The Registered Alternative Investment Fund – (“RAIF”)
Following the enactment of the Alternative Investment Fund Law 124(I) 2018, CySEC published on 15th October 2018 directive DI124-01 regarding the registration of RAIFs in, and deletion from, the RAIFs Register as well as the relevant Application Form for registration in the said Register.The RAIF provides an effective solution to time-to-market issues. The absence of direct supervision by CySEC is offset by indirect supervision, notably through the supervision of the External Manager, in order to ensure the protection of investors.
Quicker route for fund launch
The External Manager of the RAIF - as the applicant - shall within one month from either (a) the date of the incorporation/registration of the RAIF with the Registrar of Companies if the RAIF takes the form of an investment company or a Limited Partnership or (b) the date of the drafting of the RAIFs regulations, if it takes the form of a Common Fund, apply for the registration of the RAIF in the Register of RAIFs maintained by CySEC by submitting the following documents and/or information:
1. Application Form 124-00-01;
2. Certificate of incorporation/registration of the RAIF (as and where applicable);
3. Information as to the investment strategies and the external manager's policy as regards the use of leverage, the risk profile and other characteristics of the RAIF;
4. The memorandum and articles of association, partnership agreement or regulation of the RAIF (as appropriate);
5. Information on the arrangements made for the appointment of a Depositary;
6. The Offering Memorandum of the RAIF;
7. In case the External Manager originates from a Member State other than the Republic or a third country, the relevant authorisation for the management of AIFs (not being restrictive to the management of an AIF of the Republic) and (where applicable) prior compliance with the AIFMD notification procedure;
8. Confirmations by the external auditor and legal advisor of the RAIF;
9. Confirmation by the promoter of the application.
Within one month of receipt of a complete application and after CySEC verifies whether the authorization of the external manager also covers the management of the particular RAIF and its investment strategy and policy, CySEC shall insert the name of the RAIF in the RAIF Registry.
How KPMG can help?
Our specialised asset management practice consists of a multi-disciplinary team of lawyers, structuring professionals, accountants and tax specialists with strong and well-established expertise in all areas of investment funds.
We can provide assistance:
on the preparation of the application pack;
on the regulatory requirements for RAIFs;
on indicative due diligence processes and perform “mock” regulator supervision review to ensure that the External Manager is compliant and has in place all the relevant procedures and documents;
with all aspects of the establishment of the RAIF (including constitutional and offering documents).
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