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Cyprus is gaining recognition as an attractive fund domicile with a potential for further significant growth, says Monday Minister of Finance Harris Georgiades, addressing the 3rd International Funds Summit in Limassol. 

The Minister said that favourable factors as the country’s improved fiscal situation and tax certainty, complement the efforts of the industry and are enabling Cyprus to make strides as a modern and attractive investment fund jurisdiction”. He also focused on the effort made by the industry and the government to improve the legal and administrative framework. 

“This has enabled Cyprus to start gaining recognition as an attractive fund domicile with a potential for further significant growth”, Georgiades said. 

He added that a new bill which will amend and improve the Alternative Investment Funds Law, is at the final stages of legal vetting and expressed hope he will be able to present it for approval by the Council of Ministers in November. As he explained, the new bill proposes the introduction of registered funds not authorized by the Regulator, thus enabling a much faster set – up and marketing. The government, he added, is also proposing the introduction of limited partnerships with legal personality, as alternative investment funds vehicles, offering advantages in terms of versatility and structure. 

At the same time, he noted, the government is working with Cyprus Securities and Exchange Commission (CySec) in formulating legislation which will introduce licensed and regulated Mini-Managers, below the European Directive thresholds, as well as legislation on licensed and regulated administrators. 

He also referred to other future reforms, as the establishment of a new specialized Commercial Court and a major investment in e-justice, the establishment of a new independent and unified supervisory authority for the insurance and pension fund sector and the simplification of licensing procedures for new investment. 

In his speech, chairman of CIFA Angelos Gregoriades said that the industry is expected to support economic growth, with alternative funds to continue to drive the growth of the Cypriot funds industry. 

He noted that the development of the private equity funds sector remains a priority, while another growth area for funds is the creation of financial products, particularly regarding shipping and aviation.

Source: Stockwatch