Local
articles | 13 December 2019

Cyprus AIFs at a Glance

AIFs that are established under domestic Cyprus fund legislation 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 at a Glance

 AIF with Limited number of Persons

 

AIF with Unlimited number of Persons

 

Registered AIF (RAIF)
Regulatory Authority

 

CySEC

 

CySEC

 

CySEC – however no licensing required

 

Limitation on number of Investors

 

50 (with look through provisions)Not applicableNot applicable
Available Structures*

 

Variable Capital Investment Company (VCIC), Fixed Capital Investment Company (FCIC), Limited Partnership (LP)

 

Variable Capital Investment Company (VCIC), Fixed Capital Investment Company (FCIC), Common Fund (CF), Limited Partnership (LP)

 

Variable Capital Investment Company (VCIC), Fixed Capital Investment Company (FCIC), Common Fund (CF), Limited Partnership (LP)

 

Umbrella FundsPossible for all structures

 

Possible for all structures

 

Possible for all structures

 

Minimum Share Capital

 

self-managed funds only €50,000self-managed funds only €125,000externally managed the RAIF does not require minimum share capital

 

External Manager Licensing Requirement

 

No, can be self-managedNo, can be self-managedYes, always externally managed

 

Director Requirements

 

Fit and Proper

 

Fit and Proper

 

 

Fit and Proper
Depositary Requirements

 

Based in Cyprus, EU or third country that has cooperation agreement with Cyprus; exemption in specific circumstances

 

Based in Cyprus, EU or third country that has cooperation agreement with Cyprus. When managed by AIFM shall be located in Cyprus

 

Always based in Cyprus, except for Limited Partnerships managed by a MiFID entity
Reporting **

 

Audited annual report and half-yearly unaudited report to be submitted to CySEC and made available to unitholders

 

Audited annual report and half-yearly unaudited report to be submitted to CySEC and made available to unitholdersAudited annual report and half-yearly unaudited report to be submitted to CySEC and made available to unitholders

 

 

* Amendments to the current Partnership Law will allow the General Partner to elect for legal personality of the Limited Partnership upon its establishment

** Additional reporting requirements apply for AIFs with unlimited number of persons which are subject to the AIFM Law and for Registered AIFs, the scope and frequency of which depend among others in the type of AIF managed by the AIFM and the level of AuM

 

 

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