Introduction
Following the implementation of the EU Alternative Investment
Fund Managers (AIFM) Directive (2011/61/EC) and associated
legislation, Cyprus now lays claim to being a growth jurisdiction
within the European Union for the establishment and servicing of
boutique and low cost alternative investment funds based locally or
offshore. The choice of fund administrator is of paramount
importance to the set-up of any hedge fund and in Cyprus there are
many reasons to use or establish locally-based operations.
Cyprus became a member of the European Union in 2004 and is
consequently subject to and benefits from its single market
directives as well as its own developing body of jurisprudence,
known as the acquis communautaire. The European Union offers
extensive possibilities for cross border trade and investment
– in particular, the ability to passport financial services
to professional investors across EU member states on a relatively
unimpeded basis. Indeed, the
