ISSUE 72 MARCH-APRIL

6

T H

ANNIVERSARY ISSUE

ISSUE 72 MARCH 19, 2017 PRICE €2.00

INTERVIEWS John Botham *UHJRU\ 'HOODV Michael van Gestel

PHARMA Dr. Andreas Pittas on 40 years of Medochemie

INNOVATION Riley Newman and the spectacular rise of Airbnb

PLUS %XVLQHVV %ULHÀQJ :KDW·V 2Q 7LPH 2II Books & more

JUSTICE

DELAYED

IS JUSTICE 5 2 91 29 5 0 00 57 7

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CHRONIC PROBLEMS IN CYPRUS’S LEGAL SYSTEM ARE DAMAGING THE COUNTRY’S EFFORTS TO BE CONSIDERED A SERIOUS INTERNATIONAL BUSINESS CENTRE

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ISSUE 72 MARCH 19, 2017

T H E

B U S I N E S S

M A G A Z I N E

O F

C Y P R U S

| COVER STORY |

E

very presentation or promotional activity aimed at attracting foreign investment to Cyprus is guaranteed to include what are invariably described two of the country’s key competitive

advantages over other jurisdictions: the attractive tax regime and the legal system, based on English Common Law principles. Most observers would agree that the 12.5% corporate tax rate and other incentives do, indeed, make this an attractive location for setting up a company. Unfortunately, the legal system, far from being “business-friendly and effective” as the Cyprus Investment Promotion Agency (CIPA) describes it, appears to be the weakest link in the infrastructure supporting the island’s longstanding efforts to establish itself as a regional business centre.

Since 2002, the World Bank has

been publishing its annual Doing Business report, in which it looks at business regulations and their enforcement across 190 economies around the world. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages states and governments to compete towards more efficient regulation and offers measurable benchmarks for reform.

In the 2017 edition of the Doing Business report, Cyprus ranks 45th overall out of 190 economies, a position which one might think

THERE IS A ONE-YEAR PROBATION PERIOD FOR NEWLY APPOINTED JUDGES BUT, IN PRACTICE, THERE IS NO SUPERVISION BY SENIOR JUDGES is satisfactory in this competitive world. However, the country would be much higher on the list were it not for the fact that, in one of the categories – the ease of enforcing commercial contracts – Cyprus is ranked 139th. This lowly position has been determined by following the evolution of a payment dispute and tracking the time, cost, and number of procedures involved from the mo-

Illustrations: World Bank Doing Business Report 2017 34 | GOLD | The Business Magazine of Cyprus

139

49

33

1 (Korea, Rep.)

Enforcing Contracts (DTF Score)

48,59

48,59

65,09

73,17

50,19

54,79

68,87

84.15 (Korea, Rep.)

Time (days)

1100,0

1100,0

564,0

499,0

1580,0

1120,0

580,0

164.0 (Singapore)

INDICATOR

Enforcing Contracts (Rank)

139

16 | -867,&( '(/$<('

17

GREECE DB2017

TURKEY DB2017

STORY

TA B L E O F C O M PA R AT I V E I N D I C AT O R S BEST PERFORMER GLOBALLY DB2017

By Artemis Constantinidou

COVER

judgement appears to be meaningless. According to the Cyprus Constitution, the Supreme Court has exclusive jurisdiction over reforming the civil procedure but the procedural rules have not been renewed in decades. This is not surprising, as the Supreme Court judges are engaged in trying a huge backlog of cases.

The enormous number of cases is indeed the main cause of delays

ITALY DB2017

Reforming and enhancing the Cypriot legal system

GERMANY DB2017

DENIED

CYPRUS DB2017

IS JUSTICE

CYPRUS DB2016

DELAYED

ment a plaintiff files the lawsuit until actual payment is made.

It is well-documented that the average time for a civil case to be determined, including an appeal in the District Court of Nicosia, is 9-12 years while civil appeals for minor offences experience take an average of 4-5 years. This results in the ineffective enforcement of judgements and, in many cases, obtaining a court

BULGARIA DB2017

JUSTICE

133

108

Cost (% of claim)

16,4

16,4

23,8

14,4

14,4

23,1

Quality of judicial processes index (0-18)

8,0

8,0

10,5

12,0

12,0

13,0

,6 -867,&( '(1,(' The Cyprus justice system is in crisis. :LUPVY VMÄJPHSZ ¶ 4PUPZ[LY VM 1\Z[PJL Ionas Nicolaou, Attorney-General, Costas Clerides and the President of the Cyprus Bar Association, Doros 0VHUUPKLZ HTVUN V[OLYZ ¶ WYLZLU[ their own views, recommendations and potential solutions to the WYVISLTZ HMÅPJ[PUN [OL ^H` Q\Z[PJL is dispensed in Cyprus.

24,9

9.0 (Iceland)

13,0

15.5 (Australia)

www.goldnews.com.cy | GOLD | 35

CONTENTS 6 | EDITORIAL 8 | BUSINESS BRIEFING Economic & Business Highlights of the past month.

10 | MY WAY Frixos Savvides’ management style.

12 | FIVE MINUTES WITH… Yvonne Tsanos

14 | THEY SAID WHAT? Some of the fascinating remarks made by well-known Cypriots over the past month.

OPINION 40 | MULTIPLE CHALLENGES = UNIQUE OPPORTUNITY

By Liakos M. Theodorou.

SPECIAL PROMOTIONAL FEATURES 45 | Regulatory Compliance Interview with Sophie Ioannou of Infocredit, and eight leading firms present their compliance services.

69 | THE RISE OF ARTIFICIAL INTELLIGENCE

By Charis Mountis

FEATURES 32 | UNPREDICTABLE

;OL KPMÄJ\S[` VM HU[PJPWH[PUN [OL PTWHJ[ VM \UL_WLJ[LK WVSP[PJHS L]LU[Z VU ÄUHUJPHS THYRL[Z Interview with John Botham of Invesco.

77 | Aviation

Interviews with Eleni Kaloyirou and Dinos Kakkouras, and five related companies present their services.

34 | PROMOTING GENDER EQUALITY Andreas Avraamides, Talent Leader at EY Cyprus, on recruiting, retaining and advancing women.

34

12

36 | GOING DOWN Cyprus slips again on the Corruption Perception Index.

41 | BREXIT AND THE LONDON

PROPERTY MARKET Michael Tannousis, Head of Business Development at Consulco, talks about the current state of the London real estate market

42

42 | MEDICINE MAN Interview with Dr. Andreas Pittas, Executive Chairman and Founder.

Of Medochemie.

100 64 | BUILDING A GLOBAL COMMUNITY

9PSL` 5L^THU ^OV QVPULK (PYIUI HZ P[Z ÄYZ[ data scientist, talks about the company’s meteoric rise.

66 | A NEVER-ENDING GAME Michael van Gestel on how government agencies and companies around the world are seeking help in spotting fake identity documents.

70 | SHIPPING FORECAST SUMMIT Photos from the event organised to launch the Bank of Cyprus’ Shipping Finance Department.

4 | GOLD | The Business Magazine of Cyprus

72 | NEW POST BUT NO CHANGE OF

DIRECTION Interview with Gregory Dellas, newly appointed Director, Wealth & Markets at Bank of Cyprus.

76 | NICOSIA ECONOMIC

CONGRESS 2017 Looking ahead to next month’s event.

90 | BOOKSHELF Six of the latest business titles.

92 | IN GOOD COMPANY How Baker Tilly’s employees climb the management ladder.

106 95 | BUSINESS CLASS SS Charalambos Samir

96| TIME OFF Wing Chun and Ice Cream.

100 | LUNCH WITH GOLD Spyros Yiassemides 104 | WHAT’S ON GOLD’s guide to the best cultural events of the coming month.

106 | A DAY IN THE LIFE Andrie Penta

1f y0u c4n r34d 7h15 y0u 5h0uld 4pply f0r 4 j0b w17h KPM6!

KPMG Cyber Security - Never a dull moment kpmg.com.cy

©2017 KPMG Limited, a Cyprus limited liability company and a member firm of the

KPMG| network of independent member firms affiliated with KPMG International 90 | GOLD The Business Magazine of Cyprus Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

| EDITORIAL | 6

Not Fit For Purpose

T H

ANNIVERSARY ISSUE

ISSUE 72 MARCH 19, 2017 PRICE â&#x201A;Ź2.00

INTERVIEWS John Botham *UHJRU\ 'HOODV Michael van Gestel

PHARMA Dr. Andreas Pittas on 40 years of Medochemie

INNOVATION Riley Newman and the spectacular rise of Airbnb

PLUS %XVLQHVV %ULHĂ&#x20AC;QJ :KDW¡V 2Q 7LPH 2II Books & more

JUSTICE

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IS JUSTICE 5 291295 000577

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CHRONIC PROBLEMS IN CYPRUSâ&#x20AC;&#x2122;S LEGAL SYSTEM ARE DAMAGING THE COUNTRYâ&#x20AC;&#x2122;S EFFORTS TO BE CONSIDERED A SERIOUS INTERNATIONAL BUSINESS CENTRE

PUBLISHED BY IMH ISSN 1986 - 3543

MANAGING DIRECTOR

George Michail

GENERAL MANAGER

â&#x20AC;&#x153;Law and order exist for the purpose of establishing justice and when they fail in this purpose they become the dangerously WXVYGXYVIH HEQW XLEX FPSGO XLI Ă&#x201A;S[ SJ WSGMEP TVSKVIWW Âś 1EVXMR 0YXLIV /MRK .V

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he Cypriot legal system, based on English Common Law principles, is frequently cited as one of the countryâ&#x20AC;&#x2122;s key advantages over its competitors when it comes to attracting companies to establish offices and individuals to take up residence here. And itâ&#x20AC;&#x2122;s true. However, a system that doesnâ&#x20AC;&#x2122;t work is a bit like a Rolls Royce with a Trabant engine under the bonnet â&#x20AC;&#x201C; it looks great but it wonâ&#x20AC;&#x2122;t take you very far.

You may wonder why a foreign company, interested in taking advantage of the islandâ&#x20AC;&#x2122;s low tax regime, should be too bothered if court cases take years to complete but you need look no further than the latest edition of the World Bankâ&#x20AC;&#x2122;s Doing Business report, in which Cyprus is ranked 139th out of 190 countries in the category â&#x20AC;&#x153;ease of enforcing commercial contractsâ&#x20AC;?. The report calculates that, in Cyprus, the evolution of a payment dispute from the moment a plaintiff files the lawsuit until actual payment is made will take 1,100 days. Compare this to Singapore, a country that is often proposed as a model that Cyprus should try and emulate, which takes 164 days for the same process. So why would a company choose to take a risk here, knowing that if anything goes wrong, it could go on for years and cause untold losses in revenue?

It is often said about Cyprus that it takes a real crisis to make the Government, parliament and other authorities take action and correct chronic problems â&#x20AC;&#x201C; we saw what happened in 2013 with the economy and the banking sector â&#x20AC;&#x201C; and for many years, lawyers and others have been urging changes and reform to the justice system, where delays are gradually making it completely dysfunctional. For this issueâ&#x20AC;&#x2122;s cover story, we asked several key officials involved in the Cyprus justice system â&#x20AC;&#x201C; Minister of Justice Ionas Nicolaou, Attorney-General Costas Clerides and the President of the Cyprus Bar Association, Doros Ioannides, among others â&#x20AC;&#x201C; to present their own views, recommendations and potential solutions to the problems afflicting the way justice is dispensed in Cyprus. Many of the issues concern the appointment and quality of judges and, as you will see, the Supreme Court has made an effort to identify the problems and correct them but, until this happens, the countryâ&#x20AC;&#x2122;s long-held ambition of being taken seriously as an international business centre remains far from being achieved.

This is Issue 72 of GOLD, meaning that we are celebrating our 6th anniversary. Thanks to all of you â&#x20AC;&#x201C; readers, advertisers and contributors â&#x20AC;&#x201C; for your valuable support. May it continue for many more years!

6 | GOLD | The Business Magazine of Cyprus

John Vickers, Chief Editor john@imhbusiness.com

Daphne Roditou Tang MEDIA MANAGER

Antonis Antoniou EDITOR-IN-CHIEF

John Vickers JOURNALISTS

Artemis Constantinidou, Voula Loizou CONTRIBUTORS TO THIS ISSUE

Charis Mountis, Liakos Theodorou ART DIRECTION

Anna Theodosiou SENIOR DESIGNER

Alexia Petrou ASSISTANT DESIGNER

Stephanie Andreou PHOTOGRAPHY

Emma Louise Charalambous, Jo Michaelides, Christos Tsekouras MARKETING EXECUTIVE

Kevi Chishios SALES MANAGER

Neofytos Constantinou SALES EXECUTIVE

Stavros Epifaniou OPERATIONS MANAGER

Voulla Nicolaou SUBSCRIPTIONS

Myria Neophytou PRINTERS

Cassoulides Masterprinters CONTACT 5 Aigaleo St., Strovolos 2057, Nicosia, Cyprus Mailing address: P.O.Box 21185, 1503, Nicosia, Cyprus Tel: +357 22505555, Fax: +357 22679820 e-mail: gold@imhbusiness.com subscriptions: goldsubscriptions@imhbusiness.com www.imhbusiness.com

BUSINESS BRIEFING

MILESTONES

AWARDS

FILEMINDERS

Wilbur Ross Resigns from BoC Board

Logicom Begins 30th Anniversary Celebrations

On March 1, Wilbur L. Ross Jr. submitted his resignation from his position as Member and Vice-Chairman of the Board of Directors of BoC Holdings and Bank of Cyprus Public Company Limited, Following his appointment as U.S. Commerce Secretary, the Board of both BoC Holdings and the Bank expressed their warmest [OHURZ MVY 9VZZ» ]HS\HISL JVU[YPI\[PVU [V [OL Group which he has served since 2014. They decided to appoint James B. Lockhart III as a member of the Board of Directors on each of these Boards. Lockhart is Vice Chairman of WL Ross & Co. LLC in New York.

Logicom Public Ltd is celebrating a major mileZ[VUL [OPZ `LHY HZ THYRZ P[Z `LHYZ PU [OL [LJOUVSVN` PUK\Z[Y` :PUJL P[Z PUJLW[PVU PU it has grown to become a respected leader in P[Z ÄLSK HUK [VKH` 3VNPJVT 7\ISPJ 3[K PZ HU international group of companies, listed on the Main Market of the Cyprus Stock Exchange, and a member of the FTSE/CySE20 index. It emWSV`Z TVYL [OHU WYVMLZZPVUHSZ HUK ZLY]LZ TVYL [OHU J\Z[VTLYZ PU JV\U[YPLZ Managing Director, Varnavas Irinarchos said, ¸0 SVVR MVY^HYK [V TVYL `LHYZ VM L_JLSSLUJL alongside everyone in the Logicom family.”

Fileminders Ltd has been awarded Investors in People Gold Accreditation, becoming one of the few gold accredited organisations in Cyprus. Paul Devoy, Head of Investors in People, said, “Investors in People accreditation is the sign of a great employer, an outperforming place to work and a clear commitment to success. Fileminders should be extremely proud of their achievement.”

Andrea Antoniou, CEO of Fileminders said, “We feel proud of our unique culture and we promise to keep creating a creative environment, to inspire our people and help them ÄUK H ^H` [V PUUV]H[L HUK L]VS]L 6\Y WLVple are our strength.”

MICHALIS ECONOMIDES

Cyprus-Jordan Business Association

My Cyprus Insider celebrates 2nd Anniversary

The Cyprus Chamber of Commerce and Industry (CCCI) recently announced the inauguration of the Cyprus-Jordan Business Association. Its stated aims are to promote, expand and encourage economic and trade relations and crossborder investments between the two countries, to propose to both governments ways through which trade and economic relations can be further improved and to create and maintain communication among Cypriot and Jordanian business people. George Pantelides was named the (ZZVJPH[PVU»Z ÄYZ[ 7YLZPKLU[ OLHKPUN H TLTber Board of Directors. The Ambassador of Jordan to Cyprus, Mohamad Elfayez, was named HZ HU L_ VɉJPV TLTILY VM [OL )VHYK

My Cyprus Insider (mycyprusinsider.com), the travel portal owned by Action Global Communications Group, recently celebrated its second anniversary. Chief Editor, Zoe Christodoulides explained that, “From the onset, one of the main missions of the website, has been to help boost tourism and alternative travel on the island and to encourage visitors from all corners of the globe to explore L]LY`[OPUN *`WY\Z OHZ [V VɈLY IL`VUK Q\Z[ Z\U HUK ZLH ¹ ;OL ^LIZP[L»Z Z\JJLZZ HJYVZZ Cyprus and beyond is largely attributed to its wholly unique content, written by local experts ^P[O ]HS\HISL ºPUZPKLY» RUV^SLKNL WYV]PKPUN great insights into life on the island.

Arthur Andersen Returns

T

ACCOUNT ING

hrough a French initiative, Arthur Andersen has been reconstituted, with 26 offices in 16 countries, including Cyprus, and a Cypriot is among the senior executives. Christos S. Christodoulou, founder and managing director of the accounting firm CSC Christodoulou, is Chair of the Ethical Compliance and Governance Committee in charge of the network in Greece and in Cyprus. The committee will be dealing with issues concerning the operating rules and ethics of its members. Arthur Andersen was once one of the biggest accounting firms in the US but, in 2002, it voluntarily surrendered its licenses to practice after being found guilty of criminal charges relating to the firm’s handling of the auditing of the Texas-based energy corporation Enron.

8 | GOLD | The Business Magazine of Cyprus

Michalis Economides, CEO and Founder VM *OHTILYZÄLSK ,JVUVTPKLZ 2YHUVZ OHZ been recognised by the renowned Global Law Experts international network as a Recommended Attorney and Firm for Commercial Practice in Cyprus. ;OL ÄYT KLHSZ ^P[O HSS SLNHS HUK JVYWVYH[L practice areas and has a physical presence PU ZL]LU JV\U[YPLZ ^OPSL WYV]PKPUN ÄK\JPHY` and corporate services in more than 21 jurisKPJ[PVUZ ¸>L ILSPL]L [OH[ H ÄYT KPɈLYLU[PH[LZ from its competition through the added value P[ VɈLYZ PU P[Z J\Z[VTLY YLSH[PVUZOPWZ ;OLYLfore, our aim is to develop long term relationships with our clients and not short-term transactions, said Economides.

BAKER TILLY IN SOUTH EAST EUROPE President Nicos Anastasiades presented the Special Export Services Award 2015 to Baker Tilly in South East Europe at the ceremony at the Presidential Palace last month. The ÄYT»Z *,6 4HYPVZ ( 2SP[V\ JVTTLU[LK that, “This award recognises the quality of our services, as well as the dynamism demonstrated by our people to achieve exJLSSLU[ YLZ\S[Z PU V\Y LɈVY[Z [V WYVTV[L V\Y own services and those of our country as an international business centre”. The annual Export Awards recognize and reward Cypriot companies for exceptional achievement in the export of goods and services.

TELECOMMUNICATIONS REAL ESTATES

Aristo Developers

A

risto Developers announced that more than 500 new title deeds have been secured and 630 title deeds were transferred in 2016. Furthermore, 1,300 title deeds are now ready for transfer to owners. Aristo was recently honoured with the “Best Cyprus Property 2017” accolade and “Best Real Estate Developer Cyprus 2016” award by International Finance magazine.

Satlink–Inmarsat Agreement

Leptos Estates

L

eptos Estates continues to enrich its property portfolio in Limassol with its latest new development, Leptos Limassol Park, described as “offering the luxury of sub-urban living in a safe enclosed environment where life`s small but precious pleasures can be enjoyed.” Over 75% of the area is landscaped gardens and green areas around two large swimming pools.

CAPITAL INTELLIGENCE RATINGS JOINS THE ECBC

A

ccording to its preliminary Financial Results for 2016, Bank of Cyprus posted a profit after tax of €64 million. CEO John Hourican said, “We are pleased to have delivered a modest profit in 2016 and to have started 2017 with the full repayment of ELA, a successful

Marlink CG

arlink is to enter into a joint venture with the satellite connectivity business of the Greece/Cyprus-based TNL Group, enabling it to launch a brand new maritime satellite communications expert, Marlink CG. It will deliver a wide portfolio of innovative Marlink VSAT (Very Small Aperture Terminal) services, Inmarsat FleetXpress, Inmarsat/Iridium MSS (Mobile Satellite Services) and integrated business critical solutions for customers in Southern Europe.

M

BANKING

return to the debt capital markets and the successful listing of our shares on the London Stock Exchange.”

He added that, in 2016, the Bank achieved a €3.0 billion reduction (27%) in 90+ Days Past Due (DPD) and a €2.9 billion reduction (21%) in Non-Performing Exposures.

“These are very pleasing reductions and we expect continued progress,” he said.

62,611

S

FINANCE

Capital Intelligence Ratings, the Limassol-based international credit rating agency, has joined the European Covered Bond Council (ECBC), a platform bringing together covered bond issuers, analysts, investment bankers, rating agencies and a wide range of interested stakeholders.

“As part of our international expansion strategy, the ECBC membership \UKLYZJVYLZ *0 9H[PUNZ» LɈVY[Z [V ILJVTL [OL YH[PUN HNLUJ` VM JOVPJL for both issuers and investors in the markets we cover,” it said in a statement. “In addition to current coverage, CI is also strongly committed to bringing forward the concept of covered bonds to new frontier markets,” explained Zafer Diab, Managing Director of the company.

BANK OF CYPRUS

atlink Satellite Communications Ltd, a member of The Tototheo Group, a world leader in satellite communication and technical services, has entered into a new agreement with Inmarsat to integrate the Fleet Xpress Global Xpress maritime solution into :H[SPUR»Z L_PZ[PUN ZLY]PJL WVY[MVSPV Through the agreement, Satlink will bring more than 1,500 vessels to the Fleet ?WYLZZ ZLY]PJL V]LY H Ä]L `LHY WLYPVK

Cyta Opens New Data Centres

yta has launched two new Tier KH[H JLU[YLZ PU 5PJVZPH HUK Limassol respectively. The data centres, designed for businesses that wish to ensure geographical redundancy, both have two independent power supply circuits, double generators, uninterruptible power supplies and air conditioning systems. The equipment is connected to two electrical outlets, which ensures continuous power supply even in maintenance periods.

C

THE NUMBER OF TOURIST ARRIVALS IN CYPRUS IN JANUARY 2017. IT REPRESENTS AN INCREASE OF 28.8% ON LAST YEAR’S FIGURE. SOME 53% OF THE VISITORS WERE HERE ON HOLIDAY, 22.5% CAME FOR BUSINESS AND 24.3% ARRIVED TO SEE FRIENDS AND RELATIVES. MOST WERE AGED 20-44 AND WERE 53% MEN AND 48% WOMEN. www.goldnews.com.cy | GOLD | 9

MY WAY

Frixos Savvides

Managing Director Hive Management Services Ltd

HAVING FOUNDED HIS OWN ACCOUNTANCY FIRM IN THE PRIVATE SECTOR AS WELL AS SERVING AS A GOVERNMENT MINISTER, FRIXOS SAVVIDES KNOWS ALL ABOUT GOOD MANAGEMENT AND EFFECTIVE LEADERSHIP. HE BELIEVES IN LISTENING TO THE OPINIONS OF OTHERS, WHILE TAKING ULTIMATE RESPONSIBILITY FOR CRUCIAL DECISIONS, AND IN LEADING BY EXAMPLE, A PRINCIPLE HE SAW IN PRACTICE DURING HIS CLOSE WORKING RELATIONSHIP WITH FORMER PRESIDENT GLAFCOS CLERIDES. HE ALSO RECOGNISES AND APPRECIATES THE VALUE OF HAVING THE SUPPORT OF COLLEAGUES AT WORK AND FAMILY AT HOME.

I

would describe my management style as democratic â&#x20AC;&#x201C; after discussion and, perhaps, arguments to formulate principles. But in the end, the decision must be taken by the person who has ultimate responsibility.

T

The object of my professional admiration is the late President of Cyprus, Glafcos Clerides.

I consider myself fortunate â&#x20AC;&#x201C; almost blessed â&#x20AC;&#x201C; to have been given the opportunity to serve such a great man, who was the personification of the principle â&#x20AC;&#x153;lead by exampleâ&#x20AC;?.

M

y leadership style has been influenced most by the principle â&#x20AC;&#x153;The higher you climb, the more humble you should becomeâ&#x20AC;?. Anyone who doesnâ&#x20AC;&#x2122;t follow this principle will lose touch with the environment and, invariably, end up alone.

I

have been helped throughout my career by the fact that I had good people around me, on whom I could rely to carry on the business, and my wife and children to support me at home.

A

chieving a healthy balance between life at work and at home is very difficult. It is very important to have the support of your family and to feel that your home provides relaxation and peace of mind, serving as a sanctuary of sanity, away from the hectic business life.

M

y greatest professional achievement was addressing the United Nations General Assembly in New York in 2002. It was an unbelievable experience which will stay with me for life.

10 | GOLD | The Business Magazine of Cyprus

T

he biggest mistake that managers make is to think that they are infallible. I call it â&#x20AC;&#x153;the sickness of the chairâ&#x20AC;? â&#x20AC;&#x201C; where you are convinced that you cannot make mistakes and that whatever you do is right. In other words, you donâ&#x20AC;&#x2122;t listen to anybody and eventually you pay the price.

I

relax over coffee and playing the card game Pilotta with my friends. Itâ&#x20AC;&#x2122;s a game that re-laxes me, tests ts my memory and gives me an opportunity to let offf steam. I also enjoy good football and a good film.

Good food and good wine always help too!

Frixos Savvides is a Fellow of the Institute of Chartered Accountants in England and Wales. He set up his S[R EYHMXMRK Ă VQ 4/* 7EZZMHIW

'S 0XH MR FYX VIWMKRIH EW 1EREKMRK 4EVXRIV ]IEVW PEXIV SR FIMRK ETTSMRXIH 1MRMWXIV SJ ,IEPXL E TSWMXMSR LI LIPH YRXMP %X TVIWIRX LI WIVZIW EW 'LEMVQER SJ 8VYWX -RXIVREXMSREP Insurance (Cyprus) Ltd. and of World Trade Center Cyprus as well as running ,MZI 1EREKIQIRX Services Ltd.

26

ACCOUNTANCY CYPRUS

Building a strategy today can empower your tomorrow

'HOLYHUHG E\ $RQ +HZLWW

Multi-Employer Aon Hewitt Provident Fund :HEVLWH ZZZ PDS IXQG _ (PDLO FRQWDFW#PDS IXQG _ 7HOHSKRQH

FIVE

MINUTES WITH

H

ow did ÖL Shipping Group perform in 2016 and what changes are expected in 2017?

We performed quite well, despite a volatile market for certain sectors. In fact, we had almost 100% days of operation for the 10th consecutive year, beating the Moore Stephens industry average operating expense benchmarks without affectingg the high standard and quality of our services.

As for 2017, we hope for an improved year with a better supply and demand balance, after strong scrappings in 2016 and no new buildings, with sustainable freight rates. This year, we shall be offering employment opportunities to our young colleagues – the Cadets from the Cyprus Maritime Academy, who are passionate about the shipping industry – for onboard practical experience and will be supporting their entry into the shipping world.

What do you see as the main challenges currently facing the local shipping industry?

There are five simple answers to this question: (1) To set up the Under-Secretariat for Shipping the soonest; (2) To upgrade the Department of Merchant Shipping now; (3) To press for the lifting of the Turkish embargo on Cyprus-flagged vessels; (4) To maintain and enhance the tax system (one of the main reasons why Cyprus is a base for shipping operations; and (5) To maintain and enhance the continuous promotion of the Cyprus flag.

Bank of Cyprus, International Banking, Wealth & Markets Division has just launched a new Shipping Finance Department. Do you believe this can fulfil an important need of the shipping industry in Cyprus?

Since the banking institutions have tradition-

12 | GOLD | The Business Magazine of Cyprus

YVONNE TSANOS

ally excluded shipping from their portfolios, having these facilities on our own doorstep is a welcome and long overdue breath of fresh air. When Bank of Cyprus and others are up and running for this purpose, the Cyprus Maritime Cluster will become even tighter and the country deemed a full one-stop shipping centre of true excellence.

General Manager, ÖL Shipping Group & Secretary-General, WISTA Cyprus

In your capacity as Secretary-General of WISTA Cyprus, in what ways does this organisation contribute to the shipping sector?

WISTA Cyprus aims at being a major player in attracting more women to the industry and in supporting women in management positions. Focusing on networking, education and mentoring, we believe we can enhance our members’ competence, empower their career success and, as multitaskers, achieve the desired

results. WISTA Cyprus holds regular meetings, seminars and social gatherings throughout the year, on occasion in conjunction with other highly recognised local and international associations.

What benefits does WISTA Cyprus offer to women inC volved in the maritime indusv try? t Why should one become a member of the organisation? t The T benefits of membership are numerous; WISTA is a worldn wide w networking organisation in which the members get to know each other, learn from each other, become friends and e discover opportunities that, d ultimately, can – and do – u generate new business locally, g regionally or globally and this r is i certainly encouraged. Members b participate in high-calibre workshops, seminars and conferences as well as offering their own mentoring services. We advocate the sharing of best practices and ideas in support of growth, success and progress.

And it’s not all work! I have had the pleasure of attending two WISTA International AGMs, the latest in November 2016, which was held on board the beautiful Holland America cruise vessel MS Koningsdam on its maiden Caribbean cruise from Fort Lauderdale to the Bahamas. Almost 400 delegates from around the globe attended the meeting, which was addressed by high-profile industry executives.

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QUOTES OF THE MONTH

They Said What?

Some of the fascinating remarks made by well-known Cypriots over the past month.

“I STAND READY A Y AD TO RESUME THE DIALOGUE AT ANY TIME.”” President Nicos Anastasiades RIKKOS EROTOCRITOU

“WITH MY IMPRISONMENT, MY OWN ‘CHRONICLE OF A DEATH FORETOLD’ HAS ENDED, AS PLANNED.” Former Deputy Attorney-General Rikkos Erotocritou hasn’t lost his love of a literary allusion, despite being sentenced to 3½ years in jail on corruption charges.

“WE MAY SAY WITH CERTAINTY THAT PAPHOS CAN BE A SHINING EXAMPLE WHERE THE IMPLEMENTATION OF PROJECTS IS CONCERNED.” For a change, Auditor-General Odysseas Michaelides has something good to say – and it’s about Paphos. Who would have thought it?

ODYSSEAS MICHAELIDES

Mixed metaphors notwithstanding (how do you walk away from a ship in a storm?), Transport Minister Marios Demetriades reZWVUKZ KLÄHU[S` [V [OVZL JHSSPUN MVY OPZ YLZPNnation over the chaos at Limassol Port.

NICOS ANASTASIADES

“LET THEM CORRECT THIS MISTAKE AND I WILL BE AT THE TABLE THE NEXT DAY.” Turkish Cypriot leader Mustafa Akinci

Plenty of sweet talk from both leaders but still no sweet talks on the Cyprus issue.

More heroic talk from Eleni Theocharous MEP, on learning that Azerbaijan has issued an international warrant for her arrest.

14 | GOLD | The Business Magazine of Cyprus

“DISY WAS WRONG TO FALL INTO ELAM’S TRAP. THERE IS NO COUNTRY IN THE WORLD WHERE PARLIAMENT DECIDES WHAT SHOULD BE TAUGHT IN CLASS AT SCHOOL.” Foreign Minister Ioannis Kasoulides says what no-one e else in the ruling party dares to, while suggesting that the entire w House of Representatives does H not have a clue about democracy.”

IOANNIS

KASOULIDES

MUSTAFA AKINCI

“I AM NOT SCARED BY THREATS FROM ANY DICTATOR. I FEEL HONOURED TO BE A TARGET OF A DICTATORIAL REGIME.”

ELENI THEOCHAROUS

“I W WON’T ABANDON THE SHIP IN A STORM. WALKING AWAY W WOULD BE THE EASY W WO SOLUTION. IT IS NOT ABOUT LEAVING; IT’S ABOUT FIGHTING FOR MARIOS WHAT YOU BELIEVE DEMETRIADES IS RIGHT, BEING ABLE TO BENEFIT YOUR COUNTRY. THAT’S WHAT’S IMPORTANT.”

“FOR A CANDIDATE TO BE BACKED BY ALL FIVE ‘CENTRE PARTIES’ IT MUST FIRST BE DISCUSSED BY THEM. A UNILATERAL ANNOUNCEMENT IS, OF COURSE, RESPECTED, BUT IT DOESN’T HELP THE WHOLE EFFORT.” DIKO Chairman Nicholas Papadopoulos is not impressed by George Lillikas’ decision to put himself forward as a candidate for the 2018 presidential elections.

Wonder why?

NICHOLAS PAPADOPOULOS

| COVER STORY |

JUSTICE

DELAYED

IS JUSTICE

DENIED

CHRONIC PROBLEMS IN CYPRUS’S LEGAL SYSTEM ARE DAMAGING THE COUNTRY’S EFFORTS TO BE CONSIDERED A SERIOUS INTERNATIONAL BUSINESS CENTRE

By Artemis Constantinidou

16 | GOLD | The Business Magazine of Cyprus

E

very presentation or promotional activity aimed at attracting foreign investment to Cyprus is guaranteed to include what are invariably described two of the country’s key competitive advantages over other jurisdictions:

Promotion Agency (CIPA) describes it, appears to be the weakest link in the infrastructure supporting the island’s longstanding efforts to establish itself as a regional business centre.

Since 2002, the World Bank has been publishing its annual Doing Business report, in which it looks at business regulations and their enforcement across 190 economies around the world. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages states and governments to compete towards more efficient regulation and offers

commercial contracts – Cyprus is ranked 139th. This lowly position has been determined by following the evolution of a payment dispute and tracking the time, cost, and number of procedures involved from the moment a plaintiff files the lawsuit until actual payment is made.

It is also well-documented that the average time for a civil case to be determined, including an appeal in the District Court of Nicosia, is 9-12 years while civil appeals for minor offences experience take an average of 4-5 years. This results in the ineffective enforcement of judgments and, in many cases,

THERE IS A ONE-YEAR PROBATION PERIOD FOR NEWLY APPOINTED JUDGES BUT, IN PRACTICE, THERE IS NO SUPERVISION BY SENIOR JUDGES the attractive tax regime and the legal system, based on English Common Law principles. Most observers would agree that the 12.5% corporate tax rate and other incentives do, indeed, make this an attractive location for setting up a company.

Unfortunately, the legal system, far from being “business-friendly and effective” as the Cyprus Investment

measurable benchmarks for reform.

In the 2017 edition of the Doing Business report, Cyprus ranks 45th overall out of 190 economies, a position which one might think is satisfactory in this competitive world. However, the country would be much higher on the list were it not for the fact that, in one of the categories – the ease of enforcing

obtaining a court judgment appears to be meaningless. According to the Cyprus Constitution, the Supreme Court has exclusive jurisdiction over reforming the civil procedure but the procedural rules have not been renewed in decades.

This is not surprising, as Supreme Court judges are engaged in trying a huge backlog of cases.

BULGARIA DB2017

GERMANY DB2017

GREECE DB2017

ITALY DB2017

TURKEY DB2017

BEST PERFORMER GLOBALLY DB2017

CYPRUS DB2016

CYPRUS DB2017

Tables: World Bank Doing Business Report 2017

TA B L E O F C O M PA R AT I V E I N D I C AT O R S

139

139

49

17

133

108

33

1 (Korea, Rep.)

Enforcing Contracts (DTF Score)

48,59

48,59

65,09

73,17

50,19

54,79

68,87

84.15 (Korea, Rep.)

Time (days)

1100,0

1100,0

564,0

499,0

1580,0

1120,0

580,0

164.0 (Singapore)

Cost (% of claim)

16,4

16,4

23,8

14,4

14,4

23,1

24,9

9.0 (Iceland)

Quality of judicial processes index (0-18)

8,0

8,0

10,5

12,0

12,0

13,0

13,0

15.5 (Australia)

INDICATOR

Enforcing Contracts (Rank)

www.goldnews.com.cy | GOLD | 17

| COVER STORY |

The enormous number of cases is indeed the main cause of delays in the overall system of justice. This is partly a result of the fact that court fees are low and litigation is relatively inexpensive, even though the cost to the state is very high. Lawful interest (payable over the time spent waiting for a judgment) was until recently 5.5% but it has been reduced to 3.5%. The system also lacks an Alternative Dispute Resolution (ADR) System as Arbitration is a slow process.

Arbitration clauses, lawyers argue, should

COST 12,0%

10,0%

2,0%

0,0% Attorney fees

Court fees

Filing and service 20 Trial and judgment 900

5,1%

4,0%

0,5%

6,0%

10,8%

8,0%

Enforcement fees

Enforcement of judgment 180

TIME (DAYS)

18 | GOLD | The Business Magazine of Cyprus

JUDGES ARE SUPPOSED TO ISSUE JUDGMENTS WITHIN A MAXIMUM OF SIX MONTHS AND INTERIM JUDGMENTS WITHIN THREE MONTHS

be imperative in more types of contracts – not only in construction contracts as is often the case – and the rules and directions on this should be stricter as there are no sanctions for non-compliance. In fact, many of these cases could be easily dealt with outside the courtroom.

Another crucial issue related to the delays experienced in the justice system concerns judges’ lack of the necessary skills and competencies for the job. Experienced lawyers have expressed their disappointment over the appointment of certain judges with no civil court experience. This, the lawyers argue, means that they have never cross-examined a witness, argued a civil case or handled a complex commercial issue before. Their skills may also fail to develop any further since they receive no judicial training prior to being appointed. By law, there is a one-year probation period for newly appointed judges but, in practice, there is no supervision by senior judges. No-one has ever failed the probation period.

It is also observed that judges lack a basic knowledge of evidence rules. In many cases, instead of making a spot decision, they may adjourn the case for days to consult their books, so the case is derailed. The fact that judges in Cyprus are not specialised in particular fields, dealing instead with both civil and criminal cases of all types, causes even further problems to the system. It is impossible to keep up to date with all areas of the law at all times, so the time needed for judges to familiarise themselves with the subject and the updates through reading causes yet more delays.

As with the civil service, judges lack incentives and motivation to do their best

and work harder for various reasons, one of them being that promotion is mainly based on seniority, not on merit, and there is no evaluation or scoring system linked to the number of judgments issued every year.

Following the exclusion of the Bar Council from the appointing body, it is now composed exclusively of members of the Supreme Court. This often results to the formation of ties and preferences and the development of relationships, meaning that younger judges cannot escape from – or are embarrassed to ignore – the seniority rule.

Furthermore, lawyers claim that there is a tendency among judges to write up long judgments, even with regard to relatively minor issues, rather than simple and short ones based on the facts, the type that, in foreign jurisdictions, are issued ex-tempore. It is worth noting that the Supreme Court has not issued guidance to the District Courts about being more concise in their judgments. On the contrary, many cases have been reversed on appeal for lacking extensive reasoning and analysis, thus forcing the District Courts to be even more pointlessly analytical and use up even more valuable time and resources.

Time-lag remains a significant issue in the justice system due to reserved judgments. After a trial or arguments over a motion, a judge might not immediately deliver a decision, but instead take time to review evidence and the law and deliver a decision at a later time. Judges are supposed to issue judgments within a maximum of six months and interim judgments within three months. Every six months, all delayed reserved cases are presented before the Full Bench and lawyers are asked if they agree to give

IN THE FAMILY COURTS, THE INTRODUCTION OF CONSENSUAL DIVORCE WOULD UNDOUBTEDLY SPEED UP THE PROCESS the judge more time to prepare his/her judgment. The lawyers invariably accept because the alternative would be a retrial.

The quality of judges and the system of appointments are not the only elements in need of major reform if delays in the justice system are to be eradicated. There is also the matter of the civil procedure followed. Apart from the fact that, in many cases, there are either no rules set or many of them are outdated, and unrealistic deadlines are never observed. Lawyers frequently complain that the Supreme Court fails to issue guidance on a regular basis as to how rules should be applied.

One of the main drawbacks of the current procedure does not oblige litigants to restrict the trial to the actual dispute in question. If realistic deadlines and detailed steps were set out, uniformity would be ensured and nobody would be able to question their application. The courts are currently wasting precious time on trying preliminary objections and interim applications, which has turned justice into a game of ‘clever’ procedural tricks.

Judges should also be able to set limits to the time spent on cross examination of witnesses and court-appointed experts, as happens in the UK. It has been strongly suggested that in order to increase procedural efficiency, written evidence should be submitted prior to a hearing. Oral submissions have been abolished so most judges require written submissions, which do not give them an opportunity to properly understand the argument being advanced and, consequently, they require even more time to read the submissions. Additional delays are caused by affidavits and court registry intervention, as well as enforcement measures such as the writ of movables.

Numerous lawyers have argued that these could be avoided through the introduction of private companies for enforcement, monitoring bailiffs and limiting the items excluded from enforcement.

In a world where technology is being used to bring speed and efficiency to so many areas, it is vital that courts also adapt to 21st century reality. Minutes of cases are still recorded by stenography

Tables: World Bank Doing Business Report 2017

QUALITY OF JUDICIAL PROCESSES INDEX Alternative dispute resolution (0-3)

2,5% 1,0%

Court automation (0-4) Case management (0-6) Court structure and proceedings (0-5)

3,0% 0,0

0,5

1,0

1,5

2,0

2,5

3,0

and although a new stenotype system is something of an improvement, witnesses are obliged to speak very slowly and unnaturally, pausing every few seconds so that everything said is fully recorded.

If an audio system were to be introduced, judges would be forced to be more cautious in the way they control the courtroom. It has also been proposed that the minutes recording system should be independent of the judge, as happens in the USA and many European countries. In Cyprus, the judge controls the pen and the stenographer and, if access to minutes is required, the court needs to review them, which takes a considerable amount of time.

Fortunately, it is not all bad news.

A small step forward has been taken towards a more smooth operation of certain procedures through the Administrative Court, which was recently established in order to reduce the heavy workload of the Supreme Court. One key to its success is the fact that six relatively young and experienced former lawyers of the private sector are specialised in their field. However, there is still an unlimited right to appeal to the Supreme Court at no cost, which will possibly lead to further delays.

The legal community is also calling for reforms in respect to the efficiency of specialised courts, including the Labour Tribunal and the Rent Control Tribunal, where a single judge is responsible for the whole country. In the family courts, the introduction of consensual divorce would undoubtedly speed up the process and it has been suggested that the number of judges sitting for divorce cases could be reduced from three to one, which would also reduce costs.

GOLD invited senior officials involved in the Cyprus justice system – Minister of Justice Ionas Nicolaou, Attorney-General, Costas Clerides and the President of the Cyprus Bar Association, Doros Ioannides, among others – to present their own views, recommendations and potential solutions to the problems afflicting the way justice is dispensed in Cyprus. Read what they have to say on the following pages. www.goldnews.com.cy | GOLD | 19

| COVER STORY |

30 PROBLEMS IN THE JUSTICE SYSTEM

REQUIRING IMMEDIATE SOLUTIONS

T

he list below summarises 30 of the main problems that are preventing the Cypriot justice system from functioning effectively. When Cyprus is ranked 139th in the world because it takes 1,100 days on average to enforce

contracts (when Singapore takes 164 days for the same legal process), it is not difficult to understand why an efficient justice system is essential if Cyprus is to be taken seriously when it claims to have all the potential to be a competitive international business centre.

1

Delays occur throughout the Civil Justice system.

2

The average time for Civil Case to be determined including an Appeal is 9-12 years.

3

There is an overload of cases in all courts.

4

It is very cheap to litigate, due to low court fees, so too many people choose to do so.

5

There is no Alternative Dispute Resolution System in place.

6

Arbitration is a slow process.

7

Judges lack competence, skills, efficiency and, sometimes, common sense.

8

Judges can be appointed without having any civil court experience.

9

Judges do not receive judicial training after being appointed.

10 The promotion of judges is not based on merit but on seniority.

11 There is no evaluation system for judges.

12 Judges are appointed only by Members of the Supreme Court.

13 Judges often waste time by writing overlong judgments.

14 There is no minor offences court to which trained lay-people are appointed (as in the UK).

15 Judges often lack a basic knowledge of the rules of evidence.

16 The disciplinary procedure for judges rarely used.

17 Newly appointed judges never fail their probation period as there is no supervision.

18 Reserved judgments cause long delays in cases.

19 Judges are not specialised and have to deal with all types of civil cases.

20 Outdated civil procedures and old rules need to be reformed by the Supreme Court, which is overloaded with other work.

21 Unrealistic court deadlines are never observed.

22 No practice directions are issued regularly for judges to apply uniformly.

23 Litigants are not obliged to restrict the trial to the actual dispute in question.

24 Court minutes are recorded via slow and unnatural stenography instead of automatic audio 25 There are no limits to the duration of witness examination/cross-examination.

26 Delays are caused by affidavits and court registry intervention and enforcement measures 27 Written evidence is not submitted prior to a hearing, which would save time in court.

28 Written submissions are requested by judges instead of oral submissions.

29 There is an unlimited right to appeal to the Supreme Court at no cost.

30 The Family Court has not introduced Consensual Divorce, which would save time.

THERE IS A ONE-YEAR PROBATION PERIOD FOR NEWLY APPOINTED JUDGES BUT, IN PRACTICE, THERE IS NO SUPERVISION BY SENIOR JUDGES 20 | GOLD | The Business Magazine of Cyprus

THE VIEW OF THE MINISTER OF JUSTICE & PUBLIC ORDER One of the main issues with the justice system in Cyprus concerns delays in taking cases and appeals to court. What, in your view, is the main cause of these delays? he quality of the administration of justice is still of a high standard, a fact that receives public acknowledgment and appreciation. Nevertheless, there are delays in the conclusion of civil cases. One principal cause, which has hampered the effectiveness of measures taken to overcome the delays, is the great increase in the workload of the courts, due to the financial crisis in recent years.

The task of monitoring the administration of justice is an ongoing process. In close collaboration with the Judiciary and within the Ministryâ&#x20AC;&#x2122;s competence, legislative and administrative measures are taken, as needed, for facilitating the unhampered functioning of the system.

It has to be noted that, before the financial crisis (until 2009), efforts to contain the backlog of cases had resulted in a marked decrease in the number of cases pending at the end of each year.

IONAS NICOLAOU

T

What can be done to speed up the justice system in Cyprus? he close cooperation between the Ministry of Justice &Public Order and the Supreme Court has, in recent years, been reinforced by frequent meetings and contacts, where a wide range of issues related to the operation of the courts are discussed, agreed and followed up. Some of the measures taken since 2013 to this end are the following:

T

â&#x20AC;˘ A significant strengthening of the District Courts in judicial personnel, which was increased in total by 15 www.goldnews.com.cy | GOLD | 21

| COVER STORY |

judges, either through securing exemptions of vacant judicial posts from the general freezing of posts in the public sector and filling thereof, or through the creation of new posts to meet the increased needs due to the financial crisis. (It should be noted that the judicial posts in the newly established Administrative Court are not included in the above mentioned 15 posts.

• Amendments to the Courts of Justice Law for restructuring the civil jurisdiction of District Courts at the levels of District Judge and Senior District Judge, so that management of judicial time is better served.

• A bill amending the Courts of Justice Law by filtering the right of filing an appeal in civil cases, as regards interlocutory decisions during the proceedings, is already before the House of Representatives and under examination by the Legal Committee.

• Regulation of a procedural issue in the laws on the Resolution of Credit Institutions, so as to avoid the filing of a great number of (standardized) applications for amending pending court actions in which a credit institution under resolution was a litigant, that would unnecessarily burden the Courts, the litigants and the credit institutions.

• Provisions in the Limitation of Actions Law, initially transitional and subsequently final, securing the smooth return of the administration of justice system under limitation of actions status after 53 years of suspension of limitation.

• Amendments to the Criminal Procedure Law as regards minor cases, aiming at expediting the procedure before and after filing of charges in Court and also for better serving court schedule management and programming, as well as citizens.

• Also, in the Criminal Procedure Law, amendments regulating substituted

service of criminal summons when the accused evades service and continuation of the process.

• Amendments to Article 111 of the Constitution for abolishing the three-judges composition of family courts when trying divorce cases, whereby substantial judicial personnel and time will be freed. This bill, together with a corresponding bill amending the Family Courts Law, is pending before the House of Representatives.

• The setting up of the Administrative Court, which has operated since January 2016. The Administrative Court has taken on board all first instance administrative recourses, thus discharging the Supreme Court of this task and enabling it to carry out its second instance jurisdiction (appeals) more expeditiously. It is expected that this will contribute to a faster administration of justice in secondary jurisdiction in all categories of cases. In cases of recourses concerning tax matters and international protection procedures, the Administrative Court shall examine not only the legality but also the correctness of the decision and may modify the decision. Decisions of the Administrative Court are subject to appeal before the Supreme Court for any reason concerning only a legal point.

• The successful use of automatic stenotyping was extended so as to cover not only criminal cases in the Assize Courts but also civil cases in District Courts with many witnesses of long depositions, with the result that cases are dealt with more expeditiously. The number of stenotypists and equipment will be further increased shorty, so as to cover as many court hearings as possible.

• Amendments to the Civil Procedure Rules (effected by the Supreme Court) vested the courts with substantial pow-

ers for better and stricter monitoring of the process of proceedings, aiming at shortening the time needed for conclusion of a case and avoiding delays.

• By other amendments to the Civil Procedure Rules, a simpler and faster procedure has been regulated as regards civil cases, the subject matter whereof is up to €3,000.

What are the necessary competences and skills required for the appointment of a judge? o qualify for appointment as a District Judge, the first level in the hierarchy of trial courts, one must be a registered advocate with six years of experience in the legal profession and of a high moral standard.

In order to be appointed as a Senior District Judge or a President of a District Court, one must have been a qualified practising lawyer for at least ten years and of a high moral standard.

The criteria for appointment to the Bench are professional proficiency and high moral standards.

T

Judges have to deal with cases in certain areas of the law in which they are not fully specialised. Do you believe it would be more efficient to appoint specialised judges in certain cases? e would definitely be more effective if we had fully specialized judges for certain cases. However, I would point out that, apart from the District Courts (civil and criminal cases of first instance), the Assize Court (criminal cases) and the Supreme Court (appeals), there are the following special Courts where the judges deal only with the cases pending in these Courts: the newly established Administrative Court, the Family Court, the Rent Control Court, the Industrial Dispute Court

W

DELAYS IN DIVORCE PROCEEDINGS HAVE PROVED TO ADVERSELY AFFECT WOMEN AND CHILDREN 22 | GOLD | The Business Magazine of Cyprus

THE MINISTRY HAS PREPARED A BILL AMENDING THE CIVIL PROCEDURE LAW, SO AS TO STRENGTHEN THE LEGAL FRAMEWORK FOR THE ENFORCEMENT OF JUDGMENTS and the Military Court. In addition, at the moment we are working on the promotion of the establishment of a Commercial Court.

Do you believe there is a need for a training centre, which will provide training courses/sessions specifically designed for judges prior to being appointed? he executive provides financial support to the recently established Training Department within the Supreme Court, which aims at the best training of judges prior to and after being appointed.

T

In the UK Magistrates’ court, people from different professional backgrounds judge minor offences, which reduces the overload of higher level courts. Do you believe the justice system in Cyprus would benefit if similar courts were to be set up? aw 159(I)/2012, which provides for certain aspects of mediation in civil matters, was enacted in 2012 in order to harmonize domestic law with Directive 2008/52/ EC on certain aspects of mediation in civil and commercial matters. The law is not limited to cross-border disputes, as is the Directive, but has been extended to cover domestic civil and commercial disputes.

According to its provisions, the parties choose a mediator, the procedure prescribed under the Law is informal and the parties agree, in consultation with the mediator, on how to conduct the procedure, its duration, the obligation of confidentiality of the process, the remuneration of the mediator and the terms of payment and any other matter deemed necessary. The parties may apply to the Court to declare the agreement reached as enforceable.

L

Also, any of the two parties may terminate the mediation process at any time.

The Ministry of Justice and Public Order has also set up the Special Register of Mediators, enabling the application of the Law on Mediation in Civil and Commercial cases.

In the World Bank’s Doing Business Report 2017, Cyprus is ranked 139th out of 190 countries in the “Enforcing Contracts” category.

Moreover, the average time for trial and judgment is 900 days, according to the same report. What, in your view, should be done to improve this truly awful ranking? he Ministry of Justice and Public Order has prepared a bill amending the Civil Procedure Law, so as to strengthen the legal framework for the enforcement of judgments. The provisions of the bill include measures which facilitate the execution of writs concerning the seizure of movable property. This bill is under legal vetting by the Legal Service of the Republic. The provisions of the bill include additional powers for bailiffs (enforcement agents) with the aim of effectively tracing property belonging to the debtor and which can be allocated for execution (for the purpose of enforcement of seizure and sale of movable property, the enforcement agents will have access to government departments and services in order to be informed in relation to any entry/information in the registers kept by these departments and agencies concerning the debtor), the establishment of a criminal offence in cases of movable property which belongs to the debtor and is found and marked by the enforcement agent, the deletion of unnecessary interim applications by the creditor, the shifting of the burden of proof onto the debtor, in case he claims that he has no

T

bank account, with the creation of an obligation to submit relevant certificates, and finally the ability of the creditor to have access to information relating to the debtor.

Divorces have been in the increase in recent years. What can be done in order to improve procedures in family courts in order to ensure the well being of children in these cases? he reform of the family law in order to bring it in line with all UN and European binding legal instruments and guidelines has been among the priorities of the Ministry of Justice and, to this end, it was decided in 2015 to establish (a) an expert group composed of judges, lawyers and the Commissioner for the Protection of Children’s Rights and (b) a group of academics. The two groups submitted their proposals, which were elaborated on and consolidated, taking on board all the recommendations of the Commissioner for the Protection of Children’s Rights, thus setting the child’s best interest as a primary consideration. In February 2017, the consolidated document was disseminated electronically for public consultation.

Following consultation, the Ministry will proceed to promote the necessary amendments to existing family law.

Furthermore, a bill entitled “The Thirteenth Amendment of the Constitution Law of 2015” has been submitted to the House of Representatives. This will enable family courts to sit with a single judge in divorce cases. This measure is expected to significantly accelerate the judicial proceedings, for the benefit of everybody involved, as delays in such proceedings have proved to adversely affect women and children.

T

www.goldnews.com.cy | GOLD | 23

| COVER STORY |

THE VIEW OF THE ATTORNEY GENERAL COSTAS CLERIDES

One of the main issues with the justice system in Cyprus concerns delays in taking cases and appeals to court.

What, in your view, is the main cause of these delays? t is an undisputed fact that the quality of justice in Cyprus is very high and that the main negative issue in this area concerns delays, in the sense that the total period of time between the filing of a case in Court and the issuing of a judgment is unduly long. This is especially so, with regard to civil cases as opposed to criminal cases, where the total length of trial for the latter falls within acceptable limits. The problem of delays exists both in the District courts as well as in the Supreme Court, in the exercise of its appellate jurisdiction. The main causes of delays are:

I

• The large number of cases filed, in conjunction with the inadequate number of judges dealing with them.

• The anachronistic rules of procedure, which do not provide support to the judge in effecting proper case management.

• The frequent applications for adjournments by lawyers.

• The absence of adequate automation and computerisation of court proceedings and business.

What can be done to speed up the justice system in Cyprus? he whole system of administering justice is in urgent need of radical reform and

T

ANY SYSTEM BY WHICH THERE WOULD BE A SPEEDY AND LESS COSTLY TRIAL OF SMALL CLAIMS WOULD BE VERY BENEFICIAL 24 | GOLD | The Business Magazine of Cyprus

MODERNISING THE CIVIL PROCEDURE RULES IS UNDOUBTEDLY A MUST modernisation. A new set of civil and criminal procedure rules must be enacted, the provisions of which should be strictly observed and should set strict time limits, which will result in having the trial of any case completed within a reasonable time.

Furthermore, new technologies and the computerization of all the court’s workload must be employed so as to speed up all internal administrative procedures. A reasonable number of new judges, stenographers and administrative staff must also be employed, so as to cope with the increasing number of cases filed every year.

Lawyers emphasise the need for the modernising or changing the civil procedures by the Supreme Court.

Do you agree with this? s I have already stated, modernising the civil procedure rules is undoubtedly a must.

I am aware of the fact that several attempts have been made by the Supreme Court in recent years, with the aim of effecting changes to these rules which, unfortunately, have failed for many reasons. In order to achieve a new, well-balanced set of civil procedure rules, there must be a close cooperation between judges and the members of the bar and the attitude of looking at things only from one’s own angle and needs must be avoided.

A

Will the establishment of the Administrative Court have the desired effect of reducing the workload of the Supreme Court? he new Administrative Court has been in force for more than a year now and its jurisdiction is to deal with all the recourses against acts or omissions of administrative bodies.

T

Before 2016, this task fell within the exclusive jurisdiction of the Supreme Court and it may not be an exaggeration to say that it amounted to around 40% of its overall workload. Hence, the transfer of this jurisdiction to the new Administrative Court must have had a substantial effect in reducing the congestion of cases and, of course, delays in the Supreme Court.

It is relatively cheap to litigate in Cyprus, due to low court fees, which leads to an overload of cases that have to be dealt by the courts. Do you believe there needs to be a change to court fees? he level of court fees is only one aspect of calculating how expensive litigation is. The other important aspect is legal fees, which must be paid for a proper legal representation before the court. And the latter costs cannot be said to be at a low level.

In any event, court fees should never be increased to such a level that might be considered as hindering the basic human right to access to any court of justice.

T

In the UK Magistrates’ court, people from different professional backgrounds judge minor offences, which reduces the overload of higher level courts. Do you believe the justice system in Cyprus would benefit if similar courts were to be set up? ny system by which there would be a speedy and less costly trial of small claims would be very beneficial and would contribute to a decrease in delays and congestion in the courts. More relaxed procedures, restrictions to oral hearings of witnesses and to the right of appeal should be employed in courts of this type.

A

A serious issue is that of reserved judgment, which allows judges to take a long time to reach a verdict. Should there be more emphasis on the balance of probabilities in civil cases? he type of standard of proof employed in civil cases, which is indeed that of the balance of probabilities, has nothing to do with any delays in issuing reserved judgments.

Whether this type of standard is used, or the standard of proof beyond any reasonable ground, which is employed in criminal cases, there must be a fully reasoned judgment prepared by the judge and the time required to do this will depend on the complexity of every case and on the other commitments of the trial judge.

T

According to the World Bank’s Doing Business report for 2017, Cyprus’ rating is very low (1.0/ 0-4.0) in court automation. Do you believe that new systems need to be put in place in courts to improve efficiency, such as the introduction of automatic audio? s I have already indicated, in dealing with matters of delay, the automation and computerisation of court business will, undoubtedly, contribute greatly towards reducing delays, avoiding errors and increasing efficiency.

A

The average time for trial and judgment is 900 days, according to the 2017 Doing Business report. What, in your view, should be done to improve the waiting period for trial and judgment? nevitably, this question can be answered in the same way as the previous questions which attempted to find reasons for the delays in court proceedings and to suggest ways to overcome this situation.

I

www.goldnews.com.cy | GOLD | 25

| COVER STORY |

THE VIEW OF THE PRESIDENT, CYPRUS BAR ASSOCIATION DOROS IOANNIDES

One of the main issues with the justice system in Cyprus concerns delays in taking cases and appeals to court. What, in your view, is the main cause of these delays? ne of the aims of the Council of the Cyprus Bar Association is “to protect the public right of access to the courts”. Indeed, delays do not advance the institution of justice. The problem is not exclusive to Cyprus but affects other European countries too.

Delays are caused by a number of factors such as the civil procedures rules, the number of staff in district courts, the lack of modern technology, hardware and specialized systems, training, etc.

O

What can be done to speed up the justice system in Cyprus? ver the past decade, the CBA has many times proposed the following steps: • Modernisation of the criminal and civil procedural rules has to be implemented immediately in order to make the justice system efficient and quick. Although the Supreme Court has amended two of the rules we have asked it to modernize all of them. We believe that this will drastically improve the justice system and make it more efficient.

• Stenotype is key in ensuring the speed and effectiveness in the administration of justice and it will constitute the introduction of modern technology to the courts.

• e- justice. We must review the

O

FOR ALL ITS PROBLEMS, PEOPLE STILL BELIEVE IN OUR JUSTICE SYSTEM AND WE SHOULD NOT FORGET THIS 26 | GOLD | The Business Magazine of Cyprus

I HAVE ALWAYS BELIEVED IN CONTINUOUS TRAINING FOR LEGAL PROFESSIONALS AND JUDGES existing IT systems and replace them so that all documents can be submitted to the courts electronically, as in other EU countries like Malta, Austria and Estonia. We are in discussions with the Government in order to provide our know-how regarding the electronic filing of legislation and court cases.

All of the above have been included in the strategy of the Ministry of Justice and we are working together closely to deal with all matters concerning justice. We belong to a special committee of members/judges of the Supreme Court and experts from Ireland that is preparing a report on the problems facing the justice system, which will suggest steps to be taken in order to improve it. Our membership of the Council of European Bar Associations helps us get all the information needed for our members to improve their services.

Will the establishment of the Administrative Court have the desired effect of reducing the workload of the Supreme Court? or decades now, the CBA and I personally have been supporting and suggesting the establishment of the Administrative Court and we are optimistic that it will result in the fast and correct administration of justice. It has definitely decongested the Supreme Court, which was faced with a large volume of cases. Since January 2016, 510 cases have been concluded before the court.

F

It is relatively cheap to litigate in Cyprus, due to low court fees, which leads to an overload of cases that have to be dealt by the courts. Do you believe there needs to be a change to court fees? es it is cheap, if you compare court/ legal fees in Cyprus with those of other member states. We have not

Y

raised the issue of court and legal fees since 2006 but we are now thinking of reviewing them. The CBA is also promoting new methods of dispute resolution such as mediation in civil and commercial matters, and we provide accredited courses on mediation and methods that have already been successfully adopted by other countries.

Judges have to deal with cases in certain areas of the law in which they are not fully specialised. Do you believe it would be more efficient to appoint specialised judges in certain cases? es. In addition, we should not forget that Cyprus is a country that provides services and thus the establishment of a Commercial Court will help and give verdicts faster and this will be extremely beneficial to the services sector. A study is currently being conducted by the Ministry of Justice and the Supreme Court and the objective is to finalize it by the end of 2017.

Y

Do you believe there is a need for a training centre, which will provide training courses/sessions specifically designed for judges prior to being appointed? es, we do. If you read the report prepared by the Supreme Court in 2016 on the operational needs of the courts and other related issues, you will see that the continuous training of judges is not only considered part of the EU acquis but is a matter of utmost importance for the professional development of human resources in the administration of justice. I have always believed in continuous training for legal professionals and judges. In the legislation being prepared by the Cyprus

Y

Bar Association, we are proposing compulsory continuous training for our members. Some 18 European countries have already implemented compulsory continuous training.

Our EU membership requires continuous training and demands a high level of knowledge, in order to be able to provide our services within Cyprus and abroad.

According to the World Bank’s Doing Business report for 2017, Cyprus’ rating is very low (1.0/ 0-4.0) in court automation. Do you believe that new systems need to be put in place in courts to improve efficiency, such as the introduction of automatic audio? s I have already mentioned above, in order to improve efficiency we should replace all the existing systems with modern ones which can accommodate the courts’ needs.

A

The average time for trial and judgment is 900 days according to the Doing Business report. What should be done in your view to improve the waiting period for trial and judgment? lot can be done to improve the waiting period for trial.

The present procedure is time-consuming and sometimes “painful” and everyone wishes it was faster but, at the same time, we all demand correct and fair decisions.

I would like to note that, for all its problems, people still believe in our justice system and we should not forget this. I am optimistic and I believe that, if we adopt new methods and procedures, we will become more efficient.

A

www.goldnews.com.cy | GOLD | 27

| COVER STORY |

L

THE SUPREME COURT’S VIEW

ast year, the Supreme Court appointed a Committee comprising three of its members - Judges George Erotocritou (Committee Chairman), Despo Michaelidou and Antonis Liatsos - to draft a report on the operational needs of the courts.

The President of the Supreme Court, Myron M. Nicolatos, notes that “Justice in Cyprus is independent and impartial. We are proud because Justice has not been associated with any corruption scandal.” However, he goes on to acknowledge that “There are problems regarding the speed with which justice is administered. Our first priority is to accelerate the administration of justice, without degrading its high quality.”

Judge Nicolatos declined to be interviewed by GOLD but provided the report, in which various solutions are proposed to the numerous problems that others have identified. The main ones are as follows:

1.

COURT BUDGET INCREASE: The funds required to meet the Courts’ needs should be granted. A percentage of the Gross National Product (GNP) approaching that of other European countries (on average about 0.3%) should be allocated.

2.

INDEPENDENCE OF JUDGES AND REMUNERATION: To maintain the independence of judges and the high quality of the administration of justice, the salaries and benefits of judges, particularly new entrants, must be ensured so that the judicial service can attract and appoint the most able lawyers.

3.

SIGNIFICANT INCREASE IN THE NUMBER OF JUDGES: The number of judges should be eventually increased to the average of other EU Member States, i.e., there should be at least 20 judges per 100,000 inhabitants.

4.

REDUCTIONS TO DELAYS: Currently, both the constitutional provisions and those of the EU Charter and the European Convention for the Protection of Human Rights for the diagnosing of civil rights of every citizen or any criminal charge against him “within reasonable time” are largely not met, particularly in proceedings before the Supreme Court. Hence, the entire court system

28 | GOLD | The Business Magazine of Cyprus

must be modernized, to reduce delays to the shortest possible. The aim is to have civil cases in the courts for no more than two years and criminal cases for no more than one year.

5.

RESTRUCTURING OF SUPREME COURT OPERATIONS: The restructuring could start with the establishment of a special Committee of Experts.

However, the establishment of the Second-tier Court of Appeal and the other proposals expressed in the relevant sections, such as the establishment of Divisions, reducing the number of appeals, creating speedy appeal trials, creating new adminis-

trative structures, and the transfer of Admiralty Court cases to the District Courts must be examined immediately. These measures will contribute directly to the release of Supreme Court judges from spending too much of their time on administrative and managerial issues to the detriment of their judicial duties.

6.

RESTRUCTURING DISTRICT AND OTHER COURT OPERATIONS: As with the Supreme Court, a special Committee of Experts should be appointed to examine any operational problems. Until this particular recommendation is implemented,

both the number of judges and staff should be increased immediately, the application of the interchangeability principle to the Courts should be put on hold, and a Commercial Court should be established to accelerate the trial of cases that have a commercial or economic structure.

7.

SIMPLIFICATION OF PROCEDURES AND OTHER COURT PROCESSES: Expert committees must be established which, after exploring each and every court procedure, especially the Civil and Criminal Procedure Rules, will propose solutions to modernize the whole system. In this respect, technical assistance can be re-

quested from the EU, the Troika, and the IMF.

ute to improving the speed and quality of the administration of justice.

8.

IMPROVEMENTS TO BUILDING FACILITIES: All districts require the expansion or improvement of their building facilities. It is important to speed up procedures for the construction of the new building of the Nicosia District Court. At the same time, the expansion of all other District Court buildings must be scheduled.

10.

TRAINING OF HUMAN RESOURCES: Judges, Legal Officers, Registrars and other court personnel should receive continuous and targeted training to ensure the quality of justice. To meet this obligation, there is an urgent need to establish and operate a Training Division as soon as possible.

9.

11.

INTRODUCTION OF MODERN TECHNOLOGIES: The introduction of e-Justice, stenotyping, recording procedures, etc., will contrib-

OTHER ISSUES: Corrections to the constitutional distortion created by the provisions of the State Protocol, which requires revision.

CIPA’S VIEW C hristos Mavrellis, Partner, Company & Commercial Department, Chrysses Demetriades & Co LLC, is Chairman of the Institutional Framework Committee of the Cyprus Investment Promotion Agency (CIPA).

Here he suggests ways of dealing with two major problems.

In the World Bank’s Doing Business Report 2017, Cyprus is ranked 139th out of 190 countries in the “Enforcing Contracts” category. What are your recommendations for improving this truly awful ranking and thus making Cyprus more competitive on legal matters and more attractive to foreign investors? here is no doubt that delays in the administration of justice are a handicap in our country’s efforts to attract foreign investment and, in particular, to attract international entrepreneurs to use Cyprus as their jurisdiction of choice for the structure of their international activities. It is suggested that special commercial courts be established and judges be appointed and sent abroad for special education/training

T

so as to acquire the necessary expertise to deal with today’s sophisticated international transactions and, consequently, complicated commercial disputes.

The average time for trial and judgment is 900 days according to the World Bank Doing Business Report 2017. What, in your view, can be done to improve this waiting period? he introduction of a mandatory mediation process for commercial disputes where the subject matter is in excess of certain value, without an obligatory outcome, should be considered.

Some methods of screening of unfounded claims, the objective of which is nothing more than to gain time to pay and to abuse the process of the court could also assist. One possible way of keeping such cases away from the court would be to treat unpaid invoices or unpaid rents and similar claims, confirmed by the claimant on oath, as judgements with the ability of being executed as such unless the obligor is given, through a simple process, leave to defend.

T

A MANDATORY MEDIATION PROCESS SHOULD BE CONSIDERED www.goldnews.com.cy | GOLD | 29

8,) 1%67,%00 -70%2(7 Corporate Registry Experience you can trust. Quality service you expect.

Republic of the Marshall Islands The Republic of the Marshall Islands (RMI) is situated nearly midway between Hawaii and the Philippines, and is the easternmost island group in Micronesia. The country consists of two TEVEPPIP GLEMRW SJ EXSPPW ERH MWPERHW MR XLI GIRXVEP 4EGM½G 3GIER ORS[R EW XLI 6EXEO 7YRVMWI GLEMR ERH 6EPMO 7YRWIX GLEMR 8SKIXLIV XLI 61- MW GSQTVMWIH SJ ETTVS\MQEXIP] MWPERHW ERH MWPIXW [LMGL WTVIEH EGVSWW E WIE EVIE SJ SZIV QMPPMSR WUYEVI OMPSQIXIVW &VMXMWL 2EZEP 'ETXEMR .SLR ;MPPMEQ 1EVWLEPP KEZI LMW REQI XS XLI EVIE MR XLI W ,S[IZIV the islands have been under the control of various nations throughout the last few centuries.

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8LI 61- +SZIVRQIRX [EW SJ½GMEPP] IWXEFPMWLIH MR [MXL XLI WMKRMRK SJ XLI 'SRWXMXYXMSR which represents a blend of American and British models of government. The RMI gained its MRHITIRHIRGI MR EJXIV WMKRMRK XLI 'SQTEGX SJ *VII %WWSGMEXMSR [MXL XLI 97 IRHMRK XLI 92 97 8VYWXIIWLMT %KVIIQIRX ERH IWXEFPMWLMRK XLI REXMSREP GLEVXIV SJ MRHITIRHIRGI SJ XLI island nation. The RMI maintains a politically stable, democratically elected parliamentary system SJ KSZIVRQIRX GSRWMWXMRK SJ X[S PIKMWPEXMZI GLEQFIVW [LMGL IPIGX XLI 4VIWMHIRX JVSQ EQSRK XLIMV QIQFIVW JSV E JSYV ]IEV XIVQ -R XYVR XLI 4VIWMHIRX ETTSMRXW E 'EFMRIX SJ QIQFIVW ERH WIVZIW FSXL EW GLMIJ SJ 7XEXI ERH LIEH SJ +SZIVRQIRX 8LI 61- FIGEQI E JYPP QIQFIV SJ XLI 92 MR ERH LEW WMRGI IWXEFPMWLIH HMTPSQEXMG VIPEXMSRW [MXL QSWX SJ XLI [SVPH´W QENSV maritime and industrial nations.

A Premier Quality Registry -RXIVREXMSREP 6IKMWXVMIW -RG ERH MXW EJ½PMEXIW -6- TVSZMHI EHQMRMWXVEXMZI ERH XIGLRMGEP WYTTSVX to the RMI Maritime and Corporate Registries. IRI has been administering maritime and corporate TVSKVEQW ERH FIIR MRZSPZIH MR ¾EK 7XEXI EHQMRMWXVEXMSR WMRGI 8LI 61- 6IKMWXV] MW JYPP] GSQQMXXIH XS XLI WEJIX] ERH WIGYVMX] SJ TIVWSRRIP EWLSVI ERH E¾SEX XLI 61- 6IKMWXV]´W ZIWWIPW ERH XLI QEVMRI IRZMVSRQIRX -6- LEW ER I\GIPPIRX VITYXEXMSR [MXLMR XLI MRXIVREXMSREP FYWMRIWW community and will continue to be at the forefront of vessel and corporate registration.

-6- MW XLI [SVPH´W QSWX I\TIVMIRGIH TVMZEXIP] LIPH QEVMXMQI ERH GSVTSVEXI VIKMWXV] WIVZMGI TVSZMHIV WTIGMEPM^MRK MR XLI RIIHW SJ XLI WLMTTMRK ERH ½RERGMEP WIVZMGIW MRHYWXVMIW EGVSWW E FVSEH GSQQIVGMEP Â&#x2C6; .SMRX :IRXYVIW ERH IGSRSQMG WTIGXVYQ ,IEHUYEVXIVIH NYWX SYXWMHI SJ ;EWLMRKXSR (' MR 6IWXSR :MVKMRME 97% 64 | GOLD | The Business Magazine of Cyprus-6- STIVEXIW SJ½GIW MR QENSV WLMTTMRK ERH ½RERGMEP GIRXIVW EVSYRH XLI [SVPH

Business Entities and the Law Regardless of the circumstances surrounding the creation of a business IRXMX] XLI YWYEP KSEP MW XS QE\MQM^I TVS½XEFMPMX] [LMPI QMRMQM^MRK XLI VMWO SJ I\TSWMRK MXW FIRI½GMEP S[RIVW XS TIVWSREP PMEFMPMX] *SV XLMW VIEWSR XLI GSVTSVEXI PE[ SJ E NYVMWHMGXMSR XEOIW SR TEVEQSYRX MQTSVXERGI *MVWX IREGXIH MR XLI 61- %WWSGMEXMSRW 0E[ MW SRI SJ XLI QSWX QSHIVR WIXW SJ WXEXYXIW MR XLI [SVPH 8LI 61- %WWSGMEXMSRW 0E[ GSRXEMRW XLI &YWMRIWW 'SVTSVEXMSRW %GX &'% 6IZMWIH 4EVXRIVWLMT %GX 0MQMXIH 4EVXRIVWLMT

04 %GX ERH 0MQMXIH 0MEFMPMX] 'SQTER] 00' %GX Publicly Traded Companies 2YQIVSYW 61- IRXMXMIW LEZI I\TIVMIRGIH QYGL WYGGIWW XVEHMRK TYFPMGP] SR I\GLERKIW [SVPH[MHI MRGPYHMRK XLSWI MR 2I[ =SVO ERH 0SRHSR 8LIWI publicly traded entities demonstrate the level of success possible in an SJJWLSVI NYVMWHMGXMSR ERH IRLERGI XLI EPVIEH] SYXWXERHMRK VITYXEXMSR SJ XLI RMI Maritime and Corporate Registries. To ensure that an entity can obtain YRHIV[VMXIVW XS TVMGI ERH QEVOIX MXW WXSGO SJJIVMRK E TVEGXMXMSRIV QYWX GLSSWI ER SJJWLSVI NYVMWHMGXMSR XLEX TEWWIW XLI WXVMGX WGVYXMR] SJ QENSV MRZIWXQIRX FEROW ERH I\GLERKIW [SVPH[MHI 7SYRH GSVTSVEXI PIKMWPEXMSR XLI TSPMXMGEP WXEFMPMX] SJ E NYVMWHMGXMSR ER IEW] ERH ¾I\MFPI JSVQEXMSR TSPMG] ERH WYFWXERXMEP I\TIVMIRGI MR EHQMRMWXIVMRK GSVTSVEXI TVSKVEQW EVI XLI OI] GVMXIVME MR XLMW VIWTIGX 8LI 61- 'SVTSVEXI 6IKMWXV] MW VIGSKRM^IH [SVPH[MHI F] PE[ ½VQW GSQTER] JSVQEXMSR WTIGMEPMWXW ERH FYWMRIWW TVSJIWWMSREPW MR QENSV ½RERGMEP GIRXIVW JSV MXW QSHIVR ERH ¾I\MFPI PIKMWPEXMSR IEWI SJ JSVQEXMSR ERH LMKL PIZIP of customer service.

INTERNATIONAL BUSINESS CORPORATION (IBC) GENERAL INFORMATION Type of Entity

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FILING REQUIREMENTS Annual Return

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File Audited Accounts

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building a

GLOBAL PRESENCE

Assistance As a corporate service company, IRI cannot give legal advice. IRI can, however, provide information and guidance on forming business entities; TVITEVMRK EQIRHQIRXW HMWWSPYXMSRW ERH SXLIV ½PMRKW ERH UYIWXMSRW VIKEVHMRK XLI 61- %WWSGMEXMSRW 0E[ Corporate Services -6-´W SJ½GIW EPP LEZI XLI EFMPMX] XS MRGSVTSVEXI E GSQTER] VIKMWXIV E ZIWWIP SV ]EGLX MRGPYHMRK XLSWI YRHIV GSRWXVYGXMSR VIGSVH E QSVXKEKI SV ½RERGMRK charter, and service clientele. The RMI Corporate Registry is recognized [SVPH[MHI F] PE[ ½VQW GSQTER] JSVQEXMSR WTIGMEPMWXW ERH FYWMRIWW TVSJIWWMSREPW MR QENSV ½RERGMEP GIRXIVW JSV MXW QSHIVR ERH ¾I\MFPI PIKMWPEXMSR ease of formation, and high level of customer service.

IRI Hellas Ltd. MR EJ½PMEXMSR [MXL XLI 1EVWLEPP -WPERHW 1EVMXMQI 'SVTSVEXI %HQMRMWXVEXSVW

tel: +30 210 4294 404 www.goldnews.com.cy | GOLD | 65 piraeus@register-iri.com | www.register-iri.com

| INVESTMENT |

UNPREDICTABLE TA E R

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;OL KPMÄJ\S[` VM HU[PJPWH[PUN [OL PTWHJ[ VM \UL_WLJ[LK WVSP[PJHS L]LU[Z VU ÄUHUJPHS THYRL[Z JANUARY’S 2ND WEALTH MANAGEMENT FORUM, ORGANISED BY BANK OF CYPRUS INTERNATIONAL BANKING, WEALTH & MARKETS, FOCUSED ON THE OUTLOOK FOR GLOBAL MARKETS IN 2017. ONE OF THE SPEAKERS WAS JOHN BOTHAM, PRODUCT DIRECTOR, GLOBAL EQUITIES AT INVESCO, WHO LATER SPOKE EXCLUSIVELY TO GOLD. BY JOHN VICKERS 32 | GOLD | The Business Magazine of Cyprus

Y

ou began your presentation in Nicosia by recapping what Invesco had predicted for 2016.

How accurate were you?

John Botham: I think I would give us 7 out of 10. We did correctly anticipate a recovery in commod-

ity prices and positive returns for equities, as well as not fretting too much about rising US interest rates.

However, we did not expect the surprise outcome of Brexit or the US election success of Donald Trump.

Gold: You naturally manage investments across a broad range of asset classes, but how difficult is it to succeed in what is now a global investment sector?

J.B.: Whilst it can be challenging at times, we believe that fund

managers who are active, high-conviction investors, with an unconstrained investment approach, have the best opportunity of achieving outperformance for clients.

Gold: When you look at events such as Donald Trump becoming US President, the UK starting the process to leave the EU, tensions with Russia, etc., do you feel that this year is going to be out of the ordinary or does every year begin with a similar set of unknowns?

J.B.: There are always unknowns and this year is no different. However, what makes 2017 and last year different is that many key events are political in nature and have outcomes whose impact on the financial markets are very difficult to predict. If I had told you this time last year that the UK would leave the EU, Mr Trump would succeed in the polls and the Italians would vote ‘No’ in their constitutional referendum, would you have expected the markets to be up? I suspect not!

Gold: So is it going to be a good year as far as investors are concerned?

J.B.: We think that, whilst overall equity indices may not move upward significantly, that may mask some significant rotation of investor preferences. We continue to believe that financials and energy stocks look good value, relative to historic levels and the broader market.

Gold: We are used to hearing predictions about the collapse of the euro and the break-up of the eurozone and they have become even more frequent following the results of the referendums in the UK and Italy.

What’s your view of the bloc and the single currency?

J.B.: There clearly remain tensions and stress points, both economically and politically. Over the long term, we see the need for greater fiscal integration to shore up confidence in the system.

Also, a more balanced distribution of

economic growth between Germany and southern Europe would be welcome.

Nevertheless, assuming there are no major electoral shocks in the Netherlands, France or Germany this year, we believe that commitment to the euro is undiminished and, hence, its continuation is assured.

Gold: How do you expect Brexit to affect your work (if at all)?

J.B.: We only see an impact in terms of how the negotiations may impact economic growth, interest and exchange rates and, in turn, what effect this will have on earnings estimates and valuations for the companies we invest in. Additionally, we will watch for any regulatory changes which may help or hinder companies or sectors we are invested in. Operationally, we see no change in the way we work and invest.

Gold: Have you had any indications from your UK clients that they may decide to move to a European destination?

J.B.: At this time, we have had no indications from clients, or companies we invest in, that they are moving to European destinations. Nevertheless, for those companies that do not already have European subsidiaries, some are clearly making contingency plans in case of a bad outcome to the UK’s exit negotiations.

WE BELIEVE THAT COMMITMENT TO THE EURO IS UNDIMINISHED AND, HENCE, ITS CONTINUATION IS ASSURED

Gold: Are you expecting major economic developments as a result of President Trump’s stated intentions regarding Russia and China/Taiwan?

J.B.: It is too soon to tell. Clearly, so far the market seems to want to price-in the positive parts of Trump’s agenda around deregulation and fiscal stimulus, and ignore other aspects around protectionism and immigration. We see upcoming US tax reform efforts (in particular, if the proposed Border Adjustment Tax is implemented) as crystallising some of the issues around trade, which may prompt some reaction from large global trading partners, such as China, Germany and Japan.

Gold: What do you expect from the US and Europe regarding interest rates?

Are they going to rise together or do you expect very different scenarios?

J.B.: We would expect further US interest rate rises in 2017 in response to increasing inflation, whilst in Europe we would expect the ECB to maintain its base rates at current levels. We do, however, expect long-term interest rates in Europe to begin to rise in response to a slightly more positive outlook for economic growth and inflation in 2017.

Gold: In recent years, many investors have been happy to maintain their wealth, rather than having ambitions of growing it. Is 2017 going to be more of the same in this regard?

J.B.: Economic growth around the world is modest and inflation is low. Investors must not be greedy. In this environment, a mid-single digit return from global equities on a 3–5 year view would not be a bad result.

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www.goldnews.com.cy | GOLD | 33

| WOMEN |

ACCORDING TO THE UN, THE WORLD IS GRADUALLY MAKING PROGRESS TOWARDS GENDER EQUALITY BUT WOMEN AND GIRLS CONTINUE TO SUFFER DISCRIMINATION IN EVERY PART OF THE WORLD. WOMEN MAKE UP MORE THAN HALF THE POPULATION OF THE WORLD YET HAVE LONG BEEN OVERLOOKED AS A VITAL TALENT RESOURCE THAT CONTRIBUTES TO ECONOMIC GROWTH AND PROSPERITY. ANDREAS AVRAAMIDES, A MEMBER OF THE BOARD AND TALENT LEADER AT EY CYPRUS TELLS GOLD HOW AND WHY HIS FIRM BELIEVES SO STRONGLY IN RECRUITING, RETAINING AND ADVANCING WOMEN. By Voula Loizou Gold: In your opinion, why is equality in the workplace important, both for employees and employers?

Andreas Avraamides: According to the World Economic Forum’s Global Gender Gap Report 2016, It is now estimated that it will take until 2186 for women to achieve gender parity in the workplace – 169 years from now! It is, in fact, a notable step back from last year’s projection 34 | GOLD | The Business Magazine of Cyprus

of 117 years. Either way, this is too long!

Gender parity is a priority for us at EY and an economic imperative for our clients and our people, as we firmly believe that women’s advancement and leadership are central to business performance and economic prosperity. Indisputable data shows that profitability, ROI and innovation all increase when women are counted among senior leadership. Actu-

ally, recent EY studies show that companies which are composed of at least 30% female leaders are more successful at achieving their organisation’s goals.

Despite evidence that companies with women directors have better business outcomes, women remain under-represented on boards of directors and in the C-suite. To accelerate achievement of gender parity we need purposeful action

by both men and women to recruit, retain and advance women in equal proportion to their numbers and commensurate with the limitless potential they offer the workplace.

Gold: Indeed, EY seems to be playing a vital role on gender parity, globally, through initiatives that encourage the advancement of women. What exactly are these initiatives?

A.A.: Through the Women Fast Forward (WFF) platform, EY aims to redefine opportunities for future generations of women, forging a lasting legacy of growth, increased prosperity and stronger communities throughout the world. We are accelerating the conversation about how and why to get more women into leadership roles and harness the potential of women entrepreneurs worldwide.

Our programmes, on both a global and regional level, empower women leaders and entrepreneurs to think bigger, gain access to capital, learn from their peers and find seasoned advisors.

EY also plays a vital role as the #BeBoldForChange campaign sponsor of this year’s International Women’s Day (March 8). We will help guide and influence how every person – women, men and non-binary people – and organisations, corporations, non-profits, governments, schools and others across the world, recognizes and advances women in 2017. We are calling on all people to help build a more inclusive, gender-equal world – a better working world.

Furthermore, EY Cyprus has joined forces with AIPFE Cyprus-Women of Europe to relaunch the successful European Women Fit for Business (WF4B) Cyprus initiative. A scholarship programme for unemployed female university graduates under the age of 35, this collaboration aspires to empower, motivate and connect 12 participants through practical training and soft skills, that will assist them in their search for employment.

Gold: What about women at EY? Are there any specific programmes and resources that help them develop and advance in the firm?

A.A.: We have worked hard for many years to create an inclusive work environment where women can advance through their careers. A strong “tone at the top,” enabling women and men to

succeed personally and professionally, and a commitment to inclusive leadership, have been central to our efforts.

To that end, we have developed the following leadership programmes for women: • The Women Leadership Programme focuses on exploring authentic solutions to the challenges women face in navigating their careers and moving into leadership positions.

• Realizing Your Potential supports women in building networks, boosting self-confidence and enhancing practical communication skills that will position them strongly as partners.

• Career Watch monitors the professional development and career progression of our high-potential women with a focus on identifying additional leadership opportunities, ensuring that they gain experience, develop relationships and are provided with opportunities that lead to personal and professional growth, and a clear road map to senior leadership positions.

Flexibility is also another core element of the supportive work environment EY is striving for.

Gold: What have been the benefits to the company from the implementation of these practices?

A.A.: Studies conducted by EY, the World Economic Forum and others confirm that the mere presence of women in leadership positions impacts positively on outcomes, regardless of quotas. Specifically, women in leadership are more likely to act in a bipartisan manner, are more likely to surface new ideas and bring new issues to the table for consideration.

Making our teams more diverse not only fosters innovation, but also helps to drive up quality, increasing the pool of talent available and offering a plurality of skills, experiences and insights to meet changing needs. It also helps achieve a competitive advantage through better collaboration and the ability to innovate for market needs.

At EY, flexibility is about working smarter, not about working less. It helps our people meet their personal and professional goals and allows all of us to maximize our contribution to our teams and deliver exceptional client service.

Challenging our assumptions about where, when and how work gets done, while maintaining a clear focus on the results we want to achieve together, is one of the ways we can be agile and responsive to the diverse needs of our people, our teams and our clients.

Gold: The objectives of the EU’s Breaking the Mould project include the promotion of flexible working arrangements, encouraging companies to implement family-friendly measures and countering stereotypes. How important do you think such initiatives are in improving equality in the workplace in Cyprus?

A.A.: Although equality between men and women is recognized as a fundamental right and the principle of ‘equal pay for equal work’ is an integral part of the Treaty of Rome, men in Cyprus still earn 16.4% more than women. The aim of the Breaking the Mould project was to investigate the perceptions and realities surrounding the reconciliation of personal and professional life, and to reduce the stereotype that domestic work does not fit the traditional image of masculinity.

EY participated with 8 members of staff, both men and women, ranging from the lower ranks to that of partner. We jumped at the opportunity to join in, as we firmly believe that initiatives like this fit well with EY’s priorities and are of crucial importance to inform the public about gender equality, as well as highlighting the benefits of family-friendly measures and encouraging other companies to implement them.

By working together, we can create a ripple effect that not only advances women in the workplace at present but also redefines opportunities for future generations of women.

Visit ey.com/womenfastforward

www.goldnews.com.cy | GOLD | 35

| CORRUPTION |

GOING DOWN &<3586 6/,36 $*$,1 21 7+( &255837,21 3(5&(37,21 ,1'(;

The Corruption Perception Index 2016 highlights the connection between corruption and inequality, which feed off each other to create a vicious circle between corruption, the unequal distribution of power in society, and the unequal distribution of wealth. JosĂŠ Ugaz, the Chair of Transparency International, says, â&#x20AC;&#x153;In too many countries, people are deprived of their most basic needs and go to bed hungry every night because of corruption, while the powerful and corrupt enjoy lavish lifestyles with impunity.â&#x20AC;?

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+2: '2(6 &<3586 0($685( 83" Cyprus is ranked 47th out of 176 countries in the Corruption Perception Index 2016, which measures perceived levels of public sector corruption. The islandâ&#x20AC;&#x2122;s score of 55 points is higher than the global average (43) but lower than that of the EU & Western Europe (66).

2016 Rank

Country

2012 Score

2013 Score

2014 Score

2015 Score

2016 Score

1

Denmark

90

91

92

91

90

Europe and Central Asia

1

New Zealand

90

91

91

88

90

Asia PaciďŹ c

3

Finland

90

89

89

90

89

Europe and Central Asia

4

Sweden

88

89

87

89

88

Europe and Central Asia

5

Switzerland

86

85

86

86

86

Europe and Central Asia

6

Norway

85

86

86

87

85

Europe and Central Asia

7

Singapore

87

86

84

85

84

Asia PaciďŹ c

8

Netherlands

84

83

83

87

83

Europe and Central Asia

Region

9

Canada

84

81

81

83

82

Americas

10

Germany

79

78

79

81

81

Europe and Central Asia

10

Luxembourg

80

80

82

81

81

Europe and Central Asia

10

United Kingdom

74

76

78

81

81

Europe and Central Asia

47

Cyprus

66

63

63

61

55

Europe and Central Asia

36 | GOLD | The Business Magazine of Cyprus

T

he findings are less than encouraging.

Not a single country comes close to top marks, while over 120 countries score below 50 on the scale of 0 (highly corrupt) to 100 (very clean). This means less than a third of countries are even above the midpoint.

As the table shows, the top 10 countries with perceived low levels of corruption in the public sector include Denmark and New Zealand, which jointly top the rankings with a score of 90. Finland, Sweden, Switzerland, Norway and Singapore, follow with scores of 89, 88, 86, 85, 84, respectively and the Top 10 is completed by the Netherlands (83), Canada (82) and Germany, Luxembourg and the United Kingdom, all with 81 points.

Cyprusâ&#x20AC;&#x2122; score on the Corruption Perception Index has been deteriorating year on year since 2012. In 2012, the country was ranked 29th having scored 66 points; in 2013 its score was slightly lower (63) and it dropped just two places. In 2014, the perception of corruption was unchanged but, in 2015, the score fell to 61 points and put Cyprus in 32nd place. Last year saw another drop to 47th position, a fall of 18 places since 2012 and 6 since 2015, signalling a significant increase in the perception of corruption in the public sector.

CYPRUS

2012

2013 2014 2015 2016

Score

66

63

63

61

55

Ranking

29

31

31

32

47

YoY Change in Score

-3

0

-2

-6

YoY Change in Ranking

-2

0

-1

-15

www.pwc.com.cy

PwCâ&#x20AC;&#x2122;s 20th Annual Global CEO Survey PwC Cyprus presented the local findings of the survey Within the context of PwCâ&#x20AC;&#x2122;s 20th Annual Global CEO Survey that was carried out in 79 countries with the participation of nearly 1,400 CEOs, PwC Cyprus conducted a local survey for the 6th consecutive year, with the participation of 89 CEOs in Cyprus.

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Opinion

MULTIPLE CHALLENGES = UNIQUE OPPORTUNITY

AUDIT FIRMS NEED TO REDESIGN THEIR BROADER BUSINESS STRATEGY

By Liakos M. Theodorou

O

globalised nature of the operations and ver the past few years the geographical spread of our clients dictates a audit process had been need to sharpen the global acumen of our increasingly on the radar people, while blending it effectively with of a wide spectrum of their local expertise. stakeholders, spanning The local environment is not immune investors, analysts, regulators as well as the to the multiple challenges that characterise broader public. It was indicatively claimed the global economy. The information that the audit reporting in its standardised explosion has taken transparency to a new format provided limited insight over and level, requiring corporations in Cyprus to above the binary conclusion as to the truth identify new manners of communicating and fairness of the financial statements. their performance and building trust Recent reporting developments, both at thee among their stakeholders. For many years, EU and international level, seek to address our clients concentrated on providing this apparent shortcoming. Audit reports, their shareholders with historic financial especially for public interest entities, will information. In the current landscape, they es now be structured in a manner that provides must engage with a broader set of stakeadditional insight by delineating key audit holders, each focused on specific, often matters, the approach adopted in addressing them non-financial, information.

Info Liakos M. Theodorou is Head of and the basis for conclusions thereon. Admittedly, Cypriot audit firms will be forced to utilise the Assurance & Advisory Services at this will enhance the transparency of the audit PwC Cyprus professional expertise, scepticism and judgement process, as the audit reports rendered will now be that they apply to the historic, statutory audits considerably more bespoke, entity-specific and, and replicate it with other sets of data and different processes and consequently, more relevant. This imposes an imminent need on controls. Accordingly, with the rapid evolution of technology and the changes our clients are making in their own businesses and audit firms to effectively structure their comprehensive audit deoperations, it is becoming increasingly necessary to change the livery models, proactively anticipate issues and engage in timely way we, as auditors, deliver our services. Our focus will inevitably dialogues with their clients. At the same time, there is a need to be on investing in technology (automation, simplification and revamp their internal quality control procedures to ensure that streamlining), improving processes/approaches and strengthening the transition to the new reporting regime is smooth. the experience of our people. There is no doubt that the skills reFurthermore, the audit landscape is undergoing a significant quired by our current and future staff will require change over the reshaping through the recent EU audit reform legislation, which, near term. The training and educational requirements are already amongst others, imposes a requirement for mandatory audit firm being influenced by things like data auditing, data analytics/analyrotation that will lead to considerable reshuffling in the marketsis, cloud computing and data security. Our people will also need place, as traditional client relationships will be affected. to sharpen their review, supervisory In a world of rapid technological and project management skills earlier advances, the audit process will in their careers to effectively respond be disrupted even further by digiIT IS BECOMING to the new reality. With this in mind, talisation and new trends. We are INCREASINGLY audit quality has been and will congradually moving away from tradiNECESSARY TO CHANGE tinue to remain at the centre of all tional audit processes towards more THE WAY WE, AS initiatives. The multiple challenges advanced ones that are capable of that our profession is facing represent drawing deeper, more meaningful AUDITORS, DELIVER a unique opportunity for rebuilding and robust conclusions.

OUR SERVICES trust and confidence in the system.

At the same time, the increasingly

40 | GOLD | The Business Magazine of Cyprus

| REAL ESTATE |

BREXIT AND THE LONDON

PROPERTY MARKET

3R 1EVGL 'SRWYPGS MW SVKERMWMRK ER IZIRX EX XLI ,MPXSR ']TVYW IRXMXPIH µ8LI 0SRHSR 4VSTIVX] 3YXPSSO %JXIV &VI\MX¶ 1MGLEIP 8ERRSYWMW ,IEH SJ &YWMRIWW (IZIPSTQIRX EX 'SRWYPGS XEPOW EFSYX XLI GYVVIRX WXEXI SJ XLI 0SRHSR VIEP IWXEXI QEVOIX ERH XLI GSQTER]¸W EGXMZMXMIW By Voula Loizou How did the Real Estate sector in London react following the result of last year’s UK referendum?

The real estate sector took an immediate, short-term hit, which saw prices tumbling in the quoted sector and investors rushing to sell units in the major open-ended funds. After only a few days of turmoil, objectivity returned and values bounced back, with commercial real estate assets in central London remaining at or above their pre-Brexit vote levels. Strong international interest has been aided by the 15% fall in the value of sterling. With interest rates remaining low, domestic investors continue to support the value of smaller properties – particularly retail. However, the Brexit vote has not helped the London residential market, where prime properties (particularly those over £2m) continue to slip.

How is the overall London property market performing at the moment?

Do you expect any changes once the UK government has triggered Article 50 and negotiations to leave the EU begin?

Although the demand for commercial property may not be quite as deep as in 2014-2015, it remains strong. Earlier this month, the iconic ‘cheese-grater’ office in the City of London was sold to a Chinese property tycoon for £1.15 billion. The weaker pound has drawn in global investors, despite Brexit uncertainty, attracting a number of individuals and funds to make their first London acquisitions. We do, however, forecast

that foreign investors owning UK residential property (even if held through an offshore company) will be exposed to potentially 40% inheritance tax should they die. There are several tax planning options one can use to mitigate inheritance tax exposure.

THE WEAK POUND HAS DRAWN IN GLOBAL INVESTORS, DESPITE BREXIT UNCERTAINTY ATTRACTING A NUMBER OF INDIVIDUALS AND FUNDS TO MAKE THEIR FIRST LONDON ACQUISITIONS. that some areas may suffer greater volatility once Article 50 is triggered and the Brexit negotiations commence – in particular, offices in the City and at Canary Wharf (home to many financial institutions) may face a difficult period.

Conversely, the weaker pound is also attracting additional tourists, helping to underpin retail and restaurant rents and values in Mayfair, Soho and Covent Garden.

In April 2017, the new UK Inheritance Tax comes into effect. What are the main changes from the current system? Will it affect non-UK Investors?

Currently it is possible for foreign investors to own UK residential property through an offshore company and avoid UK inheritance tax charges. However, from 6 April 2017, offshore companies effectively become transparent for UK inheritance tax purposes. This means

Consulco has been expanding its operations into UK-based real estate since 2010. Have you changed your plans since June 2016? What do you intend to do once Britain is no longer a member of the EU? Short-term uncertainty and turbulence in markets that have solid long-term foundations provide superb acquisition opportunities for prime assets, which would not have been available under normal circumstances. These prime assets provide faster growth during normal times and higher liquidity during difficult periods. The smart investor will expand its investment portfolio during such times. Discussions on the benefits of remaining in or leaving the EU can be very subjective and need to take into account the comparable scenarios and EU’s own prospects and future. But everybody agrees that the UK economy and legislation are the most business-friendly, developed and progressive in Europe. In cases where music bands fall apart, the departing lead singer often thrives in a solo career while the rest of the group fiddle away!

To register for the event, please contact IMH on 22 505 555 www.goldnews.com.cy | GOLD | 41

| INTERVIEW |

MEDICINE

MAN MEDOCHEMIE, THE RENOWNED CYPRIOT PHARMACEUTICAL COMPANY PRODUCING GENERIC DRUGS, ')0)&6%8)( -87 ĂþTH ANNIVERSARY LAST YEAR. DESPITE ITS GLOBAL SUCCESS AND A SLEW OF EXPORT AWARDS, COMPANY FOUNDER DR. ANDREAS PITTAS BELIEVES THAT SUCCESSIVE GOVERNMENTS HAVE FAILED TO GIVE THE COMPANY – AND THE INDUSTRY IN GENERAL – THE RESPECT AND ASSISTANCE IT DESERVES. By John Vickers

T

he walls and shelves of the conference room in which I am about to talk to Dr. Andreas Pittas, the founder of pharmaceutical company Medochemie, are covered with awards, honours and photos dating back four decades. Indeed, in 2016, the company celebrated its 40th anniversary in some style, with two private performances at the Ancient Curium amphitheatre – one a concert by Greek singer Alkistis Protopsalti for a 1,400-string audience comprising personnel, country managers and agents and friends, as well as President and Mrs Anastasiades; the other a theatre performance of mediaeval Cypriot Chronicle of Leontios Machairas for local doctors and clients – plus events in the Czech Republic, Slovakia, Ukraine and elsewhere.

If a company deserves to celebrate, it is Medochemie, which is said to be responsible for 28% of Cyprus’ total exports (a fact reflected in the 13 Cyprus Export Awards ranged throughout the room, with a 14th

42 | GOLD | The Business Magazine of Cyprus

on the way), contributing an estimated 1% of the country’s GDP through more than €200 million worth of annual exports.

Dr Andreas Pittas is well aware of his company’s achievements but he is remarkably down-to-earth and, apart from having whiter hair, looks little different from the smiling man in the photos accompanied by numerous past Presidents of the Republic or, indeed, from the man I first met more than 35 years ago. I ask him to remind me how the idea of manufacturing medicines in Cyprus came about.

“When I started the company in 1976, everybody thought I was a little bit crazy to do such a thing,” he says, recalling how, despite Cyprus’ long history of exporting medicine to the countries of the region and selling aphrodisiacs and herbal medicines long before the birth of Christ, people were very sceptical about the idea of Cypriot production of medicines and drugs. “Back then, the most important drugs were quite expensive and generics were unknown,” he explains, “so the original idea was to provide for the local market. During and after the 1974 Turkish invasion, there was a huge shortage of drugs and medicines as the state

pharmaceutical stores in Nicosia had been seized by the Turkish army, so my intention was to do something about that. I also thought that we could export to our neighbours in the Middle East and we did indeed begin with them.”

Pittas’ strategy for overcoming local scepticism was to ensure quality. “I knew from the very beginning that we had to produce high quality drugs if we were to make a name for ourselves on the international scene,” he says, adding that it paid off. He was among the first to trade with China, which remains one of Medochemie’s markets, despite its own huge pharmaceutical industry and stringent registration requirements (“It’s now more difficult than the FDA in the United States,” he says).

The company’s core activities have not changed over the years, with Medochemie still a 90% generic company, although Pittas has gradually placed more emphasis on branded and over-the-counter products, in addition to numerous licensed products and a number of so-called “super generics”.

Medochemie is indisputably a massive

NO GOVERNMENT HAS EVER REALLY THOUGHT ABOUT THE PHARMACEUTICAL

INDUSTRY

www.goldnews.com.cy | GOLD | 43

| INTERVIEW |

WE ARE BUILDING A NEW € MILLION FACTORY HERE. WE WILL

NOT ABANDON CYPRUS success story and although the impressive collection of state awards suggests that governments over the years have recognised its remarkable contribution to the economy, this is regrettably not the case, says the Executive Chairman.

“As you can see, we have no more space for any more awards and honours, which are very nice but they don’t translate into anything more than the verbal recognition we’ve received from successive presidents and their ministers,” he says. “No government has ever really thought about the pharmaceutical industry. We have never had any real support in the form of tax relief or incentives to build new factories or produce new drugs. We hear a lot about support for innovation but no assistance has come our way, even though we spend a lot on innovation every year – about €10 million in 2016 – in areas like reverse engineering to produce raw materials more cheaply or to find new processes. We already have a number of patents for these.”

The pharmaceutical industry is becoming increasingly expensive. Today, says Pittas, Medochemie may spend up to €2 million on developing and registering a single product. “When we started, the cost was minimal, perhaps €5,000-€10,000. Now we have to carry out a great deal of clinical work and years of stability studies. Brussels is without any doubt the most demanding authority when it comes to the pharmaceutical practices we have to follow. Everybody thinks America is difficult but there is no comparison with European standards, which cost a lot of money to implement.”

Pittas chose to invest in the Netherlands and Vietnam rather than expand the company’s operations in Cyprus for various reasons.

“In 2001, I bought a factory in the Netherlands, just to have my people get used to European Union rules and regulations,” he explains. “It helped us a lot

44 | GOLD | The Business Magazine of Cyprus

because the company there was exporting to Germany, serving the local market and doing contract manufacturing for other factories.”

Vietnam is a different story, he says, and it was chosen for two main reasons: “One was its proximity to our Far East markets such as Malaysia and the other had to do with cost. Being able to sell our products even 5% cheaper is an advantage. We can produce certain things there much more cheaply than in Cyprus – for example, paracetamol or aspirin tablets for certain markets – because here, labour costs here are very high and so are electricity prices, even compared to other EU countries,” Pittas explains, noting that, in Cyprus, he pays up to five times more than in Romania and Bulgaria. “What’s more, unlike what happens in other countries, industry pays a higher rate than the domestic consumer. We spend €4-5 million every year on electricity,” he adds.

That said, he is quick to note that there are no intentions to move out of Cyprus.

“On the contrary,” he tells GOLD, “we are building a new €10 million factory here for some new products. We will not abandon Cyprus and our headquarters will certainly remain here.”

At a time when major efforts are being made to attract foreign investment to Cyprus, would Dr. Andreas Pittas be amenable to offering a share of Medochemie to an outside investor? His reply is a firm “No”. It is a family company, in which his children are now working and they don’t want to change its status.

“As you can imagine, we’ve had plenty of lucrative offers but fortunately we’re not looking for a cash injection,” he says.

Is Cyprus attractive enough to persuade a major international pharmaceutical company to relocate here? In Andreas Pittas’ view, the answer is a categorical “no” and for many reasons. “Our small internal

market is unlikely to grow by very much,” he explains, “even if the country is reunited, which I hope it is. The plus point, of course, would be the ability to export to Turkey. But I believe that to invest here would be more than shortsighted. We don’t have enough trained people to work in the industry. Why should a major company come here? It wouldn’t be profitable from any point of view except, possibly, corporate tax and who knows how long it will remain at 12.5%?”

I ask the Medochemie founder how his own brand can compete with wellknown international ones in the local and export markets. “We are fortunate to be able to compete on quality,” he replies, “and there are some Far Eastern countries that are ready to pay more for Cypriot and EU medicines than they are for Chinese or Indian.”

Somewhat paradoxically, this is not the case with Cyprus itself, where the Government buys medicines costing €110 million for the state hospitals, only €2 million of which goes to Medochemie. Again, it all comes down to pricing. Cyprus imports a lot of drugs from long-established UKregistered companies whose production is in India. “Just compare labour costs,” he says. “We pay a simple operator €1,500 a month while in India they pay $50. So labour is cheap, they also produce some of the raw materials used in manufacture and, unlike here, there are government incentives assisting the pharmaceutical industry.”

Finally, I ask Andreas Pittas what changes he expects to see between now and the company’s 50th anniversary.

“I don’t know if I’ll be around to see the 50th anniversary!” he laughs. “I hope I am although I’ll be happy if I can stop coming to work every day! We are growing and we will continue to grow both here and abroad. In Cyprus, we shall be manufacturing only high value added products, given that we are as expensive as Switzerland or Germany in some cases. In Vietnam and perhaps elsewhere, we’ll continue to serve our more distant markets with an increasingly broad range of top quality medicines.”

PRESENTS

SPECIAL PROMOTIONAL FEATURE

REGULATORY COMPLIANCE contents 48 INFOCREDIT GROUP 50 CHAMBERSFIELD ECONOMIDES KRANOS LAW FIRM 52 CONNECTEDSKY LEGAL & CORPORATE CONSULTANTS LIMITED 54

CYPRUS FIDUCIARY ASSOCIATION

56 DELOITTE LIMITED 58 MAP S.PLATIS 60 MICROGEN FINANCIAL SYSTEMS LTD 62 NAP REGULATORY COMPLIANCE SERVICES LTD

Compliance Suite

REGULATORY COMPLIANCE SPECIAL promotional feature

WHY ACTION ON COMPLIANCE IS VITAL Interview with Sophie Ioannou, Head of Compliance Advisory, Infocredit Group Photo by Jo Michaelides

Have Cypriot businesses recognized and accepted the need for compliance or is there still some resistance due to the cost and the additional work/staff required?

Companies have indeed started to recognise and accept their obligations which require them to comply with national and EU legislation regarding Anti- Money Laundering. There is still more work to be done in Cyprus, however, especially regarding small/medium-sized companies which cannot afford to invest in the necessary tools, resources or processes that can assist them in fulfilling these requirements, e.g. subscription to systems, nor can they devote the required time or allocate staff to set up and apply new compliance procedures. It is often these companies which are more at risk of paying fines or facing other indirect consequences of non-compliance, as they do not understand the need for applying the terms of the relevant legislation. Luckily, there are always other ways to conform to the law while, at the same time, keeping costs down.

Businesses should not forget that complying with the law is an obligation from which they cannot be exempted. Failure to comply puts companies at risk of tarnishing their reputation, which may not be easily recovered, if at all.

Would you agree that compliance is now an integral part of the strategy and organisational structure of any company wishing to adhere to the basic principles of good governance?

Of course. This goes without saying. Al-

Market leader in AML and Risk Management Solutions

though for some it may seem that it is a waste of time and money, only through compliance are companies able to sustain their business and also grow while keeping their risk to a minimum.

How does Infocredit Group go about persuading clients of this and what do you offer them in this regard?

It is not really a matter of persuading clients to follow certain procedures but rather to make them recognise the urgency of doing so. It is not enough to simply know the ins and outs of AML legislation – taking action is of vital importance. Businesses must acknowledge their role as well as the consequences (and the extent thereof), should these requirements not be met. This is very often something which is not well understood.

Tell us about the Compliance & Risk Management Cycle that much of your work is based on.

Infocredit Group offers businesses a comprehensive suite of tools which can assist them to meet their Anti Money Laundering obligations. All the stages in the cycle are equally significant when starting a new business relationship but usually the main focus, regarding compliance, is on the on-boarding process. By applying a preventative approach, companies can enter a new cooperation with confidence, whereby they can take steps to reduce their risk and acquire critical information on their new partners. They may do this using a variety of on-boarding tools, such as LexisNexis WorldCompliance and Lexis Diligence, two of the most sophisticated databases which include information from more than 50 risk categories from all over the world, such as sanctions, enforcements, PEPs, media and also business infor-

mation on related entities.

Our customers also have the option of proceeding with a more enhanced investigation, especially for high risk entities, using our Due Diligence reports. Meanwhile, they may check the authenticity of their clients’ ID documents by using our Passport/ID Authentication solutions.

Of course, AML obligations are not limited to the on-boarding process; a company’s clientele should be placed under monitoring so that, if the status of any entity changes, the company will instantly be notified.

Apart from the above, Infocredit Group also provides specialized compliance and governance training, through which attendees can acquire the knowledge needed to fully understand their obligations but also learn other ways to identify potential risks.

Are all areas of equal importance?

Yes, they are. As already mentioned, although the main focus is usually on the on-boarding procedure, the next steps in the AML cycle are equally important, since changes to the status or type of the business and/or its transactions can occur at any given time.

Some feel that compliance requirements have gone too far and are placing an unnecessary burden on companies and organisations. What’s your view?

There is a saying which goes “If you think compliance is expensive, try non-compliance!” Companies should work diligently to identify and mitigate risks which threaten the confidentiality, integrity or availability of systems and data. Rather than using just a checklist from a governing body, proper risk management should be an ongoing process which

takes into account the unique nature of each organisation.

An independent study by the Ponemon Institute, based on this concept, revealed that the cost of non-compliance (i.e. penalties and fines) is, in fact, far greater than compliance. It also highlights that the cost of non-compliance goes beyond fees, penalties and legal costs – in reality, it disrupts the entire business process, puts tremendous pressure on all the individuals involved and adversely affects productivity.

Many compliance officers are concerned when they have to deal with PEPs. Is doing business with a PEP that risky?

Politically Exposed Persons (PEPs) and their close family members or associates have a strong influence on society and thus have a higher chance of abusing their power. They can take advantage of their position for personal gain or to favour business interests more easily than other people and run the risk of accepting bribes.

They also have access to funds for public works, which they can embezzle if they choose to. Unfortunately, there are many examples of such cases in Cyprus, Greece and all over the world. This does not imply that all PEPs are corrupt; most of them are actually legitimate people doing legitimate business! It just means that businesses need to check the status of their clientele to identify PEPs so they can then follow the right steps according to their Risk Based Approach.

Of course, it is their legal obligation to do so, and this would protect the company from taking unnecessary regulatory and reputational risks.

Businesses can use a variety of tools, depending on their exposure. A company may start with the most basic Internet

search, utilise well-known databases and, in the event that a firm’s reputation is hanging in the balance, it can even seek out guidance from private intelligence firms to obtain undisclosed information.

How do you expect the landscape to change in the next few months with regard to AML compliance?

On June 26th 2015 the 4th EU Directive came into force.

The Directive, designed to bring a more robust risk-based approach to the prevention of money laundering and terrorist financing, should be implemented by all member states by June 26 of this year. One of the main drivers of the Directive was the issue of updated financial crime/AML recommendations by the FATF in February 2012. The new Directive identifies five key changes: The Directive increases the emphasis on a Risk Based Approach It incorporates recommendations relating to PEPs; it widens the definition of PEPs to include domestic PEPs as well.

It will increase transparency around beneficial ownership of companies and trusts.

Companies (and maybe trusts) will be required to maintain records evidencing beneficial ownership.

The Directive also includes tax crimes as a predicate offence for money laundering for the first time in the European Union.

The requirement for certain entities to carry out Customer Due Diligence has increased (e.g. for high value goods traders).

In view of the above, companies must therefore ensure they are prepared to adapt to these changes, sooner rather than later, by having the right systems and procedures in place to meet their requirements.

REGULATORY COMPLIANCE SPECIAL promotional feature

I

nfocredit Group is a leading provider of risk management solutions, offering access to crucial business information relating to a company’s potential or current clients, vendors and associates. Our core services are centred on Regulatory Compliance, Corporate Governance, Credit Management, Debt Recovery & Call Centre Services, Training and Marketing. With an established network of global partners such as LexisNexis, VinciWorks and ICSA, Infocredit Group secures its position as market leader in AML and Risk Management solutions. The company has a wide client portfolio which covers sectors including Banking, Telecommunications, Audit and Legal Services, Retail and Wholesale Trade as well as Credit Insurance.

INFOCREDIT GROUP Our methodology is based on providing a comprehensive suite of tools which can assist companies to meet their financial, legal and ethical obligations.

AML 360° COMPLIANCE SUITE

INFOCREDIT GROUP

Address: 5A, Philippou Hadjigeorgiou Street, Acropolis, 2006 Nicosia, Cyprus Postal Address: P.O. Box 28566, 2080 Nicosia, Cyprus Tel: (+357) 22398000 Fax: (+357) 22458937 e-mail: info@infocreditgroup.com Website: www.infocreditgroup.com

This solution enables the verification of the authenticity of international ID/passport documents. Utilising this service can significantly enhance your KYC procedures and reduce the risk of identity fraud.

This refers to a set of steps and processes, which we advise our clients to follow in order to enDOCUMENT CHECKER sure their protection and adherence to AML The Document Checker database is currently regulations. one of the world’s most comprehensive reference databases for checking ID documents and SOLUTIONS FOR CLIENT ON BOARDING banknotes. It contains detailed descriptions By applying a preventative approach, business- and high-resolution images (including security es can enter new relationships with confidence features) of thousands of passports, ID cards, and leverage critical business information to driving licenses, visas and banknotes from over mitigate their business risk and successfully vet 200 countries and organisations. third parties.

LEXISNEXIS WORLDCOMPLIANCE ONLINE SEARCH TOOL

Strengthen screening with comprehensive coverage - Your one-stop solution for Sanctions, PEPs and Adverse Media Using an extensive database of over 1.8 million entities with 600,000 photos, users can manually screen prospective clients against global: • Sanction & Watch Lists - OFAC, EU Terror List, UN etc.

• Enforcement Lists - Over 1,000 enforcement, embargo and denied parties lists • PEP Lists - 1,400,000 entities • Adverse Media - Over 35,000 news sources Compliant with more than 100 anti-terrorism and money laundering laws, this solution has coverage of over 50 risk categories.

ENHANCED DUE DILIGENCE

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Obtain a 360° AML & Risk Assessment of your clients, associates or suppliers Global Due Diligence investigations provide a customisable, in-depth analysis of an individual/company based on clients’ specific needs and contain international KYC information as well as profiles relating to sanctions lists, enforcement actions, PEP lists, court filings and adverse media. They also examine global relationships, litigation histories, credit assessments, document authentication and other relevant information.

SOLUTIONS FOR ONGOING MONITORING & RISK-BASED APPROACH

Our solutions allow companies to simplify their obligatory requirements by closely monitoring the behaviour of their associates and keeping high-risk situations under control.

AUTOMATIC AML BATCH SCREENING TOOL

Specifically designed to promote AML compliance, businesses can automatically monitor their clients and effectively reduce AML and fraud risk through a single platform. Users can apply a risk-based approach which enables risk categorization of profiles and accelerates internal processes by performing batch processing.

COMPLIANCE AND GOVERNANCE TRAINING

Infocredit Group offers specialized courses to professionals, which include a variety of risk management e-courses and face-to-face trainings e.g. Anti-Money Laundering, Anti-Bribery and Corruption, Credit Management, Debt Collection as well as ID/Passport Authentication workshops.

Through our partnership with ICSA: The Governance Institute, we also offer an array of corporate governance qualifications and certificates, including the Chartered Secretaries Qualifying Scheme (CSQS) to achieve chartered status. Qualified accountants and lawyers may be eligible for exemptions from CSQS exams.

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+357 22 398000 info@infocreditgroup.com www.infocreditgroup.com www.goldnews.com.cy www .go gold g ldnews ldn ews.com com.cy cy | GOL GOLD D | 4499

50 | GOLD | The Business Magazine of Cyprus

www.goldnews.com.cy www.go www g ld ldnews.com.c m cyy | GOL GOLD OLD OL D | 5511

REGULATORY COMPLIANCE SPECIAL promotional feature

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n the aftermath of the 2008 Ă&#x201E;UHUJPHS JYPZPZ regulatory YLNPTLZ HZWPYPUN [V prevent a YLWL[P[PVU VM Z\JO [\YTVPS HYL YLHJOPUN an all-time high.

CONTACT INFORMATION: ConnectedSky

Address: *VUULJ[LK:R` /V\ZL 0NV\TLUP[ZHZ :[YLL[ :[YV]VSVZ 5PJVZPH *`WY\Z Tel: PU *`WY\Z MYVT HIYVHK e-mail: PUMV'JVUULJ[LKZR` JVT Website: ^^^ JVUULJ[LKZR` JVT

52 | GOLD | The Business Magazine of Cyprus

ConnectedSky With an emphasis on the measures taken by the OECD to prevent tax evasion, cease bank secrecy and eradicate tax havens, the Common Reporting Standard (CRS) for the Automatic Exchange of Information (AEOI) definitely stands out, alongside its American variant, namely the Foreign Account Tax Compliance Act (FATCA).

This explosion of intricate new regulatory rules was met by the Corporate, Legal and Financial sector with an exponential increase in newly established compliance departments consisting of highly skilled professionals undertaking the task of transforming such a burden into a benefit. Moreover, a â&#x20AC;&#x153;Compliance Cultureâ&#x20AC;? was initiated and, surprisingly, Cyprus was cited as one of the â&#x20AC;&#x2DC;best in classâ&#x20AC;&#x2122; according to the recent Transparency International study (February 2017).

The report stated: â&#x20AC;&#x153;Cyprus disclosed the most complete set of anti-money laundering data among the 12 analysed countries [which included among others: Germany, Luxembourg, the Netherlands, UK and the US] with information available for 14 out of the 20 indicators.â&#x20AC;?

Moreover, Cyprus is still one of only three countries that actually publishes the number of regulatory breaches and the amount of penalties imposed; it is among just four countries that publishes the number of sanctions applied; and one of only five countries that publishes the number of MLA requests made to other countries. Finally, it is the only country that scored a â&#x20AC;&#x2DC;Yesâ&#x20AC;&#x2122; on the average time taken to provide a response on the merits of MLA requests received.

With regard to the countryâ&#x20AC;&#x2122;s an-

ti-money-laundering (AML) supervision, Transparency International stated that: “Cyprus and France presented the most complete data sets, covering aspects of monitoring, regulatory breaches and sanctions.”

Due to the aforementioned legislative changes, which have resulted in substantially increased assessment and monitoring duties, ConnectedSky has initiated a series of measures to ensure that all of our clients adequately meet all regulatory and legislative requirements, thus safeguarding clients’ best interests from both a corporate and legal perspective.

To provide full coverage with regard to the above, our Internal Compliance Department, which consists of multi-lingual and multi-disciplined individuals, closely examines the portfolio of each company and its related entities, enters the relevant information/ records into a prominent Electronic

Information Management System (EIMS) and performs a Risk Rating according to the applicable regulatory framework combined with the inserted data.

The implementation of such comprehensive analytical technology provides an all-in-one solution, enabling the different departments to adhere to the relevant regulations in coherence.

In this respect our compliance department monitors the totality of data simultaneously and is able to better identify matters that might otherwise have gone unnoticed. Our strategic regulatory data management furthermore leverages additional benefits, such as better risk assessment and statutory filing follow-up.

In addition to the aforementioned technological backbone, ConnectedSky heavily invests in the educational progress of its members of staff, since we understand that, in order to obtain

the relevant information which allows for swift yet thorough processing, the right questions need to be asked. Thus our staff are subjected to continuous in-house and external training, which allows them to understand the underlying businesses of clients and to apply a uniform and integrated approach. Such an educational mindset further enhances the efficiency of the business and increases our company’s performance.

In light of the above, ConnectedSky furthermore adheres to its own “Compliance Culture” through stringent Corporate Ethics and a Legal Compliance Code of Conduct, which enables members of staff to carry out their duties properly in combination with our clients’ best interest.

Our professionals are committed to their role as strategic counsellors, from both a commercial and legal perspective, unifying their in-depth expertise while rigorously complying with the relevant legislation and regulations.

Thus, our clients benefit tremendously from their wealth of perspectives, along with the improved information flow which enables ConnectedSky and all related parties to process clients’ requests with unparalleled accuracy and speed.

As such, within a global and ever challenging financial environment, ConnectedSky has been able to anticipate and innovate a unique and balanced approach, which is a practical implementation of our continuing vision that We Grow When You Grow. www.goldnews.com.cy | GOLD | 53

REGULATORY COMPLIANCE SPECIAL promotional feature

T he Cyprus Fiduciary Association (CFA) was established in 2011, in the absence of any regulatory authority and framework for the providers of ÄK\JPHY` ZLY]PJLZ

CONTACT INFORMATION: CYPRUS FIDUCIARY ASSOCIATION

Address: 115, Griva Digheni Avenue, 3101 Limassol, Cyprus Tel.: (+357) 25590086 Fax: (+357) 25590089 e-mail: PUMV'JMH VYN J` Website: ^^^ JMH VYN J`

54 | GOLD | The Business Magazine of Cyprus

CYPRUS FIDUCIARY ASSOCIATION The aim of the ten founder members sition with regard to the supervision was to establish an Association that of the sector. Today, ASPs are much would promote high more familiar with the standards in the regulatory culture and FOUR YEARS provision of fiduciahave gone a long way ry services. At that in not only setting out AFTER THE time, Cyprus was the right policies and ENACTMENT being accused interprocedures but also in OF THE LAW, nationally of being implementing – and CYPRUS IS IN A performing operations a money-laundering jurisdiction and, MUCH BETTER in accordance with – although the country POSITION WITH the requirements of Cyprus was not necLaw and the releREGARD TO THE the essarily worse than vant AML Directives SUPERVISION of the three Regulatoothers in this respect, it was obvious that OF THE SECTOR ry Bodies. The CFA we needed to prohas been a firm supceed with certain porter of the existence actions in order to enhance our image of a single regulatory authority in the and credibility with foreign investors. fiduciary sector in order to enhance The establishment of the Association the monitoring of administrative immediately sent the message that the services, to promote the level playing fiduciary firms themselves wanted to field in the sector and to improve the set a regulatory framework that would credibility of Cyprus internationally. impose high standards of anti-money Nevertheless, the Association conlaundering (AML) and know-yourclient (KYC) procedures, and set the required code of conduct for all players in the market. A year after the establishment of the CFA, the Fiduciary Law (Law Regulating Companies Providing Administrative Services and Related Matters of 2012) was finally enacted, sending another strong message concerning the country’s will to regulate fiduciary services and Administrative Services Providers (ASPs).

Four years after the enactment of the Law, Cyprus is in a much better po-

tinues its efforts and seminars have $WKHQD <LDOORXURX aimed at maximum been organised &KDLU $0/ &RPPLWWHH &\SUXV coordination among with great success )LGXFLDU\ $VVRFLDWLRQ all stakeholders in in this field. In &RPSOLDQFH 2IILFHU 7ULGHQW the market and the order to emphasize 7UXVW &RPSDQ\ &\SUXV

/LPLWHG development of a the importance $WKHQD <LDOORXURX MRLQHG 7ULGHQW common regulatory of compliance for 7UXVW &RPSDQ\ &\SUXV /LPLWHG framework for all Fiduciary Firms LQ DQG LV FXUUHQWO\ DQ ([ sector participants. in 2017, seven of HFXWLYH 7HDP PHPEHU ZRUNLQJ The Cyprus Fiduthe yearâ&#x20AC;&#x2122;s twelve FORVHO\ ZLWK 0DQDJHPHQW $WK ciary Association educational semHQD KROGV WKH SRVLWLRQ RI &RP gives great emphasis inars are directly SOLDQFH 2IILFHU OHDGLQJ D JURXS to AML and comrelated to AML and RI GHGLFDWHG &RPSOLDQFH $G pliance issues and, other compliance PLQLVWUDWRUV +HU GXWLHV LQFOXGH to this end, has issues, addressed by WKH RYHUDOO 0DQDJHPHQW RI WKH developed many practitioners of the &RPSOLDQFH IXQFWLRQ RI 7ULGHQW LQFOXGLQJ DOO DVSHFWV RI 5HJX activities in support sector. The CFA ODWRU\ &RPSOLDQFH $QWL 0RQH\ of the development Educational Plan /DXQGHULQJ $QWL 7HUURULVW )L of a proper compli2017 is available on QDQFLQJ &RPSOLDQFH DQG KROGV ance culture in the the Associationâ&#x20AC;&#x2122;s WKH UHVSRQVLELOLW\ IRU HVWDEOLVKLQJ country. More spewebsite (www.cfa.

D FRUSRUDWH FXOWXUH RI HWKLFV cifically, the CFA: org.cy/the-associaWKURXJKRXW WKH &RPSDQ\ â&#x20AC;˘ Acts as a point tion/education). $WKHQD LV D 0HPEHU RI WKH of contact between â&#x20AC;˘ Liaises with its &KDUWHUHG ,QVWLWXWH RI %DQNHUV the ASPs and the members and &KDLU RI WKH $0/ &RPPLWWHH RI Regulator(s), thus provides guidance WKH &\SUXV )LGXFLDU\ $VVRFLDWLRQ participating in and support in any DQG D PHPEHU RI WKH $&$0V &\SUXV &KDSWHU 6KH VWDUWHG many committees day-to-day matters KHU SURIHVVLRQDO FDUHHU LQ and working groups that may arise in ZLWK %DQN RI &\SUXV DQG KDV to ensure that AML relation to AML RYHU \HDUVÂś H[SHULHQFH LQ WKH issues are duly unissues ,QWHUQDWLRQDO %DQNLQJ 6HFWRU derstood and impleâ&#x20AC;˘ Communicates VHUYLQJ DPRQJVW RWKHU SRVLWLRQV mented in a timely with its members DV DQ $VVLVWDQW 0DQDJHU RI WKH and business related and informs them ,QWHUQDWLRQDO %XVLQHVV 8QLW DQG manner. of any updates and DV D %UDQFK 0DQDJHU â&#x20AC;˘ Provides enimportant Direchanced training tives issued by the programmes not Regulatory Authoronly to its members but also to the ities in order to comply accordingly. public in matters of AML. Over the In order to address the AML issues, last 3 years, more than 20 workshops the Board of Directors works closely

with the AML committee of the CFA, which is composed of experienced Compliance Managers/Officers in the ASP sector.

The AML committee is responsible for: â&#x20AC;˘ Keeping abreast of any developments in AML Legislation, e.g. EU Directives, Regulatorsâ&#x20AC;&#x2122; Circulars, Cypriot Legislation and how they affect the sector. â&#x20AC;˘ Evaluating the training needs of CFA members that derive from AML legislation (e.g. the EU 4th AML Directive, FATCA and CRS standards), and providing advice and assistance in the planning and execution of the AML seminars/ workshops. â&#x20AC;˘ Providing Guidance to CFA members in day-to-day matters, e.g. drafting of specimen forms, replying to membersâ&#x20AC;&#x2122; queries. â&#x20AC;˘ Participating in committees/working groups where necessary. At present, committee members participate in the Cyprus National Risk Assessment project under the supervision and guidance of the World Bank, the FATCA/ CRS working group of the Ministry of Finance, and they work closely with other government or non-government committees.

It has been wisely noted that â&#x20AC;&#x153;Compliance is team effort and joint responsibilityâ&#x20AC;?. Since Administrative Services are an important part of the Financial Services sector, making a considerable contribution to the countryâ&#x20AC;&#x2122;s economy, the CFA is determined to help the sector grow and develop further in a fully compliant manner.

THE CYPRUS FIDUCIARY ASSOCIATION GIVES GREAT EMPHASIS TO AML AND COMPLIANCE ISSUES www.goldnews.com.cy | GOLD | 55

Our Governance, Risk and Compliance Services Our common storefront

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isk management, compliance, strong governance, secure systems and controls are all key issues across all industries.

The ever increasing focus in regulation, compounded by the economic downturn of recent years, is forcing companies and organisations to act upon these issues. Companies and organisations must ensure that their compliance function has the depth of expertise required to manage all regulatory requirements within the business. Those who can demonstrate good governance and high standards of compliance are reaping the rewards.

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Č? H'LVFRYHU\ )RUHQVLF DQG Î&#x2013;QFLGHQW 5HVSRQVH 5HDGLQHVV Č? )RUHQVLF $QDO\WLFV AML Compliance Services 'HORLWWHČ&#x2021;V $0/ &RPSOLDQFH 7HDP FDQ DVVLVW RUJDQLVDWLRQV LQ assessing their compliance with applicable Laws, Directives and *XLGDQFH LVVXHG E\ WKH YDULRXV 5HJXODWRUV ZLWK UHJDUG WR $QWL 0RQH\ /DXQGHULQJ $0/ $FWLYLWLHV DV ZHOO DV LPSOHPHQWDWLRQ RI $0/ %HVW 3UDFWLFHV IURP DURXQG WKH ZRUOG &RPSOLDQFH VHUYLFHV FDQ EH RÎ?HUHG WR %DQNV Î&#x2013;QYHVWPHQW )LUPV $GPLQLVWUDWLYH 6HUYLFHV 3URYLGHUV $FFRXQWDQWV /DZ\HUV DQG RWKHU 3URIHVVLRQDO $GYLVRUV 2XU VHUYLFH RÎ?HULQJ LQFOXGHV Č? 'LDJQRVWLF DVVHVVPHQWV DQG *$3 $VVHVVPHQW RI WKH OHYHO of compliance of the organisationâ&#x20AC;&#x2122;s policies, procedures and controls, with the revised Cypriot regulatory framework with UHJDUG WR $0/ Č? 'HVLJQ RI D 5LVN EDVHG 0RGHO IRU WKH DVVHVVPHQW RI $0/ 5LVN DQG for on-going review Č? 'HVLJQ RI D 7UDQVDFWLRQ %DVHG 6\VWHP IRU 7UDQVDFWLRQV 0RQLWRULQJ Č? $0/ &RPSOLDQFH $XGLW Č? 5HDGLQHVV $VVHVVPHQWV DQG SUHSDUDWLRQ IRU 5HJXODWRU\ 0RQLWRULQJ 9LVLWV Č? Delivering training seminars to an organisationâ&#x20AC;&#x2122;s employees ZLWK UHVSHFW WR $0/ 'XH 'LOLJHQFH 3URFHGXUHV YLD RXU 'HORLWWH $FDGHP\ Č? 2Î?HULQJ HGXFDWLRQDO VHPLQDUV WR %RDUGV RI 'LUHFWRUV WR PHHW WKHLU UROHV DQG UHVSRQVLELOLWLHV ZLWK UHJDUG WR $0/ Our team Our team of experts within Deloitte Cyprus who cover the broad UDQJH RI FRPSOLDQFH DQG UHJXODWRU\ VHUYLFHV FRQVLVWV RI Panicos Papamichael, 3DUWQHU 5LVN $GYLVRU\ /HDGHU Alexis Agathocleous, 3DUWQHU )LQDQFLDO 6HUYLFHV /HDGHU Panikos G. Teklos, 'LUHFWRU Î&#x2013;QYHVWPHQW 0DQDJHPHQW /HDGHU Katerina Antoniou, 'LUHFWRU $0/ DQG 3UDFWLFH 3URWHFWLRQ *URXS Clea Evagorou, 6HQLRU 0DQDJHU 5LVN $GYLVRU\ Christos Zapitis, 6HQLRU 0DQDJHU 5LVN $GYLVRU\ Charalambos Pitsillos, 6HQLRU 0DQDJHU 5LVN $GYLVRU\

Contact Information Nicosia 24 Spyrou Kyprianou Ave, CY 1075 Nicosia Tel.: 22 360300, Fax: 22 360400 infonicosia@deloitte.com Limassol Maximos Plaza, Tower 1, 3rd ČľRRU 213 Arch. Makarios III Avenue, CY 3030 Limassol Tel.: 25 868686, Fax: 25 868600 infolimassol@deloitte.com Larnaca Patroclos Tower, 4th ČľRRU 41 - 43 Spyrou Kyprianou, CY 6051 Larnaca Tel.: 24 819494, Fax: 24 661222 infolarnaca@deloitte.com www.deloitte.com/cy www.goldnews.com.cy | GOLD | 57

REGULATORY COMPLIANCE SPECIAL promotional feature

Interview with Demetris Taxitaris, Group General Manager

CONTACT INFORMATION: MAP S.Platis /LHK 6É&#x2030;JL! 74, Archbishop Makarios III Avenue, Amaranton Court, 3rd Floor, Mesa Geitonia, 4003 Limassol, Cyprus 7VZ[HS (KKYLZZ! P.O. Box 59521, 4010 Limassol, Cyprus ;LS! (+357) 25351335 -H_! (+357) 25351330 L THPS! dtaxitaris@mapsplatis.com >LIZP[L! www.mapsplatis.com

58 | GOLD | The Business Magazine of Cyprus

MAP S.Platis What are the services provided by your firm?

The Groupâ&#x20AC;&#x2122;s expertise and flagship product is regulatory compliance consulting.

Our know-how in this field has developed over the years and spans all areas of regulatory compliance frameworks and regulated entities, including investment firms, funds, fund and asset managers, payment service providers, banks and administrative service providers in Cyprus, the European Union and other jurisdictions internationally. The Group can support effectively all such structures throughout their lives including advising on the best structure based on client needs, preparing and submitting the applications to the regulators, managing the application process, obtaining and activating the licence, providing ongoing regulatory compliance support including support on anti-money laundering matters, internal audit and risk management support, regulatory trade reporting services and executive training services.

Which products do you see growing in the next few years?

Investment firms particularly have exhibited increased interest in recent years and have turned Cyprus into a global hub, contributing significantly to the local economy and its rebound from the recent crisis. The challenges facing these structures from a regulatory and business perspective have recently been growing. To this end, it is important to note that all necessary steps have to be taken, primarily by the regulators and the Government to ensure that Cyprus remains a hub while the industry is well-regulated and Cyprus strengthens its reputation as a jurisdiction.

Strengthening the reputation of the country as a jurisdiction is particularly important for other industries, such as alternative investment funds and their managers, an area which may grow further in the years to come. We are anxiously expecting amendments to the local regulatory framework for alternative investment funds, following recommendations by UK experts on the

matter, which, we believe, will create an attractive product internationally. Promoting this product via private sector initiatives is critical in order to put Cyprus on the global map for funds. At the same time, local banks need to ensure they can support these structures sufficiently via primarily depositary services.

Which services do you see growing in the next few years?

Our core expertise is regulatory compliance and this is one of our main areas of focus in the years to come. The introduction of MiFID II early 2018 presents many challenges for investment service providers and this is an area where we are increasingly being asked to help. Brokers, traders, portfolio managers, investment advisors, wealth management divisions of banks and private banks all need to adapt to a new environment soon and preparations are already under way to do that. Internal processes, systems, documentation and methods of conducting business and approaching clients will need to be adjusted accordingly to comply with the wave of new rules.

Executive training is another area which we see expanding. Interest in training of professionals is growing, particularly in specialised fields such as anti-money laundering compliance, regulatory compliance, corporate governance and risk management. The introduction by regulators of new rules for qualifications and ongoing training of people in key positions further enhances the need for executive training both locally and abroad. Possessing the depth of knowledge required and a number of qualified instructors in this field, we already offer a broad range of training courses, which are attracting the interest of investment professionals in Cyprus and abroad.

www.goldnews.com.cy | GOLD | 59

REGULATORY COMPLIANCE SPECIAL promotional feature

M

icrogen Financial Systems is one of two operating companies of Microgen plc, a leader in the delivery of software, solutions, consultancy and services. The Group was founded in 1974 and has been listed on the LSE (MCGN) since 1983. It is headquartered in London ^P[O VMÄJLZ ^VYSK^PKL ¶ Cyprus and Canada being the latest additions.

CONTACT INFORMATION: MICROGEN FINANCIAL SYSTEMS /LHK 6ɉJL! Old Change House, 128 Queen Victoria Street, London, EC4V 4BJ, UK *`WY\Z 6ɉJL! 166, Agias Fylaxeos Street, Sophia Court, 3rd Floor, 3083, Limassol, Cyprus <2 ;LS! (+44) 2074968100 *`WY\Z ;LS! (+357) 25820789 UK Fax: (+44) 2074968101 L THPS! marketing@microgen.com >LIZP[L! www.microgenfs.com

60 | GOLD | The Business Magazine of Cyprus

MICROGEN FINANCIAL SYSTEMS Microgen Financial Systems has been serving the trust, corporate services and fund administration markets with software for over 30 years and has a proven track record of delivery and quality. Customers located in 32 countries across six continents range from some of the world’s largest organisations, with multiple global offices, to smaller independent organisations with a single office.

We believe that our unique combination of technology leadership and wealth management domain expertise allows us to deliver unique software product sets that help organisations gain a competitive edge in their core business activities and adapt easily to changing market conditions and increasingly stringent accounting and regulatory requirements.

We understand that the trust, corporate services and fund administration markets have experienced unprecedented change in recent years – and this looks set to continue. The compliance burden that companies in these markets face continues to grow following the financial crisis and the resulting increase in regulatory oversight. Customers are demanding better service and increasingly moving their business to providers that offer this. Competition for business continues to intensify,

leading to pressure on profit margins, particularly as the advantages of off-shore administration decrease compared to those on-shore.

In order to face these challenges, it is becoming increasingly important for companies to improve efficiency whilst keeping tight control over all aspects of their business.

Investing in new technology – particularly accounting and administration software such as Microgen 5Series – can play a major part in helping companies achieve these goals.

Microgen 5Series is a comprehensive software product that supports the primary business operations of trust administrators, corporate services providers and fund administrators. A key feature is its user-configurable workflow, which can be used to help manage and automate key business processes and daily activities, for example, client on-boarding, KYC, automated client risk scoring, FATCA/CRS reporting and year-end accounts production.

The combination of highly flexible software and powerful in-built workflow capabilities results in a solution that can be quickly tailored to meet specific business requirements, thereby providing high levels of operational control and efficiency that can free up valuable staff time.

Administration and Accounting Software for Trust and Corporate Services Providers

Helping your business be informed, compliant and efficient Microgen 5Series provides a comprehensive solution to support compliance, including: – Sanctions Checking, e.g. World Check.

– Risk Assessment and Scoring.

– Global Tax Reporting under FATCA and CRS. – KYC Management, including document expiration alerts.

– Relationship diagrams.

Software modules

Why Microgen?

– – – – – – –

– Microgen provides proven, robust and cost-effective software for the world’s largest Trust and Corporate Services Providers through to small single offices.

Entity Management Accounting Investments Time & Expenses Billing Document Store Client Web Portal

– Microgen has over 380 Trust and Corporate Services customers in 32 countries and over 30 years’ experience in this market.

To find out how Microgen 5Series can improve the day-to-day operations of your business please visit www.microgenfs.com, call +357 25 820 789 or email microgen-5series@microgen.com Copyright © Microgen Wealth Management Systems Ltd 2017. All Rights Reserved. Microgen ® Microgen plc.

www.goldnews.com.cy | GOLD | 61

REGULATORY COMPLIANCE SPECIAL promotional feature

E

ffective compliance with the regulatory framework has never been more relevant to the success of investment services providers or issuers of listed titles.

NAP Regulatory Compliance Services Ltd (“NAP”) has been created having the needs and concerns of the providers of investment services and listed issuers in mind. The majority of Cypriot Investment Firms (CIFs) have been recently licensed and often come across complex issues of regulation and supervision, and listed issuers are faced with ever increasing transparency obligations.

CONTACT INFORMATION: NAP REGULATORY COMPLIANCE SERVICES LTD

Address: 6, Theotoki Street, 1055 Nicosia, Cyprus Postal Address: P.O. Box 22379, 1521 Nicosia, Cyprus Tel: (+357) 22554343 Fax: (+357) 22554455 e-mail: info@napcompliance.com Website: http://www.napcompliance.com

62 | GOLD | The Business Magazine of Cyprus

NAP

REGULATORY COMPLIANCE SERVICES LTD

NAP is well-placed to provide tailor-made, outsourcing solutions for the compliance function of CIFs and listed issuers, in line with regulatory requirements, and/or provide hands-on expert advice, not simply on the state of the law but how it can be applied in any given situation.

The lawyers heading our firm bring a broad perspective and hands-on approach to advising clients, thanks to years of experience and valuable practice gained in working for the securities regulator of Cyprus (CySEC), as in-house legal counsel advising on CIFs’, issuers’ compliance, complex regulatory and transactional matters, as well as appearing in private sector litigation pertaining to the provision of investment services and the capital markets.

DEPTH OF INSIGHT

The combined, real-life, hands-on experience and depth of insight of the lawyers heading our firm render NAP a most valuable ally in the core capabilities that are critical to helping firms that operate in the financial services sector, to best manage emerging and continuing regulatory and compliance obligations and challenges.

FLEXIBILITY

Our services may be engaged based on a retainer or a case-by-case basis, according to the client’s needs and the demands of the case at hand. We welcome queries for the design of tailor-made solutions.

STRATEGIC ALLIANCES

Through our network of affiliated, high-calibre firms, we can provide complete audit (internal and external), legal, secretarial and logistics support services and solutions.

COMPLIANCE FUNCTION FOR CIFS & ISSUERS

Investment Firms are required to establish and maintain a permanent and effective compliance function which operates independently and is responsible: • To monitor and assess the adequacy and effectiveness of the measures and procedures put in place for the detection or any risks or failures, and the actions taken to address any deficiencies in the Investment Firm’s compliance with its obligations; and • To advise and assist the relevant persons responsible for carrying out the authorized investment services and activities, so as to comply with the obligations of the Investment Firm under the Law. Our firm is in position to provide Complete Outsourcing solutions of the Compliance Function for CIFs and Issuers, or assist CIF’s and Issuers with hiring, training and monitoring compliance officers who will be working internally within these organizations.

MAKING A GOOD START

Each organization which aims to provide investment services from Cyprus must establish an authorized Cypriot investment firm and pass through an assessment process conducted by the Cyprus Securities and Exchange Commission (CySEC). The promoter of the application has the pivotal role of guiding the organization for the better structuring and preparation of its application, and, during the assessment process, serves as the liaison between CySEC and the organization.

Our firm is in a position to prepare the full application brief according to the needs of the client and in line with the regulatory requirements, including the Operations Manual and Key Policies, such as the Anti-Money Laundering & Terrorism Financing Policy and the Client Acceptance Policy.

We are also able, through our network of affiliated law firms, to provide general legal support and procure the drafting of the legal agreements necessary for the provision of investment services, including client profiling questionnaires.

DRAFTING OR REVIEWING

ADVICE

The agreements for the provision of investment services and related questionnaires constitute fundamental building blocks for the dutiful operation of an Investment Firm, its sound and professional relations with its clients and its protection from regulatory sanctions and frivolous or vexatious litigation.

The legal framework creates strict obligations that must be reflected in the legal agreements and questionnaires, emanating mainly from two areas of law: • MiFID related obligations, in relation to the provision of investment services and the protection of investors, and • AML and FT related obligations.

Our firm can provide advice in a number of key areas, including the following: • Compliance and risk management policies and procedures, including the implementation of new regulatory requirements • Responding to compliance issues, including conduct of reviews or internal investigations • Provide advice during regulatory investigations and enforcement actions and assist the Investment Firm to deal with regulatory investigations and enforcement actions resulting from compliance failures • Preparation of reports and responses to the regulator.

“SIMPLY PUT, OUR SERVICES ARE NOT BASED ON A TEXBOOK APROACH, BUT ON YEARS OF SPECIALIZED EXPERIENCE GAINED FROM HANDLING REAL LIFE SITUATIONS & ISSUES IN CYPRUS”

OUR DIRECTORS

Nicolas Poumpourides eads the Regulatory and Compliance function of the Company. He holds an LLB in Law (Athens), he has obtained CySEC’s Advanced Legal Framework certification and he is a member of the Cyprus Bar Association since 2000. He has 17 years of experience as a practicing lawyer in a broad range of cases focusing on corporate law, the provision of investment services and stock exchange-related litigation. He also has extensive experience of Regulatory Advisory and Compliance Services in the financial services sector in Cyprus, with a focus on regulatory requirements. His current responsibilities include the provision of legal and compliance services to various Investment Firms and listed companies in Cyprus. He is also the founder and director of the Nicosia-based Law Firm Poumbourides LLC.

Nicos Pavlides is one of the directors of NAP. He has studied Economics and then Law (LLB) at the University of Sydney. After two years work for the Office of the Director of Public Prosecutions in Sydney (20012002), he gained a Chevening scholarship and studied at the London School of Economics and the University College of London from where he obtained a Master of Laws degree (LLM) focusing on financial related legal subjects. At the same time, he was working for the Crown Prosecution Service in London, principally on cases of economic crime. He returned to Cyprus in 2003, and in 2004 joined the CySEC legal department. Since 2008, he is working in the private sector and he has extensive experience in the financial services, through his involvement in a large number of regulatory and compliance issues. Nicos, is currently advising a number of Investment Firms in Cyprus on Regulatory and Compliance matters. His duties also include the provision of legal advice and opinions to Investment Firms as well to other listed companies in the Cyprus Stock Exchange. Nicos, is a certified person in the Advanced Legal Framework from CySec. www.goldnews.com.cy | GOLD | 63

| INNOVATION |

WE ARE IN THE MIDST OF AN ECONOMIC REVOLUTION FROM AN INDUSTRIAL TO AN INFORMATION ERA

BUIL

A GL COMM I

U 9PSL` 5L^THU QVPULK (PYIUI HZ P[Z ÄYZ[ KH[H ZJPLU[PZ[ working among fewer than ten employees out of the founders’ HWHY[TLU[ )` [OL [PTL OL SLM[ PU (\N\Z[ [OL JVTWHU` OHK JVUULJ[LK TPSSPVUZ VM N\LZ[Z HUK OVZ[Z HYV\UK [OL ^VYSK and was valued at $30 billion. Next month, he will be one of the MV\Y ZWLHRLYZ H[ [OL *04 :\TTP[ PU 5PJVZPH .P]LU [OH[ the theme of the 10th anniversary summit is Entrepreneurship and Innovation [OLYL JV\SK OHYKS` IL H TVYL Z\P[HISL WLYZVU [V ZWLHR VU [OL [VWPJ /L ZWVRL L_JS\ZP]LS` [V .63+ HOLHK VM OPZ ]PZP[ [V *`WY\Z By John Vickers

IT WAS VERY MOTIVATING TO CONTINUALLY PUSH OURSELVES TO THINK BIGGER

64 | GOLD | The Business Magazine of Cyprus

Gold: If we are to believe the Harvard Business Review, as a data scientist you have “The Sexiest Job of the 21st Century”. Does it feel that way?

Riley Newman: Definitely. We are in the midst of an economic revolution from an industrial to an information era and data science is all about distilling high-quality information. So I think it’s poised to play a very significant role in the years ahead, in business and beyond.

Gold: How would you define your role as Director of Data Science?

R.N.: It was my job to keep Airbnb connected with its community at scale. When Airbnb’s founders were launching the business, they met with guests and hosts to

understand their needs. But when we had grown to a size where that was no longer possible, data became the channel through which we could maintain those living room conversations – by “hearing” them through the data we logged, understanding their needs through statistical analysis, and evaluating their reaction to what we had built through the use of controlled experiments.

Gold: You were one of the original 10 employees of Airbnb. Six years ago, you would undoubtedly have been enthusiastic about the concept behind it but was there a moment when you realised that you were actually revolutionising the temporary accommodation sector?

R.N.: That was definitely the goal from

DING

OBAL UNITY the beginning, in fact there was an even broader desire to build a movement that connects people around the world. But the question was how much progress we would be able to make toward that idea. It was very motivating to continually push ourselves to think bigger.

Gold: What was your role in the early days of the company?

R.N.: I was the first data scientist, so I had an opportunity to work on a broad range of topics – growth, marketing, product, customer support... It created a culture of using data for everything we do, which became part of the DNA of the team I eventually built.

Gold: How did you come to be involved? After all, you studied Economics, not computer sciences as one might have expected from your later position.

R.N.: I was introduced to the founders by a close friend who had impressed them. He was the head of analytics at Eventbrite, which was a bit more mature than Airbnb at the time. When

an energy that was creative and inspiring.

Gold: The company finally made its first profit last year. Didn’t you expect it sooner?

R.N.: We drew inspiration from the way Amazon continually invests in its business. Profitability didn’t seem as important early on as investing in building a great product and global community.

Gold: You chose an interesting time to leave (at the end of last year).

Why? R.N.: Personal reasons, mostly. I think Airbnb has a very bright and exciting future ahead of it, but my wife and I wanted to live abroad before having kids. I also felt like the timing was right – I’d built a big team that was running stably.

they met him, they asked if he knew anyone that was able to do similar work and at the time I was working for an economics consulting firm. I hadn’t really considered joining a tech startup (despite being surrounded by them in San Francisco), but he convinced me to give it a shot. It was good advice!

Gold: What’s next for you?

R.N.: That’s a work in progress, but I was inspired by the global impact Airbnb had and how quickly we were able to build it. In the face of global problems like climate change, I think we’ll need entrepreneurs to step up with new ideas, and I think platform marketplaces can incentivize those ideas taking root. I’m interested in doing what I can to help accelerate that.

Gold: Airbnb is frequently mentioned in the same breath as Uber, and one can understand why. Why do you think these two companies have been so successful where presumably thousands of others have failed?

R.N.: I think it boils down to timing and people. The catalyst to both companies was technology – mobile, AWS, hadoop, and global connectedness via the Internet – and in Airbnb’s case I think the recession played a significant role (in Uber’s case, the taxi industry in San Francisco was completely broken).

So the ideas were able to take off, and then we kept our hiring bar as high as possible. Walking around our office, you had this sense that everyone was at the peak of their line of work. It created

Gold: What will you be telling those attending the CIM Summit in Nicosia in April?

R.N.: Airbnb is a story many have heard, but mostly on a first-order basis – they’ve used the platform to travel or host, have read about our growth, and seen our marketing campaigns. I think what’s exciting and largely untold is the second-order story – what happened behind the scenes to make those things possible. My talk will be about how we used data to influence strategy, and how we organized ourselves around strategy to realize the product, growth, and brand the outside world witnessed.

Along the way, I’ll frame what I think data science is all about and how it can be used by any organisation. www.goldnews.com.cy | GOLD | 65

| FRAUD AUD |

A Never

E NDIN G

GAM E

IDENTITY DOCUMENTS ARE BECOMING EVER MORE SOPHISTICATED BUT RESOURCEFUL, TECHNOLOGICALLY ADVANCED FORGERS ARE ALWAYS ONE STEP BEHIND, READY TO MAKE MONEY AND BREACH SECURITY WITH NEARIDENTICAL COPIES. MICHAEL VAN GESTEL OF KEESING REFERENCE SYSTEMS TELLS GOLD HOW GOVERNMENT AGENCIES AND COMPANIES AROUND THE WORLD ARE SEEKING HELP IN SPOTTING THE FAKES.

BY JOHN VICKERS | PHOTO BY JO MICHAELIDES

W

hen h en I meet Michael van Gestel, he is demonstrating a piece of equipment that demonstrat passport and then automatically scans a pass different checks to show that makes 40 d genuine. On the computer screen in it is genuin front of him is the information page of document, bearing a photo of a the docume dark-haired woman, and below each of it a table indicating in the checks tthat has been carried out. Next to each green item is a bright br when he scrolls tick but, wh page, we see down the p that there are a only 39 ticks and, rright at the end, a red ccross next to very last authentication test. He clicks reveal that on it to rev the photograph on the electronic chip embedded in the passport is of a different person from the one that we see on the document. She is not only blonde but another woman altogether. It’s a good forgery.

I feel as if I’ve just seen a piece of closeup magic and I’m left wondering “How did he do that?” though, in this case, the question is “How did they make such a good forgery?” followed by “How did they make such a basic mistake?”

Van Gestel has spent most of his adult life examining identity documents to see if they are the genuine article or fake and after 18 years he has lost none of his enthusiasm for the work, which, in many ways, resembles that of a detective sifting through evidence to trap a criminal. It sounds exciting. Is it?

“It is!” van Gestel states unhesitatingly.

“I started at 18, when I volunteered for

ANYTHING MADE BY

military service in the Netherlands. I started at border control with the military police and found myself sitting at a desk checking passports. At the time, the only passport I had ever seen was my own!”

He soon found the work interesting.

“During my time there I found a lot of fake and forged passports,” he tells me.

Wanting to learn more about identity documents, he underwent the required training to take him to the forgery

F O R G E D BY

department at Amsterdam’s Schiphol Airport (“We used to have around 2,000 forgeries a year.”), from where, after two years, he joined the Identity Fraud and Documents Centre of Expertise (ECID).

“I worked there as an international trainer, travelling all over the world teaching the police, immigration and airline officials about the authentication of passports and identity documents,” he explains. Six years ago he was offered an opportunity to join Keesing Reference Systems, where he is now Supervisor, Content Management.

I had noted with some surprise that the company was founded almost a cen-

tury ago. Forgery is obviously a crime with some history.

“It all started in 1923 with money,” he explains. “Keesing created a book containing scans of banknotes, with a description of each one so that the people working with them had an idea of what to look for – they were cooperating with Interpol among others. Now, of course, we have digital reference databases, although some countries are still using the old printed books, and our focus is more on identity documents.”

Van Gestel gives the impression that he is still as excited about his work as he was at 18, something he doesn’t deny.

“I still am, yes,” he says. “Passport security is growing all the time as new features are incorporated but there are always new types of forgeries appearing too. It’s a never-ending game.”

So, how difficult is it these days to spot a forged passport or a fake banknote?

“I wouldn’t say it’s easy but, if you have the right knowledge and you know the basics, you can spot one,” he says.

And, as the documents themselves become more sophisticated, the harder they are to forge. “In the past,” he goes on, “a conventional passport had a photo glued to a page with a piece of laminate on top of it. In five minutes, you could change the picture. Nowadays we have plastic pages inserted among the paper ones and they are much more difficult to forge.”

HUMANS

CAN BE

HUMANS

www.goldnews.com.cy | GOLD | 67

| FRAUD |

ZED A M A L L I T S M IA F O K C L A E H T Y B F OWLEDGE O KN

of my eye and held it to a the door opened. scanner, th checking equipment If the ch does not have a feature that doe detects life, it’s easy to fool d it, so you have to be sure it can detect that it is scanning a living eye. And that depends on how much money you want to spend. It’s more expensive.”

As he showed in his earlier equipment display, where a seemingly genuine passport was shown to be fake, the electronic chip that is embedded in today’s biometric passports makes forgery extremely difficult but, says van Gestel, not impossible. So there is no document that he would describe as impossible to copy precisely enough to fool the experts?

“No,” he states with a smile. “I always say that anything made by humans can be forged by humans.” So does he believe that he, too, has been fooled by a forgery? “Yes,” he admits. “There are some very good forgeries around and spotting them can depend on many factors. If the person checking had a bad night or didn’t sleep well, he may not examine things as thoroughly as he should. It can happen to everyone. In truth there is no way of knowing how many may have slipped through the net. I prefer not to know!”

What about banknotes, I ask. Aren’t they becoming harder to counterfeit with so many security features?

“Yes but people will always a find a way,” he says. “As I said, it’s a never-ending game between the forgers and those whose job it is to check banknotes and identity documents. With fake passports you can make a lot of money by selling them and if you can forge banknotes, you have the money already. With such rewards, it will never disappear.”

Michael van Gestel was in Cyprus earlier this month, holding a passport authentication workshop for clients of Infocredit Group, working not only with physical documents but also with scans and copies, for example, from people opening a bank account or applying for a loan. Is it possible to gain sufficient information from a scanned document to decide if it is genuine?

N O I T A R G I M IM ERS IN SOME

S E I R T N COU

OFFIC

He shows me the information page of his own passport: “This page consists of 8 separate layers of plastic,” he says.

“The photo is burnt into the middle layers of the plastic so it’s impossible to change.”

If it’s impossible to change, doesn’t that mean that he’ll soon be out of a job?

“Not yet!” he laughs. “Passports may be more and more secure and, therefore, more difficult to forge but that doesn’t necessarily mean we’re seeing better or no forgeries. The criminals are still trying to get away with it. And in some places they succeed. I travel all over the world training police and I am still amazed by the lack of knowledge of immigration officers in some countries.

The poorer nations don’t have the money to spend on technology to protect their documents. It will be another 4050 years until every country is ready with the same expensive technology.”

Some countries are experimenting with digital identity documents, meaning that we can have our ID card or driving licence on our mobile phone.

Among the many problems with this, however, is the fact that the phone may be stolen or may run out of battery at a crucial moment.

That said, Michael van Gestel believes that there will come a time when what he calls “this booklet” will disappear.

“Some people believe that we will all have a chip implanted in us,” he says, adding that fingerprint recognition and iris scanning are already in use in his native Holland.

Foolproof? “I’m afraid not!” he exclaims. “If you have the right equipment you can make a fake fingerprint. And when we took a high resolution picture

68 | GOLD | The Business Magazine of Cyprus

“Yes but you need reference material and a passport reader that compares images,” he explains. “Keesing offers such a reference database – the most comprehensive in the world – so if you have scan on your computer screen, you can open the database and compare pictures. It’s not so much about security features as layout, the printing of the variable details, the font that is used, and so on. So some kind of authentication is possible, even on a bad black and white copy. Of course,” he adds, “you’re never 100% sure because it’s on a screen so you can’t feel it.” Being able to feel the texture of a document is a key part of the authentication process and a person checking a passport can use more than touch.

“I even smell the document!” says van Gestel, recalling how, when he worked at border control, “People would look strangely at me when I sniffed their passport and said there was something wrong with it.

If certain chemicals have been used in the forgery process, it shows. Or the smell may actually be an indication of authenticity.

When you open a passport from, say, Cuba, it has a certain smell. I always tell the people I’m training that they have to feel, smell, tilt and play with the document to be sure of it.”

To travel within most of Europe these days, we don’t actually need a passport. If anything is checked, it can be an identity card. Is that less safe? “No, it doesn’t make any difference,” he says. “ID cards now have chips in them too. The pages in a passport are just for stamps and visas.”

We now live in an era where terrorism is rarely out of the news and the need to check and authenticate identity documents has never been so crucial. Michael van Gestel is very aware of this.

“If you look at Europe from the point of security, I would say that we should close all borders. From a human perspective, of course, I would say that we should never do such a thing. We just have to be vigilant and make sure that everyone entering our country for the first time is doing so with an authentic identity document. Passport forgery is not going to stop in the foreseeable future, so this is why my work and the work of the people we train is so important. It’s about keeping us safe.”

Opinion

THE RISE OF ARTIFICIAL INTELLIGENCE WHAT WILL IT MEAN FOR CURRENCY TRADING?

By Charis Mountis

H

umans are fallible, and we are constantly refining our offerings to those to whom you address shifts in trends that will affect our hand your money to in clients. order to execute finanThe Forex Expert Advisor is a valuable cial transactions, are tool, especially for inexperienced traders no exception. While because it eliminates man’s worst enemy we are mostly willing to overlook one anwhen it comes to dealing with money – other’s mistakes, when money is involved, emotion. In the wider finance industry, we may be less forgiving. For over 20 years, A.I. is starting to gain traction. A recent financial institutions have been trying to report by MIT Technology Review sugeliminate humans from the money hangested that Goldman Sachs does have a dling mix. We now have Robo Advisors true A.I. system managing its consumer that can work out basic investment stratelending. It’s called Marcus, and it operates gies and banking platforms that are entirely with no input from its human colleagues. mobile and online. Progress has been swift The CFO overseeing this charge towards but how will it affect forex trading?

A.I., Marty Chavez, is on record suggestThe programmes currently in use work ing that Forex trading and some aspects of on trading algorithms; they are clever but they’re investment banking will soon follow suit. Whether Info: Charis Mountis is Global Head of Dealing at ForexTime (FXTM). not intelligent. They operate on historical data these will be true A.I. innovations or clever algoand probabilities – they cannot anticipate sudden rithms remains to be seen. crashes, rogue presidents, natural disasters or surprise referendum results. To be truly intelligent, the software must be able to evalIs A.I. the Future of Forex? uate multiple streams of data and take decisions based on that For the moment, the current algorithms, while extremely effective information. for currency trading, are not in the realms of A.I. They can assess large data sets, spot anomalies and identify trends but they lack the A.I. and Trading ability to critically analyze the multitude of variables that define A trading algorithm is not the same as Artificial Intelligence (A.I.). the Forex trading industry. The data sets that would be required to Many brokers claim to be using A.I. when, in reality, they are do this are enormous. If this limitation can be overcome then A.I. using advanced automated trading software. A highly popular technology will present incredible opportunities for FX traders, currency trading platform favoured by traders is called MetaTrader increasing the speed of trading and reducing the risks associated (MT). It is dominant in the market because of its compatibility with emotions like greed and fear. With the ability to learn from with automated trading algorithms. MetaTrader provides tools for every trade and market fluctuation, A.I. could potentially increase traders to automatically create and modify their trading strategies. the profitability of Forex trading exponentially. Billions have been These automated trading algorithms are known as Expert Advisors invested in Fintech and A.I. and we are starting to see the innova(“EAs”) (with the MetaTrader environment), and can be coded tions manifest in businesses. Once we master A.I., it will change with the MetaQuotes Language Editor (MQL) which, in essence, the shape of Forex. FXTM places a huge amount of importance allow the trader to code the parameters (comon developments in this field and is keeping a plex or simple) of his or her trading strategy. It close eye on innovations and new technology ONCE WE is a particularly useful tool to assist traders who in order to stay abreast with the latest trends.

MASTER A.I., are still refining their technical analysis skills.

IT WILL CHANGE For more information, visit www.ForexTime.com/eu Once the EA compiles successfully, it can exeTHE SHAPE OF Disclaimer: This article comprises personal opinions cute trades without the trader’s direct involveand ideas and should not be construed as containFOREX ment. All tasks are performed automatically. ing personal and/or other investment advice.

ForexTime are innovators in the industry and www.goldnews.com.cy | GOLD | 69

N W

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SHIPPING FORECAST

SUMMIT 2017

O

n the occasion of the launch of its new Shipping Finance Department, Bank of Cyprus International Banking, Wealth & Markets Division organised the Shipping Forecast Summit 2017 on 20 February at the Carob Mill Complex in Limassol. More than 300 participants attended the Summit, at which renowned international and local cal ed shipping industry professionals shared their views on current and future trends ds in the sector. The Summit, which took place under the auspices of the Minister of Transport, Communications ns and works, Marios Demetriades, was s chaired by Louis Pochanis, Director, International Banking, Wealth & Markets Division, Bank of Cyprus.

Philippos Raptopoulos, EY Cyprus & Demetris Raptopoulos, Nicos. Chr. Anastasiades & Partners

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Elsa Anastasiadou, Nicos. Chr. Anastasiades & Partners

Giorgos Lampros, Athos Chandriotis & Christos Kalogeris, Bank of Cyprus

Christos Chrysanthou, Chrysanthou Maritime Services & Solomon Chrysanthou, Terra Navis Shipping

Marios Demetriades, Minister of Transport, Communications & Works

Aleksander Legowski, 63 :OPWWPUN .YV\W

1VOU /V\YPJHU )HUR VM *`WY\Z Stavros Pantzaris, EY Cyprus

Polycarpos Costa, PwC Cyprus

Nikiforos Pampakas, Limassol Marina &Andreas Marangos, EAC

Steven Illman & Andreas Papaonisiforou, Uniteam Marine Ltd (L-R) Liakos Theodorou, PwC Cyprus, Eugen Adami, Mastermind Shipmanagement Ltd, Nicos Kyriakides, Deloitte

Marina ChristodouSPKV\ /HYUL`Z

(L-R) Acis Montanios, Montanios & Montanioss LLC, 7VS`Z /HQPVHUUV\ :HML[` 4HUHNLTLU[ 6]LYZLHZ LYZLHZ S.A. & Eric Montanios, Montanios & Montanios os LLC

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Kyriakos Vlachos, Deloitte, *VZ[HZ .LVYNOHKQPZ 0*7(*

Charalambos Katsipoulakis, Tsakos Columbia Shipmanagement & Vangelis Pteroudis, Columbia Shipmanagement Ltd

Vasilis Malikides & Lia Papaiacovou, 6:4 4HYP[PTL .YV\W

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Niklas Koerner, Bernhard Schulte Shipmanagement

Minas Efthimiou, Lefkaritis Bros 6JLHU3[K +PUVZ :H]]PKLZ 7L[YVSPUH H /VSKPUNZ 7\ISPJ 3[K

Libor Krkoska, EBRD

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| BANKING |

NEW POST BUT NO CHANGE OF DIRECTION Gregory Dellas, previously eviously Manager Compliance nce Risk Management,, International Banking, ing, Wealth & Markets at Bank of Cyprus, was recently cently appointed Director, r, Wealth & Markets. Here he talks about his new responsibilities and d notes with pleasure e that ved he will still be involved in his favourite subject bject – compliance – and d will continue as Chair hair of the Cyprus Chapter pter of the Association of Anti-Money Laundering ering S).

Specialists (ACAMS).

By John Vickers

72 Gold | GOLD | The Business Magazine of Cyprus 72 THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

A

t the beginning of the year, you were appointed to the post of Director, appo Wealth & Markets. What are your Wea main responsibilities now?

Gregory Dellas: I now head the Wealth Greg &M Markets Division of the Bank which includes Private Banking, Institutional inclu Wealth Management, Asset ManageWea ment, Local and Global Brokerage, Inmen vestment Banking, Investment Strategy vestm and Global Custody services, as well as a number of products and services to comnum plement the long list of traditional bankplem ing sservices that Bank of Cyprus provides its clients. to it

Gold: Presumably, this means less foGold cus on Compliance than in your previous post as Manager Compliance Risk Management, International Banking, Man Wealth & Markets?

Wea G.D.: My new role means more interacG.D tion with clients. However, that does not mean less focus on Compliance but rathmea er a different focus. Knowing Your Clients (KYC) is key in Anti-Money Laundering (AML). At the same time and, derin perhaps, more importantly, the more you perh get tto know your clients, the better you understand and appreciate their needs unde and you can thus tailor your services accordingly. And that is what managing cord wealth is really all about: knowing your weal clients well, understanding their requireclien ments and providing them the best men

suited products that will enable them to protect and grow their wealth, according to their risk-return profile. Furthermore, compliance is not just AML. The world of investment services provision is heavily regulated, mainly for the protection of investors but also of the institutions providing those services. Compliance with those regulations is key in providing quality services. The Markets in Financial Instruments Directive II (MiFID II), which is expected to be implemented in January 2018. is just one example.

Gold: Knowing that you are passionate about compliance and have dedicated a great deal of time and effort to ACAMS and anti-money laundering issues, how do you feel about this change of direction?

G.D.: I do not feel it is a change of direction. I started my career 20 years ago as a client-facing private banker, managing client portfolios and providing investment and traditional banking services to the Bank’s clients in a highly regulated environment. My involvement in “hardcore” compliance is more recent and, contrary to popular belief, it was really exciting! It actually helped me better understand risk, how to tackle it properly and why some things have to happen.

After all, it is all simply about knowing your clients well and doing the right thing.

COMPLIANCE IS A CULTURE; IT’S ALL ABOUT DOING THE RIGHT THING Gold: Will you continue with your ACAMS work?

G.D.: ACAMS (the Association of Certified Anti-Money Laundering Specialists) is not only for anti-money laundering professionals but welcomes all those

www.goldnews.com.cy | GOLD | 73

| BANKING |

interested in keeping abreast of developments in anti-financial crime efforts. Following contact with ACAMS, just under two years ago, it was decided to set up a local (Cyprus) Chapter. The Chapter was launched in record time and, since November 2015, when we had the inauguration ceremony, we have grown in size, offered a number of events to our members, and last month ACAMS hosted the first Anti-Financial Crime Symposium in Cyprus. I and the rest of the Chapter Board are really proud of these accomplishments. Having said all that, yes, I will continue to work with ACAMS for as long as they will have me!

As mentioned earlier, Compliance is for everybody. It’s a culture; it’s all about doing the right thing.

Gold: This year has started well for Bank of Cyprus. What will your priorities be to ensure that the Wealth & Markets division makes the greatest possible contribution to this positive course?

G.D.: Bank of Cyprus has indeed started the year with a number of remarkable milestones, which include the full repayment of the Emergency Liquidity Assistance (ELA) well ahead of expectations and the listing on the London Stock Exchange. The Wealth & Markets Division of the Bank has a long and successful history in providing specialised investment related services to the Bank’s private High Net Worth clientele as well as relevant institutional clients. In fact, various departments of the Division have won awards for the quality of their services, including Global Custody and more recently Private Banking (from Euromoney for the second consecutive year). The Wealth & Markets Division offers a full spectrum of investment products and services, which, together with the wide range of traditional banking services of-

fered by Bank of Cyprus, make up a onestop-shop solution for the client with even the most complex requirements.

I intend to make sure that the quality of the services provided to our clients is of the highest standard and that such services are provided by very experienced and qualified staff.

Gold: Do you believe that 2017 will see substantial progress in the Bank’s efforts to reduce the level of NonPerforming Loans?

G.D.: Tackling the issues around NonPerforming Loans and the improvement of the loan portfolio under the difficult and changing economic circumstances remains a key priority for the Bank. The Bank wishes to sustain its momentum in the restructuring of loans. We have already witnessed great improvement over the past year (especially in the corporate segment) and we certainly expect to see substantial progress in the coming year as well.

Gold: Overall, are you optimistic about the future of the local banking sector?

G.D.: I believe that the last few years have proved that the Cyprus Banking sector has emerged stronger and more robust from what could be understated as “an unfortunate turn of events”. This has happened much earlier than anticipated but only after endless hours of hard work, as well as the impressive resilience of the Cyprus economy and the wider business environment.

We still have a long way to go and the issue of Non-Performing Loans is the number one priority, not just for Bank of Cyprus – which has already made remarkable progress – but for the wider banking sector. Having witnessed the “miracle” so far, I am very optimistic about the future.

74 | GOLD | The Business Magazine of Cyprus 74 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

WE HAVE MADE GREAT PROGRESS AND WE MUST CONSCIOUSLY AVOID REPEATING THE MISTAKES OF THE PAST Gold: How confident are you in the Government’s ability to maintain economic growth over the next 12 months, given the resurgence of union demands and an uncooperative House of Representatives?

G.D.: There is no doubt that Cyprus has come out of the crisis stronger and wiser.

We should all stay focused on sustaining this positive course by continuing to work hard and to work together. We have made great progress and we must consciously avoid repeating the mistakes of the past. It is not easy but there is no room for “populism” now. To quote the advice of author and entrepreneur Colin Wright, “Extremes are easy. Strive for balance”.

| XXX |

Nicosia Economic Congress 2017 The Cyprus Economy: Current State and Future Prospects in the spotlight Tuesday 25th April 2017 | Hilton Park Hotel | Nicosia

Harris Georgiades

T

George Pamboridis

he annual Nicosia Economic Congress has established itself over the years as the biggest financial/economic event in the island’s capital.

This year’s 7th Congress, which takes place at the Hilton Park Hotel, Nicosia on April 25, looks at the current state and the future prospects of the island’s economy, aiming to provide representatives of the broader business world with comprehensive information on the latest local and international economic trends and developments and to assess their potential impact on Cyprus.

Distinguished speakers will present their own analysis and give their forecast for the economy and markets. This one-day event brings together influential and innovative minds in the finance and accounting sectors, as well as government officials and economic decision and policy-makers and is attended by company owners and managers of organisations who are actively

76 | GOLD | The Business Magazine of Cyprus

Constantinos Petrides

George Syrichas

involved in the decision-making process.

Among the confirmed speakers at the 7th Nicosia Economic Congress are the following: • Harris Georgiades, Minister of Finance, will speak on The Future of the Cyprus Economy - Forecasting the Economy 2017-2019 • George Pamboridis, Minister of Health, will present his latest Forecast for the Health Sector • Constantinos Petrides, Under-Secretary to the President, will focus on Transforming and Developing the Economy of Cyprus • George Syrichas, an Executive Board Member of the Central Bank of Cyprus, will speak about The State and Future of Banking in Cyprus • Vincenzo Guzzo, the Resident Representative in Cyprus of the IMF, will give a presentation on The Cyprus Economy: From Recovery to Sustainable Growth

Vincenzo Guzzo

There will also be three panel discussions: (i) CEOs ; (ii) Foreign investors; (iii) Foreign institutions.

Among those confirmed to be taking part in the panel discussions are Mehran Eftekhar, Group Finance & Corporate Services Director of Nest Investments Holdings (Cyprus) Ltd and Johny Abuaitah, Chief Executive Officer, Windsor Brokers.

The 7th Nicosia Economic Congress will be chaired by Kyriakos Iordanou, General Manager of the Institute of Certified Public Accountants of Cyprus (ICPAC), which is co-organising the event with GOLD magazine.

Organisers: ICPAC & GOLD. Sponsored by CIM & G.A.P. Vassilopoulos Group with the Support of the EU-sponsored “Breaking the Mould” programme.

Communication Sponsors: REPORTER Online & IN Business.

Coordinator: IMH

special promotional feature

contents BLUE AIR

80

C.A.AVIATION MANAGEMENT SERVICES LTD

82

HERMES AIRPORTS

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S.KANIKLIDES (CYPRUS) LIMITED â&#x20AC;&#x201C; EASTPAK

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QATAR AIRWAYS

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www.goldnews.com.cy | GOLD | 77

special promotional feature

+(50(6 $,532576 $ 9$/8$%/( 3$571(5 2) 7+( 67$7( 81'28%7('/< :$6 $ /$1'0$5. <($5 )25 +(50(6 $,532576 :,7+ 6,*1,),&$17 %(1(),76 )25 &<3586Âś 7285,60 $1' (&2120< )25 7+( ),567 7,0( $ 727$/ 2) 0 3$66(1*(56 75$9(//(' 7+528*+ /$51$.$ $1' 3$)26 ,17(51$7,21$/ $,532576 5(&25',1* $1 ,1&5($6( 2) 29(5 *(1(5$7,1* 0,//,21 ,1&5(0(17$/ 3$66(1*(56 The Cypriot airport network was enhanced by the operation of 10 new airlines and the introduction of 21 new routes, thus improving the islandâ&#x20AC;&#x2122;s connectivity.

The extension of the season beyond the April-October period has been a strategic goal for us and we are happy this winter season to see significant progress in that direction, with the addition of 500,000 seats in airline capacity from November to March.

Our airports are primarily serving the needs of a tourist destination and, as such, we have been working very closely with the authorities and all stakeholders to align our initiatives and actions. As the operator of Larnaka and Pafos International Airports, we pursue active air service development and offer incentive schemes to airlines and tour operators, whilst, at the same time, we have been involved in initiatives for the promotion of Cyprus as a

78 | GOLD | The Business Magazine of Cyprus

year-round destination using mainly digital content marketing.

Hermes has also been an active participant in the National Tourism Strategy project, which aspires to open a new chapter in the development of tourism in Cyprus.

I am quite confident that, if the coordinated efforts of Hermes and other tourism stakeholders continue and are intensified, this upward trend will continue in the coming years as well.

For Hermes Airports, it is imperative not only to run these airports in an efficient manner but also to strengthen their role as a major contributor to the connectivity of the island, as well as to its economy and tourism. We are here to shape a shared strategy, to improve connectivity, to assist and facilitate

Hermes Airports Hermes Airports, the operator of the two International Airports of the Republic of Cyprus, is a consortium comprising nine international and Cypriot shareholders, which was formed in ZWLJPĂ&#x201E;JHSS` MVY [OL undertaking of the operation and management of Larnaka and Pafos airports under a concession agreement for 25 years. Every shareholder has an international presence in its particular industry, ranging from construction and technology to infrastructure projects, airport operations and management. It is estimated that about 100 additional jobs are created MVY LHJO HKKP[PVUHS Ă&#x2026;PNO[ arriving at Cyprusâ&#x20AC;&#x2122; airports.

In total, more than 12,700 jobs in the tourism industry across Cyprus are sustained by the operation of Larnaka and Pafos International Airports. With an annual contribution of more than â&#x201A;Ź500 million to the economy of Cyprus, corresponding to approximately 3% of GDP, Larnaka and Pafos International Airports are Q\Z[PĂ&#x201E;HIS` JVUZPKLYLK to be among the major drivers of economic growth in the country and are acknowledged as key generators of thousands of jobs.

communication, coordination and fruitful dialogue amongst all stakeholders in order to bring more tourists to Cyprus, to help local businesses and communities to develop and to be a true partner of the State.

Eleni Kaloyirou CEO , Hermes Airports Ltd.

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Where do the most frequent visitors to Cyprus come from? Have there been any surprises in recent years in terms of visitors from countries traditionally considered as â&#x20AC;&#x2DC;outsidersâ&#x20AC;&#x2122; in the islandâ&#x20AC;&#x2122;s tourist industry?

In recent years Cyprus has welcomed most of its visitors from the UK, traditionally our largest market, and from Russia, our second largest market. Visitors from the UK numbered 1,157,978 in 2016, an increase of 11% in comparison with 2015, while those from Russia rose by 49% to 781,634.

These two markets accounted for approximately 60% of incoming tourism, with 3.2 million tourists visiting Cyprus last year, which was the best year ever.

Revenue from tourism increased by 11.9% in 2016. What were the main factors influencing this and how do you expect Cyprus to perform in 2017?

2016 was a record year and this was due to a combination of factors, including better connectivity, improved cooperation with the main tour operators and the readiness of the public and private sectors to react to the geopolitical tensions in the region. Our country is safe, which is an important factor when choosing a holiday destination.

We expect 2017 to be very good as the upward trend in bookings continues.

Agreements have been signed agreements with major tour operators and connectivity is improving continuously, as airlines increase the availability

of seats. In addition to foreign airlines, two Cypriot airlines have already received authorization and started operating, while another two expect to obtain approval.

However, despite the increase in revenue, the average length of stay decreased from 11.4 days in 2015 to 9.8 days in 2016 and the average per person expenditure also fell from â&#x201A;Ź670 in 2015 to â&#x201A;Ź580 in 2016. We therefore have to make sure that our tourist product is continuously upgraded and we offer visitors good value for money.

In which areas do you believe Cyprus has a competitive advantage as a tourist destination, compared to other countries?

We are a safe destination, we have the best climate in Europe all year round, very good beaches, very clean sea water, good services and facilities, and experienced, hospitable personnel.

In your opinion, what needs to be improved in order to attract more tourists, both business and leisure travellers?

Thereâ&#x20AC;&#x2122;s always room for improvement.

All our efforts must now focus on better management of the summer season and on increasing tourist traffic in winter. Our mild climate lets us extend the tourist season into the winter months and last year we saw a significant increase in arrivals during the winter. Our goal is to continue this growth this year too. Furthermore, we must continue to enrich our tourism product with infrastructure projects, further improve customer services and maintain hotel and other business costs,

Dinos Kakkouras, President of the Association of Cyprus Travel Agents (ACTA)

proving that we are a tourist destination for all 12 months of the year.

To what extent do you think the creation of the casino in Cyprus will boost tourist arrivals and the industry?

It will definitely upgrade our tourist product and contribute positively to the economy by creating jobs and attracting more visitors. In addition, the casino resort will boost the Conferences and Exhibitions industry if it includes modern, state-of-theart conference venues. Cyprus is in need of large conference centres in order to attract multinational companies, major exhibitions and events, like festivals and concerts.

What would be the impact of a solution of the Cyprus issue on the tourist industry?

If the solution brings a climate of confidence, stability and security, this will create growth and investment prospects for the tourist industry as well. If the whole island is promoted as a single tourist destination, only benefits can result from such a strategy. Moreover, Turkey will be an additional source of tourism, there will be greater connectivity to and from Cyprus and this will help not only the tourism sector but international trade and business as well.

www.goldnews.com.cy | GOLD | 79

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%/8( $,5 %/8( $,5 +$6 %((1 23(5$7,1* )25 <($56 2))(5,1* )/,*+76 72 29(5 ',5(&7 5287(6 ,1 %(/*,80 &<3586 '(10$5. ),1/$1' )5$1&( *(50$1< *5((&( ,5(/$1' ,65$(/ ,7$/< 125:$< 32578*$/ 520$1,$ 6:('(1 63$,1 $1' 7+( 81,7(' .,1*'20 7+( &203$1< +$6 (,*+7 23(5$7,21$/ %$6(6 ,1 %8&+$5(67 %$&$8 &/8- 1$32&$ &2167$17$ ,$6, /$51$&$ /,9(5322/ $1' 785,1 Blue Air has invested significantly in its aircraft fleet and this summer we will be operating a total of 30 aircraft, g a huge increase over 2015 when we were operating 15 aircraft. We have big plans for 2017 and the company expects to transport around 5 million passengers.

Blue Air has been present in Cyprus since 2008 and in January 2015, the airline opened a base in Larnaca. It offers flexible flight frequencies, an excellent onboard experience, affordable and convenient prices for everyone.

Blue Air currently operates scheduled flights between Larnaca and Athens (14 weekly flights), Thessaloniki (5 weekly flights), Bucharest (weekly flights) and London Luton (4 weekly flights) while, this summer, Birmingham, Cluj-Napoca

and Liverpool will be added to the operations.

The company will also operate charter flights to Corfu for Easter and, this summer, to Preveza, Zakynthos, Corfu, Skiathos, Kavala and Kos. We offer high quality services to our Cypriot passengers at the most affordable prices. Additionally, some of the competitive services we offer are the 10kg of cabin hand luggage, a free snack or meal with a full cabin service on board our flights and 32kg hold luggage.

These further developments highlight Blue Airâ&#x20AC;&#x2122;s commitment to offering seamless and convenient travel to all Cypriot passengers, who have recognized Blue Airâ&#x20AC;&#x2122;s high standards in terms of safety, security, punctuality and constant improvement.

Blue Air is IOSA (IATA Operational

CONTACT INFORMATION:

Tel : 22 765 998/ 22 841 180 | Fax: 22 767 670 Email: blueair@orthodoxou.com.cy | Website: www.blueairweb.com

80 | GOLD | The Business Magazine of Cyprus

Safety Audit) certified for its outstanding operational standards and it is also a full IATA member.

Blue Air operates a fleet of Boeing 737 aircraft, with retrofitted interior featuring state-of- the-art Recaro seats, allowing passengers a better and more comfortable experience during their flight.

We are always trying to improve our services in order to meet our passengersâ&#x20AC;&#x2122; expectations. Taking this philosophy into consideration, we decided that the best way to further understand and cover all of our Cypriot passengersâ&#x20AC;&#x2122; needs was to employ locals in our workforce. We have also incorporated Cypriot traditional products into our onboard services, thus helping local producers in our own way.

We believe that the Cypriot concept and atmosphere on board make our passengers feel more at home.

In Cyprus, Blue Air has 75 employees, as well as 25 indirect employees through Orthodoxou Aviation, our General Sales Agent.

www.goldnews.com.cy | GOLD | 81

special promotional feature

& $ $9,$7,21 0$1$*(0(17 6(59,&(6 &UHZ $FDGHP\ 7UDLQLQJ &HQWUH & $ $YLDWLRQ 0DQDJHPHQW 6HUYLFHV /WG is an established aviation company that offers (a) extensive B2B consulting services and (b) qualified training courses to individuals and companies through its C.A. Crew Academy.

& $ $YLDWLRQ 0DQDJHPHQW 6HUYLFHV offers cost-effective training solu-

82 | GOLD | The Business Magazine of Cyprus

tions to airlines and individuals for Cabin Crew, Pilots and Ground Staff safety training. Recruiting services are also available for both experienced and non-experienced flight attendants.

& $ &UHZ $FDGHP\ LV DQ $SSURYHG 7UDLQLQJ 2UJDQL]DWLRQ $72 by the Cyprus Department of Civil Aviation, as per EASA Regulations. C.A. Crew Academy offers certified training courses that are recognised worldwide.

As a team, we have diverse background knowledge of all aspects of the aviation industry and we are ready to share it. We can offer tailored-made courses on our own premises or wherever the client desires and we can fulfil any airline requirements.

We aim to be a one-stop service centre for airlines, combining training, recruiting and consulting services. & $ &UHZ $FDGHP\ is moving on to the

next phase of its development by introducing pilot Flight Simulator training to its activities within the year.

The Facilities are of a high standard and equipped with practical training devices, emergency mock-ups, smoke and fire training, slides and lifejackets, which guarantee professional learning. The practical training provided is unique in our wider geographic area, offering great experience for Cabin and Flight crew.

The Organization is located in Larnaca for easy access from the Airport and all over Cyprus.

&DELQ &UHZ $WWHVWDWLRQ C.A. Crew Academy is the first Approved Training Organization (ATO) in Cyprus that can offer training and issue Initial Cabin Crew Attestations, as per EASA Subpart CC.TRA. This gives the opportu-

nity to Attestation Holders to be employed directly by any European airline and is recognised worldwide.

6DIHW\ DQG (PHUJHQF\ 3UDFWLFDO 7UDLQLQJ This type and level of training is necessary for airlines. We are in a position to support airlines in this field in a cost-efficient and effective way. We can support airlines by providing Airbus and Boeing aircraft type Conversion Courses and recurrent training for licensed crews.

C.A. Crew Academy premises are equipped with approved equipment for: - Practical fire fighting training, - Smoke environment training, - Evacuation training, slide/slide raft - Water survival training,

6DIHW\ DQG &RPSOLDQFH 7UDLQLQJ EASA compliant courses in Safety Manage-

ment Systems and Compliance at all levels are offered for all categories of management and employees. These courses are delivered by experienced trainers who are also IOSA lead auditors and evaluators.

'DQJHURXV *RRGV 7UDLQLQJ C.A. Crew Academy can deliver Cargo and Dangerous Goods Training in all categories, for Flight Crew, Cabin Crew and Ground Personnel, as per ICAO Annex 18 and EASA regulations.

$HURPHGLFDO DQG )LUVW $LG C.A. Crew Academy can offer approved aviation first aid training. It has also been certified by the Emergency First Respond

First Aid at work in the UK and offers First Aid training to the general industry.

9,3 &RUSRUDWH &DELQ $WWHQGDQW 7UDLQLQJ Specialised training for VIP/Corporate Flight Attendants will soon be introduced for both experienced and non-experienced Cabin Crew.

& $ $YLDWLRQ 0DQDJHPHQW 6HUYLFHV DOVR RIIHUV &RQVXOWLQJ DQG 6XSSRUW IRU QHZ DQG H[LVWLQJ RSHUDWRUV LQ - Manual Preparation - IOSA Audit Preparation - Cabin Crew Recruitment - Aircraft Charters

CONTACT INFORMATION:

Address: 19A, Iacovou Patatsou Street, Aradippou 7101 Larnaca | Postal Address: P.O Box 45067, Aradippou 7110 Larnaca | Tel: 7000 3310 (local) / (+357) 24323288 (from abroad) Fax: (+357) 24323287 | e-mail: info@caams.aero | Website: http://www.caams.aero

www.goldnews.com.cy | GOLD | 83

special promotional feature

&<3586 $,5 &211(&7,9,7< ,1 3$66(1*(5 75$)),& ,1 &<3586 5($&+(' $ 5(&25' 0,//,21 $1 ,1&5($6( 2) 29(5 25 $1 $'',7,21$/ 0,//,21 3$66(1*(56 *52:7+ $7 /$51$&$ $,53257 :$6 $1' $7 3$3+26 $,53257 This 18% growth in passenger numbers came mainly from the top four markets, (UK, Greece, Russia and Israel), which accounted for 85% of the total.

Last year, Russia and Israel showed an

lines and tour operators in Russia. Israelâ&#x20AC;&#x2122;s increase was due to new entrants in the market and more capacity. Additionally, increased capacity stimulated the Greek market through cheaper fares, while the

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increase of 47% in passenger numbers, which were the largest increases from all markets. Three secondary markets â&#x20AC;&#x201C; Switzerland (32%), Ukraine (24%) and Romania (20%) â&#x20AC;&#x201C; showed a significant increase in passenger numbers in 2016. Passenger traffic from Greece and the UK continued to grow by 14% and 13% respectively.

Lastly, Poland, another secondary market, showed an increase of 10%.

The significant increase in passenger traffic from Russia was mainly due to the full recovery of passenger numbers to those of previous years, and due to the new air-

84 | GOLD | The Business Magazine of Cyprus

main drivers of growth in the UK market were new routes, spread over the year.

'LUHFW 7UDIILF Direct Traffic for Larnaca and Paphos Airports showed the biggest jump in 2016, where the number of passengers reached 8,974,163, an 18% increase over 2015 and 21% more than 2012.

,QGLUHFW WUDIILF Indirect traffic in 2016 reached 989,929 passengers, which was an increase of 5% over 2015, and 32% compared to 2012.

7RS 7HQ 0DUNHWV Cyprusâ&#x20AC;&#x2122; two international airports serve 40 different countries, with over 140 routes to 115 destinations, but there is an overdependence on three markets: the United Kingdom (31.9%), Russia (17.5%) and Greece (15.8%). Israel and Germany are gaining shares but their contribution is still relatively low.

3DVVHQJHU )RUHFDVW In 2017, a slower rate of growth is anticipated â&#x20AC;&#x201C; estimated at 3.6%. The UK and Israeli markets will continue to grow and Russia should stabilize at 2016 levels.

Greece is also expected to reach 2016 levels, although capacity has been reduced for now, while Germany should have the biggest growth in capacity, forecast at 75%, with the majority of this expected in the off-peak months.

7RS 7HQ $LUOLQHV Cyprus serves a large number of airlines.

Specifically, 77 different airlines operate out of Cyprusâ&#x20AC;&#x2122;s two international airports in 2017.

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our mark on Cyprus www.goldnews.com.cy | GOLD | 85

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special promotional feature

4$7$5 $,5:$<6 ,17(59,(: :,7+ 7+(5(6$ &,66(// &28175< 0$1$*(5 *5((&( &<3586 Why should someone choose Qatar Airways for their trip? Which are your advantages over the other airlines?

Qatar Airways offers its passengers a uniquely tailored travel experience, giving them the opportunity to embark on journey of luxury as they enjoy exclusive world-class services. They can relish ultra-spacious cabin seats, extraordinary inflight dining experience created by world renowned chefs, over 3,000 different entertainment options in both Economy and Business cabins with the award-winning in-flight entertainment system Oryx One, exclusive amenity kits on all flights and Hasbro childrenâ&#x20AC;&#x2122;s entertainment kits for the younger travelers.

The service continues with the onground hospitality, in Qatar Airwaysâ&#x20AC;&#x2122; dedicated Business Class Lounge at Hamad International Airport in Doha â&#x20AC;&#x201C; one of the largest award winning lounges in the world â&#x20AC;&#x201C; where guests can experience a variety of unique dining options and enjoy themselves in spaces such as family rooms, quiet rooms, and dedicated games room with a Formula 1 simulator for young travellers.

Our passengersâ&#x20AC;&#x2122; expectations are what

88 | GOLD | The Business Magazine of Cyprus

motivates us to strive for excellence. Being able to offer impeccable products and services is at the core of our business strategy. Going places together is not about the broad reach, or our impressive destinationâ&#x20AC;&#x2122;s list. It is a state of mind, a sincere commitment to embark together in a never-ending journey of advancement.

Furthermore, I would like to add that Qatar Airways offers convenient flights for those travelling to the Middle East, Asia-Pacific and Africa, with one of the youngest and most fuel-efficient fleets. The company operates some of the most technologically advanced aircrafts worldwide, including Airbus A380s and A350s, as well as Boeing Dreamlinerâ&#x20AC;&#x2122;s.

The many awards we have received are a testament of our continuous efforts to offer

a seamless travel experience in combination with our expanding network and the award-winning Qatar Airways hub, Hamad Intl. Airport, they reflect the world class services offered by Qatar Airways both on ground and in the air.

This is what makes Qatar Airways stand out among other airlines.

Qatar Airways is one of the most successful airline companies in the world.

What does it take to become one of the leaders of your field?

One of the key elements of our philosophy is to continuously strive for excellence in every single service we offer to our passengers. Our details oriented approach ensures a seamless travelling experience for our customers. Traveler satisfaction is a top

priority to us, as we offer innovative services and products designed to facilitate their travel experience.

With an average aircraft age of approximately five years, our fleet is one of the world’s youngest in the aviation industry, elevating the travel experience through state-of-the-art technology and innovations.

How do you see your main competitors?

We are happy that we have such an active competition in Cyprus, because competition is what motivates us to differentiate our products, it keeps us alert by offering award-winning services and products to our customers. We launched Cyprus flights in April 2014 with four flights a week, since then within a span of two years the operations grew tremendously to a daily service, created job opportunities for local market and today we operate 10 weekly scheduled flights offering our customers a wide range

of flight options to choose from.

Moreover, we just had the pleasure to introduce QSuite, our highly anticipated and revolutionary new Business Class experience. Ushering in a never-before-seen standard in Business Class travel, the customisable private suites ‘QSuite’, feature the industry’s first-ever double bed available in Business Class, with privacy panels that stow away, allowing passengers in adjoining seats to create their own private room. Adjustable panels and movable TV monitors on the center four seats allows colleagues, friends or families travelling together to transform their space into a private suite, allowing them to work, dine and socialize together.

These new features provide the ultimate customisable travel experience that enables passengers to create an environment that suits their own unique needs.

We are also very proud of the latest distinctions received such as the Best Business Class in the World at the Skytrax World Airline Awards 2016 and the Best Airline for Middle East and Africa at the Business Traveler Asia-Pacific Awards, these come as recognition of our efforts for excellence and allow us to be one step ahead of the competition.

Qatar Airways flies to Cyprus with ten flights per week. Do you have plans for new routes between Cyprus and Qatar?

How are you planning to strengthen your presence in Cyprus?

We are very ambitious at Qatar Airways and always strive to expand services to travelers and Cyprus is no exception. Effective

May 2017, we will have a further capacity increase with two additional scheduled flights, this will take the count to 12 flights per week, making Qatar Airways, the largest Non-European carrier operating out of Cyprus. This increase will enable us to service more travelers, connecting them with our global network of more than 150 places at their convenience. Moreover, we are positive that these additional flights – will allow the travelers to discover the island by experiencing the convenience of the world class traveling services offered by Qatar Airways - will contribute to the increase of tourism in Cyprus.

We constantly evaluate our existing routes for opportunities of growing tourism both incoming and outgoing. Cypriot market offers a lot of potential as we have seen a huge growth from Larnaca to our key destinations such as Sydney, Melbourne, Bangkok, Singapore routes and others.

Do you think that Doha is a compatible destination for Cypriot visitors?

Doha is quite a popular destination for Cyprus, not only amongst business travelers but also for leisure. With a diverse array of exciting activities and sight-seeing to choose from, such as Doha’s world famous Museum of Islamic Art, Traditional Souq Waqif, architectural wonders, fine dining restaurants, amazing shopping malls and bustling markets, the city has a diverse variety to offer for every traveler to experience.

There is quite a large Cypriot community in Doha, and many from Cyprus visit them over weekends or for short breaks.

Doha is only 3 hours away, making it a great getaway destination without the hassle of long planning.

Doha has recently become more accessible, with the introduction of a 96 - hours transit visa by Qatar Airways. Passengers are now opting for a stopover in Qatar and experience the Arabian hospitality prior to continuing their journey onwards.

CONTACT INFORMATION:

Address: 3 Menandrou Street, Glafkos Tower, Flat 301, 1066, Nicosia Cyprus Website: www.qatarairways.com | Tel: +357 22395560 | Fax: +357 2239 5590

www.goldnews.com.cy | GOLD | 89

BOOK SHELF

BOOKS of the month

1.

THE UPSTARTS: HOW UBER, AIRBNB AND THE KILLER COMPANIES OF THE NEW SILICON VALLEY ARE CHANGING THE WORLD

By Brad Stone (Bantam Press, 2017) RRP: £20.00 (£13.60 FROM AMAZON.CO.UK)

1

2

How Uber, Airbnb and others have rewritten the rules of business.

Why certain things become extraordinarily popular.

2.

HIT MAKERS: HOW THINGS BECOME POPULAR

By Derek Thompson (Allen Lane, 2017) RRP: £20.00 (£13.60 FROM AMAZON.CO.UK)

Drawing on ancient history and modern The new generation headlines, Thompson of entrepreneurs, who explores the economics have sparked a culturand psychology of why al upheaval through certain things become extraordinarily popular, the use of technology, going beyond the cultural are the book’s titular phenomena that make Upstarts, rewriting the news by revealing the traditional rules of the desires that make us business, changing our day-to-day lives and of- all human. While techten sidestepping serious nology might change, he shows that our innate ethical and legal obstacles in the process. Stone preferences do not. The book is a sparkling comtells the story of Uber, bination of fascinating Airbnb and a host of stories, cutting-edge other companies that are science, and excellent now household names. business advice.

90 | GOLD | The Business Magazine of Cyprus

3

An indictment of the economic status quo and a call to action

4

5

The new edition of the HR bible.

Companies need a new management model for a new era.

3.

4.

In the 1950s, the income of the average schoolteacher, salesman or mechanic was enough to buy a home and two cars and raise a family in the US. As Reich shows, the threat to capitalism is no longer communism but the undermining of the trust modern societies need for growth and stability.

This is a well-written and passionate indictment of the economic status quo and a call to action.

This updated 14th edition of the bestselling, definitive text for HR professionals, contains in-depth coverage of all the key areas essential to the HR function such as employment law, employee relations, learning and development, performance and reward.

It includes emerging theory and practice, current thinking on engagement, talent management and leadership development and updated case studies.

SAVING CAPITALISM: FOR THE MANY, NOT THE FEW

By Robert Reich (Icon Books Ltd, 2017) RRP: £8.99 (£8.99 FROM AMAZON.CO.UK)

$5067521*·6 +$1'BOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE

By Michael Armstrong & Stephen Taylor (Kogan Page, 2017) RRP: £44.99 (£40.49 FROM AMAZON.CO.UK)

5.

SENSE AND RESPOND: HOW SUCCESSFUL ORGANIZATIONS LISTEN TO CUSTOMERS AND CREATE NEW PRODUCTS CONTINUOUSLY

By Jeff Gothelf & Josh Seiden (Harvard Business Review Press, 2017) RRP: £26.04 (£21.99 FROM AMAZON.CO.UK)

Software-driven technologies are transforming the way companies interact with their customers, employees and other stakeholders but most continue to rely on outmoded, industrial-era operational models when they require a completely new management model – “outcome-focused management” – that embraces continuous change. A must for anybody who thinks differently.

IN GOOD COMPANY

LEADING

BY EXAMPLE +2: %$.(5 7,//<¶6 (03/2<((6 &/,0% 7+( 0$1$*(0(17 /$''(5

By Artemis Constantinidou | Photos by Christos Tsekouras

7+( ),50 (0%5$&(6 23(11(66 $1' 75$163$5(1&< $1' &200,76 72 /($' %< (;$03/(

92 | GOLD | The Business Magazine of Cyprus

F

ounded in Cyprus in 1996, Baker Tilly in South East Europe has fast established itself as a leading network of auditors, accountants, tax consultants and business advisors.

Since its foundation, the company has gradually expanded its operations to Bulgaria, Romania, Moldova and Greece and is currently the only accounting firm in Cyprus with a presence in five countries. It is also an independent member of the powerful Baker Tilly International network, the ninth largest business advisory and accounting network in the world, represented by 126 firms in 147 countries and 30,500 people.

George Christodoulides, Human Resources Director at Baker Tilly, attributes this success to employee satisfaction. “If people feel satisfied and happy with their employer, their colleagues and work environment, they will put in their best efforts.

What further contributes to its rapid growth,” he continues, “is the fact that each and every one of Baker Tilly’s team members has his/her own unique characteristics and skills set, which adds great value to the firm.”Courtesy, friendliness and eagerness to help one another are the values which best describe Baker Tilly’s employees, he adds.

According to Christodoulides, as a member of the Baker Tilly International network, the firm embraces openness and transparency and commits to lead by example, with an emphasis on integrity and work ethics, being honest in all communications and fostering teamwork and collaboration. “By maintaining this set of values, along with the supportive work environment in which our individuals can flourish, the trust of our people in the firm is strengthened, while simultaneously reinforcing the feeling of being an important part of the organisation,” he explains.

Baker Tilly currently employs almost 200 professionals in Cyprus and over 300 people in the other four countries in which it oper-

www.goldnews.com.cy | GOLD | 93

IN GOOD COMPANY

ates. It considers it vital that all employees be given the opportunity to have a ‘voice’ through regular employee satisfaction surveys or focus groups, where everyone can express their worries, concerns, suggestions for improvement and everything else that empowers them. “Our philosophy,” notes Christodoulides, “is to promote our people to become our new managers, by giving them a clear path of advancement.”

Commenting on the company’s corporate culture as regards employees, the HR Director points out that the target is to promote a unified corporate culture across the organisation’s offices in all five countries through the three pillars of trust, knowledge transfer and shared values between people. “At Baker Tilly, we very carefully select and recruit our people as we believe that, apart from the high academic background and experience, character and personality play a crucial role in ‘fitting in’ to our existing corporate culture,” he clarifies.

As regards the recruitment procedure, numerical and critical thinking tests form part of it, followed by Assessment Centres, where experienced assessors have the opportunity to evaluate candidates and identify new talent. “Assessment Centres not only allow the assessors to form a better informed opinion about the candidates,” says Christodoulides, “but they also give the candidates an opportunity to prove their value during a long session that includes various group and individual activities.”

Once they are part of the Baker Tilly family, employees are provided with the unique opportunity of secondment placements (Talent Enhancement Programme) in its offices abroad. Employees from all levels of the organisation have the opportunity to regularly work at the offices of the network, either on a project basis or mid-long term movements. “In this way,” says Christodoulides, “they enrich their knowledge and skills and gain invaluable experiences from working in countries with a different culture with a variety of clientele and industries.”

Moreover, employees are offered a continuous learning experience through in-house and external technical trainings, webinars from BTI and in-house soft-skills

94 | GOLD | The Business Magazine of Cyprus

($&+ $1' (9(5< 21( 2) %$.(5 7,//<¶6 7($0 0(0%(56 +$6 +,6 +(5 2:1 81,48( &+$5$&7(5,67,&6 $1' 6.,//6 6(7

workshops for effective communication, team-building, positive thinking in the workplace as well as leadership and coaching skills for newly appointed and existing managers.

People at Baker Tilly enjoy a competitive benefits package as well, including group medical insurance, a provident fund and discounts on various products and services offered by clients, while financial incentives are also provided such as salary increases and bonuses based on their Key Performance Indicators. “We make sure our employees know what’s expected of them and how they can grow within our company and network,” says George Christodoulides.

The HR Director emphasises that Baker Tilly is a fast-paced evolving firm, with the majority of its employees being relatively young, which makes it a vibrant and exciting place to work. Its aim is to give its people the opportunity to ascend the management ladder and become its leaders of the future.

business class

How often do you travel, whether for business or pleasure?

What is the most exciting destination you have visited for work?

And for pleasure?

On average, I travel once every two weeks.

For work, it would have to be the United Arab Emirates since the way business is done in the Middle East is quite different, compared to the rest of the world! For pleasure, it would have to be Palma de Mallorca due to its sunny personality, its ravishing beaches, azure views and remote mountains.

Tell us about your best corporate travel experience.

The best corporate travel experience, whatever the destination, is for everything to be perfect and to go as planned. This means travelling comfortably, safely and being able to work while doing so.

Having access to the Internet throughout your journey is surely a must!

Charalambos Samir The Founder & CEO of ConnectedSky spends a lot of time travelling to the countries of the Gulf and the Middle East but London remains his favourite international destination. And when heâ&#x20AC;&#x2122;s not flying here and there, he is happy to spend time in warm and sunny Cyprus.

What is your favourite airline, and why?

What is your favourite international destination and why?

Emirates! The experience is unique since you get the feeling of flying in a 5-star hotel, safely and comfortably.

If you could travel anywhere tomorrow, where would you go?

I would go to Hong Kong and, by coincidence, I will indeed be travelling to Hong Kong in a few weeksâ&#x20AC;&#x2122; time since our company has recently opened an office there. It is such a vibrant place with state-of-the-art technology and plenty of colours everywhere!

What is the most impressive hotel you have ever stayed at and why?

It has to be London. Everything about London is amazing. Great atmosphere, great international cuisine, comfortable and easy transport and, of course, London is the No.1 financial centre in the world.

Definitely the Burj Al Arab in Dubai.

Every inch of this 7-star hotel is a unique piece of art!

How does Cyprus compare to this location?

OK, we all know that Cyprus offers many things which are a bit better than London. Among them are the weather and quality of life! In Cyprus, you do not have to be wealthy in order to have a decent standard of living compared to London.

www.goldnews.com.cy | Gold | 95

TIME

OFF

96 | GOLD | The Business Magazine of Cyprus

IN HIS DAY JOB, YIANNOS CHRISTOFOROU IS RESEARCH AND DEVELOPMENT MANAGER AT PAPAFILIPOU ICE CREAM. HOWEVER, HE IS ALSO A CERTIFIED INSTRUCTOR OF WING CHUN KUNG FU, THE CHIEF INSTRUCTOR OF ITS LINEAGES IN CYPRUS AND THE REPRESENTATIVE OF THE VING TSUN KUNG FU ASSOCIATION EUROPE IN CYPRUS.

Y

By Voula Loizou

iannos Christoforou’s passion for martial arts started during his childhood when he first saw Bruce Lee’s movies. Today he says, “I could never

have imagined that, many years afterwards, I would train professionally with the top disciple of Bruce Lee’s Sifu (teacher). I have been training in Wing Chun Kung Fu since 1989 and it has become a way of life to me.”

Wing Chun (Ving Tsun) is a martial art form and style of self-defence

that began as a combination of the most effective techniques of several Kung Fu styles in Southern China 300 years ago and it is the only martial arts system originally developed by two women.

Christoforou describes it as “a scientific martial arts system which is characterised by its cleverness, simplicity, directness, practicality and efficiency. Wing Chun is a complete and comprehensive martial arts system.”

He notes that it is not a combat sport with tournaments.

“Wing Chun was designed to enable a smaller, weaker person to

WING CHUN IS A COMPLETE AND COMPREHENSIVE MARTIAL ARTS SYSTEM

AND ICE CREAM

n g i Wu h C n

overcome a bigger, stronger opponent within a few seconds” and notes that he has sparred with professional fighters from different martial arts styles with great success.

“It emphasises and utilises natural and efficient body mechanics, eliminating the necessity to use and rely on size and strength,” he says, “so it is suitable for everybody, regardless of age, gender or physique.”

Having his own Wing Chun Kwoon (Academy), Christoforou practises Wing Chun professionally, training six days per week. Asked if it is easy to learn, he says that it is completely different from other martial arts because it emphasises economy of movement, which eliminates www.goldnews.com.cy | GOLD | 97

TIME

OFF TO ME, WING CHUN IS MORE THAN A HOBBY. IT IS A WAY OF LIFE the need for brute strength. “All of its techniques are based on direct, practical, natural body movements, which are easy to learn and can be applied immediately. The system is based on concepts and principles which have no limitations so it’s simple but endless.”

This is not to say that it doesn’t require hard work. On the contrary, correct and continuous practice improves one’s practical combat skills and, explains Christoforou, “The harder you train, the shorter the fight. Superficial training only misleads people into believing that they have special skills.

Soft training will not prepare you for fighting. Moreover, practitioners should at no stage feel they have finished their training and developed their skill to their fullest potential. There is always room for improvement and understanding. I have been training in Wing Chun for almost 30 years and I’m still discovering new things.”

The true essence of the System is to develop character, discipline and dedication to

stand firm in all situations, says Yiannos Christoforou.” It teaches you how to develop courage, confidence, self-respect, agility, coordination, concentration, self-control and to maintain balance in your life.”

His Wing Chun training

98 | GOLD | The Business Magazine of Cyprus

proved vital to him about twenty years ago in Austin, Texas when he was attacked outside a club by a group of 7-8 drunken troublemakers looking for a fight. “I managed to knock down the first three of them within a few seconds without

getting hit at all. Suddenly, the bouncers of the club came out to help me and the bad guys ran away.”

Even though Wing Chun is a big part of his life, Christoforou loves his job at Papafilipou Ice Cream. “It is very challenging, exciting and interesting. I am passionately fond of our ice cream!” he says, and although he has no intention of changing career, he is open to the idea of devoting his whole life to Wing Chun Kung Fu after he retires.

Friends and colleagues often ask him how he manages to spend all his free time training at his Kung Fu Academy without getting tired.

He invariably gives them the same answer: “If you truly love what you do, you never get tired or bored. To me, Wing Chun is more than a hobby. It is a way of life.”

Christoforou highly recommends Wing Chun to everyone. “In today’s increasingly violent society, training for self-defence is something you may need one day but that is not the only reason and benefit of training.

Wing Chun helps develop and maintain good health and a better quality of life through meditation, fitness, relaxation, stress relief, internal energy (chi) and reducing depression.”

7

t h

N I C O S I A

(&2120,& C O N G R E S S

Harris Georgiades Minister of Finance

George Pamboridis Minister of Health

Mehran Eftekhar Director, World Trade Center Cyprus

Constantinos Petrides Under-Secretary to the President

Yiorgos Lakkotrypis* Minister of Energy, Commerce, Industry and Tourism *invitation

THE STATE AND PROSPECTS OF THE CYPRUS ECONOMY Thematology â&#x20AC;¢ Cyprus Economy Forecasts 2017-2019 â&#x20AC;¢ The Economy and Foreign Investment in Cyprus, Prospects and Opportunities in Cyprus â&#x20AC;&#x201C; A view from Abroad â&#x20AC;¢ The future of the Cyprus Economy and Business as seen by Entrepreneurs and CEOs â&#x20AC;¢ Transforming the Economy of Cyprus â&#x20AC;¢ Achieving economic growth through adding value to the standard of living â&#x20AC;¢ How are the major European and global trends affecting Cyprus, as a business center

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Lunc Lunch with SPYROS YIASSEMIDES

IF THE LOCAL ACCOUNTANCY PROFESSION EVER NEEDS SOMEONE TO DISPEL THE IDEA THAT IT IS COMPOSED EXCLUSIVELY OF BORING ‘BEAN COUNTERS’, SPYROS YIASSEMIDES IS THE ONE TO DO IT. THIS SENIOR MANAGER, ACCOUNTING SERVICES WITH FIRST NAMES GROUP, HAS ENJOYED LONG CONVERSATIONS WITH MUSIC LEGEND QUINCY JONES, CHATTED WITH THE LIKES OF ROBERT DE NIRO AND IS AN ASSOCIATE PRODUCER ON A US DRAMA SERIES THAT IS DUE TO LAUNCH ON AMAZON PRIME NEXT MONTH.

Gold

By John Vickers

A OMANTIC GIORNO R des St. TUTTO IL ri a ras Pallik 13, Evago Nicosia a Lyk vitos,

A

100 | GOLD | The Business Magazine of Cyprus

s the years go by, it is becoming an increasingly familiar experience for me to find myself with people to whom I can say, “I knew your father”. Rather more rarely can I comment, as I did to Spyros Yiassemides in an e-mail a couple of years ago, “I once worked with your grandfather” and yet, some 40 years ago, I did indeed find myself involved in a TV theatre production in which Michalakis Yiassemides, musician extraordinaire, had a piano-playing role. In fact he could have played any of around 30 instruments with equal ease. He is now 94 years old and suffering from arthritis but, as his grandson tells me, “Every time

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he touches an instrument, his fingers seem to recover. He always says that music is his oxygen”.

Not surprisingly, Spyros Yiassemides is currently engaged in talks with a local TV channel about shooting a documentary about his grandfather. I say “not surprisingly” because, although an accountant by profession, he is not only passionate about film and cinema but spends every moment of his free time these days as an associate producer on Sangre Negra, a soon-to-premier US TV series. You may have read about this in a recent issue of GOLD but

I was keen to find out more about this remarkable young man over lunch. We duly meet for the first time at his eatery of choice, Tutto Il Giorno Romantica, in Nicosia and I am immediately told that his grandfather not only sends me his good wishes but “remembers everything about that particular TV production vividly”.

One of Spyros’ brothers has clearly inherited the musical talent and currently works in the UK as a composer of film scores but my dining guest is the one with the Hollywood connections.

Having ordered lunch (wild mushroom risotto and lemon chicken with rice respectively, plus a glass of the house wine for each of us), I ask how, instead of rubbing shoulders with the stars, he is Senior Manager, Accounting Services with First Names Group in Nicosia.

“I’m actually doing both,” he says, beaming with enthusiasm, explaining that he loves his job and is very happy with the firm he works for, recognising his good fortune in having a good position that pays well and offers him the potential to become a director at some stage.

“It actually suits me perfectly,” he continues. “If it weren’t for my work, I might not have had the financial means to accept an invitation from Robert De Niro to go to the TriBeCa Festival in 2014, for example. Without that, the invitation would have meant a lot to me but, if I had been forced to turn it down, I would not have had the opportunities to meet so

many people and to end up as one of the producers of an American television series.

So I am very appreciative of my job and I’m giving it my everything.”

Perhaps not everything, I suggest. Working after hours on episodes of what the Internet Movie Data Base describes as “the cross-generational saga of the Santos Family, which is told Telenovela style and combines the family drama of “Dallas” with the underworld intrigue of the “Sopranos” isn’t exactly the norm for members of the Cypriot accounting profession.

“I have supercharged genes!” he says with what I shall soon see is more or less a permanent smile. “It’s true that, after a tiring day at the office, I don’t go home wanting to sleep. I want to spend time with my wife and children, of course, but at some point I need to work on my Ph.D – in film studies, of course! I don’t need a fourth professional qualification!

– and on Sante Negra. My day invariably ends after 1.00am

The only part of Spyros Yiassemides’ story that might be described as typically Cypriot is the part about becoming an accountant.

“Everyone knows the tradition of how the first son follows in his father’s footsteps,” he says, “and my dad was a certified accountant. In truth, I had always been fairly average at school but I had top marks in three subjects: Greek language (which I loved and is why I still do so much writing), Accountancy and English. I didn’t know what I wanted to do after completing my military

certificate with them, and various applications were made for me. I was offered a place by Northumbria University at Newcastle to study for an Honours Degree in Accountancy. That’s how I started my academic career - it was all done for me!”

Today, Yiassemides describes his three years in Newcastle as “the best of my life” and the springboard for his hobby to develop into a great passion. At university he was exposed to a huge range of movies of all types, and he continued to indulge his love of cinema during four subsequent years in London.

Memories come rushing back of times spent at the Electric Cinema on Portobello Road and some of the films he saw there, including one of his all-time favourites Sideways,

by GreekAmerican director Alexander Hayes. He would later meet one of the stars of the movie, Thomas

SO MANY OF THE PEOPLE WE THINK OF AS BIG STARS ARE ACTUALLY VERY FRIENDLY AND DOWN-TO-EARTH but I am always wishing that I had a few more hours. Twenty-four is never enough.”

service but while I was in the army my parents attended a UK university fair, taking a copy of my school leaving

Haden Church, and was hugely disappointed that the man was not as friendly as virtually every other big

www.goldnews.com.cy | GOLD | 101

| LUNCH WITH GOLD |

name had been. More of that later. It is at this point that Yiassemides confesses his fantasy about having a time machine so as to go back in true Back to the Future style and change his career.

“Don’t get me wrong,” he says. “I am doing very well in my career. I’m dedicated to the company and I’m hard working but…”

There is a rare pause before he explains, somewhat wistfully, that numbers and balance sheets are all very well but culture and works of art have enduring value. “You can leave something behind you, for your kids or for future generations,” he says.

For now, Spyros Yiassemides’ shot at immortality lies with Sangre Negra, which will be streamed on Amazon Prime. “We’re hoping to premier it in April,” he tells me. “It is a Latinooriented series with a huge cast, including lots of well-known actors making cameo appearances and taking small roles, as well as the main characters played by writer Anthony McKay, Eric Roberts and Arianna Gomez.”

Yiassemides is clearly no snob when it comes to TV and, he says, he has absolutely no problem with what he hopes will be a hugely popular series, especially with a Latino audience.

“From exploitation B movies to Oscar winners, I’m open to everything,” he says. “I will watch and then judge.”

This brings the conversation on to two recent films that have won the Yiassemides seal of approval, both award winners.

“I was thrilled to see the success of Ken Loach’s I, Daniel Blake, which happens to be set in Newcastle so I recognised many of the locations, which made it even more special for me,” he tells me. “It is a very moving, emotionally charged and powerful film and a brilliant dramatic performance by comedian Dave Johns.”

Inevitably, the other movie is La La Land. “I’m not really into musicals,”

102 | GOLD | The Business Magazine of Cyprus

Yiassemides admits, “but I was blown away for so many reasons: it’s about dream chasing, the chemistry between Emma Stone and Ryan Gosling is fantastic, and I just loved the concept of telling a story musically.”

I tell him that I, too, was knocked out by the film, having been tempted into the cinema after reading that the opening sequence had, amazingly,

he tells me. “Quincy Jones, who did an album with Nana Mouskouri many years ago, told us a story of how the Greek composer Mimis Plessas had ‘stolen’ a girl from him in their younger days! He talked about Michael Jackson and showed us the gold ring that Frank Sinatra gave him.”

The time Yiassemides was in

IF WE’RE GOING TO AIM FOR SOMETHING, LET’S AIM HIGH! been filmed in a single take. I have since discovered that, although the scene was designed to look like a single shot nearly six minutes long, it was, in fact, three shots stitched together. No matter. It provokes a lively monologue about the greatest single takes in cinema history before I ask my guest to name his all-time favourite movie.

He doesn’t stop to catch a breath before announcing, “I’m going to cheat slightly and say the Godfather trilogy.

The whole is greater than the sum of its parts and today you can’t watch one without the other. As a standalone, I didn’t like the third one but combined with the other two, it’s just right.” I try to imagine what it must have been like for someone with this man’s love for, and knowledge of, the cinematic art to attend the 2014 TriBeCa Film Festival.

“Incredible” is the word he uses. “I met so many people there and I was delighted to discover that so many of the people we think of as big stars are actually very friendly and down-to-earth.”

The only two exceptions were the previously mentioned Thomas Haden Church and Don Johnson, whom Yiassemides approached on a different occasion and was somewhat rudely dismissed. “Everyone else was fantastic,”

New York coincided with Greek Orthodox Easter and so he was taken by relatives to church on Easter Saturday. A few metres away was Tom Hanks, his wife Rita Wilson and Nia Vardalos.

Forced to dismiss the idea of talking to one of his idols in such a place on such a night, he determined to approach Hanks once the service was over. “By the time we were out of the church, he was gone,” he recalls, adding, “I may not need the time machine for that. Tom Hanks is something of a regular among the Greek American community. Maybe next time.”

Who knows? Yiassemides is obviously one of those people who sets goals and gives his all to achieve them. As we get up to leave, he tells me that he already pictures himself graduating with his Ph.D and having his children there. “I also visualise Sangre Negra winnng an Emmy,” he says, with a grin. “If we’re going to aim for something, let’s aim high! Next year, I’m hoping to go the BAFTA Awards. And it’s all thanks to a career in accounting!”

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Saturday 8 April 2017 | 08:30 - 13:00 | Bank of Cyprus Headquarters (Ayia Paraskevi) | Nicosia For further information and registration, contact: IMH, Tel.+357 22505555, Fax. + 357 22679820, E-mail: events@imhbusiness.com, website: www.imhbusiness.com 6LOYHU 6SRQVRUV

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WHAT’S

ON

THINGS

to do

DANCE E THE SLEEPING BEAUTY The Royal Ballet’s spectacular landmark production of Petipa’s choreography of Tchaikovsky’s great musical score.

GREEK MUSIC G

Rialto Theatre, Limassol K Cineplex Nicosia, Larnaca, Paphos Sunday, March 19, 6.30pm

BALLET GRAND GALA BAL asterpieces of classic ballet and modern choreography cho performed by soloists of the Mariinsky Theatre, Russian Ballet Theatre and National Theatre, Tokyo.

T Latsia Municipal L T Theatre, Nicosia SSunday, March 19, 88.30pm

BA BABIS TSERTOS & DIASTASIS The well-known performer of RembetiTh ka and Laika songs, Babis Tsertos, accompanied by the Diastasis Children’s co Choir and Vocal Ensemble Ch STROVOLOS MUNICIPAL THEATRE, NICOSIA SATURDAY, MARCH SA S AT 18, 8.30PM PATTICHION THEATRE, LIMASSOL MONDAY, MARCH 20, 8.30PM

M

A CONTEMPORARY EVENING The Bolshoi Ballet in works by three masters of modern and contemporary choreography: The Cage (Jerome Robbins), Études (Harald Lander) and Russian K Cineplex Seasons (Alexei RatNicosia, Larnaca mansky). and Paphos Sunday, April 9, 7pm

104 | G GO GOL GOLD OLD OL O LD | The Business M Ma Magazine a ag gaz ga g a azzine of Cyprus

DIMITRA GALANI he veteran Greek singer and composer Dimitra Galani, accompanied by singer Efstathios Drakos.

Rialto Theatre, Limassol Friday, March 24, 8.30pm RED Music Stage, Nicosia Saturday, March 25, 10pm Time: 22:00 - 01:00

BLE & THEODOSIA TSATSOU Celebrating the Greek band’s 20th anniversary, Ble perform with their original lead singer Theodosia Tsatsou as well as her successor Georgia Kefala.

Downtown Live, Nicosia Friday, March 31, 10.30pm COSTAS MAKEDONAS The popular Greek singer returns to Cyprus for a single show in Nicosia.

RED Music Stage, Nicosia Saturday, April 1, 10pm

T

MANDO reek singer Mando returns to Cyprus for a one-off performance with George Brachopoulos on piano.

G

Vinylio io Wine Etc, Limassol sol Sunday, March 26, 9.30pm pm

ORFEAS A PERIDIS & LIZETA KALIMERI The Greek singers perform their own songs and duets.

RIALTO THEATRE, LIMASSOL SUNDAY, APRIL 2, 8.30PM

NOTIS SFAKIANAKIS he sometimes controversial and h ooutspoken Greek singer g Notis SSfakianakis Sfakia anakis does what he’s best at – singing. si ingin ng.

Pavilion, P Pavili lion, Nicosia SSaturday, Satur rday, A l 8, 11pm April

T

RIALTO THEATRE, LIMASSOL K CINEPLEX NICOSIA, LARNACA AND PAPHOS SATURDAY, MARCH 25, 18:55

ART

OPERA

IDOMENEO Mozart’s first operatic masterpiece, live from the Metropolitan Opera, New York, with Matthew Polenzani, Alice Coote, Nadine Sierra and Elza van den Heever.

KYPRIAKI GONIA GALLERY, LARNACA UNTIL APRIL 10.

GLYN HUGHES ollowing last year’s lengthy retrospective, the Glyn Hughes Foundation is holding an exhibition of Hughes’ work in Larnaca.

F

CLASSICAL MUSIC GUITAR uitarist Sotiris Kasparides presents “Dandelion”, a recital of works by composers as diverse as Bach, Giuliani, Tárrega, Jolivet and Brouwer.

Arte Music Academy, Nicosia Tuesday, March 21, 8.30pm

G

PIANO ark Viner, one of the most exciting British concert pianists of his generation performs works by Liszt, Chopin, Alkan and Thalberg.

The Shoe Factory, Nicosia Friday, March 24, 8.30pm

M

PIANO DUO Ahead of their Russianl tour, Elina Linchevskaya & Zbynek Maruska, two of the finest Cyprus-based pianists, perform works by Mozart, Brahms, Tchaikovsky and Dvorak.

Technopolis 20, Paphos Friday, March 31, 8pm CELLO & PIANO The Pharos Arts Foundation presents Christian Elliott – cellist of the Zehet-mair Quartet and Principal Cellist of the Irish Chamber Orchestra tra – and pianist Robin Green in n a programmee consisting of works ks by Beethoven ven and Schumann. ann.

THE SHOE FACTORY, NICOSIA WEDNESDAY, APRIL 5, 8.30PM

CYPRUS SYMPHONY ORCHESTRA The Heavenly Life orks by Keliris, Shostakovich and Mahler with soloists Gareth Griffiths (trumpet), Gergana Georgieva Kou utsouli u tsouli (so (sopr p ano). an (piano) and Elli Koutsouli (soprano).

W

RIALTO E, THEATRE, L LIMASSOL Y, THURSDAY, 30PM MARCH 30, 8.30PM ATRE, PALLAS THEATRE, NICOSIA RCH FRIDAY, MARCH M 31, 8.30PM

Ave Verum Corpus aster concert of works by Evangelatos, Shostakovich, Mozart and Tchaikovsky. Conductor Konstantinos Diminakis

E

TERRA A A SANTA LIC CATHOLIC ARNACA CHURCH, LARNACA A RIL THURSDAY, APR APRIL M 6, 8.30PM EATRE,, PALLAS THEATRE, I IA NICOSIA PRI R L 7, FRIDAY, APRIL M 8.30PM

JAZZ/ETHNIC MUSIC GIAZITZIAN - KIOURTSOGLOU KARIPIS Three virtuoso musicians/composers – Haik Giazitzian (acoustic/electric oud, vocals), Giotis Kiourtsoglou (electric ripi (p r i n bass) and Vangelis Karipis (percussion, drums) – play two Cyprus gigs.

Pattichion Theatre, Limassol Sunday, March 19, 8.30pm Exandas Music Stage Tuesday, March 21, 9.00pm SASHA MAGEROVA The Russian singer-songwriter performs various styles from jazz to soul and funk.

Russian Cultural Centre, Nicosia sia Saturday, March 25, 8.30pm Pattichion Theatre, Limassol Sunday, March 26, 7.30pm

EVENT INTERNATIONAL TATTOO LANITIS CAROB MILL CONVENTION COMPLEX, The 4th InternationLIMASSOL FRIDAY, MARCH al Tattoo Conven31- SUNDAY, APRIL tion showcases the 2. DOORS OPEN 11AM. art and techniques of dozens of talented local and foreign tattoo artists.

THEATRE AMADEUS Peter Shaffer’s iconic play (later an Academy Award-winning film), broadcast live from the National Theatre, with live orchestral accompaniment by Southbank acc ank Sinfonia.

Rialto Theatre, Limassol Ria Wednesday, March 29, 8.30pm We 30pm

www.goldnews.com.cy om.cy | GOLD GO GOL G OL O LD | 1105 05 0 5

A DAY IN THE LIFE

Andrie Penta

M y daughter, who is almost three, wakes up several times during ring the night and by 6am we’re re all up. At 6.30am I’m at the gym and an hour later I’m backk home preparing breakfast. As a very health-oriented person, I believe in having a proper breakfast before work. From 8.15am I will be preparing seminars, writing articles, etc. When I was younger, my parents ran their own business – a chain of clothing and shoe stores – so, in a way, I was born into a sales environment.

However, I wasn’t interested in taking over the business because I saw how tough it was – no vacations, no weekends, no free time. I was quite mature as a kid and, from the age of 14, I knew I wanted to be a marketeer. By the time I was 20, I had gained my BA in Marketing Management in London, I was doing three part-time jobs and studying for the Chartered Marketeer qualification. I worked in the UK

The soft skills trainer and Consultant in Marketing, Communications and Entrepreneurship on how things have changed since 2013, what she likes to th read, and why she feels that she still has a lot to re accomplish. ac

for fo 18 months before b coming back b to Cyprus – I couldn’t c bear the cold c weather! Ten years y ago, I was working w for Ernst & Young before setting up my own se company with c Ernst & Young as E my m first client. By 2013, I had many 2 major clients but m a lot of them were w badly affected d by b the h crisis i i and we had to downsize. The market has now changed and marketing itself has switched from the traditional channels to cheaper solutions such as online and social media. I had to adapt too and I’m not 20 anymore so it was something of a learning curve. In the long term, I believe that what we think of as traditional marketing will represent only a small percentage of my work because of new media and alternative means of communication.

For much of the time, I work right through the day without a break. After 6pm I’m home again for the evening meal. I have long accepted that cooking is not my strongest skill! I might watch TV for an hour before bed but, having been very active during

the day, by 9pm I’m dead! If I have a chance, I read business books and novels. Recent ones include How to Win Friends and Influence People in the Digital Age by Dale Carnegie & Associates and a Greek novel called Sekerim by Marina Vamvaka. I’m never automatically attracted by the latest blockbuster because, as a marketeer, I know how much the popularity of a film, book or any product comes down to marketing. I have demythologised everything!

I’m very fond of exercise and healthy living. I’m a vegetarian – that came about after the mad cow disease scare when I was in London and I decided to stop eating meat.

As far as my children are concerned (the second one is on the way!), I won’t give them junk food but I will let them eat whatever they want. When they grow up they will take their own decisions.

I like movies, especially romantic comedies and I listen to Greek and foreign pop music in the car but that’s the extent of it. When I was younger I would go to concerts but not so much anymore. The last one I went to was by Mario Frangoulis.

I love travel and I used to do a lot but, since having my daughter, I’ve cut down a lot

and I can’t do any overseas training right now due to being I enjoyed seeing pregnant. If him in concert I could go anywhere tomorrow I would choose Singapore and Australia.

I love Paris, although I must admit This is highly that I am recommended scared by the terrorist threat and I would gladly My kind of go back to China, where healthy food!

I have been twice for work.

Weekends are for family and friends. I have created a mode of working to make sure that I have a good work/life balance, but I don’t know how viable it will be with two children. I often feel that I’m still at the beginning of my career. The market is still very fragile and unstable and I’m watching developments right now.

I know that I still have a lot to do and my goal is to be the best in whatever I do. I think I still have 30 years to prove myself!”

IN THE LONG TERM, I BELIEVE THAT TRADITIONAL MARKETING

WILL REPRESENT ONLY A SMALL PERCENTAGE OF MY WORK

106 | GOLD | The Business Magazine of Cyprus

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;]-Ѵ -m7 !;] Ѵ-|ou u-l; ouh -v;7 om m]Ѵbv_ ollom - rubm1brѴ;vķ ru vĽ 1olru;_;mvb ; -m7 uo0 v| Ѵ;]-Ѵ -m7 u;] Ѵ-|ou =u-l; ouh bv b7;Ѵ u;1o]mbv;7 -v - 0 vbm;vvŊ=ub;m7Ѵ -m7 ;@;1ঞ ; v v|;l |_-| ;mv u;v |u-mvr-u;m1 -m7 u;Ѵb-0bѴb| bm 0 vbm;vv ru-1ঞ1;vĺ

@;ubm] =ou;b]m 0 vbm;vv;v - =-lbѴb-u -m7 u;Ѵb-0Ѵ; =u-l; ouh b|_bm _b1_ |o or;u-|;ķ ru vĽ Ѵ;]-Ѵ v v|;l bv -Ѵvo = ѴѴ 1olrѴb-m| b|_ |_; &ķ |_; bm-m1b-Ѵ 1ঞom $-vh ou1; om om; - m7;ubm] Ő $ őķ ķ $ ķ |_; bm-m1b-Ѵ "|-0bѴb| ou l Ѵ- v -m7 u;] Ѵ-ঞomv -m7 & 7bu;1ঞ ;vĺ

l-m $-Ѵ;m| ş ; ;Ѵ o= ";u b1;v l-m |-Ѵ;m|ķ 1olrѴ;l;m|;7 0 - 0uo-7 u-m]; o= _b]_ t -Ѵb| ruo=;vvbom-Ѵ v;u b1;vķ bv om; o= ru vĽ lov| 1olr;ѴѴbm] -7 -m|-];vĺ ru v o@;uv -m -0 m7-m1; o= _b]_Ѵ ;7 1-|;7ķ l ѴঞѴbm] -Ѵ bm7b b7 -Ѵvķ u;-7 |o l;;| |_; m;;7v o= -m 0 vbm;vvĺ

7 -m1;7 m=u-v|u 1| u; ru v 0;m;C|v =uol -7 -m1;7 -m7 lo7;um bm=u-v|u 1| u;ķ -v ;ѴѴ -v -m ; |;mvb ; |;Ѵ;1oll mb1-ঞomv m;| ouhķ b7;-ѴѴ v b|;7 =ou 0 vbm;vv r;orѴ; b|_ 7;l-m7bm] v1_;7 Ѵ;vĺ $_-mhv |o b|v vor_bvঞ1-|;7 uo-7 v v|;lķ 0 v|Ѵbm] rou| =-1bѴbঞ;v -m7 | o bm|;um-ঞom-Ѵ -burou|vķ |u- ;Ѵ -m7 |u-mvrou| bm -m7 0; om7 ru v bv =-v|ķ ;L1b;m| -m7 1ov| ;@;1ঞ ;ĺ

b]_ -Ѵb| o= b=; ru v u;vb7;m|v ;mfo -m ;m b-0Ѵ; Ѵb=;v| Ѵ; bm - v-=;ķ 1Ѵ;-m -m7 _;-Ѵ|_ ;m buoml;m| b|_ _b]_ Ѵb bm] v|-m7-u7v -m7 - v mm 1Ѵbl-|; -ѴѴ ;-u uo m7ĺ o 1ubl; Ѵ; ;Ѵvķ 1;m| ub;v o= -u| -m7 1 Ѵ| u;ķ -m7 ; 1;ѴѴ;m| ]-v|uomol -ѴѴ 1om|ub0 |; |o - _b]_ t -Ѵb| o= Ѵb=;ĺ $_; bvѴ-m7 bv u-mh;7 |_; v-=;v| vl-ѴѴ 1o m|u bm (-Ѵ ; ;m] bmĽv "-=;v| o m|ub;v bm |_; ouѴ7 ŐƑƏƐƔő -m7 Ɣ|_ ]Ѵo0-ѴѴ ĺ

0o | m ;v| ru v vbm;vv;v -m7 bm7b b7 -Ѵv 1omvb7;ubm] bm ;v|l;m| bm|o ru v _- ; - r-u|m;u om |_; ]uo m7 -| -ѴѴ v|-];v o= |_; bm ;v|l;m| 1 1Ѵ;ĺ m ;v| ru v bv - momŊruoC| m-ঞom-Ѵ 0o7 ķ _b1_ķ bm 1Ѵov; 1oѴѴ-0ou-ঞom b|_ |_; r 0Ѵb1 -m7 |_; rub -|; v;1|ouķ |-h;v |_; Ѵ;-7 bm - u-1ঞm] =ou;b]m 7bu;1| bm ;v|l;m| bm h; ;1omolb1 v;1|ouvĺ ;7b1-|;7 |o 1omঞm o vѴ blruo bm] |_; 0 vbm;vv -m7 u;] Ѵ-|ou ;m buoml;m|ķ m ;v| ru v -7 o1-|;v u;=oul _bѴ; -Ѵvo ruo b7bm] bm ;v|ou v rrou| -m7 -[;u1-u; v;u b1;vĺ )ouhbm] b|_ |_; bm ;v|ouķ =ou |_; bm ;v|ouķ m ;v| ru v bv |_; bm ;v|ouĽv vbm]Ѵ; robm| o= 1om|-1|ĺ

ru v m ;v|l;m| uoloঞom ];m1 T +357 22 441133, F +357 22 441134 bm=oŠbm ;v|1 ru vĺou]ĺ1 ĺbm ;v|1 ru vĺou]ĺ1

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