Cyprus government approves new Investment Fund legislation
The Cyprus Cabinet approved in November a draft law for the Establishment and Operation of Collective Investment Organisation Management Companies Law 2023, which provides for the licensing and operation of fund managers and undertakings of collective investments.
The draft law defines the terms for granting operating licences to such companies, their organisation and functioning, and the execution of and delegation of managerial functions.
“This framework provides additional security for investors while making the market for investment funds more attractive for fund managers,” said a government spokesperson. “They will be able to focus on more specialised areas of capital management and risk assessment.”
“This enactment holds substantial significance for the investment fund sector, as it finalises the regulatory framework within Cyprus, rendering our country an even more attractive destination for investment funds, fund managers and related service providers,” said the Cyprus Investment Funds Association (CIFA).
Given the international competitiveness and dynamism of this sector, CIFA called on the Cyprus parliament to debate and adopt the legislation as swiftly as possible.
Data released by the Cyprus Securities and Exchange Commission (CySEC) in July showed that total assets invested in Cyprus had reached a record-breaking €2.9 billion and now constituted more than one quarter of total assets under management, which stood at €10.7 billion at the end of the second quarter of 2023.
This upward trajectory is underpinned by the operations of 254 companies licensed by CySEC, reflecting a remarkable growth of approximately 7.2% within a year. In terms of sectors, the period saw notable commitments in Energy (€456 million), Sustainable Investment (€72 million), Shipping (€555 million) and Fintech (€108 million).
