Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 3: Common provisions regarding the organisation and operation of AIFs / [21] Management and conduct of business.
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21. Management and conduct of business.
(1) The governing body of the internally managed AIF consists of at least four natural persons, of which at least two perform executive duties therein.
(2) The business of the internally managed AIF is conducted by at least two natural persons, which are of sufficiently good repute and possess sufficient knowledge and experience to perform their duties, and they fall within the definition senior management:
It is provided that, the persons engaged in the performance of the risk management function are not supervised by those responsible for the performance of the operating units, including the portfolio management function.
(3) The persons who effectively direct the business of the external manager of the AIF or the AIF, in case it is internally managed, shall not participate in the governing body or senior management of the AIF’s depositary, and vice versa.
(4) In case of an externally managed AIF, the members of the governing body and the persons who conduct the business of the external manager of the AIF shall disclose to the external manager their capacity which could give rise to a conflict of interest while carrying out their duties and more specifically their capacity as members -
(a) of the governing body or persons who conduct the business of another AIF or another collective investment undertaking; or
(b) of an external manager, other than the one performing the investment management functions for the specific AIF.
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