In July, Cyprus transposed into law the Alternative Investment Fund Managers (AIFM) directive by introducing the AIFM Law (56 I/2013). On July 22, the EU Level II Regulation, which substantiates the directive’s provisions and is directly and uniformly applicable in all EU member states, became applicable in Cyprus.

This update presents the main provisions of the AIFM Law that apply to managers of alternative investment funds falling within the scope of the law. These provisions relate to the authorisation, operating conditions and organisational requirements of a Cypriot AIFM; depositary provisions; and the cross-border management and marketing of alternative investment funds managed by a Cypriot AIFM.



The minimum initial capital for a Cypriot AIFM is set at €125,000 ($170,000), plus professional liability insurance or additional own funds. The depository of a Cypriot alternative investment fund can be in another member state up to 2017, if the depository is a credit institution.