The Administrator is the party appointed by the Manager or the Fund as the case may be to perform any or all of the activities of the administration Function of the fund. Such activities may include any of the following:
- fund management accounting services;
- customer inquiries;
- valuation and pricing, including tax returns;
- regulatory compliance monitoring;
- maintenance of unit-/shareholder register;
- distribution of income;
- unit/shares issues and redemptions;
- contract settlements, including certificate dispatch;
- record keeping;
One of the most important functions of the Administrator is the periodic calculation of the Net Asset Value of the Fund which is usually called "NAV Calculation". The Administrator may also serve as the Transfer Agent, Registrar or Compliance of the Fund.
If the Manager appoints the Administrator then the Administration is considered a delegated function therefore the underlying responsibility for the performance of the duties of the Administrator, lies in the Manager. The appointment of an Administrator in Cyprus is subject to prior notification to CySEC.
Administrator in Cyprus do not require special licence, however there is currently an open procedure by the authorities to regulate the profession.
An administration agreement is the agreement between the Fund, any of its Investment Compartments or the Fund Manager and the appointed Administrator. The administration agreement usually outlines the appointment and duties of the Administrator regarding the fund. It is customary in Cyprus such an agreement to be signed between the Fund, the Manager and the Administrator.
Is the fee payable to the Administrator by the Fund, its Investment Compartments or the Manager and will be usually determined in the Administration Agreement. It is customary the fee to be proportionate to the number of duties delegated, the frequency of NAV Calculation, the Number of Investors of the Fund and it is usually expressed as a percentage of the NAV with a minimum fee. The minimum administration fee is usually paid monthly with the balance paid upon the following NAV Calculation.