The Cyprus Stock Exchange ("CSE") operates within the defined European framework and is under full supervision by the Cypriot authorities. In addition to the Regulated Market, the CSE also operates the non-regulated Emerging Companies Market, on the basis of the Markets in Financial Instruments Directive.
A listing on a recognized exchange, such as the CSE, increases the ability to raise capital and helps improve the public profile of a business to the international investment community. Listing provides the prestige factor raising the fund's marketability to investors. Fund managers who require a daily, publicly quoted, market price by an Exchange can be provided with this by the CSE, along with NAVs. The Exchange also allows non-listed funds to quote their prices through the CSE's website.
The Cyprus Stock Exchange may accept an issuer, without any prior activity, by submitting a business plan that should provide sufficient information for the correct assessment of the securities. At the CSE, ongoing efforts have been made to support the field of the Collective investment Schemes through the implementation of provisions to both the regulatory and legal framework when listing both AIFs and UCITS funds.
The listing on the CSE can be made through two sub-markets of the Regulated Market, being the "Tradable Collective Investment Schemes Market" and the "Non-Tradable Collective Investment Schemes Market". Collective Investment Schemes in Transferable Securities ("UCITS") as well as Alternative Investment Funds ("AIFs") can be listed on the above sub-markets upon an approval by the CSE Council.
For listing on either of the abovementioned sub-markets, entities are required to provide their license of registration and operation from the Competent Authority of the country of origin. Entities must also be able to provide evidence that the collective investment scheme's assets are at least EUR 200,000.
The Tradable Collective Investment Scheme Market also requires that at least one market maker is appointed on an ongoing basis and that the fund's units are offered to the public in Cyprus. The Registry of unit holders is also required to be submitted to the Central Depository and Registry of the CSE.
The listing requirements for the Non-Tradable Collective Investment Scheme Market include the submission and publication of financial statements, NAV reporting, material change notifications as well as disclosures. Of equal importance are the continuous obligations to submit to the Exchange information that is made available to the fund's investors.
For additional information, please contact Mrs. Anna Philiotis, Director of Advisory Services, via email at anna.philiotis@eurofast.eu
Eurofast is a regional business advisory organisation employing local advisers in over 23 cities in South East Europe & Middle East (SEEME). The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services in South East Europe & Middle East.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
