Cyprus Funds Industry Growing Rapidly
The 6th International Funds Summit organized by Invest Cyprus and the Cyprus Investment Funds Association (CIFA) was held on November 16-17, 2020 and gathered more than 500 delegates. A large proportion of the delegates consisted of executives in investment banks, foreign supervisory authorities, and service providers.
The Summit revealed that despite the pandemic the fund industry in Cyprus has been growing rapidly. According to data published by the Central Bank of Cyprus, the number of investment funds increased from 199 in June 2020 to 208 in September 2020.
Demetra Kalogirou, the chairwoman of the Cyprus Securities and Exchange Commission (CySEC), stated that a large number of business entities applied for a license, and at the end of the second quarter of 2020 there were 238 undertakings for collective investments with assets amounting to near €8 billion. Almost a 200% increase compared to 2016.
Addressing the delegates, John Sergides, the CEO of MUFG Investor Services (part of the Mitsubishi UFG Group), informed the audience that MUFG will expand its activities in Cyprus as it considers Cyprus an ideal destination for servicing investment funds due to its geographical location and quality of services. The Mitsubishi UFG Group is a multidimensional group, and its banking arm is one of the five largest banking organizations globally. The Group had acquired the Cypriot fintech company Point Nine, through its subsidiary Mitsubishi UFJ Trust and Banking Corporation in 2018.
Amongst the speakers, Andreas Yiasemides, the president of CIFA, pointed out that in the last quarter of 2019, Cyprus recorded the largest growth in the value of assets under management in all of Europe, according to data from the European Financial Management Association (EFMA).
Despite the pandemic there is an optimism that the investment funds sector in Cyprus will continue to grow.
In addition to the aforementioned, the latest reports suggest that Brexit might positively affect Cyprus’s funds industry as many funds seeking a base in the EU. (PLEASE SEE OUR PREVIOUS PUBLICATION ON THE MATTER). For example; Pepperstone, a foreign exchange (forex) broker headquartered in Australia is in the process of securing a licence from CySEC as part of their Brexit plan.
Cyprus is in line with all the latest EU regulations relating to the fund industry and the costs in Cyprus are much lower than other competing jurisdictions. Cyprus Investment Funds can use their license granted by CySEC to offer cross-border investment services or establish a branch in another EEA jurisdiction without the need to obtain any additional licenses.
We can assist you with the setting up of funds or any other regulated entities including specific legal advice on any related matter, and in general with any other regulated licensing inquiry you may have.
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