Funds

The requirements for registering and AIFM company are:

Initial capital must be at least EUR300.000. If an external manager, then the minimum initial capital is EUR125.000. If it manages assets of more than EUR250 mln then capital must increase by 0.02% on the amount in excess of 250mln with 10mln being the maximum.

The application for authorization must include

1. Information on the persons effectively conducting the business of AIFM
2. Information on the shareholders all the way to the beneficial owners
3. Programme of activity setting out the organizational structure of the AIFM
4. Remuneration policy
5. Arrangements made for delegation and sub delegation of functions.
6. Provide information on the AIF it intends to manage:
   1. Investment strategies, if fund of funds, use of leverage, risk profiles, member states or 3^rd countries where AIF is established.
   2. If AIF is a feeder fund
   3. Instruments of incorporation of the AIF
   4. Appointment of a depositary
   5. If already authorized as a UCITS then no documents required
   6. The commission shall inform ESMA of authorisations granted or withdrawn

The authorization process of AIFMs is as follows:

AIFM must be a limited liability company by shares under CAP 113 with registered office and central management in Cyprus. The AIFM can manage AIF after obtaining and maintaining authorization from the commission. External AIFMs may manage UCITS or engage in portfolio management and risk management as well as

1. administration (legal and fund management accounting services, customer inquiries, valuation and pricing, regulatory compliance monitoring, maintenance of unit/shareholder register, , distribution of income, unit/shares issues and redemptions, contract settlements, including certificate dispatch, record keeping)
2. marketing
3. activities related to the assets of the AIFs
4. By way of derogation maybe authorised to provide management of portfolios of investments including pension funds and non-core services such as investment advice, safe keeping and administration, reception and transmission of orders.

The Commission shall inform the applicant AIFM of the Republic, in writing, within three months of the submission of a complete application, whether or not authorisation has been granted. The Commission may prolong this period for up to three additional months, where it considers it necessary due to the specific circumstances of the case and after having notified the AIFM accordingly.

AIFMs of the Republic may start managing AIFs with investment strategies described in the application in the Republic, as soon as the authorisation is granted, but not earlier than one month after having submitted any mission information