FUND SERVICES

Companies require internal audits to ensure that all activities are carried out in accordance with written policies, procedures and relevant regulations.

FAI ASSISTS WITH THE SUBMISSION OF APPLICATIONS TO CYSEC IN ORDER TO OBTAIN AN AIF / AIFM LICENSE & ONGOING SERVICES INCLUDING:

Advising on the set up and structuring
Preparing the application including
Private Offering Memorandum
Details of all proposed Directors, with each providing the following:
Details of the following key service providers
CySec will require anywhere from 4 to 12 weeks for review and approval of the application (provided there are no deficiencies in the application).
Ongoing compliance services throughout the life of the AIF

AIFS

AIFs are governed by the Alternative Investment Funds Law of 2014 (the “AIF Law”) and are authorized and regulated by the Cyprus Securities and Exchange Commission (“CySEC”). The CySEC AIF is in line with EU legislative developments and increases Cyprus’ competitiveness in the investment funds industry.
An AIF available to the public can be established in three different forms:

  • a Company (with fixed or variable capital),
  • a Common Fund,
  • a Limited Liability Partnership.

All three legal forms allow for legally segregated sub-funds to be created and there are no limits to the number of investors.

Kindly note that the AIF Law has replaced the previous International Collective Investment Schemes Law and existing ICIS are required to convert an AIF.

AIFMs

Hedge funds and private equity funds and their Investment Managers (AIFMs) have not been subject to the same rules to protect the investing public as mutual (including UCITS) and pension funds and their managers. In general, the lack of financial regulation is seen by some to have contributed to the severity of the global financial crisis. The AIFM Directives and Laws are aimed at redressing this perceived regulatory gap with Supervising Authorities.

From 2015 on the AIFM Law shall also apply to non-EU AIFMs having designated Cyprus as their “member state of reference” for their management and/or marketing activities in the EU.
The AIFM Law shall apply in particular to the following activities:

  • A Cyprus AIFM managing Cyprus AIFs or AIFs of another Member State or third country;
  • An EU or third country AIFM managing Cyprus AIFs;
  • A Cyprus AIFM marketing units or shares of AIFs they manage in other Member States or third countries;
  • An EU or third country AIFM marketing units or shares of AIFs they manage in Cyprus.