CySEC Directives: Evolution and Application in AIF Regulation
The CySEC Categorisation Directive 131-2014-03 was issued by virtue of article 15 of the AIF Law of 2014, which was not applicable to AIFLNPs at the time.
Therefore, the intention of the legislator, when adopting the Categorisation Directive 131-2014-03, was to make this directive applicable only to the AIFs of Part II of the Law of 2014.
Later the newly enacted article 15 of the AIF Law of 2018 applies to all AIFs (AIFs of Part II, AIFLNPs and RAIFs).
In our view, CySEC Directive 131-2014-03 cannot be applied to AIFLNPs and/or RAIFs, without the necessary amendments.
Moreover, CySEC Board has taken a policy decision which prohibits RAIFs from being setup as MMFs and Loan Originating Funds as later provided in paragraph 3 of CySEC Directive 124-01 (the RAIF Directive).
The CySEC Categorisation Directive 131-2014-03 applies to AIFs and does not apply to RAIFs or AIFLNPs.
