The Cyprus Securities and Exchange Commission has published a consultation paper proposing amendments to the Alternative Investment Funds Law of 2018 aimed at facilitating the use of limited partnership fund structures without separate legal personality. The package would change how responsibilities are allocated between an AIF’s external manager and its general partner. The consultation (CP-02-2025) covers Alternative Investment Funds, including AIFs of Limited Number of Persons and Registered AIFs, established as limited partnerships without separate legal personality. CySEC proposes removing the requirement for the external manager to also act as the general partner, so that the general partner appoints the external manager and the manager does not assume the general partner role or its associated liabilities; the stated objectives are stronger alignment with the third-party management principle, clearer delineation of roles, and reduced burden without compromising investor protection. Stakeholders are invited to submit comments to CySEC’s Policy Department.
Cyprus Securities and Exchange Commission 2025-06-12
Cyprus Securities and Exchange Commission launches consultation on AIF law changes to separate external manager and general partner roles in limited partnerships
The Cyprus Securities and Exchange Commission issued a consultation paper proposing amendments to the Alternative Investment Funds Law of 2018 to facilitate limited partnership fund structures without separate legal personality. Key changes include allowing the general partner to appoint an external manager, who will not assume the general partner role or liabilities, aiming for clearer role delineation and reduced burdens while maintaining investor protection.