The hedge funds market
has been developing rapidly in Cyprus
in the last years, due to a strong regulation for international collective investment schemes (ICIS)
, enabled by the Bank of Cyprus
in 1999. Hedge funds in Cyprus
are usually incorporated to participate in investment schemes on the stock market
and they can be set up as open-ended and closed-ended, but investors tend to prefer the first option. Our team of Cypriot lawyers
can offer legal assistance for the registration of a hedge fund in Cyprus
Regulatory framework applicable for Cypriot hedge funds
Hedge funds in Cyprus are regulated by a set of legal acts, as follows:
• Investment Service Law;
• Consolidated Market Abuse Law;
• Prevention and Suppression of Money Laundering Activities Law;
• Transparency Law;
• International collective Investment Schemes Law.
are usually addressed to professional investors
, who have an extensive knowledge of the financial market
. Through a hedge fund
, the investors will be able to use advanced investment strategies
in order to obtain a high return. The legal entity
can operate on both the local market and the international ones.
The main regulatory body for hedge funds
is the Bank of Cyprus
and our team of Cypriot attorneys
can provide assistance on the main requirements imposed by the institution at the registration of a fund
Marketing Cypriot hedge funds
A legal entity
set up as a private hedge fund
will need to appoint a custodian
, which must be a Cypriot bank
. A private hedge fund
should have a limited number of shareholders
, which was established at maximum 100.
In this case, the investors are not allowed to sell the company’s assets to the general public. Moreover, the applicable legislation stipulates that the units of the ISICs can’t be transferred.
Another important aspect is that the minimum value of the initial investment
(calculated by each individual investor) is set out at EUR 50,000.
Businessmen interested in receiving more details about the advantages of a hedge fund in Cyprus
can address to our Cypriot law firm
for legal representation.