Regulatory Blog

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 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.

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 2 July 2024, the European Investment Fund and the NATO Innovation Fund signed a Memorandum of Understanding in Brussels to enhance support for the defence, security, and resilience sectors in Europe. This partnership aims to unlock private capital for start-ups, medium-sized enterprises, and mid-sized companies in the defence, security, and resilience sectors.

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.

The Cayman Islands Monetary Authority has updated the process for submitting Audit Waiver applications for regulated funds through the Regulatory Enhanced Electronic Forms Submission portal. This enhancement allows for the complete processing of Audit Waiver applications within REEFS.

On 26 March 2024, Directive (EU) 2024/927 amending the Alternative Investment Fund Managers Directive 2011/61/EU and the Undertaking for Collective Investment in Transferable Securities Directive 2009/65/EC was published in the Official Journal of the European Union.