• Alternative Investment Funds in Cyprus
    Differences and similarities between different fund types

    By B2B Lateral Thinking Solutions

    16-11-2017

    In this article we analyse the different Alternative Investment Funds (AIFs) available in Cyprus and outline their key differences. We have also included details for the Alternative Investment Fund Manager (AIFM), as some people decide to set up an externally managed AIF and incorporate their own AIFM to act as the AIF’s manager.

    Reading, understanding and consolidating the different laws and presenting the information in a user-friendly and easy to follow manner is sometimes a challenge. And, as we all know, the details do matter and informed decisions assist us in avoiding being mis-sold solutions. As such, we hope that you find our summary table helpful.

    The list shown here is by no means exhaustive. It is comprehensive enough, however, to assist you on your quest to find the best possible solution that appropriately covers your needs.

    Related Article: AIFLNP – Compliance Calendar.

    To display the table below in full screen, please click the following image:

    ALT_TEXT
    Self-Managed AIF With Limited Number of Persons Self-Managed AIF Sub-threshold Self-Managed AIF That chooses to opt in the AIFM regime Externally-Managed AIF AIF Manager
    Custodian/Depositary - Geographical restrictions Within EU or Third Country subject to existence of MoU between regulators Within EU or Third Country subject to existence of MoU between regulators Within the Republic of Cyprus Within the Republic of Cyprus N/A
    ISIN Possible Possible Possible Possible N/A
    Regulation CySEC - Law131(I)/2014 CySEC - Law131(I)/2014 AIF - CySEC - Law131(I)/2014
    AIFM - CySEC - Law 56(I)/2013
    CySEC - Law131(I)/2014 CySEC - Law 56(I)/2013
    Capital Requirement N/A €125k €300k plus 0.02% on excess of AUMs over €250m with max. capital of €10m €125k €125k plus 0.02% on excess of AUMs over €250m with max. capital of €10m
    Additional Capital N/A N/A Hold extra capital to cover any potential professional liability or professional indemnity insurance N/A Hold extra capital to cover any potential professional liability or professional indemnity insurance
    Capital - Multiple Inv. Compartments N/A €125k per Investment Compartment €125k per Investment Compartment €125k per Investment Compartment N/A
    AUM Limitations €100m including leverage
    €500m without leverage
    €100m including leverage
    €500m without leverage
    None None N/A
    Limitations - Number of Investors up to 75 None None None N/A
    Limitations - Type of Investors Only professional and/or well informed None None None N/A
    Limitations - Distribution of Units Not allowed Not allowed None (subject to cross-border) N/A None (subject to cross-border)
    Licensing Timeframes (as per the Law) 3 months 3 months 3 months
    (CySEC may prolong up to 3 additional months)
    3 months 3 months
    (CySEC may prolong up to 3 additional months)
    Can Manage Other Funds in EU No No No N/A Yes

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  • The information provided in this article is for general information purposes only. The information is not intended to be comprehensive or to include advice on which you may rely. You should always consult a suitably qualified professional on any specific matter.

B2B Lateral Thinking Solutions

B2B Lateral Thinking Solutions is a boutique consultancy operating from Cyprus and servicing private, corporate and institutional clients. Our team of dedicated, passionate and highly qualified professionals assists numerous clients across the EU, Russia and CIS countries. Lateral thinking is not only a name. Lateral thinking defines how we approach problems and our work ethic. We partner up with our clients to uncover solutions through indirect avenues and by employing creative thinking.

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