Cyprus Investment Fraud: CySEC RAIF License Revoked
Cyprus has been a jurisdiction of concern for investment fraud, particularly through the use of Reserved Alternative Investment Fund (RAIF) structures that offer lighter regulatory oversight.
The RAIF Structure
RAIFs in Cyprus operate under a framework where the fund itself requires only notification to CySEC, while the external manager (AIFM) must be licensed. The Corinth Group of Switzerland used this structure: Corinth Capital RAIF V.C.I.C. Ltd was the fund vehicle, managed externally by SCSS Fund Management Ltd under AIFM license AIFM48/56/2013 [CySEC AIFM Register].
License Revocation
CySEC revoked the AIFM license, removing the regulatory authorisation required to manage the RAIF. The Three Tuns Capital RAIF F.C.I.C. PLC was subsequently ordered into liquidation. This is the only known instance of formal regulatory enforcement action against any entity in the Corinth Group network [CySEC].
Implications for Investors
The CySEC revocation means that any claims by the Corinth Group of Switzerland or associated entities to be operating "registered and licensed investment funds" — as stated on cgoch.com — are no longer accurate. Investors who were told their funds would be managed under a regulated Cyprus structure should be aware that this regulatory authorisation has been withdrawn. Affected persons can file complaints with CySEC directly.
Key Facts
- AIFM48/56/2013 license revoked by CySEC
- Only known formal regulatory action in the network
- Claims of "registered and licensed" funds no longer valid
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