Alternative Investment Funds: Legal Characteristics, Operating Conditions, Roles and Responsibilities

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Course Overview

In recent years, Cyprus has made enormous moves towards the enhancement and completion of the national legal framework concerning investment funds. With these legislations in place, Cyprus is set to be established as an international fund jurisdiction. A new piece of legislation was introduced in 2018 that aims to further promote the industry.

Training Objectives

This course will provide an insight to the legal characteristics and main operating conditions for the Alternative Investment Funds in Cyprus. The aim being to give a holistic understanding to participants of the main legal elements, different legal forms and structures and main operating conditions for AIFs.

In the latest sections of the seminar, a description will be given of the main roles and responsibilities under the AIF and AIFM Law.

After the completion of this seminar, participants will be able to grasp an understanding of the main legal characteristics and operating requirements of AIFs under the AIF Law as well as the various roles and responsibilities such as the AIFM and the Depositary.

Training Outline

Part 1: An Overview of the Cyprus Funds Market

• Timeline of Legal Developments: From the ICIS to the AIF Fund
• The Cyprus Fund Market: A Glance at the Statistics
• The Prospects and Challenges

Part 2: The Legal Regime for AIFs in Cyprus

• The aim of the Law: The Aims it pursues to achieve
• The Scope of Application of the Law
• The Regulator: Mission and Responsibilities

Part 3: Definition, Legal Form, Classifications and Structures

• Definitions and Terminology
• Legal Form: The Investment Company, The Common Fund, The Limited Partnership
• The Open-ended / Close Ended AIF
• The Single Fund Structure and the Umbrella Fund Scheme
• Management of the AIF: Self- Managed vs Externally Managed
• The Limited Number of Persons AIF (AIFLNP)
• The Listed AIFs
• The authorised AIF vs Registered AIFs (RAIFs)
• The Registered AIF (RAIF)

Part 4: Main Operating Conditions of the AIF

• Registered Office
• Appointment of Depositary
• Minimum Initial Capital
• Maintaining Minimum Assets
• Management and Administration of an AIF
• Investment Policy
• Risk Management
• Conflicts of Interest
• Valuation of Assets
• Subscriptions and Redemptions of Units
• Marketing and Distribution
• The Professional/well informed Investor
• Dissolution and Liquidation

Part 5: Roles and Responsibilities related to the Operation of AIFs

• Defining Roles and Responsibilities
• The AIFM
• The Depositary: Basic overview of the functions and duties of Depositary
• The Investment Advisor: Example of the role and functions
• The Investment Committee
• Other Significant Roles related to the Operation of AIFs

Part 6: The Upcoming Legal Developments

• The Mini-Manager
• Regulating the Fund Administrator

Training Style

The training style will include the presentation of all the material using slides and handouts.  The trainer will use practical examples to elaborate various concepts as well as show various videos that highlight particular course concepts and encourage class discussion.  Participants will engage in exchange of ideas and sharing of knowledge on the subject matter.  Participants will also be able to ask questions and obtain clarifications from the trainer on all the material covered.

CPD Recognition

This programme may be approved for up to 5 CPD units in Financial Regulation and Law. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.

Professionals requiring CPD units to meet the education requirements for CySEC licence renewal, and/or for maintaining other professional memberships/certifications which accept CPD in Financial Regulation, are advised to consider training subjects in categories that indicate CPD training in Financial Regulation.

Who Should Attend

The course will be of benefit to all those professionals employed within the Funds sector as well as those who are seeking to join the industry.  This will include any professional from the fund operations/administration teams, risk managers, compliance monitoring teams, audit and fund managers or third parties, lawyers, auditors and regulators.

In addition, the course is suitable to employees and managers of Cyprus Investment firms and banks who offer investment services as well as compliance officers and internal auditors.