Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 1: General characteristics and distinctions of AIFs / [06] AIF Management

6. AIF management.

(1) AIF management includes -

(a) performing at least the following investment management functions:

• Portfolio management, and

• Risk management∙

(b) performing any of the following other functions:

• Administration:

(A) legal and fund management accounting services,

(B) customer inquiries,

(C) valuation and pricing, including tax returns,

(D) regulatory compliance monitoring,

(E) maintenance of unit-/shareholder register,

(F) distribution of income,

(G) unit/shares issues and redemptions,

(H) contract settlements, including certificate dispatch,

(I) record keeping,

• Marketing,

• Activities related to the assets of AIFs, namely services necessary to meet the fiduciary duties of the AIFM, facilities management, real estate administration activities, advice to undertakings on capital structure, industrial strategy and related matters, advice and services relating to mergers and the purchase of undertakings and other services connected to the management of the AIF and the companies and other assets in which it has invested.

(2) The AIF may be setup:

(a) either as an internally managed AIF, where it does not appoint an external manager, if it is established as an investment company or a limited partnership with separate legal personality and the assets under its management do not exceed the thresholds of article 4(2) of the Alternative Investment Fund Managers Law∙ in addition, the investment company may be set up as an internally managed AIF when the persons that sign the instruments of incorporation of the investment company, in case of a company not yet incorporated, or the members of the board of directors, in case of an incorporated company, decide not to appoint an external manager, but to exercise internal management in accordance with the provisions of the Alternative Investment Fund Managers Law -

• either obligatory in case the assets under its management exceed the thresholds of article 4(2) of the Alternative Investment Fund Managers Law,

• or by choice, because they choose to opt in under the Alternative Investment Fund Managers Law, and the investment company is considered as to be an AIFM which is an internally managed AIF and is subject to the provisions of the Alternative Investment Fund Managers Law∙

(b) or as an externally managed AIF, where it appoints an external manager to perform the investment management functions, which is authorised and operates as -

• an AIFM∙ or

• a UCITS Management Company∙ or

• an AIF management company authorised in the Republic or in another member state, for the investment management of AIFs, whose assets under management do not exceed the thresholds of article 4(2) of the Alternative Investment Funds Manager Law or the corresponding Article 3, paragraph 2 of Directive 2011/61/EU and is subject to prudential supervision subject to law of the Republic or its home member state∙ or

• an IF.

(3) The Securities and Exchange Commission may, by means of a directive, regulate any technical matters and details relating to the application of this article.