Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 9: Obligations regarding disclosures to investors / [79] Offering document of the AIF.

79.Offering document of the AIF.

(1) The offering document of the AIF shall include at least the information of article 30(1) of the Alternative Investment Fund Managers Law. The offering document of the AIF shall also include a prominent statement on its first page, that the AIF is addressed to professional and/or well informed investors or retail investors, as the case may be.

(2) Where an AIF is addressed to retail investors and, in accordance with the AIF’s investment policy, further to the information provided in section (1) the offering document shall-

(a) determine the categories of assets in which the AIF is allowed to invest and shall include detailed and specific reference to the risk profile of each category and the possible outcome of the specific investment policy;

(b) include a specific reference to the possible fluctuation of the prices and to the possibility of not achieving a positive performance and a specific urge to the investors to seek expert advice from their financial advisor before investing in the AIF;

(c) where the AIF replicates the composition of a certain stock or debt securities index, include a prominent statement, drawing the attention of investors to the investment policy of the AIF;

(d) where the net asset value of the AIF is likely to have a high volatility due to its portfolio composition or the portfolio management techniques that may be used, include a prominent statement drawing the attention of investors to such characteristic;

(e) specifically state in a prominent way that the offering document is available to investors in all marketing points of its units and on the website of its external manager or of the self-managed investment company of section 6(2)(a);

(f) the relationship between the AIF, its external manager if an external manager shall be appointed, and its depositary, especially if they belong to the same group of companies:

It is provided that, the provisions of this paragraph shall apply to AIFLNPs as if the reference to article 6(2)(a) is a reference to article 125(1)(a).

(3) In case the AIF is addressed to professional investors or/and well informed investors, further to the information provided for in section (1), its offering document shall include a reference that the protection measures for retail investors provided in the relevant legislation, do not apply regarding the AIF.

(4) The offering document of the AIF shall be drawn up in a language of the Republic or in the English language as long as the fund rules or the instruments of incorporation of the AIF have also been drawn up in English and shall include the necessary information so that the investors will be able to make an informed decision for their investment in the specific AIF, and, in particular, of the risks attached thereto.

(5) The material information of the offering document shall be kept up to date.