Cyprus law provides for unregulated funds, known as Registered Alternative Investment Fund (RAIF).
The newly established Cyprus legislation that regulates Alternative Investment Funds was approved on the 10/07/18 and states that the RAIFs will not be regulated or licensed by the Cyprus Security and Exchange (CySEC). Instead of being regulated by CySEC, the RAIFs is overseen by a qualified and licensed Alternative Investment Fund Manager (AIFM). The AIFM not only supervises and manages the RAIF but also provides certain services which include compliance, risk management and internal compliance audit to name a few.
The new legislation was introduced with the intention to provide a cost-effective fund as well as limit the time that was needed until the fund could offer investment opportunities. China, the Middle East as well as European countries have shown an increased interest in RAIFs. RAIF will offer the below benefits:
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