Cyprus Strengthens Fund Administrator Governance with New Law
On 18 June 2025, Cyprus officially published the Investment Funds Administrators Law (L.101(I)/2025), passed by Parliament on 29 May 2025. The law introduces a dedicated regulatory regime for fund administrators, bringing them directly under CySEC supervision for the first time.
Key elements include mandatory licensing, capital reserves (€50,000–125,000), professional indemnity insurance, and a local registered office. Crucially for risk governance, the law requires enhanced board oversight, stricter internal controls, and robust risk management systems, aligned with EU and global best practices.
This development marks a notable shift in Cyprus’s compliance landscape. Embedding formal governance and control structures as required by the law ensures fund administrators can maintain clarity of accountability, scale operations responsibly, and manage operational and reputational risk in line with international standards.
We support firms navigating the new law with practical risk and compliance solutions. Our team helps design control frameworks, define governance roles, and integrate oversight into daily operations – all based on our experience in regulated sectors.
More on our approach to compliance and risk management: https://opiniq.com/expertise/compliance-and-risk-management/
