Investment Fund Market Guide – Cyprus
Key features (Register market)
| Yes/No | Remarks |
Settlement free of payment | Yes |
|
Settlement against payment | Yes | Refer to CBL’s Eligible currencies and the fund currency specified in fund prospectus. |
Disclosure Requirements | Yes | Refer to Disclosure Requirements – Investment Funds – Cyprus. |
Restrictions on customer | Yes | |
Restrictions on settlement | No |
|
Market Specifications | Yes |
| Remarks |
Market type / link type (Settlement link) | Register market |
Eligible fund types in CBL | Register market: UCITS and AIF. CSD link: n/a |
Eligible fund types in CBL
Register market
Investment funds in Cyprus can be broadly classified as either undertakings for collective investment in transferable securities (UCITS) or alternative investment fund (AIF).
UCITS are governed by the Open-Ended Undertakings for Collective Investment (UCI) Law 2012 (as amended), and can take the form of a common fund (CF) or a variable capital investment company (VCIC).
AIFs are governed by the Alternative Investment Funds Law of 2018 (as amended), generally AIFs can be established in the following legal forms:
- Common fund (CF) – not applicable for AIF LNP
- Variable capital investment company (VCIC)
- Fixed capital investment company (FCIC)
- Legal partnership with or without legal personality (LP)
Furthermore, AIFs can be categorised as the following:
- AIF – Alternative investment funds that can be offered to unlimited number of investors, and are subjected to greater regulation and oversight under the AIF regime.
- AIF LNP – Alternative investment funds with limited number of persons. There is a limit on the number of investors allowed, currently 50.
- RAIF – Registered alternative investment funds are not subjected to authorisation and licensing procedures in Cyprus. Registration with Cyprus Securities and Exchange Commission (CySEC) is required.