Investment Funds Regulations: Alternative Investment Funds (AIF), AIFMD and UCITS

This programme has been approved by the Cyprus Bar Association (CyBAR) for 5 accredited CPD units.

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 update to the current developments of the Cyprus Law regarding AIFs, AIFMs and UCITS. The aim being to update the participants with the current requirements and guidelines issued by CYSEC regarding these instruments.

After the completion of this workshop, participants will be able to distinguish the difference between UCITS and AIFS and will grasp an understanding of what the prerequisites and the ongoing requirements are for obtaining authorization for either a UCITS or an AIF and a UCITS Management company and an AIF Manager.

Training Outline

Alternative Investment Funds (AIF)

• Purpose and Scope of AIF law
• Types and forms of AIFs, AIFLNP and RAIF
• Umbrella Structures, Common Funds, Public Offerings, Listing possibilities
• The Depositary Function
• AIFM
• Authorisations, Operating Conditions, Organisational Requirements, and Delegation of Functions of AIF Managers
• Transparency Requirements and Marketing of Units
• Cooperation with other Authorities
• Cross Border Provision of Services
• Supervision

Undertakings in Collective Investment Transferable Securities (UCITS)

• The funds industry in Cyprus today
• UCITS framework
• What is a UCITS fund, when did they start, historical background
• Rulebook, prospectus and other documents of the funds
• Units, Types of funds, Management companies
• European passport and freedom in services provision
• Permitted investments
• Custodian (depository), what is the custodian and why it is important to the investors
• Existing legal framework, UCITS IV Directive, Law 78 (I) 2012
• Basic provisions of the law
• AML rules for UCITS
• New legislation, what changed with UCITS V Directive
• Changes in custodian’s role and responsibilities, in remuneration policy, in the sanctions framework
• Why the new directive brought only these changes?
• How investors’ rights are better protected and promoted?
• Upcoming changes, UCITS VI

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.

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.