In May 1999, Cyprus enacted the International Collective
Investment Schemes Law 47 (1)/99 which provides the
necessary legal framework and appropriate incentives
to encourage the establishment of international funds.
An International Fund, like the P&C Global Gold
and Natural Resources Fund, is designed for the collective
investment of funds of unitholders. The Fund can invest
anywhere in the world limited by its own investment
policy - except in Cyprus. Such a Fund is an open-ended,
limited liability structure and in the case of the P&C
Global Gold and Natural Resources Fund only accessible
to experienced investors. The Regulatory Authority is
the Central Bank of Cyprus. In 1999, Cyprus began aggressively
to develop its status as a fund center. The Central
Bank has the target to promote Cyprus funds and is working
closely with promoters and advisors on the establishing
of International Funds.
Cyprus Fund Law follows the rules and regulations of
the relevant European Directives regarding investment
funds. A Cyprus Fund could therefore have similar qualities
to a UCITS with the possibility of registration for
public offering and distribution within the European
Union. The declared aim of the Cyprus Central Bank is
to create a Fund Center with a development similar to
that of Dublin ten years earlier. Cyprus fund practices
essentially correspond to fund practices found in Dublin.
Cyprus legislation is continually evolving and tends
to follow European law in many areas. This reflects
Cyprus' aim of joining the European Union in the near
future; Cyprus is a candidate for accession.
advantages of Cyprus as fund jurisdiction have been
clearly identified by P&C: Cyprus is no longer an
off-shore center and is recognised in the international
community as a reputable business place. Cyprus has
a long tradition of trading and shipping and has developed
in the last fifteen years a powerful financial services
industry. Cyprus is strongly connected to the major
European countries, in particular to the UK.
advantage of Cyprus for fund jurisdiction is the cost
factor. In particular, taxes and duties as well as professional
service fees are highly competitive. Further, in comparison
to other European jurisdictions, the Cyprus Fund Law
does not expect the Custodian Bank to be resident on
Cyprus, and offers therefore the choice to the Fund
for the best and most suitable banking partner.
legal security of the Fund is assured by the relevant
Cyprus authorities, in particular by the Cyprus Central
Bank. Nevertheless, it is also important to cooperate
with reputable partners in Cyprus which guarantee a
high standard of professionalism: P&C has chosen
KPMG Cyprus for the establishment of its funds and as
auditors to its funds.