"Cyprus continues to emerge as a reliable European investment centre, with stable institutional frameworks and enhanced transparency," stated Michael Fekkas, (A) Vice Chairman of the Hellenic Capital Market Commission, during his speech at the 11th Cyprus International Funds Summit & Expo, presented by CIFA and Invest Cyprus.
Fekkas noted that the Commission currently supervises 319 investment fund management companies, a significant proportion of which are Registered Alternative Investment Funds (RAIFs). Approximately 30% of total assets under management are invested directly in the Cypriot economy, proving the sector’s tangible contribution to real projects and national growth.
He explained that fund management approval can be obtained either under the IFM framework or through RAIFs, providing access to the EU market via licensed or registered investment funds. A key development, he said, was the recent legislation governing Fund Administrators, which explicitly defines management responsibilities — such as client information services, portfolio evaluation, NAV calculation, shareholder registry maintenance, and income distribution management.
Under this law, only licensed investment fund managers will be permitted to provide such services within or from Cyprus.
Finally, Fekkas stressed the importance of the upcoming full harmonisation of EU Member States with the revised Alternative Investment Fund Managers Directive (AIFMD II) by April 2026, noting that this initiative will enhance transparency, facilitate cross-border activity, and strengthen investor confidence in the European capital markets.
Faster and easier investment without compromising security
In a fireside chat that followed with Panikkos Vakkou, Vice Chairman of the Cyprus Securities and Exchange Commission (CySEC), Fekkas underscored the need for faster and easier investment processes without compromising security: "We must think digital by default. We should reduce KYC/AML procedures wherever possible, run smart checks in the background, and at the same time ensure that products are readily available to clients. If distributors use the same core data, we avoid duplicate forms and errors."
He added that investor disclosures should be short, clear, and useful, allowing clients to immediately see the real cost, key risks, and liquidity of instruments. Processes such as settlement times and transactions should be transparent and deliver swift service:
"The goal is simple — from click to fund unit allocation within 24 hours, with clear status updates along the way."
Lastly, he highlighted the importance of communicating liquidity tools in advance, monitoring investor experience in adverse markets, and promptly addressing issues such as investment delays, failure rates, or complaints:
"Only then can investors remain confident and the investment process become both efficient and trustworthy."
