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:
- AIFs incorporated and licensed in Cyprus
- Registered AIFs under specific rules.
- 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.