Answer ... EU jurisdictions are considered ideal for the establishment of alternative investment funds (AIFs), since there is a healthy and transparent framework for such investment vehicles. Cyprus is an attractive jurisdiction in which to establish AIFs, since it is fully compliant with EU law. The relevant EU directives have been transposed into national law and have established the framework for the creation and management of AIFs. The assets under management in Cyprus are increasing year on year, reflecting the fact that Cyprus is a promising jurisdiction for AIFs.
Answer ... The following developments are expected to impact on alternative investment funds (AIFs) in Cyprus:
- Sub-threshold AIF manager (AIFM) – the mini-manager: A new law is under discussion in Parliament on the licensing and operation of sub-threshold AIFMs, which fall under the exemptions of the AIFM Directive and should be regulated under national law.
- Fund Administration Service Provider Law: This law will regulate independent fund administrators under national law.
Relevant amendments are expected to be introduced to the Partnership Law and the Companies Law.
Answer ... The Cyprus fund industry aims to further increase the amount of assets under management in order to attract financial institutions to act as depositaries for AIFs in Cyprus. A number of summits and exhibitions are under preparation in order to attract new markets, such as the Southeast Asian and American market.