Cypriot Funds are established under a harmonized EU legal framework, and application procedures are undertaken with the Cyprus Securities and Exchange Commission (CySec); the authority in charge of supervision and regulation of investment funds & Fund Managers in Cyprus. In brief, Cypriot laws on investment funds provide for the following:
Cypriot registered AIFs can be sold on a private placement basis or marketed to professional investors across the EU under the Alternative Investment Fund Managers Directive (AIFMD) passport.
AIFs can be structured in one of the following forms:
A RAIF is a special type of AIF that is not subject to authorization from CySec but is regulated through its external licensed manager (AIFM).
A RAIF can be set up as:
UCITS Funds are collective investment portfolios that invest in transferable securities and/or other liquid financial instruments, which operate on the principle of risk – spreading, and provide low investment risk and high level of investor protection.
A UCITS fund may be set up in one of the following legal forms: