CIFA welcomes the approval of the Investment Fund Administrators law

The Cyprus Investment Funds Association (CIFA) has welcomed the approval of the Investment Fund Administrators Law by the House of Representatives, describing it as "a milestone development that marks a new era for the investment funds sector in Cyprus."

In an announcement, the Association said, "CIFA warmly thanks the Members of Parliament, and especially the members of the Standing Committee on Financial and Budgetary Affairs, for their decisive role in advancing this legislative initiative. Gratitude is also extended to the Ministry of Finance, the Cyprus Securities and Exchange Commission (CySEC), the Law Office of the Republic and Invest Cyprus for their valuable contributions and close cooperation throughout the legislative process."

CIFA continued that, "This law is a significant addition to the legal framework regulating investment funds, and more specifically regarding fund administration, enhancing transparency, investor protection, and regulatory clarity. It represents a key pillar in the continuous effort to position Cyprus as a competitive and compliant jurisdiction in line with international standards."

Also, according to the Association, "The approval comes at a time when the Cypriot investment funds sector is experiencing dynamic growth. According to the latest Quarterly Statistical Bulletin of CySEC for Q4 2024, the total number of Management Companies and Undertakings of Collective Investments (UCIs) in Cyprus reached 321, with 253 already operational. Total Assets Under Management (AUM) amounted to €10.1 billion, marking a quarterly increase of 10.21%, while the net asset value reached €9.6 billion. The growth is being driven by both new and existing funds across all types of vehicles, including UCITS, AIFs, AIFLNPs and RAIFs, reflecting the increasing confidence of international investors in Cyprus’s fund ecosystem."

"Looking ahead, CIFA will continue its efforts in relation to the Partnership Law and the promotion of targeted amendments to the AIF and AIFM Laws, aiming to further enhance the legal and operational environment of the sector," the Association said.

The announcement also included the following statement by CIFA President, Maria Panayiotou:

“The approval of the Investment Fund Administrators Law is a landmark moment that completes a core component of the sector’s institutional framework. It will contribute significantly to building trust, safeguarding investors, and boosting the competitiveness of the Cypriot investment funds ecosystem.

At the same time, the strong performance of the sector confirms the success of Cyprus’s long-term strategy to develop a modern, transparent, and growth-oriented regulatory environment. As CIFA, we remain firmly committed to working with all stakeholders to build on this momentum. Our strategy includes intensifying international promotional efforts, expanding partnerships, and continuing our engagement with policymakers to further strengthen Cyprus’ positioning as a leading investment fund jurisdiction.”

The announcement concluded, "CIFA is accelerating its international outreach through targeted roadshows in key jurisdictions, offering fund managers and institutional stakeholders the opportunity to promote Cyprus as an attractive base for fund structuring and administration. At the same time, the Association remains actively engaged in shaping policy and regulatory developments, in line with EU and global standards, to ensure Cyprus remains a secure, innovative, and competitive destination for investment funds."