MAP S.Platis offers continuous support and modular solutions tailored for the Funds industry. Our specialised team can assist with all phases of a Fund’s lifecycle, from the establishment of the Fund and its authorisation by the CySEC to ongoing operational requirements. The legal framework in Cyprus affords prospective Fund Managers with a bouquet solution ranging from establishing a Management Company for Undertakings in Collective Investments in Transferable Securities (UCITS) to an Alternative Investments Fund Manager (AIFM) and/or self-managed funds.
CySEC-authorised fund managers benefit from the status of the Republic of Cyprus as a full member of the European Union, which provides them with unfettered access (EU passport) to the European Economic Area (EU members plus Liechtenstein, Norway and Iceland). As such, aspiring fund managers may choose one of two solutions that benefit from the single EU passport:
- Acquire a license as an AIFM authorised under Cyprus national transposition of the AIFM Directive. An AIFM may also acquire as part of its authorisation a UCITS management license. This attractive dual licencing regime allows AIFMs to manage UCITS and Alternative Investment Funds (AIFs) established in the EEA and market the shares/units of these Funds within the EEA. It should be noted that, under the passporting regime, AIF units/shares may only be sold to investors categorised as professionals.
- Acquire a license as a UCITS Management Company authorised under Cyprus national transposition of the UCITS Directive. A UCITS Management Company may manage UCITS established in the EEA and market units/shares of UCITS to retail and professional Investors on a cross-border basis.
Cyprus affords an easy-to-set-up fund management regime; a fund (either an AIF or UCITS) can be set up as a variable capital investment or as a mutual fund. In addition, AIFs can also be set up in the form of limited liability partnerships (LLPs) and as fixed capital investment firms.
Once the legal entity has been set up, it may proceed with submitting an application for authorisation by CySEC either as a UCITS under the UCI Law of 2012 (the national transposition of the UCITS Directive) or as an AIF under the AIF Law of 2014. It should be noted that umbrella structures are possible for all set ups. Moreover, said funds can be either externally or internally managed (except in the cases where funds are set up in the form of mutual funds and LLPs). Once the legal entity has been set up and authorised by CySEC, the UCITS Management Company or the AIFM (as applicable) may initiate the procedure to market the units/shares of the Fund in the EEA on a cross-border/passporting basis.
CySEC has implemented attractive solutions for the establishment of funds in Cyprus with the adoption of a unique national legislation. With respect to AIFs, CySEC has introduced the AIF with limited number of Persons/Investors (AIFLNP), an AIF that requires no initial capital and is exempted from appointing a depositary. AIFLNPs may be self-managed or managed externally by an EU UCITS Management Company or an EU Investment Firm and/or a company established in a third country that is subject to prudential regulation and authorised to provide portfolio management services. In addition, AIFLNPs may be managed by a special purpose Company, which, in accordance to the Company’s instruments of incorporation, has the sole purpose of providing portfolio management services to a specific AIFLNP.
During the pre-authorisation phase: MAP S.Platis can assist in the following ways (non-exhaustive):
- Setting up the entity to be authorised;
- Drafting, submitting and promoting the authorisation application to CySEC;
- Assisting with client enquiries regarding the authorisation process, and;
- Communicating with CySEC on behalf of the client.
The authorisation process requires comprehensive attention to the documentation submitted to CySEC. From the date of submission of a full application package CySEC will approve the application in a time frame of three months. It is therefore imperative that prospective Fund managers and/or funds have partnered with an application promoter that is able to deliver tangible results in order to avoid unnecessary and costly delays.
Post authorisation: MAP S.Platis can offer ongoing support with respect to Funds’ and Fund Managers’ operational requirements, including but not limited to:
- Drafting relevant AML policies, Investors’ KYCs and Acceptance Procedures, as well as updates;
- Risk Management Consulting (assessing the Company’s procedures, systems and controls with respect to the Risk Management Function);
- Administration Consulting Services with regards to marketing materials, publications prepared, etc.;
- Assistance with the selection and initial due diligence of prospective Delegates;
- Proactive monitoring of regulatory developments and on-time notification of new requirements as applicable;
- Assistance in drafting internal operations procedures that will cover all requirements under the relevant regulatory framework;
- Updates with respect to regulatory revisions and assistance in adapting to the new requirements;
- Ad hoc health checks in order to assist Funds and Fund Managers in identifying possible risk areas of non-compliance and proposing remedial solutions;
- Preparation and promotion of applications regarding license extensions;
- Regulatory transaction reporting automated solutions (such as EMIR, REMIT and MiFID);
- Assistance with preparing the relevant disclosures to Regulators and Investors where and as applicable;
- Licencing extensions as required;
- Staffing solutions and assistance in screening suitable candidates for Portfolio Managers, Risk Managers, Compliance Officers and other key personnel;
- Training to employees by setting up in-house seminars that are tailor-made based on the Company’s specific needs;
- Accounting and external audit solutions;
- Internal audit services as per the requirements of the regulatory framework, and;
- Full legal support.
For more information on our services and how we can assist you, please feel free to contact us