Legal Considerations for Funds

Entity Selection:

• Determining the appropriate business structure, such as a limited liability company (LLC), limited partnership, trust, or corporation, based on legal, tax, and operational considerations specific to Cyprus.

Fund Documents:

• Drafting essential offering documents, including the private placement memorandum (PPM), partnership agreements, articles of incorporation, and bylaws, tailored to meet Cypriot legal and regulatory requirements.

Regulatory Compliance:

• Securities Laws:
  • Ensuring adherence to Cypriot securities laws and regulations, including compliance with the Cyprus Securities and Exchange Commission (CySEC) requirements and relevant EU directives like UCITS and AIFMD for mutual funds.
• Anti-Money Laundering (AML) and Know Your Customer (KYC):
  • Implementing robust AML and KYC policies and procedures in compliance with Cypriot legislation and EU regulations to prevent financial crimes and ensure thorough customer due diligence.

Contractual Obligations:

• Service Provider Contracts:
  • Negotiating and formalizing agreements with key service providers, such as custodians, administrators, and distributors, ensuring they meet the operational and regulatory standards in Cyprus.
• Investor Agreements:
  • Drafting comprehensive agreements with investors that outline their rights, obligations, and any restrictions, ensuring clarity and legal protection for both parties.

Operational and Governance:

• Board Oversight:
  • Establishing a robust governance structure with clear responsibilities for board members to ensure effective oversight and compliance with Cypriot corporate governance standards.
• Operational Risk Management:
  • Developing and implementing policies and controls to identify, assess, and manage operational risks, ensuring the fund operates smoothly and mitigates potential disruptions.