#funds #alternativefunds #aif #moi

The AIF Law 2018 distinguishes between open-ended and closed-ended type of Cyprus AIFs.

 Open-ended type: Unit-holders can redeem or repurchase their units upon request:

•  at any time
• at regular intervals of less than 1 year, that are defined in the instruments of incorporation (or fund rules)
  
  

 Closed-ended type: Unit-holders can redeem or repurchase their units upon request:

• at regular intervals that exceed 1 year  but that do not extend to more than 5 years.    

Exception: For venture capital fund the initial periods extends up to 10 years from the date of      incorporation, in accordance with EU Regulation 345/2013.

• specific defined time that is defined in the instruments of incorporation (or fund rules).

For more information check Alternative Funds (AIF) or contact Michael O. Ioannides.

#funds #alternativefunds #aif #moi

The Cyprus Security and Exchange Commission (CySEC) is the regulatory authority responsible under the Law for the licensing and supervision of Investment Funds for both Undertakings for Collective Investment in Transferable Securities (UCITS) and Alternative Investment Funds (AIFs) as well as any other type of Investment Fund.  The commencement of operations of Investment Funds requires authorisation from CySEC. The timeframe for the licensing process is approximately three to four months from the date of the submission of the application.

In the event the Fund Manager has appointed a Fund Administrator, the Administrator is usually responsible for the maintenance of the registry of the Unit-holders and all references to such registry shall include the Fund Administrator.

Moreover, as a form of Due Diligence of the Unit-holders the Manager is obliged to hold the identification documents for its Unit-holders. If the Depositary requests to have access in the unit-holders registry then the AIF Manager shall ensure so.

Additionally, the AIFM (Alternative Investment Fund Manager), the Depositary, the Administrator and any other related to the fund person, is obliged upon request of the CySeC, to provide access to the unit-holders’ registry and or any other information necessary to complete an inspection from CySeC.

Also, in case of a liquidation, the Manager is obliged to communicate with all the Unit-holders and such communication shall be notified to CySeC therefore providing indirect access to the registry of the Unit-holders to CySeC.

In addition, on opening of a Bank Account of the Fund and on every major transaction it is customary for the Bank to request the provision of the unit-holder register and the identification of the Beneficial Owner of all Unit-holders holding units above 25% of the total units of the fund.

Furthermore, the same request as above shall be made by other professionals, including the Depositary, the Fund Administrator, the Auditor and the Lawyer of the fund for the purposes of AML (Anti Money Laundering) Compliance Procedure.

What’s more, on the occasion of reporting a suspicious transaction to MOKAS (Unit For Combating Money Laundering) or otherwise an inspection by MOKAS, the AIF Manager is required to provide to MOKAS any information related to the AIF and may gain access to the Unit-holders’ registry as well.

Lastly, the AIF Manager shall provide data on investment fund shares/units to the Central Bank of Cyprus, used exclusively for statistical purposes. The law ensures the confidentiality of the submitted data which are published only in aggregated form without revealing the identity of the parties involved.

In conclusion, it is necessary to take into account that all of the above information derives from the Cyprus Law which applies within the Republic of Cyprus.



For more information check Alternative Funds (AIF) or contact Michael O. Ioannides.

#funds #alternativefunds #aif #moi

A Cyprus Alternative Investment Fund (AIF) is cost-efficient and simple to set-up, manage and operate. It offers a modern regulatory framework that is in line with relevant EU directives and it is supervised by a competent and accessible regulatory authority. Setting up an AIF in Cyprus provides a solid base and signals trust infrastructure.

It provides full transparency and increased investor protection through annual audited and half yearly reports to CySEC and investors, which include financial statements, borrowing information, portfolio information and Net Asset Value.

There are no restrictions imposed by the regulator on type of investments and, subject to approval, a Cyprus AIF can be self-managed. Cyprus Alternative Investment Funds can be set-up as umbrella funds with multiple compartments and can be listed on CySEC and other recognized EU stock exchanges, provided that the number of investors is not limited.

Cyprus offers a number of important advantages for setting up an AIF:

• Low set up and maintenance costs
• Simple to set-up, manage and operate
• Modern regulatory framework fully in line with relevant EU directives
• Increased flexibility as a number of asset classes can be included in an AIF investment strategy
• Increased investor protection as complete transparency is obligatory
• Subject to the approval of CySEC, the AIF can be self-managed
• Can be set up as umbrella funds with multiple compartments, allowing the management of different asset pools with separate investment policies
• Significant tax incentives offered by the country’s advantageous tax framework
• Supervised by a competent and accessible regulatory authority
• No onerous ongoing reporting requirements to the regulator
• Stable and reliable legal system
• Alternative Investment Funds without limitations as to the number of investors can be listed on Cyprus Stock Exchange and other recognized EU stock exchanges and if marketed to retail investors can be traded.
  

For more information check Alternative Funds (AIF) or contact Michael O. Ioannides.

#funds #alternativefunds #aif #moi

 Cyprus Investment Fund may be established with limited or unlimited duration and can take the following legal structures:

(a) investment company in the legal form of a limited liability company with fixed capital (FCIC);
(b) investment company in the legal form of a limited liability company with variable capital (VCIC);
(c) common fund (CF), which is a contractual pool of assets without legal personality;
(d) limited partnership (LP) with or without legal personality.

Where is the Cyprus Alternative Investment Fund (AIF) established:

(a) in the legal structure of a common fund, its name shall include the term ‘common fund’. Also ;
(b) in the legal structure of an investment company, its name shall include the term ‘fixed capital investment company’ or ‘variable capital investment company’, as appropriate;
and
(c) in the legal structure of a limited liability partnership, its name shall include the term ‘limited liability partnership’.

* A common fund can be converted to Investment Company or Limited Partnership and it is only available when established as AIF with unlimited number of persons or as Registered AIF.  

** Amendments to the Partnership Law allow the General Partner to elect for legal personality of the Limited Partnership upon its establishment, while maintaining tax transparency status.


For more information check Alternative Funds (AIF) or contact Michael O. Ioannides.