“We believe that these substantial improvements will create all the necessary preconditions for the further improvement of the collective investment sector which is expected to contribute substantially to the growth of our country’s economy,” said Kalogirou in a press conference.
According to Kalogirou, the law on the Alternative Investment Funds (AIF) will feature a funds registry for funds which will be directly regulated by their fund manager and not by CySEC.
CySEC will also amend the AIF Managers law to include mini-managers that would manage assets below €100 million. This would facilitate the development of a new competitive market in Cyprus, Kalogirou said.
She noted that the CySEC is considering facilitating the operation of companies that will administrate AIF which currently are not regulated. Underthe current legal framework, a licensed fund administrator regulated by CySEC has the right to assign AIF administration to companies providing fiduciary services. “The operation of such companies will facilitate the development of the investment fund market,” Kalogirou added.
CySEC adopted the proposed amendments after assessing the legal frameworks in other financial centres such as Luxembourg, Malta, Ireland and Britain.
So far the CySEC licensed 11 Fund Managers 9 of which are already operating in AIF management. These companies are of Cypriot, Russian and Greek interests managing a broad spectrum of assets mainly covering financial products, real estate and shipping both in Cyprus and abroad.
The Committee has approved applications for eight AIF as well as four UCITS management firms. These companies are of Cypriot, Greek and Ukrainian interests that invest in securities, among which Cypriot bonds.
She added that the CySEC has licensed 39 AIF with a limited number of persons. These funds invest in securities and real estate in Cyprus and abroad.
Kalogirou also noted that the CySEC has licensed one European Venture Capital Fund (EuCEVA) that aims to invest in Cypriot small and medium sized enterprises.
The CySEC Chairwoman is assessing 3 applications for fund managers, 9 for AIF, 41 for AIF for limited number of persons and 2 for UCITS funds.
“The establishment and operation of these organisations in Cyprus is expected to contribute substantially to the economy in various ways, such as injecting capital to the real economy, and providing an alternative source of funding,” she said.
On his part Angelos Gregoriades, President of the Cyprus Investment Fund Association, said in “the future these organisations will act as the alternative funding source for projects in Cyprus.”
He also added the fundamental factors determining the credibility of a robust financial centre is a developed economy, an efficient public service, including regulating authorities, and an attractive economic and investment environment.
Source: InCyprus
