Mini Alternative Investment Fund Managers Law

Cyprus Securities and Exchange Commission has announced amendments to the Alternative Investment Fund Managers Law 56 (I)/2013, allowing the licensing of Small Alternative Investment Fund Managers (‘Mini AIFM’). The Mini AIFM is less complicated than the traditional AIFM and it requires less reporting, organizational and compliance requirements.

A Mini AIFM is a scalable, flexible and cost-efficient regulated entity which may manage existing:

  1. AIFs incorporated and licensed in Cyprus
  2. AIFLNPs,
  3. Registered AIFs under specific rules.
  4. EU Member State AIFs and / or a third country AIFs which are regulated within the country of incorporation.

A Mini AIFM may provide the following investment services:

  • Risk and Portfolio Asset Management
  • Fund Administration
  • Fund Marketing
  • Other ancillary investment activities related to the management of the AIFs assets under management.

Ø  The Mini AIFM must be incorporated as a limited liability Cyprus Company, therefore requiring a registered address and business location within the Republic of Cyprus.

Ø  The initial capital is reduced to EUR 50.000 and the maximum assets under management are limited to EUR 100Mil (leveraged) or EUR 500Mil (unleveraged) and 5 years lock up period for investors.

Ø  The own funds requirement buffer is set to 0.02% of the assets under management when such assets exceed EUR125Mil.

Ø  The total assets under management cannot exceed EUR 500Mil under this regulatory regime.

Ø  A Mini AIFM maintains the option to convert to a regular AIFM which is subject to the EU AIFM Directive.

Spyros Arotis- Elena Aroti & Associates law firm has diverse experience in the setup and maintenance of regulated entities from a legal, regulatory and reporting perspective.

Get in touch with us to find out if a Mini AIFM is a compatible and effective structure vis a vis your existing line of business.