Cyprus has taken a significant step in strengthening its regulatory framework for investment funds, following the House of Representatives’ approval of the Investment Fund Administrators Law.
The move is being hailed by the Cyprus Investment Funds Association (CIFA) as a milestone for the sector and a crucial pillar in enhancing investor protection, transparency and regulatory clarity.
The legislation, which formalises the framework for fund administration, is expected to support the ongoing expansion of Cyprus as a competitive jurisdiction for international fund managers.
CIFA expressed its gratitude to Members of Parliament, particularly the Standing Committee on Financial and Budgetary Affairs, as well as the Ministry of Finance, the Cyprus Securities and Exchange Commission (CySEC), the Law Office of the Republic and Invest Cyprus for their collaboration throughout the legislative process.
According to CIFA, the new law is aligned with international standards and reinforces the government’s commitment to transparency and market integrity. It comes at a time of continued growth for the sector.
CySEC’s latest Quarterly Statistical Bulletin for Q4 2024 recorded 321 Management Companies and Undertakings of Collective Investments (UCIs) in Cyprus, of which 253 were operational. Total Assets Under Management (AUM) rose to €10.1 billion, a quarterly increase of 10.21 per cent, while the net asset value stood at €9.6 billion.
The upward trend has been fuelled by both new and existing funds across all vehicles, including UCITS, AIFs, AIFLNPs and RAIFs, pointing to strong international investor confidence in the Cypriot fund ecosystem.
CIFA president Maria Panayiotou described the legislation as “a landmark moment that completes a core component of the sector’s institutional framework,” noting that it will “contribute significantly to building trust, safeguarding investors, and boosting the competitiveness of the Cypriot investment funds ecosystem.”
She added that the sector’s strong performance “confirms the success of Cyprus’s long-term strategy to develop a modern, transparent, and growth-oriented regulatory environment,” while reaffirming CIFA’s commitment to working with stakeholders to build on this momentum.
“Our strategy includes intensifying international promotional efforts, expanding partnerships, and continuing our engagement with policymakers to further strengthen Cyprus’ positioning as a leading investment fund jurisdiction.”
Looking ahead, the association will focus on promoting targeted amendments to the AIF and AIFM laws, as well as pursuing reforms to the Partnership Law.
In parallel, CIFA is accelerating its international outreach through a series of roadshows in key jurisdictions aimed at showcasing Cyprus as a compelling base for fund structuring and administration.
The association also remains closely engaged in regulatory and policy developments, both at EU and global level, to ensure Cyprus retains its appeal as a secure, innovative, and competitive destination for investment funds.
