Forging a Stronger Future for Cyprus Investment Funds
In a move that signifies a robust step forward for the Cyprus investment funds sector, the newly elected Board of the Cyprus Investment Funds Association (CIFA) convened with President George Theocharides, Vice President George Karatzias, and top executives from the Cyprus Securities and Exchange Commission (CySEC). This gathering underscored a shared commitment to collaboration and the pursuit of common goals that will shape the future of fund management in Cyprus.
Central to their discussions were key regulatory advancements that promise to greatly enhance the investment funds industry. Notably, the Funds Administration Law currently under parliamentary review and the refined licensing processes for new Registered Alternative Investment Funds (RAIFs) are expected to accelerate registrations, propelling Cyprus towards a more vibrant and investor-friendly climate.
The imminent completion of the Partnership Law was another highlight of the meeting, promising to inject greater flexibility and competitiveness into the local funds market and aligning Cyprus more closely with international standards.
CySEC also briefed CIFA on the forthcoming Categorization Directive, which will take effect following the official release of AIFMD II, and discussed amendments in AIFMD II, including provisions allowing for the appointment of a depositary from a different member state under specified conditions. The adoption of depository passporting stands out as a pivotal move, opening doors to cross-border investment possibilities and reinforcing Cyprus’ status as an attractive investment hub.
To align with AIFMD II’s revised provisions, CySEC’s Vice President highlighted that a re-evaluation of National Laws concerning Alternative Investment Funds and Fund Managers is on the horizon, with consultation documents to be released as part of this process.
Attention was also given to Environmental, Social, and Governance (ESG) regulations. CIFA and CySEC discussed potential collaboration on seminars and training sessions to enhance member knowledge and expertise in this critical area.
Maria Panayiotou, President of CIFA, concluded the meeting by expressing gratitude for CySEC’s steadfast cooperation and astute oversight, which are fundamental in fostering a strong, transparent, and flourishing investment funds sector in Cyprus. Panayiotou praised the productive dialogue and shared vision that have been fostered through ongoing discussions with CySEC, acknowledging their role in promoting a regulatory environment conducive to growth and success for Cyprus as a competitive jurisdiction for funds and fund managers.
