Home / CY AIF Law of 2018 / PART VIII: REGISTERED ALTERNATIVE INVESTMENT FUNDS / Chapter 1: Establishment of RAIFs / [134] Operation of RAIFs.

134. Operation of RAIFs.

(1) An AIF may operate as a RAIF, in accordance with the provisions of this Law, when all of the following apply-

(a) the RAIF is an externally managed AIF,

(b) the RAIF is addressed to professional and/or well informed investors, and

(c) its fund rules or instruments or incorporation, as the case may be, shall specify that it is subject to the provisions of this Part.

(2) A RAIF may be established taking one of the following legal forms:

(a) as a common fund, in accordance with the provisions of articles 4(2)(a) and 45 to 52, which shall apply proportionately, excluding any reference in those articles to authorisation or any other type of approval or decision by the Securities and Exchange Commission, notification or any other form of notice to the Securities and Exchange Commission by the AIF∙ or

(b) as an investment company, in accordance with the provisions of articles 4(2)(b), 54(3), 55, 58(4) and (5), 59, 60(1)(b), (2) and (3), 62(1) to (3) and 63, which shall apply proportionately, excluding any reference in those articles to authorisation or any other type of approval or decision by the Securities and Exchange Commission, notification or any other form of notice to the Securities and Exchange Commission by the AIF or the operation of the AIF an internally managed AIF∙ or

(c) as a limited partnership, in accordance with the provisions of articles 4(2)(c), 65(1)(b), (2), (3) and (4), 67 to 71, 72, 73 and 74, which shall apply proportionately, excluding any reference in those articles to authorisation or any other type of approval or decision by the Securities and Exchange Commission, notification or any other form of notice to the Securities and Exchange Commission by the AIF or the operation of the AIF an internally managed AIF.

(3) (a) Issues not regulated by the provisions of this Law regarding the legal form of RAIFs, are subject to the relevant provisions of the Company Law, in case of an investment company, or the General and Limited Partnerships and Business Names Law, in case of a limited partnership.

(b) the provisions of this Law shall apply to RAIFs, excluding articles 6(2)(a), 11 to 13, 56, 66 and 117, and in case the RAIF is managed by an AIFM, articles 16 to 22, 24 and 26 to 33 shall not apply.

(4) Without prejudice to article 4(2), each RAIF shall include the term “Registered Alternative Investment Fund” or “RAIF” in its name.

(5) RAIFs can operate as umbrella AIF, with more than one investment compartments, in accordance with article 9 and, depending of its legal form, shall specify in its fund rules or instruments of incorporation that it operates with more than one investment compartments:

It is provided that each compartment of the RAIF operating as an umbrella AIF shall be subject to the provisions of this Law as a separate RAIF.