Regulatory Blog

On 12 June 2025, the Cyprus Securities and Exchange Commission issued Consultation Paper CP-02-2025, proposing targeted amendments to the Alternative Investment Funds Law of 2018.

On 29 May 2025, the House of Representatives of Cyprus approved the long-anticipated Investment Fund Administrators Law, which aims to strengthen the regulatory framework for fund administration conducted in Cyprus. The passing was announced to the industry by the Cyprus Investment Funds Association on 2 June 2025.

On 20 May 2025, the CSSF updated its AIFMD FAQs to clarify the subject of marketing AIFs to retail investors. In principle, non-regulated Luxembourg AIFs not subject to a product law can only be marketed in Luxembourg to professional investors.

On 11 April 2025, the Cyprus Securities and Exchange Commission released Circular C703, which serves as a reminder of the regulatory obligations of Cyprus Investment Fund Managers concerning website maintenance and marketing communications.

On 15 April 2025, the European Securities and Markets Authority published significant updates to the regulatory landscape with the release of draft Regulatory Technical Standards and a final report on Guidelines addressing Liquidity Management Tools. These measures represent a pivotal step toward strengthening the ability of EU fund managers to skilfully manage fund liquidity, particularly during periods of market stress.

On 17 February 2025, the Government of Bermuda released its third consultation paper on the Corporate Income Tax Act 2023, focussing on provisions to ensure the effective administration of the CIT Act. This follows a careful review of feedback from the first two consultations, further refining the proposals to strike a balance between ease of administration and taxpayer compliance costs and robust tax collection and liability determination mechanisms. The consultation closes on 10 March 2025, and stakeholders are invited to submit their comments and suggestions via email.

On 12 February 2025, the Commission de Surveillance du Secteur Financier (CSSF) introduced a streamlined and more efficient procedure for the creation of new share classes in investment funds, thereby eliminating the need for a prospectus update.

On 25 October 2024, the EU Commission released the final Delegated Regulation that supplements Regulation (EU) 2015/760 of the European Parliament and the Council, which pertains to regulatory technical standards known as the "ELTIF RTS." The regulation outlines critical requirements for European Long-Term Investment Funds, particularly concerning the matching of transfer requests, pricing, investor disclosures, and asset valuations.

The Hong Kong Securities and Futures Commission’s new Fund Authorisation Simple Track is a streamlined process for authorising simple funds from Funds in Mutual Recognised jurisdictions. The process will begin as of 4 November 2024.

On 26 September 2024, the Cyprus Securities and Exchange Commission issued a circular addressed to Cyprus Investment Firms providing essential guidance regarding the provision of services in relation to fractional shares under the Investment Services and Activities and Regulated Markets Law 2017, in line with EU Directive 2014/65.

As a reminder, on 28 March 2024, Luxembourg’s Commission de Surveillance du Secteur Financier issued Circular 24/856 providing comprehensive guidelines for the protection of investors in cases of errors related to the Net Asset Value calculation, non-compliance with investment rules and other administrative errors at the level of Undertakings for Collective Investment under the supervision of CSSF. An English version of the circular has recently been released.

On 8 July 2024, the European Securities and Markets Authority initiated a consultation on draft guidelines and technical standards under the revised Alternative Investment Fund Managers Directive and the Undertakings for Collective Investment in Transferable Securities Directive. These directives aim to enhance financial stability and standardise liquidity risk management across the investment funds sector.