1. COLLECTIVE INVESTMENT SCHEMES AT THE CYPRUS STOCK EXCHANGE September 2014 www.cse.com.cy

2. Contents: 1.Collective Investment Schemes 2.Categories of UCITS 3.Categories of AIF 4.Markets for Listing Collective Investment Schemes on the CSE 5.Special Listing Requirements for the Tradable Collective Investment Schemes Market 6.Special Listing Requirements for the Non-Tradable Collective Investment Schemes Market 7.Ways of listing / Annexes related to information to be submitted with the listing application 8.On-going obligations for listed Funds 9.Listing / Annual Fees - Fees for CSE Registry 10.Benefits / Advantages for Licensing and Listing of Funds in Cyprus and on the CSE 11.Advantages provided by the listing on the CSE 2 www.cse.com.cy

3. Collective Investment Schemes: UCITS: Open-ended Undertakings for Collective Investment in Transferable Securities (establishment under the Open-Ended Undertakings for Collective Investment (UCI) Law of 2012- N.78(I)/2012) AIF: Alternative Investment Funds (establishment under the Alternative Investment Funds Law of 2014 – N.131(I)/2014) Note: Cyprus Securities and Exchange Commission is the Competent Authority for granting their operation license 3 www.cse.com.cy

4. Categories of Undertakings Collective Investments in Transferable Securities (UCITS):  Common Fund (constituted under the Law of contract)  Variable Capital Investment Company Listing on the Cyprus Stock Exchange:  Listing with trading on a stock exchange market (regulated market):  Shares of Variable Capital Investment Company (VCIC)  Units of Mutual Funds (constituted under the law of contract) which operate as Exchange Traded Funds (ETFs)  Listing without trading, on a stock exchange market of Units of Common Funds which are not ETFs 4 www.cse.com.cy

5. Categories of Alternative Investments Funds (AIF):  Common Fund  Variable or Fixed Capital Investment Company  Investment Limited Partnership Listing on the Cyprus Stock Exchange:  Listing with trading on a regulated market:  Shares of Variable Capital Investment Company addressed to the general public  Units of Tradable AIF (ETFs on AIF)  Listing without trading on a stock exchange market units of AIF (except AIF’s with limited number of persons ≤ 75 persons) 5 www.cse.com.cy

6. CSE Markets for Listing Collective Investment Schemes:  Tradable Collective Investment Schemes Market  Non-Tradable Collective Investment Schemes Market Note: The CSE offers additionally the option for the quoting of Funds’ prices on the CSE website without listing www.cse.com.cy 6

7. Special Listing Requirements for the Tradable Collective Investment Schemes Market: (a)License from the Competent Authorities of the Country of Origin. (b)The ETF assets must total at least €200.000. By virtue of its decision, the CSE Council in case of ETF index replication may require a larger minimum amount of assets depending on the composition of the index. (c)Appointment of at least one Market Maker (d)The ETF is entitled to sell its units to the public in Cyprus. (e)Submission of the Registry of Unit holders or Shareholders at the Central Depository Register of the CSE. (f)The index provider must have granted the ETF issuer, a license to use legally the underlying index in the name of the ETF. 7 www.cse.com.cy

8. Special Listing Requirements for Non - Tradable Collective Investment Schemes Market: (a)License from the Competent Authorities of the Country of Origin. (b)The common fund’s assets or the variable capital investment company’s assets must total at least €200.000. By virtue of its decision, the CSE Council in case of Collective Investment Schemes index replication may require larger minimum amount of assets depending on the composition of the index. (c)In case of Collective Investment Scheme, the index provider must have granted the ETF issuer a license to use legally the underlying index in the name of the ETF. 8 www.cse.com.cy

9. Ways of listing:  IPO (Initial Public Offering) and capital raising (Listing securities which have already been issued or shall be issued, a part of which shall be offered through public offering before the commencement of trading).  Private placement (Placing securities which shall be issued and allocated prior to the Stock Exchange’s public announcement for listing). Annexes to be submitted for the listing application:  Annex 25: Application of Collective Investment Scheme for initial approval  Annex 26: Application of Collective Investment Scheme for final approval / listing 9 www.cse.com.cy

10. On-going Obligations for listed Funds (CSE Law): (i) Daily reporting of NAV (ii) Announcements of any decisions with regards to suspension of fund units’ subscriptions, redemptions or mergers (iii) Submission and publication of the financial statements (annual and semi-annual reports, quarterly statements) (iv) Submission and publication of any information with regards to material changes of each fund, i.e. in the content of the Prospectus and the Articles of Association, etc. 10 www.cse.com.cy

11. 11 Listing application fee  Listing on the Tradable Collective Investment Schemes Market  Listing on the Collective Investment Schemes Market (Non-Tradable) €1.000 €500 Annual subscription  Single fund€1.000 per fund  Umbrella/ multi-class fund(s)€1.000 per fund plus €400 per class/sub-fund Annual Fee for the publication of prices through the CSE Price Index and electronically through the CSE Website  Publication of prices of the fund’s units €250 per fund  Publication of prices of sub fund’s units (up to 20 sub funds) €170 per sub fund  Publication of prices of sub funds (above 20 sub funds) €130 per sub fund Listing / Annual Fees: www.cse.com.cy

12. 12 www.cse.com.cy Enrollment of Fund on the Central Registry and Depository of CSE:  Fee for the undertaking of Fund for listing on the Exchange Traded Fund Market (at the initial listing stage).  Fee for the undertaking of Fund for listing on the Mutual Fund Market (non-tradable) (at the initial listing stage). 0,01% For the calculation of the above charge, the total value of newly listed mutual funds on the CSE is derived as the result of the nominal value of a Fund. Minimum charge €1.000 Maximum charge €10.000 €500 Annual fee for keeping of Fund register in the CSD  Annual fee regarding the Exchange Traded Funds Market. €800 yearly  Annual fee regarding the Mutual Funds Market (Non-tradable). €500 yearly Member Fees (for Tradable Market)  Variable Charge 0,0125% on the value of transactions  Pre-agreed trades Charge  Central Depository fee for transactions 0,01% on the value of transaction 0,02% of the value of transaction Fees for CSE Registry:

13. 13 www.cse.com.cy Member-State of the European Union (EU) / Favorable geo-strategic and financial position  Cyprus enjoys the benefits of the EU and Eurozone (harmonised regulatory framework, Euro currency, free transfer of funds and offer of securities, European passport for issuing securities etc) Favorable tax regime:  Corporate tax of 12,5%  No capital gains tax (on securities’ transactions)  No fee is imposed on securities’ transactions, since 02/01/2014  Regarding dividends paid to non-tax residents of Cyprus (no withholding tax)  Wide list of double tax treaties (over 40 countries)  Attractive incentives recently introduced for granting Cypriot nationality, therefore EU citizenship, covering investments in listed securities (investment in funds held for 3 years fixed duration)  Disposal or sale of unit holdings in a fund, is exempt from taxation Benefits / advantages for licensing and listing of funds in Cyprus and on the CSE

14. 14 www.cse.com.cy Benefits / advantages for licensing and listing of funds in Cyprus and on the CSE High level of professionals: Lawyers, Accountants, Custodians, Tax and Investment Advisors, Portfolio Managers, etc (consist an adequate network ensuring compliance with all legal / regulatory terms and requirements). Local presence of many international investments firms and banking institutions. Effective supervision by Regulator. Enhanced marketing potential from EU Passporting.

15. 15 www.cse.com.cy Listed on a recognised and Regulated Stock Exchange.  Securities listed on the Regulated Market of CSE have been recognised for tax purposes by the HMRC UK Tax Authority, since 2009.  CSE was also recognised-accepted by the Federal Financial Markets Services (FFMS) of Russia, since 2010.  Full recognition and high-rating by Thomas Murray Organisation, regarding the Central Securities Depository (CSD) of CSE / CSD successfully assessed against the ESCB – CESR Recommendations.  Full and active member of FESE, ECSDA, WFE, ANNA (Associations of Securities Exchanges, Depositories, etc). Potential increase of Fund’s investor base. Simple, quick listing procedures, minimum bureaucracy, flexibility and effectiveness / Low cost procedures. CSE has experienced and specialist personnel to assist the industry. Advantages provided by the listing on the CSE

16. 16 www.cse.com.cy Advantages provided by the listing on the CSE Funds can be better marketed to investors and be eligible investment proposition for particular investors e.g. pension schemes etc, therefore overcome specific restrictions from investing in unlisted securities or securities not listed on a recognised exchange. Visibility and transparency is provided to investors. This provides a better public profile and prestige. Prices are posted on CSE’s site and are reported through the Exchange, by major data vendors etc. Competitive pricing policy. Price mechanism is provided (either through NAV postings, or market prices if traded). Use of advanced infrastructure and technology of CSE. All of the above are useful tools for marketing funds to investors internationally. Also, Regulation provides a better funds profile and credibility to investors.