The Cyprus Parliament approved the new Alternative Investment Funds (“AIF”) Law on July 10th 2018, which will replace and repeal the AIF Law of 2014, as amended. Together with the approval of the new AIF Law, the Parliament also approved some updates to the tax laws, aiming at making Cyprus AIFs more competitive.
The new AIF Law introduces various enhancements to the previous AIF Law, constituting Cyprus AIFs more attractive and more flexible.
The most significant change is the introduction of Registered Alternative Investment Funds (RAIFs), which follows the recent trends within the global investment fund landscape. Brief summary follows:
Registered AIFs (RAIFs)
The introduction of RAIFs revolutionizes the AIF offerings in Cyprus, as it is now possible to establish Funds in a time and cost-efficient manner.
RAIFs are not required to obtain authorization from the regulator (being the Cyprus Securities and Exchange Commission “CySec”), but are registered under the “umbrella” of their external manager.
To this respect, all RAIFs should be externally managed by an investment manager, who will in turn notify the CySec about the creation of the RAIF and as a result the RAIF will be included in the relevant Register maintained by the CySec.
RAIFs can commence raising capital from investors once registered on the CySec’s Register, which is expected to take place within 30 days from establishment
Main Features of RAIFs
The AIF Law of 2018 and the amendments to the tax laws will come into force once published in the Cyprus Government Gazette (expected to take place within July 2018).
Savva & Associates is recognized as a leading Cyprus funds firm, providing a complete and independent service to fund managers and clients. We work with many of the world’s leading independent money managers and family offices as well as funds of funds, banks and institutional funds.
For further information on establishing an AIF in Cyprus, please contact us at firstname.lastname@example.org