Registered Alternative Investment Funds - An Overview

Cyprus is fast becoming an international fund hub and a well-respected player in both the European and international fund industries. The reason behind this transformation has been the steady yet progressive improvement of the island's legislative regime which is capable of attracting high-calibre entrepreneurs and industrialists. One of the long-awaited milestones in this regard was the enactment of Law 124(I)/2018, which substituted the old statutory regime and further modernise Cyprus's investment fund legislative regime.

Legislative framework

Law 124(I)/2018 allows for the establishment of a new type of investment vehicle: the registered alternative investment fund (RAIF). An RAIF is a hybrid legal creature which combines the elements of authorised and regulated funds without extensive bureaucracy or, more importantly, the need for authorisation from the Cyprus Securities and Exchange Commission (CySEC). Nonetheless, as the definition suggests, an RAIF must be