The Cyprus Investment Funds Association (Cifa) has been granted formal membership of the European Fund and Asset Management Association (Efama), following the body’s June 17 annual general meeting.
The elevation follows two years in which Cifa held observer status with the association. During this time, Efama has rigorously assessed Cyprus’ fund management framework, and allowed the country to integrate Ucits and Alternative Investment Fund Managers (AIFM) directives into its national legal system.
Moving forward, a pair of legislative amendments to Cyprus’ laws governing alternative investment funds are expected to be enacted before the end of the year, to bring the country’s legal and regulatory framework fully up to Efama standards.
Most significantly, Cypriot funds registered as AIFs under the AIFM directive will no longer need to be authorised by the Cyprus Securities and Exchanges Commission once the changes have been enacted.
Angelos Gregoriades, president of Cifa, said the upcoming changes to the alternative investment fund framework will allow funds to be managed more efficiently, and would mean Cyprus enjoyed all the legal and administrative advantages offered by an onshore EU jurisdiction.
"The approval of Cifa’s membership of Efama marks a vote of confidence in Cyprus as a fund and asset management centre," he added.
“Now as a national association of Efama, we look forward to strengthening the right balance between the freedom of operation of the asset manager and the protection of investors.”
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