The impact of AIFM Directive on Cypriot funds becomes clearer
The Cyprus AIFM law and its impact on the financial services sector
Cyprus law affected by the new rules includes:
The Law on Open-Ended Undertakings for Collective Investment (78 I/2012), which transposes into law the EU Directive on Undertakings for Collective Investment in Transferable Securities (UCITS) (2009/65/EC);
The Law on Investment Services and Activities and Regulated Markets and Other Related Matters (144 I/2007, as amended), which transposes into law the EU Markets in Financial Instruments Directive (MiFID) (2004/39/EC);
The Law on International Collective Investment Schemes (47 I/1999).
Reference has also been made to the provisions of the European Commission's Delegated Regulation 231/2013 that apply directly and uniformly across all EU member states, as well as the guidelines and draft regulatory technical standards issued by the European Securities and Markets Authority (ESMA), which refer to key concepts of the directive and types of AIFMs, respectively.
This update sets out some of the main considerations that have emerged following the interaction of the new rules with the Cypriot funds and financial services regime.