GREECE Law and Practice Contributed by: Ioannis Charalampopoulos, Petros Machas and Alexandros Saratsiotis, Machas & Partners
be fully applicable from 2 August 2026, with certain provisions applying earlier. While it is not certain that typical fund management activities will fall under the “high-risk” AI category, managers should be aware that certain applications (particularly those influencing investment decision-making or risk assessment) could potentially be classified as such, triggering additional compliance requirements under the AI Act. In any case, Greek regulators expect managers to ensure human oversight, robust governance, and adherence to data protection obligations under GDPR when using AI or big data solutions. The ultimate responsibility for compliance and investor protection remains with the licensed manager, irrespective of the technology employed. 3.11 Anticipated Changes for Fund Managers Refer to 2.10 Anticipated Changes for Funds . Moreover, the forthcoming implementation of the EU Artificial Intelligence Act, which will be fully applicable from 2 August 2026 (with certain provisions effective from 2 February 2025), may impact fund managers using AI-driven tools for investment, operational, or compliance purposes. Depending on the nature of the AI applications, certain use cases could fall within the Act’s “high-risk” category, triggering additional gov - ernance, transparency, and monitoring obligations. 4. Investors 4.1 Types of Investors in Alternative Funds Investor appetite for alternative funds in Greece has been increasing, particularly among high-net-worth individuals, family offices, and sophisticated profes - sional investors seeking diversification outside tradi - tional asset classes. Interest is strong in private equity, private debt, and real estate strategies, with grow - ing attention also being given to venture capital and infrastructure, especially when co-investment oppor - tunities are available. These investors are generally motivated by long-term capital growth and portfolio diversification. The most common investor base for Greek alternative funds consists primarily of local and EU-based investors who are familiar with investment structures and willing to accept longer investment
horizons. Cross-border participation is supported by the AIFMD passporting framework, which ena - bles distribution to professional investors in other EU jurisdictions without significant regulatory friction. By contrast, retail investors are directed to UCITS and alternative investment fund managers avoid market - ing of managed funds to retail investors, given the strict suitability requirements and higher disclosure obligations. 4.2 Side Letters Side letters are generally permitted under the principle of freedom of contract and there are no restrictions on their scope, subject to compliance with manda - tory provisions of law and non-contradiction with the constitutional documents of the fund. Formation and management agreements typically include restrictions on deviations from pari passu treatment of investors, which effectively prevent fund managers from entering into separate arrangements that grant special rights to individual investors or function as “most favoured nation” clauses, entailing the extension of such indi - vidual rights to all investors. However, institutional investors of venture capital and private equity funds negotiate side letters mainly to introduce confidential special undertakings that ensure the fund manager’s compliance with internal rules and other applicable mandates, without making such undertakings univer - sal for all investors. 4.3 Marketing of Alternative Funds to Investors In Greece, AIFs may in principle be marketed only to professional investors. Greek AIFMs can manage both EU and non-EU AIFs and are permitted to market EU AIFs in Greece under certain conditions. Market - ing to other EU States requires prior notification of the relevant national authority through the HCMC. EU AIFMs authorised in their home State may man - age AIFs established in Greece and can market EU AIFs following notification to the HCMC. Marketing to retail investors is permitted only under strict condi - tions. These conditions require either a Greek AIFM or an authorised AIFM operating in Greece. Additionally, the AIF must be licensed and supervised. The mini - mum investment commitment is set at EUR100,000 per fund.
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