Legal framework for CIU managament companies passed into law

08:13 - 30 May 2025

Companies Economy Reporter

The House Plenum has passed a bill—with 44 votes in favor and two abstentions—establishing the operational framework for management companies of collective investment undertakings (CIUs).

The law aims to regulate, at the national level, the business of carrying out management functions of collective investment undertakings and the provision of related services by or to the Republic, when such functions are delegated by a CIU manager to a CIU management company.

Key provisions of the law include that Cypriot CIU management companies will be required to obtain a license in order to carry out management functions for collective investment undertakings.

The law also sets the terms and conditions under which a license is granted by the Cyprus Securities and Exchange Commission (CySEC).

In addition, it establishes the organisation and operation of these companies, including the possibility to further delegate management functions to third-party service providers.

The law also provides for supervision by CySEC and the imposition of administrative sanctions and penalties in cases of non-compliance with the law’s provisions.

DIKO MP Christiana Erotokritou, who is also Chair of the House Finance Committee, stated that the bill is not a result of EU obligations, but rather a policy choice by the Republic of Cyprus aimed at strengthening the operational framework for CIUs.

She emphasised that this activity represents a growing sector of the economy, creating new, high-quality, well-paid jobs, and enhancing Cyprus' position as a business hub.

(Source: InBusinessNews)

Legal framework for CIU managament companies passed into law

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