The Cyprus House of Representatives has approved the Cyprus Collective Investment Undertakings Management Companies (KEDOSE) Law, a development hailed by the Cyprus Investment Funds Association (CIFA) as a transformative moment for the island's investment funds sector.
The legislation introduces a more robust framework for the management and oversight of investment fund managers, enhancing transparency, investor protection, and regulatory alignment with international standards. Industry stakeholders view the law as a strategic enabler that strengthens Cyprus' competitive positioning as a European investment hub.
CIFA expressed formal gratitude to Members of Parliament—particularly the Parliamentary Committee on Finance and Budget—as well as the Ministry of Finance, Cyprus Securities and Exchange Commission (CySEC), Legal Service of the Republic, and Invest Cyprus, citing their coordinated efforts as instrumental to the law's passage.
"The adoption of the KEDOSE Law represents a significant milestone that completes a critical part of the institutional infrastructure underpinning the sector," said Maria Panagiotou, President of CIFA. "It will substantially enhance trust, reinforce investor protection, and elevate the competitiveness of Cyprus' fund ecosystem."
Growth Momentum in the Funds Sector
The new law arrives during a period of expansion in the local investment fund industry. According to CySEC's Quarterly Statistical Bulletin for Q4 2024, Cyprus was home to 321 registered Management Companies and Collective Investment Undertakings (CIUs), of which 253 were operational.
Assets Under Management (AUM) stood at €10.1 billion, reflecting a 10.21% quarterly increase, while Net Asset Value (NAV) reached €9.6 billion. Growth was observed across fund categories, including UCITS, Alternative Investment Funds (AIFs), AIFs with Limited Number of Persons (AIFLNPs), and Registered AIFs (RAIFs), indicating broad-based investor confidence.
Panagiotou emphasized that this performance affirms the success of Cyprus' ongoing strategy to offer a transparent, well-regulated, and business-friendly environment for international asset managers.
Legal Modernization and Strategic Priorities
The enactment of the KEDOSE Law is part of a broader legislative agenda. CIFA is actively engaged in the modernization of the Law on Joint and Several-Party Cooperatives, along with targeted amendments to the AIF and AIFM legal frameworks, to ensure full alignment with evolving European regulatory expectations and market needs.
In parallel, the Association is intensifying its international outreach, with targeted roadshows in strategic global markets. These initiatives aim to promote Cyprus as a compelling domicile for fund structuring, administration, and management.
Policy Influence and Global Positioning
CIFA continues to play a key role in shaping financial policy, working closely with regulators and policymakers at both domestic and European levels. The Association's advocacy efforts focus on maintaining Cyprus' reputation as a compliant, innovative, and secure jurisdiction for asset management and fund services.
"CIFA remains committed to collaborating with all stakeholders to maintain the sector's growth trajectory," Panagiotou added. "Our strategic priorities include reinforcing global partnerships, expanding market visibility, and ensuring that Cyprus remains at the forefront of regulatory and operational excellence in the investment funds space."
Cyprus' Regulatory Evolution Aligns with International Trends
The implementation of the KEDOSE Law represents a decisive step in Cyprus' ambition to become a leading European domicile for investment funds. As global investors continue to seek jurisdictions offering both efficiency and regulatory certainty, Cyprus' evolving legal framework—supported by strong public-private coordination—positions the country favorably in a highly competitive global market.
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