WEDNESDAY, 30 NOV 2022

 

CONNECT

Facebook Linked In Twitter
IMH LTD

Kokkinos: Cyprus Ranks 10th In The EU As An Innovative Economy

European Commission Agreement To Mobilise €500 Mln For Social Investments

IMH LTD

PROFESSIONAL SERVICES

brought to you by PWC

Angelos Gregoriades: Cyprus Funds Industry One of Fastest Growing Sectors

Angelos Gregoriades: Cyprus Funds Industry One of Fastest Growing Sectors

The Cyprus Investment Funds Association (CIFA) only just celebrated its inauguration on July 8, 2014. And, yet, says President of CIFA (and Chairman and Head of Tax and Corporate Services KPMG), Angelos Gregoriades, there is a lot of work to be done.

 

“In promoting the industry, we need to follow the market growth patterns and see what Cyprus can do to take advantage of it,” Gregoriades notes.

 

Recent industry studies, he explains, suggest that global assets under management will increase by more than 40% by 2020, with growth being driven by the increase in global wealth and the rise of investment bases in emerging markets.

 

Assets under management in emerging markets such as South America, Asia, Africa, and the Middle East economies are set to grow faster than the developed world, creating new pools of assets that can potentially be tapped by the industry.

 

Cyprus can play a unique role considering its proximity to these markets,” Gregoriades explains.

 

Rising asset under management, however, are coupled with rising costs of compliance.

 

Gregoriades notes: “Cyprus provides a competitive solution to this, with a regulatory framework that has responded to the global changes coupled with the offering of a cost and tax efficient operating model for asset managers.”

 

Another important development, he notes, is that asset management is moving onto the centre stage of the financial services industry.

 

However - and especially in Cyprus, Gregoriades stresses - the asset management industry needs to further develop trust within the broader community by demonstrating they can serve the requirements of their clients as well as the broader economy by acting at all times in the best interest of clients.

 

Turning to Cyprus, Gregoriades underscores the fact that the Cyprus funds industry has been one of the fastest growing sectors in the local financial services industry, with assets under management having more than doubled in the last three years.

 

“The goal,” Gregoriades states, “is to double this figure - at least - over the next three years, which is achievable when looking at the historical activity coupled with the major developments in the legal and regulatory framework, especially the enactment of the Alternative Investment Funds Law in July 2014.”

 

Rendering its legal framework complete, Cyprus now has an EU harmonised regime governing UCITS funds and management companies; and EU harmonised regime governing AIFMs; and an updated regime governing AIFs competitive to that of other major jurisdictions.

 

Looking at the major features of Cyprus’ investment funds (AIFs and UCITS), Gregoriades explains that both legislations provide for corporate governance and investor protection and information.

 

In this quest to develop and promote this industry, Gregoriades explains that CIFA’s mission very much balances on acting as a single unified representative body of the industry, on providing knowledge building, on encouraging maintenance of industry standards and professionalism, and on being engaged in the development of related regulatory aspects.

 

CIFA’s achievements during 2014 are multifarious, Gregoriades notes, spanning holding its members’ first meeting in January 2014, becoming an observer of EFAMA in June 2014, hosting a launch event at the Presidential Palace in July, and accepting 45 legal entities and 95 physical persons as members, as of September 2014.

 

Moreover, it has instigated the issue of a quarterly newsletter, initiated dialogue with local educational facilities and professional associations, established a code of conduct providing a framework for high-level principles, and played an active role in the development and enactment of the alternative investment funds law.

 

“So what further work is needed on an internal level,” Gregoriades asks.

 

“Succinctly, we need to enhance the awareness globally of Cyprus’ attractiveness as a jurisdiction in an effort to attract a number of international players to establish investment funds and/or asset management firms in Cyprus. We also need to create and maintain a strong legal, tax, and regulatory framework, to offer an attractive and competitive product. And, finally, we need to set up an ad-hoc working group between the Ministry of Finance, Tax Administration and CIFA, which will discuss the work of CIFA’s tax committee on a quarterly basis.”

 

None of this, Gregoriades stressed, can be achieved easily without support on a national level, listing political stability, cost competitiveness, tax efficiency, and a strong banking system as being crucial. Moreover, he suggests that the island needs to improve the early adoption of new laws as well as amendments, its expertise and experience in servicing investment funds, and strengthen its regulatory resources.

 

“In conclusion,” Gregoriades states, “CIFA aims to continue to work closely with the Government, legislators, our members and industry participants to ensure that we support the Cyprus fund industry and the wider economy as a whole in a constructive way.”

MORE ON PROFESSIONAL SERVICES

AstroBank Acquires QQuant Master Servicer Cyprus

Qualco Group and AstroBank announce the acquisition of QQuant Master Servicer Cyprus ...

Funds Distribution: Can It Become Global?

The International Funds Summit & Expo returns for the 8th time on 7-8 November 2022 at ...

Hellenic Bank: Oliver Gatzke Suspended From His Duties

The Board of Directors of the Bank has decided, in order to ensure the smooth conduct of ...

FROM AROUND GOLDNEWS

   

Grand Opening Of Simplex LCA1, Cyprus’ Largest Data Center

Data centers are the foundations of the digital economy and as evidently demonstrated during the COVID-19 pandemic, critical infrastructure for the global ...
   

Defence Minister Discusses Bilateral Relations, E. Med And Turkish Provocations During Official Serbia Visit

Cyprus’ Defence Minister, Charalambos Petrides was on an official visit to Serbia on Tuesday during which he discussed with his Serbian counterpart, ...
   

AWS Helps Ukraine Safeguard Its Future

On Tuesday, November 29, at the AWS re:Invest 2022 in Las Vegas, the Ukraine Deputy Prime Minister and Minister for Digital Transformation Mykahilo Federov and ...
   

AWS re:Invent 2022 Opens Its Doors

On Monday, November 29, the AWS re:Invent 2022 opened its doors to the global cloud community to celebrate its successes over the year, showcase the power of ...
   

Cyprus Is Dealing With The Economic Crisis With Specific Investment Policies And Programmes, Finance Minister Says

Cyprus is dealing with the economic crisis with specific investment policies and programmes, bringing growth to 6%, and increasing the fiscal reserve to ...
   

Alphamega Hypermarkets Holds Big Christmas Tree Lightning Celebration

Alphamega Hypermarkets has officially started counting down to the most wonderful time of the year. Five Alphamega stores held simultaneous Christmas tree ...
   

3rd Annual Corporate Blood Donation Limassol Success

On the 2nd and 3rd of November 2022 with the initiative of the company Royal Pine, the 3rd Annual Corporate Blood Donation Limassol took place.
   

Kokkinos: Cyprus Ranks 10th In The EU As An Innovative Economy

Cyprus, as an innovative economy, based on European indicators, currently ranks 10th, compared with 22nd until five years ago, when it did not have the ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

gold november magazine
imarcomms november

IMH LTD