Thorough and Transparent Set-up
Kaimakliotis & Co offers a complete and comprehensive set of services for clients who wish to set up Alternative Investment Funds (AIFs).
Our bespoke services begin with a consultation, during which a thorough briefing and analysis of the island’s laws relating to AIFs are presented, in order to ensure that clients are fully aware of the provisions of the law and what is involved.
We then carefully advise clients on the right type of AIFs and assist every step of the way in successfully setting them up: from submitting the application to CySEC, to handling the legal side of drawing up documentation (incorporation and establishment of the AIF). Throughout the entire process, we will keep you updated and informed of the status of your application, and continue to advise and assist where needed.
Once an AIF has been set-up on your behalf, Kaimakliotis & Co can offer ongoing services for its successful performance and maintenance, including staff appointments, administrative services, and related package services such as legal, tax, audit and accounting.
The Alternative Investment Funds Law Amendments (2014)
A new law came into effect on July 27, 2014 regarding the establishment and operation of Cyprus AIFs, with the aim of improving transparency and tightening national legislation in-line with EU directives designed to better protect investments.
In particular:
- The Regulation & Supervision of AIF has been transferred to CySEC, where it was previously under the Central Bank of Cyprus (CBC).
- An AIF can be self-managed or may appoint a management company on its behalf.
- An AIF can be listed on any recognised stock exchange in the world.
- There are four legal forms of AIF (Common Fund; Fixed Capital Investment Company; Variable Capital Investment Company; Investment Limited Partnership).
- There are two classes of AIF which differ in who they can be marketed to:
- AIF for an unlimited number of investors
- AIF for a restricted number of investors (up to 75)
- The Minimum Capital Requirements are: €125.000, or €300.000 for self-managed funds.
- Authorisation and compliance with the AIFMD applies for funds with a value that exceeds:
- €500 million (without leverage with a lock-up period of 5 years).
- €100 million (including leverage).
- Umbrella funds are permitted - and each can have its own investment policy - providing they are collective investment schemes that exist as single legal entities with multiple sub-funds (investment compartments).