whose net asset value is calculated on a daily basis.

CySEC said it reached the decision after assessing the relevant legal framework and prevailing market circumstances.

“The Securities and Exchange Commission, in exceptional cases and in the unit-holders’ interest, by virtue of a decision and at its initiative, may suspend the redemption of UCITS units,” as provided under article 20(1) of the Open-Ended Undertakings for Collective Investment Law, CySEC said.

“…the Securities and Exchange Commission may decide, as long as it considers that it is to the investors’ interest or the safeguarding of the proper functioning of the market, the suspension of the redemption or repurchase of AIF units,” as set out in article 43(3) of the Alternative Investment Funds Law, the regulator added.

CySEC also pointed to the fact that December 24, 2025 is a public holiday, Christmas Eve, in most international stock markets.

The regulator said the suspension was necessary to safeguard the interests of unit-holders of UCITS and AIFs and to ensure the proper functioning of the market.

CySEC clarified that the obligations arising from article 20(2) of the UCI Law and article 43 of the AIF Law will continue to apply despite the temporary suspension.