The Directive has immediate and retrospective effect (ar. 6 and 8) and abolishes the previous Directive 279/2017.
Principally the Directive amends the fees payable to CySEC by Alternative Investment Funds (“AIFs”) and their Managers (“AIF Managers”) including provisions for the timing of those payments. The significant changes being:
- fees are payable:
- at the time the application for the granting of authorization or the application for registration in the AIF register is submitted; or
- at the time the notification or the submission of supporting or other documentation and applications takes place (ar.4 of the Directive);
- annual contributions, are to be paid to CySEC at the end of each calendar year as per Sections A, B, C and D of Annex II of the Directive;
- the fees payable by AIF Managers have been increased from EUR 300 to EUR 850 for notifications submitted by virtue of ar.47 of the AIFM Law and from EUR 500 to EUR 1,100 for notifications submitted by virtue of ar. 48 of the AIFM Law;
- an additional fee of EUR 700 has been imposed for notifications submitted in accordance with ar.43 of the same Law;
- new annual contribution fees of EUR 5,500 have been imposed in cases where the only activity of the AIF Managers is the collective management of the AIFs; and
- new annual contribution fees starting from EUR 2,000 have been imposed to AIF Managers which constitute internally-managed AIFs.
According to ar.3(2) of the Directive, AIFs incorporated and operating either as European Social Entrepreneurship Funds (EUSEF) or European Venture Capital Funds (EUVECA) or European Long-term Investment Funds (ELTIF) will not be subject to annual contributions or payable fees.
Our experienced Financial Services team can help you navigate the applicable regulatory framework in Cyprus and for any enquiry or assistance please contact Dimitris Papoutsis or your usual contact at Elias Neocleous & Co LLC.