Our dedicated team has extensive experience in the licensing and ongoing regulatory support of:

• Cyprus Investment Firms (CIF)
• Alternative Investment Fund (AIF)
• Alternative Investment Fund Managers (AIFMs)
• Electronic Money Institutions (EMIs)
• Payment Institutions (PIs)

Cyprus Investment Firms

There are many reasons why accessing the European Securities Markets is becoming increasingly attractive. European exchanges in recent years compare favourably with those in the United States in both IPO volume and value terms. Other than providing liquidity and access to a diverse pool of investors, European listings provide companies with the appropriate status for further European and international expansion.

With its entry into the EU in May 2004, Cyprus has become one of the most attractive countries to set up and conduct investment and financial services.

Cyprus Investment Firms (“CIF”) are operating under the The Cyprus Investment Firms Law 144(I) 2007-2012 (the “Law”) which provides the legal framework for the provision of investment services as well as for the registration, regulation of operations and supervision of CIFs.

Investment services include any of the following services:

• reception and transmission of orders in relation to one or more financial instruments
• execution of orders on behalf of clients
• dealing on own account
• portfolio management
• investment advice
• underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis
• placing of financial instruments without a firm commitment basis
• operation of Multilateral Trading Facilities (MTF)

Ancillary services include the following:

• safekeeping and administration of financial instruments for the account of client
• granting credits or loans to an investor to allow him to carry out a transaction in one or more financial instrument
• advice to undertakings on capital structure, industrial strategy and related matters
• foreign exchange services where these are connected to the provision of investment services
• investment research and financial analysis
• services related to underwriting

Our team can effectively navigate you throughout the whole process of obtaining a CIF license under CySEC and then provide the ongoing regulatory support for ensuring full compliance with the relevant laws and regulations.

Alternative Investment Funds

Cyprus over the last few years has evolved into a leading investment fund center, not just in Europe, but globally.

Alternative Investment Funds in Cyprus are regulated by the Alternative Investment Funds Law of 2018 (the “AIF Law”) which was enacted by the Cyprus House of Representative on 30/07/2018. The AIF Law repeals the Alternative Investment Funds Law of 2014.

The Alternative Investment Fund (AIF) legal act in Cyprus since 2014 is aligned both with the Cyprus legal and regulatory framework and the latest EU directives on asset management, transparency and investor protection.

An AIF can take the following legal forms and may be established with limited or unlimited duration:

• Fixed Capital Company
• Variable Capital Company
• Limited Partnership
• Common Fund

The Types of AIF:

• Alternative Investment Fund with limited Number of Persons
• Alternative Investment Fund with Unlimited Number of Persons
• Registered Alternative Investment Fund (RAIF)

At Fidescorp, we provide complete solutions in fund setup and licensing, fund administration, rendering middle and back office services as well as regulatory support to a wide range of investment funds and private vehicles operating predominantly in the alternative investment sphere.

Alternative Investment Fund Managers (AIFMs)

A Cypriot Alternative Investment Fund Manager (AIFM) can offer specific advantages to non-EU fund managers wishing to raise capital in Europe, as well as to develop a presence in the European market to benefit from the right to easily distribute their funds to investors in all EU countries.

One of the key issues monitored and assessed by many non EU fund managers is whether it makes sense to establish a European management company. There are related reasons for such considerations. First, the difficulties associated with utilizing the private placement regimes, and second, the recognition that even if or when the AIFMD marketing passport is extended to non-European fund managers, there is likely to be a period of uncertainty of application and approach – and in any case this demands full compliance with AIFMD requirements. As such, establishing a European management company is an attractive solution.

The AIFM must at least engage in the following core investment management functions when managing an Alternative Investment Fund (AIF):

• Portfolio management,
• Risk management.

In the course of collectively managing an AIF, the AIFM may be authorised to perform any of the following functions:

• Administration
• Marketing services
• Activities related to the assets of the AIF, namely services necessary to meet the fiduciary duties of the AIFM, facilities management, real estate administration activities, advice to undertakings on capital structure, industrial strategy and related matters, advice and services relating to mergers and the purchase of undertakings and other services connected to the management of the AIF and the companies and other assets in which it has invested.

An external AIFM may also be authorised to provide the following MiFID services, subject to compliance with the relevant MiFID rules without separate MiFID authorisation being required. These are:

• management of portfolios of investments, including those owned by pension funds and institutions for occupational retirement, in accordance with the mandates given by investors on a discretionary, client-by client basis
• along with the provision of portfolio management services outlined above, an AIFM may further be authorised to provide non-core services including investment advice, safe-keeping and administration in relation to shares or units of collective investment undertakings and reception and transmission of orders in relation to financial instruments.

Our team provides tailored solutions in the setup and licensing of AIFM and ongoing  regulatory support.

Electronic Money Institutions (EMIs)

The “Electronic Money Law of 2012” transposes into Cyprus legislation the EU “Directive 2009/110 on the taking up, pursuit and prudential supervision of the business of Electronic Money Institutions”. The said law shall repeal and replace the basic law [Electronic Money Institutions Law – Law 86(I) of 2004].

The Law revises the legal framework for services regarding pre-paid electronic payment products, by regulating the following issues: (a) the issuance of electronic money in the Republic of Cyprus, (b) the issuance of electronic money in another EU member state or in a third country by a natural person residing in the Republic or by a legal person incorporated in the Republic, (c) the licensing and the prudential supervision of electronic money institutions.

Electronic money services in the Republic of Cyprus may only be provided by an electronic money institution which has been granted an authorisation by the Central Bank of Cyprus (CBC).

Our team provides tailored solutions in the setup and licensing of EMIs and ongoing  regulatory support.