The Cyprus fund industry has reached records of €11bn+ AuM, and pace of growth is expected to continue through 2022 and onwards. Whilst discussion around protective legislation and compliance is a key component to creating a successful ecosystem, there was little attention on the need for well-educated skilled investment professionals with the required level of ethical and professional standards to meet that growth.  

Despite the challenges, 2021 has been another successful year for the Investment Funds sector in Cyprus. The data published by the Cyprus Securities and Exchange Commission (CySEC) prove the significant but steady increase in the size of the sector.

Cyprus and Israel have long-standing political, economic, and social relations. Over the past decade, commercial and tourism ties have also become more substantial, with many Israeli companies investing in Cyprus. At the same time, many Israelis choose Cyprus for residency, acquiring houses or apartments, taking advantage of the safety the country offers and the proximity to their motherland.

LEON MFO Investments Limited (“LEON”), a leading regional Fund Manager, has received the prestigious Euromoney Awards of Excellence for its Private Banking and Wealth Management Services.

With the aim of ensuring a stronger investor protection framework and the smooth operation of the market, the Cyprus Securities and Exchange Commission (CySEC) is enhancing its supervisory capabilities through the use of new technologies and other tools. This was the focal point of CySEC Chairman Dr. George Theocharides’ speech delivered during a press conference on Tuesday, 1 February 2022, focusing on CySEC’s goals for 2022 and the sector’s trends and developments in 2021.

Real Estate Funds represent over 10% of all Funds registered in Cyprus, as per the latest statistics provided by Cyprus Securities and Exchange Comission. Indirect investment in real estate (hereafter referred to as ‘RE’) through Funds is popular, as it allows investors to access large projects and provides investors with a level of professional management to which they may not have access, should they attempt to replicate the strategy themselves.

As the Investment Funds Industry in Cyprus continues to prolifically expand and record growth, the responsibility for high standards of ethical professionalism becomes more pertinent than ever before. Investment professionals across all levels within the Funds Industry must demonstrate high ethical behaviour as to mitigate risks of not acting in the best interest of their clients.

SPACs, Special Purpose Acquisition Companies, are shell companies that raise public funds through an IPO with the target to take a private company public through a merger. SPACs are formed by SPAC founders, who are providing the required pre-IPO sponsor funds to cover costs and expenses, typically in the range of USD 8 to 20 million, depending on the size of IPO. After the IPO, SPAC founders are holding 20% of a SPAC’s publicly listed shares.

When setting up a fund, Fund Managers know it takes time to come up with the initial concept, the investment strategy, the target market, the structure of the fund, the domicile and so on. Once these ideas are down on paper, the long registration process begins to obtain regulatory authorization and approval.

Stocks have become more accessible than ever for even the smallest of investors. Low-cost brokerages allow even retail investors the opportunity to invest in a diversified portfolio of global equities, while fintech apps allow even fractional purchases.