The OPEN-ENDED FUNDS or OPEN-ENDED UNDERTAKINGS FOR COLLECTIVE INVESTMENT IN TRANSFERABLE SECURITY (“UCITS”), are regulated by the Law 200(1)/2004.
The Closed-Ended Funds or International Collective Schemes (“ICIS”) are regulated by the Law 47(1)/1999.
OPEN-ENDED FUNDS (“UCITS”)
The capital of the Open-ended Fund, is divided into equal value of units, or shares, whose net value, changes in accordance with the alterations of the net asset value of the Fund.
By the admission of new investors in the Open-ended Fund, the number of units is increased, as well as its capital, and by the redemption of units, the number of units is decreased and always the value of the units, depends on the value of the capital of the Fund.
The above Funds are subject to the regulation and supervision of the Cyprus Securities and Exchange Commission (CySEC).
CLOSED-ENDED FUNDS (“ICIS”)
The Close-ended Funds issue a specific number of units, because their capital is fixed and the units of the Fund, are traded in the market, or through the Manager of the Fund, thus creating a subsidiary market, which is subject to offers and demands for purchase.
The above Funds are subject to the regulation and supervision of the Central Bank of Cyprus.
The participation in a Fund is not costless. At the entry or exit of an investor in the Fund, he will be charged with a commission, or fee of entry or exist. In addition the Fund is subject to the payment of management fees to the Manager, administration fees to the admistrator, custodian fees to the Custodian etc.
For further information on this topic please contact
Mr. Soteris Pittas( spittas@pittaslegal.com ) at SOTERIS PITTAS & CO LLC,
by telephone (+357 25 028460) or by fax (+357 25 028461)
The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstances.
