Sep 30 / Nikolas Xenofontos

Understand the Cyprus Investment Funds in 2026: AIF & RAIF

about the author

Nikolas Xenofontos

Managing Director, SALVUS Funds  

Nikolas is the Managing Director at SALVUS Funds, a boutique advisory in Europe.

In a nutshell, Nikolas has over 10 years of experience in the investment services industry and has held C-suite and executive positions at one of the largest online CFD brokerages.

Over the past decade, Nikolas has established himself as a leading expert on investment firms, investment funds, Payment and Electronic Money Institutions (EMI), Crypto-Asset Services Providers (CASP), and on Mergers & Acquisitions (M&A).

Since joining SALVUS Funds in 2018, he has been passionate about optimizing processes and aligning regulatory compliance to business goals. Combining his passion and expertise, Nikolas delivers CPD courses based on CySEC regulatory frameworks aimed at investment services professionals.
Cyprus continues to maintain a well-established investment funds framework, offering structures that support fund managers, investors, service providers and regulated professionals operating within the alternative investment funds sector. 

In 2026, understanding the framework applicable to Alternative Investment Funds (AIFs) and Registered Alternative Investment Funds (RAIFs) remains important for professionals working in or alongside the Cyprus funds industry. These fund structures are not only important from a legal and regulatory perspective, but also from a practical business, governance, and operational standpoint.

With this blog post, Nikolas Xenofontos, Managing Director of SALVUS funds, introduces learners to the key concepts covered in the online course “Understand the Cyprus Investment Funds in 2026: AIF & RAIF.” 

The course is designed to provide learners with a practical understanding of the Cyprus investment funds framework, the role of AIFs and RAIFs, and the key regulatory, governance and operational considerations that professionals should understand when working with Cyprus fund structures. 

Towards the end of this blog post, we conclude with an overview of the knowledge and skills gained upon successful completion of the course. 

The Cyprus Investment Funds Framework

A Collective Investment Undertaking (CIU) pools capital from investors and invests it in accordance with a defined investment policy. 

Within the Cyprus framework, collective investment structures include UCITS and Alternative Investment Funds. The Alternative Investment Funds Law of 2018 forms the principal national legislative framework governing AIFs, including AIFLNPs and RAIFs. 

Professionals working with Cyprus investment funds should understand: 

  • the applicable regulatory framework and the role of CySEC 
  • investor categories and available legal forms 
  • internal and external management arrangements 
  • fund management and administration 
  • marketing, disclosure and ongoing regulatory requirements 

AIFs and RAIFs 

Cyprus provides different fund structures depending on the intended investor base, management model and operational objectives: 

  • AIF (Alternative Investment Fund) is a collectiveinvestment undertaking falling within the Cyprus alternative investment funds framework. 

  • RAIF (Registered Alternative Investment Funds) operates under the registered fund regime and is entered in the relevant CySEC register rather than following the same authorisation process as an authorised AIF.  


The differences between these structures may affect:

  • authorisation or registration
  • legal form
  • internal or external management 
  • eligible investors 
  • number of investors
  • depositary requirements
  • governance and operational arrangements 


The Investment Fund Ecosystem 

Investment funds operate through a network of professionals and service providers with different responsibilities.

The course examines the roles of key participants, including the:

  • Board of Directors 
  • AML Compliance Officer 
  • Investment Manager 
  • Fund Administrator 
  • Management Company or AIFM 
  • Distributors 
  • External Auditor 
  • Legal Adviser 
  • Depositary or Custodian 


Understanding how these parties interact, together with the characteristics of the different fund structures, provides learners with a practical overview of how Cyprus investment funds are established, managed and operated. 

What is the “Understand the Cyprus Investment Funds in 2026: AIF & RAIF” course and what does it include? 

The course is delivered by Nikolas Xenofontos, Managing Director at SALVUS Funds, designed to provide professionals with a clear and practical understanding of the Cyprus investment funds framework. 

The course introduces the main concepts, regulatory structures and practical considerations relating to Alternative Investment Funds and Registered Alternative Investment Funds in Cyprus. 

Professionals undertaking this course will gain knowledge of the main characteristics of AIFs and RAIFs, the role of CySEC, the importance of fund managers and service providers, and the key governance and operational considerations that apply to Cyprus investment funds. 

The syllabus of the course includes:

  • The Collective Investment Undertaking (CIU) concept. 

- What is a collective investment? 
- What is a collective investment Undertaking (CIU) 
-Marketing
- A bit of CIU history 
- CIU regulated by CySEC 
- ESG and Sustainability-Related Fund Names – New CySEC Guidance (Circular C678) 
- Abbreviations to be used during the course 

  •  The Regulatory Framework in Cyprus, under CySEC 

- The Regulatory framework 
- What about fund administration? 

  • The AIF characteristics and requirements 

- Cyprus Investment Funds 
- The AIF

  • The AIFLNP and RAIF characteristics and requirements 

- The AIFLNP 
- The RAIF
- AIF vs AIFLNP vs RAIF 

  • An investment fund ecosystem 

- What makes up the investment fund ecosystem

 
  • Key takeaways of CySEC Circular C548 

- What are the due diligence requirements in the selection of investments? 
- How can the assumption of liquidity be used at pre-investment stage?
- The responsibility of monitoring liquidity risk on an ongoing basis
- All about data 
- Establishment of adequate governanece arrangements and control mechanisms 
- What information is required to be provided to investors?

 
  • Key takeaways of CySEC Circular C776 

- CySEC Circular C776 
- ESMA Guidelines 
- Obligations of CyIFMs 
- Selection of Liquidity Management Tools 
- Guidelines on Quantitative-based LMTs 
- Guidelines on Anti-Dilution Tools 
- Guidelines on Side pockets

 The course is delivered through online video recordings and downloadable PDF study material, allowing professionals to learn whenever and wherever it suits them best. Participants can progress at their own pace, revisit topics as needed and reinforce their knowledge through accessible and structured learning resources. 

 Upon successful completion, participants receive a certificate awarding 5 CPD hours, recognised by CySEC, the Central Bank of Cyprus, and other professional supervisory bodies. The course contributes towards the annual CPD requirements of CySEC Advanced and Basic Certification holders, as well as professionals registered with ICPAC and the Cyprus Bar Association.      
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