Background
Cyprus has been aligned with the European Fund related Directives aimed towards enhanced investor protection and transparency since July 2014 with the enactment of the Alternative Investment Funds (AIF) law.
Through this common European framework, AIFs that are established under domestic Cyprus fund legislation can be sold on a private placement basis or marketed to professional and qualified investors across the EU under the Alternative Investment Fund Managers Directive (AIFMD) passport.
On July 10, 2018, the Cyprus Parliament approved a new legislation which effectively updates and enhances the existing law regulating Alternative Investment Funds (AIFs).
The introduction of the new legislation, brings about new opportunities with the introduction of a more flexible fund structure (Registered Alternative Investment Fund) while enhancing and clarifying the operating framework for the Funds industry in Cyprus.