Kyriacos Kourtelos In 2009, the EC proposed a directive on Alternative Investment Fund Managers (AIFMs). The proposed directive aimed to ensure a high level of investor protection by setting out a common framework for the authorisation and supervision of AIFMs in the EU. Further, it aimed to provide robust and harmonised regulatory standards for all AIFMs within its scope and to enhance the transparency of AIFMs' activities and improve disclosure to stakeholders. In 2010, a political agreement was reached by the European Parliament and the Council of Ministers on Directive 2011/61/EU on Alternative Investment Fund Managers (AIFMD), which amended directives 2003/41/EC and 2009/65/EC and regulations EC 1060/2009 and EU 1095/2010. As the AIFMD adopts a phased approach to the implementation, it affects European Economic Area (EEA) and non-EEA fund managers differently. Nonetheless, becoming fully authorised under the AIFMD may allow certain fund managers to undertake management and marketing activities throughout the whole of the EU. Member states were required to transpose the AIFMD into national law by July 22 2013. Cyprus was the second member state to harmonise its legislation with the AIFMD, with the enactment of the Alternative Investment Fund Managers Law of 2013 (Law 56(I)/2013 – the Law), which was published in the Official Gazette of the Republic on July 5 2013. The Cyprus Securities and Exchange Commission (CySEC) was appointed as the relevant supervisory authority under the law. The AIFMD and the law are complemented by three EC regulations that have direct effect, namely:
July 07 2014
