The AIF Law provides for the possibility to set-up a RAIF however this was not possible until CySEC issued the Directive. The Directive is available in Greek, is five pages long and in summary provides for :
- Application process using form Form 124-00-01 to CySEC
- Conditions for registration in the register of RAIFs
- Provision of additional particulars, documents and information to CySEC
- Strike-off from the register of RAIFs
- Language for submitting information to CySEC
- Important to note is that along with the Directive, CySEC issued Form 124-00-01 (the 'Form') which aims to encapsulate the various information and requirements of the RAIF and also to present the requirements in an understandable and appropriate manner
Form 124-00-01
The Form is also in Greek however information and documentation
required may be submitted using one of the acceptable official
languages of the Republic of Cyprus, or in English.
The Form and accompanied documents must be completed and submitted
by the external Alternative Investment Fund Manager (AIFM). The
Form must be submitted using CySEC's dedicate upload portal.
All questions and information provided should be as complete as
possible and the Form clearly specifies that CySEC is not privy to
any other information or documentation in Cyprus. The promoter must
also include their details for further communication and/or
clarification if needed.
Apart from the obvious that a typical disclosure form to CySEC
would require (Section A) , the AIFM makes a declaration as to the
their correctness (Section B) and Section C provides a checklist of
documents to be submitted. These are summarised as follows:
- Certificate of registration
- Investment strategy of the fund
- Articles of association
- Arrangements regarding the custodian
- The RAIF's information memorandum
- AIFMD license
- External financial consultants confirmation
- Main promoters confirmation
Punchline
The Directive and the Form will need to be tested and hope that they will be suitable for intended purpose. If all works out, a RAIF will have a set-up time limited to 30 days which is far shorter compared to the 6-8 month process which is currently in place. It will also significantly reduce the fees required to set-up as the process is a lot simpler than what it used to be under the AIF licensing.