CIFA calls for urgency in passing collective fund management bill
The Cyprus Investment Funds Association (CIFA) has called for the swift passage of the bill governing the establishment and operation of management companies for collective investment organisations.
This piece of legislation, officially titled the ‘Law on the Establishment and Operation of Management Companies of Collective Investment Organisations and Related Matters of 2024’, was revisited by the House Finance Committee on Monday.
Following the committee’s meeting, it was announced that this piece of legislation would be next discussed in September after the end of the parliament’s summer recess.
It should be noted that the draft law aims to enhance sector services and improve capital management, despite some stakeholders’ reservations.
Christiana Erotokritou, House Finance Committee chair, emphasised the need for a balanced, competitive framework, advocating for post-recess discussions.
A Finance Ministry spokesperson supported the draft, open to proposals but against amendments. Key provisions include fund retention, executive director requirements, and reduced civil liability.
Meanwhile, Kyriakos Iordanou from Selk criticised the law for increasing operational costs and burdens.
Moreover, the Cyprus Investment Funds Association (CIFA) and the Cyprus Fiduciary Association (CYFA) supported the draft, noting shared concerns.
In its official statement, CIFA expressed satisfaction with the progress of discussions in the House of Representatives, emphasising the bill’s importance for the investment funds sector.
CIFA noted that numerous service providers are awaiting the legislation to further strengthen their presence in Cyprus and enhance the services offered to investment funds and managers.
“With this legislation, the regulatory framework for the sector will be completed, which will bolster Cyprus’ position on the international stage of collective investments,” CIFA stated.
The association reiterated the necessity of the bill, urging the House Finance Committee members to prioritise its evaluation to expedite its passage through the full House.
What is more, CIFA highlighted the need for urgency, stressing that the rapid approval of this legislation is crucial for the development and competitiveness of Cyprus’ investment funds sector.
“We call on the members of the House Finance Committee to continue to assess this bill as a high priority so that it can be brought to the Plenary of the House for a vote as soon as possible,” CIFA stressed.