“The message is clear: Cyprus has established itself as a reliable and fully EU-harmonised investment fund management centre, continuing to evolve within a strong supervisory and institutional framework,” Dr George Theocharides, Chairman of the Cyprus Securities and Exchange Commission (CySEC), told the 11th Cyprus International Funds Summit & Expo, co-organised by CIFA and Invest Cyprus.
Theocharides presented the current landscape and outlook of the investment funds sector, highlighting the importance of transparency, supervision, and consistency in maintaining investor confidence.
As he said, CySEC currently supervises 319 investment fund management companies, a significant portion of which are Registered Alternative Investment Funds (RAIFs). He made special reference to the fact that approximately €3 billion — about 30% of total assets under management — are invested directly into the Cypriot economy, supporting tangible projects and activities with a meaningful national impact.
Theocharides said that Cyprus offers a flexible institutional framework, allowing management companies to be licensed under either the AIFM or UCITS regime, thus securing access to the European market. He also referred to the new legislative framework governing the operations of investment fund managers, which introduces clear definitions for administrative functions — ranging from client reporting services, NAV calculation, and income distribution, to unit-holder registry maintenance and the issuance of new units.
According to the new law, only licensed investment fund managers under CySEC supervision will be permitted to perform these functions within or from Cyprus. This development, he stressed, enhances transparency, credibility, and competitiveness in the Cypriot market, making it even more attractive to international investors.
Referring to European developments, Theocharides noted that by April 2026, all EU Member States must fully comply with the revised AIFMD II Directive, which aims to further strengthen supervision, cross-border activity, and investor protection through increased transparency.
The CySEC President underlined that Cyprus’ success as a financial centre stems from maintaining the right balance between growth and compliance. Through the cooperation of the public and private sectors, and continuous adaptation to the evolving European regulatory environment, Cyprus has succeeded in attracting investors seeking stability, accessibility, and real opportunity.
