The main characteristic of registered alternative investment funds is that they will not be directly authorized or directly supervised by CySeC but only registered in a central registry. Instead, registered funds will be operated by their investment manager and the investment manager authorized by CySeC will be directly responsible for their operation.
Such registered funds are customarily used for a fast route establishment, minimum thresholds of supervision and sometimes the assumption of riskier investment positions. The structure is expected to be used extensively by hedge funds or other alternative structures.
For more information check Alternative Funds (AIF) or contact Michael O. Ioannides.