EU & offshore funds licensing

FAI Comply assists with the submission of applications to CySEC in order to obtain an AIF, AIFM, AIFLNP, RAIF license & provides ongoing services including:

Advising on setup and structuring

Assisting with preparing the application to CySEC

Private offering memorandum

Ongoing compliance services throughout the life of the fund

​What can FAI Comply do for your business?

  • Alternative Investment Fund (AIF)

  • Alternative Investment Fund Managers (AIFMs)

  • Alternative Investment Fund with Limited Number of Persons (AIFLNP)

  • Registered Alternative Investment Fund (RAIF)

Alternative Investment Fund (AIF)

An AIF available to the public can be established in three different forms:

  • A company (with fixed or variable capital)

  • A common fund

  • A limited liability partnership

All three legal forms allow for legally segregated sub-funds to be created and there are no limits to the number of investors. An AIF has the following characteristics:

  • Can have retail clients

  • Able to market freely via passport application

  • Can be internally or externally managed

  • A depository may or may not be required

  • Subject to minimum capital requirements of €125,000 in case of self-managed and €300,000 if managed by an AIFM

  • No limits on number of investors

  • No restrictions regarding types of investments

  • Subject to certain investment restrictions for risk spreading and liquidity purposes

Alternative Investment Fund Managers (AIFMs)

Hedge funds and private equity funds and their investment managers (AIFMs) have not been subject to the same rules to protect the investing public as mutual (including UCITS) and pension funds and their managers. In general, the lack of financial regulation is seen by some to have contributed to the severity of the global financial crisis. The AIFM directives and laws are aimed at redressing this perceived regulatory gap with supervising authorities.

In 2015 the AIFM Law was applied to non-EU AIFMs having designated Cyprus as their “member state of reference” for their management and/or marketing activities in the EU.


The AIFM Law applies in particular to the following activities:

  • A Cyprus AIFM managing Cyprus AIFs or AIFs of another member state or third country

  • An EU or third country AIFM managing Cyprus AIFs

  • A Cyprus AIFM marketing units or shares of AIFs they manage in other member states or third countries

  • An EU or third country AIFM marketing units or shares of AIFs they manage in Cyprus

Alternative Investment Fund with Limited Number of Persons (AIFLNP)

An AIFLNP has the following characteristics:

  • up to 75 investors, who are professional and well-informed

  • Can be internally or externally managed

  • Assets under management should not exceed €100 million with leverage and €500 million without leverage

  • No minimum initial capital requirements

  • No investment restrictions

  • No investment diversification rules

Registered Alternative Investment Fund (RAIF)

  • RAIFs are not subject to ongoing monitoring by CySEC

  • They must be externally managed by an AIFM established and licensed in Cyprus or in any other EU / EEA member state

  • It is for the AIFM to ensure the general supervision and compliance in accordance with its own regulatory regime

  • RAIFs established as limited partnerships may appoint as managers UCITS management companies or a Cyprus investment firms (CIFs) authorised under MIFID II, instead of AIFMs. In these situations the RAIF would need to be close-ended and invest a minimum of 70 percent of its funds in illiquid assets

  • Professional and well-informed investors only (minimum deposit €125,000)

  • Certain limits on marketing

  • Can be listed on an exchange

Licensing services

Analyzing the data

Financial services licensing

Due to the vast amount of advice and management available, particularly online, investors are looking to ensure the safety of their funds and a benchmark for those providing the financial services prior to investing. Regulation and licensing provides assurance to investors.

Image by Jonas Leupe

Payment services licensing

The payments landscape has evolved rapidly, money is becoming more mobile and increasingly accessible online. International trade expansion and globalisation are growing the demands.

Market Analysis

Funds licensing

FAI assists with the submission of applications to CySEC in order to obtain an AIF, AIFM, AIFLNP, RAIF license.

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