Small Alternative Investment Fund Manager (Mini-Manager) New Era

On 3^rd July 2020, the "Law which provides for the Incorporation and Operation of Small Alternative Investment Fund Managers (L.81(I)/2020)", (the "Mini-Managers Law"), came into force, creating a regime for the regulation and licensing of sub-threshold alternative investment fund managers. The European Directive 2011/61/EU (the "Directive") provides for the Member States to apply a lighter regime for Alternative Investment Fund Managers (AIFMs) where the total assets of the AIF under management fall below a threshold of ?100 million. The Cyprus Securities and Exchange Commission ("CySEC") took the lead and introduced the Mini-Managers Law to the financial market.

The Mini-Managers Law gives the opportunity for start-up asset managers in the European Union and/or local managers to be licensed and regulated under CySEC as well as taking advantage of the lower capital requirements and lower maintenance costs to accommodate small-scale investments. It also allows