Cyprus has become an associate member of the International Capital Markets Association (ICMA), the Cyprus Investment Funds Association (CIFA) announced.
ICMA, the association for the global sell-side and buy-side industry, will support the development of Cyprus’ position as an emerging European funds jurisdiction, the local industry body said.
CIFA’s affiliation with the ICMA follows its upgrade to full member status of the National Association of the European Fund and Asset Management Association (EFAMA), granted in June 2016, as well as a number of recent measures that have enhanced the legislative and regulatory framework governing the Cyprus funds industry.
For alternative investment funds, the Registered AIFs regime – due to be passed into law in early 2017 – will remove the need for individual authorization and monitoring for each new registered fund.
Instead, alternative investment funds will be able to rely on the regulated status of the Alternative Investment Fund Manager (AIFM) to ensure competent supervision of its activities and reduce the time required to register an AIF from six months to three to five weeks.
Cyprus will also be introducing new reforms to the pension system to reinvigorate domestic pension schemes and promote Cyprus as an international pension’s management center. Such policy measures aim to substantially increase institutional pension assets, enabling the asset management and funds industry to access a larger market.
“Investors ready to deploy capital in a fund manager’s strategy do not want to waste up to six months waiting for a specific fund to come to market. Bolstered by CIFA’s membership to the ICMA, 2017 will be a landmark year in the development of the nation’s funds industry,” CIFA president Angelos Gregoriades said.
“Registered alternative investment funds, following the appointment of an authorized fund manager, will soon be able to encourage fund sponsors to re-domicile and upgrade their offshore structures to Cyprus, bringing a robustly-regulated, European passportable fund to market quicker than ever before. We look forward to collaborating with the ICMA and its members in driving growth in the European asset management industry to channel more private finance to the real economy,” Gregoriades added.