Answer ... The operation and establishment of alternative investment funds (AIFs) and AIFs with a limited number of persons (AIFLNPs) are subject to authorisation by the Cyprus Securities and Exchange Commission (CySEC).
Registered AIFs (RAIFs) do not require authorisation; however, their external manager should provide CySEC with notification so that the RAIF may be included on the register of RAIFs maintained by CySEC.
Answer ... According to the AIF Law, AIFs and AIFLNPs will be granted authorisation if CySEC approves:
- the relevant application;
- the fund’s rules or instruments of incorporation;
- the choice of external manager or, in the case of internally managed funds, the persons who effectively conduct its business; and
- the choice of depositary.
Answer ... The application for the granting of authorisation for an AIF or an AIFLNP must contain, among other things:
- information on the business and structure of the AIF;
- sufficient information on the people who effectively direct the business of the AIF;
- the name and date of the manager (if appointed); and
- the identity of the persons responsible for the risk and portfolio management functions, and of the depositary (if appointed).
The following documentation must be submitted together with the application for authorisation:
- the AIF’s fund rules;
- its instruments of incorporation or partnership agreement, depending on the legal form of the AIF;
- a draft of its offering document; and
- other related constitutional documents.
CySEC will inform the external manager of the AIF or the AIF directly, if internally managed, of its decision within six months of submission of a complete application. During this process, CySEC may request additional clarifications and/or documents.