Cyprus introduced in May 1999, a legislation enabling the establishment and regulation of International Collective Investment Schemes ("Schemes").

Under the above legislation, the Central Bank of Cyprus is the regulatory and supervisory authority for Schemes and may, upon a written application, recognise a company incorporated under the Cyprus Companies Law, a trust created under the International Trust Law or a partnership registered under the Partnership and Business Names Law, as an International Collective Investment Scheme.

Under the above legislation, therefore, a Scheme may take one of the following forms:

1. International Fixed Capital Company
2. International Variable Capital Company
3. International Unit Trust Scheme
4. lnternational Investment Limited Partnership

All four legal types of Schemes, can either be of limited or unlimited duration.

It must be noted that the International Collective Investment Schemes Law of 1999 will soon be amended, so that the Central Bank of Cyprus will be the regulatory authority only for Private Collective Investment Schemes (ie schemes with up to 100 investors). In view of the above, the Central Bank of Cyprus accepts applications and recognises only Private Schemes. Such Schemes must appoint a Custodian which must be a Cyprus bank, unless specifically exempt by the Central Bank of Cyprus. It must also be noted that Private Schemes which do not have a physical presence in Cyprus, must appoint a company to carry out the administration work of the Scheme. The said company must be based in Cyprus and be approved by the Central Bank of Cyprus.