Issue 32 by Kevi Chishios

ISSUE 32 November 14 - DeceMBER 13, 2013 PRICE â&#x201A;Ź4.95 powered by: 00001 >

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the international investment, finance & professional services magazine of cyprus

the legal

experts

DIRECTORY

ust days after delivering an upbeat assessment of Cyprus’ progress regarding a return to growth, the President of the Cyprus Investment Promotion Agency (CIPA), Christodoulos Angastiniotis, gave an unusually outspoken warning about the future of the country’s vital services sector. He revealed that the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes had ranked Cyprus 50th, alongside Seychelles, the British Virgin Islands and Luxembourg. Explaining that the reason for this was that legal, accounting and fiduciary firms were failing or avoiding to provide answers to questions submitted by foreign governments to the Department of Inland Revenue, Angastiniotis pointed the finger at the regulatory bodies – the Institute of Certified Public Accountants of Cyprus, the Cyprus Bar Association and the Securities and Exchange Commission – and said that if they do not exercise stricter control of their members, “the negligence, indifference or bad practices of a few could destroy the services sector of the economy”. The CIPA President’s comments came ahead of a major international summit on government transparency in London and to coincide with it, the Open Knowledge Foundation published its 2013 Open Data Index, showing that governments are still not providing enough information in an accessible form to their citizens and businesses. The Index ranks countries based on the availability and accessibility of information in ten key areas, including government spending, election results, transport timetables, and pollution levels, and reveals that whilst some good progress is being made, much remains to be done. The UK and US top the 2013 Index, which is a result of community-based surveys in 70 countries. They are followed by Denmark, Norway and the Netherlands but – shockingly – Cyprus is ranked last, below countries like Yemen and Burkina Faso. Clearly, something needs to be done. Coincidentally, in this issue of Gold we look at two important components of the island’s professional services sector – law firms and administrative service providers, more familiarly known as fiduciary companies – and we emphasise their positive contribution to the economy. In our Directory of Legal Experts, we draw attention to 140 of the country’s specialist lawyers, almost exclusively those who have been recognized by their clients and peers for excellence in their chosen area of practice. From banking and finance to litigation and arbitration, Cyprus has lawyers with all the expertise required in today’s world of cross-border transactions and globally interconnected economies. And we are not asking you to take our word, or indeed their word, for it; in compiling the list we looked to some of the established ranking houses for their assessments. Elsewhere in the magazine we have interviews with two key figures in the fiduciary sector who, while expressing sometimes differing views on the issue of regulation, are nonetheless united in their vision for the sector and for Cyprus. We sincerely hope that those who lead the way in the legal and fiduciary areas will take serious heed of Christodoulos Angastiniotis’ warnings. With the Troika pressing the Government to stick to the agreed timetable for progress on privatisation, and Cyprus evidently failing to live up to its ambitions to restore confidence in its way of doing business, as indicated by its poor assessment by the OECD Global Forum and the Open Knowledge Foundation, it is time for President Anastasiades to show his determination to take the unpopular but necessary decisions that will get the island back on track. There will be a great deal of opposition at first but he knows that he will eventually be proved right for having the courage to do the right thing.

John Vickers, Chief Editor john@imhbusiness.com ISSUE 30 SEPTEMBER 14 - OCTOBER 13, 2013 PRICE €4.95 POwEREd By:

ΜΗΝΙΑΙΑ ΕΚΔΟΣΗ ΓΙΑ THN ΚΥΠΡΙΑΚΗ ΑΓΟΡΑ & ΤΑ ΣΤΕΛΕΧΗ | TEYXOΣ 91 | ΣεπτεμβριοΣ 2013

50 πιο κοινωνικα ευαιΣθητεΣ εταιρειεΣ

NICOS ANASTASIADES President of the Republic of Cyprus

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CHRISTODOULOS ANGASTINIOTIS Chairman, CIPA (Co-organiser)

HANS WOLFF Director and Country Manager, Barclays (Gold Sponsor)

MEHRAN EFTEKHAR Group Head of Corporate Services & Finance Director, Nest Investments Holdings (Cyprus) Ltd.

EVGENIOS EVGENIOU CEO, PwC Cyprus (Platinum Sponsor)

LOUCAS MARANGOS CEO, TFI Markets Ltd. (Silver Sponsor)

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εταιρειεσ YIANNIS TINIS Managing Director, Amdocs Development Ltd.

CIPA INTERNATIONAL

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8 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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07/11/2013 18:03

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UP FRONT

PWC TRAINEES TOP ACCA EXAM RESULTS IN CYPRUS

ndri Lazarou, Demetra Olymbiou, Jacek Zybert and Simona Attaallah, trainee accountants at PwC Cyprus, achieved first places in Cyprus in the examinations of the Association of Chartered Certified Accountants (ACCA), held in June 2013. Andri Lazarou, who came first in Cyprus in the Advanced Audit and Assurance paper, joined PwC Cyprus in October 2011 and is currently working in Assurance & Advisory services in Nicosia. Demetra Olymbiou achieved first place in Cyprus in the Performance Management paper. She joined PwC in March 2012 and is currently working in Global Compliance Services in Nicosia. Jacek Zybert came joint first in Cyprus in the Advanced Financial Management paper. He joined PwC in November 2010

and is currently working in Direct Tax Services in Nicosia. With him, Simona Attaallah achieved joint first place in Cyprus in the Advanced Financial Management paper. She joined the firm in September 2008 and is currently working in Global Compliance Services in Nicosia. Evgenios Evgeniou, CEO of PwC Cyprus, and Philippos Soseilos, Head of Human Capital, congratulated the four trainee accountants at a ceremony organised last month to honour their outstanding achievements. Evgeniou noted that “Our major asset is our people who enable us to deliver value to our local and international clients, focusing on quality, professionalism and dependability. Despite the difficult market and economic conditions, such achievements strengthen our commitment to continue to invest in their training, development and advancement.”

Chinese Bank Tops World Banks Ranking

Chinese bank has come top in The Banker’s Top 1000 World Banks ranking for the first time ever. ICBC (Industrial and Commercial Bank of China) has moved from third to first place on the back of a 15% increase in capital. Last year’s winner Bank of America fell back to third while JP Morgan stayed second. ICBC’s stellar performance marks a new high in the growing strength of China’s banks. Its second largest, the China Construction Bank (CCB) also grew its capital by 15% and dislodged Citigroup from fifth place. The UK’s only bank in the top 10 is fourth-placed HSBC, which gains significant earnings from its Asian opera-

TOP 10 GLOBAL BANKS RANKED BY TIER 1 CAPITAL Rank

1 2

(L-R): Philippos Soseilos (Head of Human Capital), Simona Attaallah, Jacek Zybert, Evgenios Evgeniou (CEO), Demetra Olymbiou.

tions. China now has 96 banks in the Top 1000 ranking and holds four places in the Top 10. Its big four banks ICBC, CCB, Bank of China and Agricultural Bank of China head the table for the largest profits. Though European banks continue to perform badly, one of the best European performers is Turkey where the banks grew profits by 37%. Spanish banks together lost $73bn accounting for nearly 5% of GDP. In a table of the 10 largest losses six of the banks are Spanish. Globally, Africa’s banks have doubled their share of profits from 1.15% in 2006 to 2.31% now and central and south America’s share has nearly tripled from 2.37% to 6.37% over the same period.

3 4 5 6 7 8 9 10

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USA

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China

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FXTM CEO SCOOPS TWO AWARDS

orexTime CEO Olga Rybalkina won the Top Professional and People’s Choice awards at last month’s annual Russian Business Woman of the Year Awards. The annual Top Professional award is presented each year to a businesswoman who has excelled in the areas of leadership and management in business. Rybalkina was singled out for her successful career in financial services. The award also recognises her accomplishments in managing the global expansion of ForexTime and developing the skilled and talented management team leading the company. Asked to reveal the secret of her success, she said: “I believe that successful business people – men and women – must have a passion for what they do and this is the foundation on which ForexTime was built. There can be no success without true excitement for and commitment to what you do.”

10 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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UP FRONT

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CIPA VISITS TO LONDON, UKRAINE AND INDIA

©Corbis ©Corbis ©Corbis ©Corbis ©Corbis

he Cyprus Investment Promotion Agency (CIPA) has recently intensified its schedule of targeted actions abroad with visits to London, Ukraine and India, with the twin aims of restoring Cyprus’ image as a reliable investment destination and attracting foreign investment. On a recent trip to London, the Agency’s Director-General, Charis Papacharalambous, was interviewed by the Glude TV production company for a videoclip promoting the property market in Europe, including Cyprus,

that will be screened in Asian cinemas, He also met with Andrew Fraser, former Managing Director of Invest UK, and the Chairman of the FTI Consulting Firm, with which CIPA is cooperating on the issue of improving Cyprus’ image abroad. Papacharalambous also held meetings with the British Venture Capital Association. Meanwhile, the Agency’s Senior Officer, Lefteris S. Eleftheriou, recently joined a Cyprus Chamber of Commerce and Industry (CCCI) mission to Ukraine, where the attractions and comparative advantages of Cyprus as an investment destination were presented to the Donetsk and Luhansk

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Chambers. Eleftheriou spoke about sectors in Cyprus with good growth prospects, including shipping, energy, tourism, large development projects, the audiovisual industry, research and innovation, and professional services. A CIPA delegation also participated in the recent CCCI mission to India and held additional meetings with media representatives and with the Managing Director of the Indian Films Association in New Delhi. Similar meetings were also held in Mumbai, mainly with agents of the audiovisual industry, aimed at broadening cooperation between the two countries in the sector.

hase One of the €300 million VTTV terminal project at Vasilikos is now well under way and most of the 28 tanks of the first phase of the project have been erected to their full height. In addition, 13 tanks have been successfully hydro tested, 19 dome roofs have already been installed and 11 of them have been painted. The pre-fabrication of piping is almost completed and piping installation works are progressing smoothly. At the same time, all product pumps have been installed and jetty works are progressing as scheduled, with piling for platforms 1-2 and 3-4 complete and piling for the central platform in progress. The installation of pre-cast beams on all platforms and the pre-casting of slabs for the platforms are ongoing. In September, an Environmental Impact Assessment hearing

CCCI Business Forum in Prague

was held for the second phase of the Terminal. Within six months, various government departments will decide on whether they to approve the proposed expansion project on reclaimed land. If they are positive, this will accommodate 13 additional tanks with a total capacity of 305,000m³ for the storage of fuel oil and crude oil. This expansion will bring another €100 million investment and multiple economic benefits to Cyprus. Meanwhile, eleven engineers hired for operational positions of the Terminal are currently in the Netherlands on an intensive four-month training course at VTTI’s terminal in Amsterdam. Similarly, the newlyhired HSE Manager has received his training at ATPC-Antwerp and the new Commercial and Customer Service Manager is currently in VTTI FTL- Fujairah for training.

he Cyprus Chamber of Commerce & Industry (CCCI), in cooperation with the Ministry of Energy, Commerce, Industry & Tourism and the Cyprus-Czech Republic Business Association, is holding a Business Forum in Prague on 3 December. The aims of the Forum are to promote Cyprus as an international services centre and to further develop economic ties between Cyprus and the Czech Republic. The Forum is expected to focus on the sectors of professional services (financial, legal, advisory), tourism, construction & real estate, health, energy and transport.

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UP FRONT

MICHAEL BLOOMBERG MAYOR, NEW YORK CITY Net Worth: $31 billion Age: 71 Source of Wealth: Bloomberg LP, self-made The world’s richest mayor Michael Bloomberg relinquishes control of New York City in December after 12 years. What he will do next is anyone’s guess. His fortune is up $6 billion since last year, thanks to his financial data firm Bloomberg LP. His lifetime philanthropic giving has reached $2.8 billion.

S. ROBSON WALTON

CHAIRMAN, WAL-MART STORES Net Worth: $33.3 billion Age: 69 Source of Wealth: Wal-Mart, inherited The eldest son of Sam Walton has been company chairman since 1992, and financially, the world’s the largest retailer remains steady, up 5% from last year. Rob and his siblings have donated about $2 billion to the Walton Family Foundation over the last five years.

CHARLES KOCH

CEO, KOCH INDUSTRIES NET WORTH: $36 BILLION Age: 77 Source of Wealth: Diversified, inherited Charles Koch has headed the second largest private company in the US since 1967. His net worth is up $5 billion this year as Koch Industries steadily expands. He and his brother reinvest 90% of earnings in the business. They were rumoured to be buying the Los Angeles Times but changed their minds.

ALICE WALTON

DAVID KOCH

EXECUTIVE VICE PRESIDENT, KOCH INDUSTRIES Net Worth: $36 billion Age: 73 Source of Wealth: Diversified, inherited The net worth of New York City’s richest resident is up $5 billion this year as Koch Industries grows. The company agreed to buy electronics-components maker Molex for $7.2 billion and Buckeye Technologies for $1.5 billion. A prostate cancer survivor, he has given over $200 million towards finding a cure.

CEO, BERKSHIRE HATHAWAY Net Worth: $58.5 billion Age: 83 Source of Wealth: Berkshire Hathaway Berkshire Hathaway picked up iconic ketchup maker H.J. Heinz for $23.2 billion in June and a Berkshire subsidiary is buying Nevada’s NV Energy for $5.6 billion in cash. He gave away another $2 billion of Berkshire stock to the Gates Foundation in July, bringing his lifetime giving to nearly $20 billion.

CEO, ORACLE Net Worth: $41 billion Age: 69 Source of Wealth: Oracle Oracle founder Ellison collects houses on Malibu’s Carbon Beach and also owns of 98% of Hawaii’s Lanai island. In his quest for youth he has donated $445 million to his medical foundation to support research on aging and age-related diseases.

CO-CHAIR, BILL & MELINDA GATES FOUNDATION Net Worth: $72 billion Age: 57 Source of Wealth: Microsoft Bill Gates remains Number 1, despite giving away $28 billion, most of it to the Bill & Melinda Gates Foundation. He bolstered the Foundation’s efforts to eradicate polio in April, securing $335 million in pledges from six billionaire comrades, including $100 million each from Carlos Slim and Mike Bloomberg.

CHAIR, CRYSTAL BRIDGES MUSEUM OF AMERICAN ART Net Worth: $33.5 billion Age: 63 Source of Wealth: Wal-Mart, inherited The Crystal Bridges Museum of American Art has welcomed over 1 million visitors in its first two years of operation, in part thanks to works by the likes of Andy Warhol and Georgia O’Keeffe. The biggest philanthropist of the Walton family, Alice gave more than $2 million in 2012 to support charter school initiatives.

LARRY ELLISON

WARREN BUFFETT

BILL GATES

JIM WALTON

CHAIRMAN AND CEO, ARVEST BANK GROUP, INC. Net Worth: $33.8 billion Age: 65 Source of Wealth: WalMart, inherited Jim is the youngest son Sam Walton who founded Wal-Mart in 1962. The company has sales of nearly $470 billion and employs 2.2 million people in 11,000 stores worldwide. He is CEO of the Walton family’s Arvest Bank, which is worth about $1.8 billion, with net profits of nearly $100 million in 2012.

CHRISTY WALTON

CO-CHAIR, CHILDREN’S SCHOLARSHIP FUND Net Worth: $35.4 billion Age: 58 Source of Wealth: Wal-Mart, inherited The richest woman in the world inherited her wealth when husband John Walton died in a plane crash in 2005. The bulk of her holdings are in Wal-Mart, founded by her father-in-law Sam Walton and his brother James in 1962. Christy has already received nearly $350 million in Wal-Mart dividends in 2013.

THE RICHEST PEOPLE IN

AMERICA

the fortunes ive years after the financial crisis sent the wealthig, of many around the world tumblin all that back ed gain ly est as a group have final of the list 400 es Forb new the they lost. Those on on, trilli $2 over just h wort are s rican Ame wealthiest $300 of gain a is ia. That roughly equivalent to the GDP of Russ double a decade ago. than e mor and ago, year a from n billio the 400 list was $1.3 e mak to ed The minimum net worth need for the 20th year in rican Ame st riche billion. Bill Gates is the d’s richest person from a row and has reclaimed the title of worl $72 billion. Warren of h Mexico’s Carlos Slim with a net wort est dollar gainer, bigg ’s year the Buffett, again number two, was are the 10 richw Belo ne. fortu his to n having added $12.5 billio ember 2013. Sept h in est people in the USA and their net wort

14 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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INTERVIEW

five minutes with...

Dr. Francesco Sultana Associate Lawyer, Head of Office Kinanis (Malta) Limited

ere you surprised when a Cypriot law firm decided to set up an office in Malta, given that the two jurisdictions are often viewed as direct competitors? During the course of my practice, I was increasingly getting involved in cross-border tax planning projects which also shed some light on Cyprus. This revealed an interesting aspect between the so-called ‘competing islands’; in reality, rather than competitors, Malta and Cyprus are complimentary jurisdictions. Hence, rather than surprised, I found it only natural that a well-established Cyprus firm would establish a subsidiary in Malta in order to offer all the advantages of the Maltese Jurisdiction to its huge client portfolio. What, if any, are the key differences between Cyprus and Malta as far as international clients are concerned? I would say that the prime differences fork out on two separate tracks. At inception, one finds that the main target markets of the two jurisdictions are quite diverse. For one thing, Cyprus is still highly favoured by the Russian bloc while Malta is a preferred jurisdiction of choice by Western Europe. Undoubtedly, a myriad of factors contribute to this: geographical location, politics, culture, religion … you name it. Coupled with this, the financial products are likewise varied. Malta has been the pioneer of a num-

ber of specialized ‘products’ such as Remote Gaming Companies, Captive Insurance Businesses, VAT schemes on the purchases of yachts and aircraft and a rather innovative aircraft register.

and licensed to provide fiduciary services to its clients in Malta, together with the rest of the corporate services and company administration, in order to provide a holistic service to the client.

Do you think the two countries have things to teach and learn from each other in the professional services sector? Absolutely. Both islands have sprouted from being mere touristic holiday destinations to resolute financial service jurisdictions. Each has developed its policies, structures and schemes and, in generic terms, Malta and Cyprus have been equally successful. To analyze each other’s approach is, as a minimum, a must! And it is evident that this is already being considered. For instance, in mid-2012, Cyprus transposed a Maltese VAT Yacht Leasing Scheme almost lock, stock and barrel into its VAT laws. On the other side of the Mediterranean, Malta has recently introduced the regulatory framework for Binary Options – a niche which, until then, was only exploited by Cyprus.

What would you point to as the keys to Malta’s success as a financial and professional services centre? One could argue that the key to Malta’s success as a financial and professional services centre is twofold: on the one hand there is the competitive tax regime which is very attractive for European foreign investment and, on the other hand, this is combined with the support and availability of a highly skilled professional multilingual workforce and a modern and efficient infrastructure.

Has there been any reaction on the part of local service providers to the establishment of a Cypriot-owned office in Malta? A new player always increases competition and therefore produces a reaction, let alone when the new player is one of the largest and most successful Cypriot Law firms with 30 years of experience. It should also be mentioned that today it is also duly authorized

Does the role played by Malta and Cyprus in this sector simply prove the point that “small is beautiful” or is there more to it? Small’ may also imply adaptability, flexibility and efficiency. For instance, prior to joining the EU, both Cyprus and Malta had to revamp their taxation systems. The transition was remarkably smooth for both jurisdictions which further underlines that size does matter in terms of adaptability and re-adjusting to new realities. Moreover, the versatility of the legal systems in both jurisdictions allowed firms such as Kinanis LLC to further reach out, operate and provide services with comfort from both islands. One of course cannot deny that both islands’ infrastructure has been pivotal to their success.

16 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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52, Famagousta Avenue, 6019 Larnaca - Dhekelia Road Tel: +357 - 24747500 Fax: +357 - 24652213 info@intercollege-larnaca.com

GREECE 265 Mesogeion Ave., Neo Psichiko, 15451 Athens Tel: 30210 - 6722868 Fax: 30210 - 6729629 info.gr@globaltraining.org

ROMANIA 31A Economu Cezarescu Str., Sector 6, 060754 Bucharest Tel: 4031- 4253663 Fax: 4031- 4253662 info.ro@globaltraining.org

www.globaltraining.org

EVENTS

Chrysses Demetriades & Co. LLC

resident Nicos Anastasiades officially inaugurated the new head office building of Chrysses Demetriades & Co. LLC in Limassol last month in the presence of MPs, company clients and associates and leading figures of the local financial, political and business world.

George McBride, Charis Agapiou, Sissy McBride, Yiannis Agapiou

Pavlina Constantinidou, Eliana Constantinidou

Yiannis Christodoulou, Demosthenes Mavrellis, George Christodoulou

Christos Mavrellis, President Nicos Anastasiades

Amanda Cacoyianni, Katia Kakoulli

Michael McBride, Willi Bergner

Demetris Araouzos, Alexis Economou, Yiannis Christodoulou

Dirk Fry, Zina Gienskey, Michael Papadopoulos, Eugen Adami

Antonis Haggipavlu, Platon Lanitis, Demetris Solomonides, Chris Georghiades

Intership Navigation Co. Ltd

kosmika.indd 18

ntership Navigation Co. Ltd celebrated its 25th anniversary last month with the inauguration of its new building in Limassol. Guests included the President of the Republic, Nicos Anastasiades, government ministers, company founder Capt. Alfred Hartmann and many other dignitaries and business associates.

07/11/2013 17:30

CIPA AGM

t the Annual General Meeting of the Cyprus Investment Promotion Agency (CIPA), the Agencyâ&#x20AC;&#x2122;s President Christodoulos E. Angastiniotis delivered an optimistic address in which the told the invited guests that Cyprus is on course to reverse the negative situation created in March, to update its structures, laws and practices, and regain the competitiveness of its economy.

Maritime Cyprus 2013

kosmika.indd 19

ast monthâ&#x20AC;&#x2122;s Maritime Cyprus 2013 International Conference in Limassol was officially opened by President Anastasiades and attended by distinguished guests including the Secretary General of the International Maritime Organisation (IMO), Koji Sekimizu and Siim Kallas, EU Vice-President and Transport Commissioner.

07/11/2013 17:31

THE GOLD

LEGAL EXPERTS

DIRECTORY By John Vickers | Photography by Jo Michaelides

career in the legal profession has always been intellectually challenging, often personally fulfilling and, for some, financially rewarding too. And while few lawyers in Cyprus would claim to lead the glamorous, exciting lives that their fictional counterparts do on TV and in the cinema, they would probably not regret their choice of career. There are around 2,000 practising lawyers in Cyprus, many of whom now focus their professional attention on very specific and specialised areas

SPECIALIST LAWYERS RECOGNIZED FOR EXCELLENCE

of the law. Legal professionals who seek a career in litigation can specialize in criminal law, employment law, family law or dozens of other practice areas. Those who prefer a career in corporate law can specialise in taxation, mergers and acquisitions, real estate, banking and finance or some other corporate practice area that satisfies their interests. In Cyprus, the professional services sector gives many lawyers the opportunity to provide highly-specialised services to international as well as local clients. On the following pages we present 140 individuals (listed alphabetically) who have been recognised for their particular expertise.

The recommendations are mainly from four established international ratings houses and publications:

The Legal 500

Chambers Europe

Chambers Global

IFLR 1000

WE FEATURE LAWYERS WHO ARE RECOGNISED AS SPECIALISTS IN THE FOLLOWING 12 AREAS OF PRACTICE

Banking & Finance

Labour & Employment

Corporate & M&A

Litigation & Arbitration

20 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Energy

EU and Competition Law

Real Estate & Construction

Shipping & Maritime

General Business Law

Tax & International Tax Planning

Intellectual Property

Trust, Wealth & Estate Planning

COVER STORY

Stelios AMERICANOS

STELIOS AMERICANOS & CO LLC

Despina AMERICANOU

STELIOS AMERICANOS & CO LLC

Effie ANASTASSIOU

CLERIDES, ANASTASSIOU, NEOPHYTOU LLC

Despo ANDREOU

KINANIS LLC

Anastasios ANTONIOU

ANASTASIOS ANTONIOU LLC

Avra ARESTIS-ZACHARIADES

MONTANIOS & MONTANIOS

Loucia ASTREOU

Christos Mavrellis

TASSOS PAPADOPOULOS & ASSOCIATES LLC

George CHRISTODOULOU

CHRYSSES DEMETRIADES & CO

Avgoustinos Tsarkatzis

Irene CHRISTODOULOU

KINANIS LLC

Chrysanthos CHRISTOFOROU

ANDREAS NEOCLEOUS & CO LLC

Emily Yiolitis

Eleni CHRYSOSTOMIDES

DR K CHRYSOSTOMIDES & CO LLC

Kypros CHRYSOSTOMIDES

DR K CHRYSOSTOMIDES & CO LLC

What made you specialize in this particular area of practice?

Commercial law has always been of particular interest to me and that was one of the reasons why the Master of Laws degree I obtained from the University of London was in Commercial and Corporate Law. My longstanding practice as a lawyer at Montanios & Montanios and the Cyprus environment as an international business and shipping centre have given me the opportunity to gain extensive experience and expertise in this field.

Demetris ARAOUZOS

CHRYSSES DEMETRIADES & CO

Lory CIRSTEA

GEORGE Y. YIANGOU LLC

Christodoulos CLERIDES

CHRISTODOULOS G. VASSILIADES & CO. LLC

Stavros CLERIDES

CLERIDES, ANASTASSIOU, NEOPHYTOU LLC

Pavlos ARISTODEMOU

HARNEYS ARISTODEMOU LOIZIDES YIOLITIS LLC

Eliana CONSTANTINIDOU

CHRYSSES DEMETRIADES & CO

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 21

Yiota KythreotouTheodorou

Dr. Kypros Chrysostomides

Charalambos Meivatzsis

Soteris COSTA

STELIOS AMERICANOS & CO LLC

Dimitria COUCOUNI ANDREOU

ANDREAS COUCOUNIS & CO

Tasos COUCOUNIS

ANDREAS COUCOUNIS & CO 27

Michael DAMIANOS

Constantina ECONOMOU

GEORGE Z. GEORGIOU & ASSOCIATES LLC

MICHAEL DAMIANOS & CO LLC

Andrew DEMETRIOU

IOANNIDES DEMETRIOU LLC

Athos DEMETRIOU

DEMETRIOU & MAVRONICOLA LLC

Intellectual property protection is crucial in protecting ideas, businesses and individuals. Without this kind of protection persons (legal or physical) would not be able to obtain the full benefits of their inventions and would focus less on research and development. Similarly, artists would not be rewarded for their achievements and cultural vitality would suffer as a result.

28 25

Koulla DEMETRIOU

Marios ELIADES

TASSOS PAPADOPOULOS & ASSOCIATES LLC

Christos FRAKALAS

IOANNIDES DEMETRIOU LLC

What made you specialize in Intellectual Property? 23

Chris GEORGHIADES

CHRYSSES DEMETRIADES & CO

Alexandros GEORGIADES

DR K CHRYSOSTOMIDES & CO LLC

Kyriacos GEORGIADES

M.K. LEGAL LTD

CHRISTODOULOS G. VASSILIADES & CO. LLC 29 26

Alexandros ECONOMOU

Nancy EROTOCRITOU

HARNEYS ARISTODEMOU LOIZIDES YIOLITIS LLC

CHRYSSES DEMETRIADES & CO

22 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Marcos GEORGIADES

GEORGIADES & PELIDES

COVER STORY

George Z. Georgiou

Georgia GEORGIOU

DR K CHRYSOSTOMIDES & CO LLC 47

Christina IOANNIDOU

IOANNIDES DEMETRIOU LLC 39

Antonis GLYKIS

ANDREAS NEOCLEOUS & CO LLC 48

George IOANNOU

DR K CHRYSOSTOMIDES & CO LLC 40

Anna GRIGORIEVA

ANNA GRIGORIEVA & CO LLC

Artem Paleev

Maria HAJIVARNAVA

CHRISTODOULOS G. VASSILIADES & CO. LLC

Andreas HAVIARAS

HAVIARAS & PHILIPPOU LLC 35

Yiannos GEORGIADES

GEORGIADES & MYLONAS ADVOCATES & LEGAL CONSULTANTS

Petros IACOVIDES

MONTANIOS & MONTANIOS Maria Toumazi

Adamos GEORGIOU

PAPADOPOULOS, LYCOURGOS & CO LLC

What made you specialize in this particular area of practice?

I had an interest in court work and chose to qualify as a Barrister in London. When I joined this firm I became involved in litigation and other contentious work, a practice which I continue until today.

George Z. GEORGIOU

GEORGE Z. GEORGIOU & ASSOCIATES LLC

What made you specialize in litigation?

Litigation has always been my main vocation. There is no substitute for presenting a difficult case in open court with an able opposing counsel. It is also, in my view, necessary for all lawyers (irrespective of their field) to understand the basics of litigation in order to be able to provide sound legal advice.

Elena IOANNIDES

DR K CHRYSOSTOMIDES & CO LLC

Maria IOANNIDES

CHRISTODOULOS G. VASSILIADES & CO. LLC

Pambos IOANNIDES

IOANNIDES DEMETRIOU LLC

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 23

COVER STORY

Elias Neocleous

Nicos Papaefstathiou

George Pamboridis

Andri Mitsigga

Polakis Sarris

George S. IOANNOU

GEORGE Z. GEORGIOU & ASSOCIATES LLC

Acis Montanios

Christos KINANIS

KINANIS LLC 58

Nicholas KTENAS

ANDREAS NEOCLEOUS & CO LLC 54

What made you specialize in this particular area of practice?

The fact that not many lawyers are specializing in Construction Law, which is an area of law that is now developing very fast in Cyprus.

Lia Iordanou THEODOULOU

Irina KOCHERGINSKAYA

KORPUS PRAVA 59

What made you specialize in this particular area of practice?

Taxation and tax planning have always been in demand in our line of business.

PATRIKIOS PAVLOU & ASSOCIATES LLC 55

Constantinos KOKKINOFTAS

CHRISTOS PATSALIDES L.L.C 51

Katia KAKOULLI

What made you specialize in Intellectual Property?

This area reflects my interests in science and the practice of law.

CHRYSSES DEMETRIADES & CO 56

Christiana KOURIS

Olga KURAMSHINA

KORPUS PRAVA

Soula KYPRIANOU

KINANIS LLC

A.G. PAPHITIS & CO. LLC 52

Stella KAMMITSI

CHRYSSAFINIS & POLYVIOU LLC 57

Nicoletta KOUVARA

DR K CHRYSOSTOMIDES & CO LLC 24 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Harris KYRIAKIDES

HARRIS KYRIAKIDES LLC

Olga Kuramshina

Elvina Montanios

Stella Louca Pavlou Petros Iacovides

Michalis KYRIAKIDES

HARRIS KYRIAKIDES LLC

Maria KYRIACOU

ANDREAS NEOCLEOUS & CO LLC

Demetris LOIZIDES

HARNEYS ARISTODEMOU LOIZIDES YIOLITIS LLC

Eleni LOIZIDOU-CLEANTHOUS

G EORGE Z. GEORGIOU & ASSOCIATES LLC

What made you specialize in these particular areas of practice?

As a law student I specialized in Revenue Law and I started my career as internal legal adviser in one of the major Banks in Cyprus, From there, my interest in Business Law developed and I was appointed assistant Registrar and later on I became the Registrar of Companies, Patents and Trade Marks and the Official Receiver.

Y iota KYTHREOTOU THEODOROU 64

What made you specialize in this particular area of practice?

The anthropocentric nature of labour law and the fact that there is a need for continuous development of employment & labour legislation, theory and practice.

Stella LOUCA PAVLOU

PATRIKIOS PAVLOU & ASSOCIATES LLC

PAMBORIDIS LLC 70 65

Panos LABROPOULOS

ANDREAS NEOCLEOUS & CO LLC

Doros LYCOURGOS

PAPADOPOULOS, LYCOURGOS & CO LLC

Gregoris LEONTIOU

G. LEONTIOU LLC

Maria MAKRIDOU

G. LEONTIOU LLC Adam Montanios

Christos Kinanis

Pambos Ioannides

Constantinos Kokkinoftas

Eric Montanios

Phivi Tramountanelli

Avra ArestisZachariades

Maria Kyriacou

Yiannis Papapetrou

George Ioannou

Alecos MARKIDES

MARKIDES, MARKIDES & CO LLC

Christos MAVRELLIS

CHRYSSES DEMETRIADES & CO

Charalambos MEIVATZSIS

KINANIS LLC

Christos MELIDES

ANDREAS NEOCLEOUS & CO LLC

What made you specialize in litigation? 74

Christina MAVRONICOLA

DEMETRIOU & MAVRONICOLA LLC

Michael MCBRIDE

CHRYSSES DEMETRIADES & CO Angelos Paphitis

I have particularly liked litigation and arbitration since the beginning of my studies and career and litigation was one of the reasons I got involved in the legal profession in the first place.

Constantinos MESSIOS

C.D. MESSIOS LLC

COVER STORY Christos Patsalides

Irina Kocherginskaya

Elena MICHAIL

IOANNIDES DEMETRIOU LLC

Marilena MILTIADOU

DR K CHRYSOSTOMIDES & CO LLC

Andri MITSIGGA

GEORGE Z. GEORGIOU & ASSOCIATES LLC

Acis MONTANIOS

MONTANIOS & MONTANIOS

Adam MONTANIOS

MONTANIOS & MONTANIOS

Panayotis MOUAIMIS

MOUAIMIS & MOUAIMIS LLC

George MOUNTIS

DR K CHRYSOSTOMIDES & CO LLC

Andreas Neocleous

ANDREAS NEOCLEOUS & CO LLC Eleni LoizidouCleanthous

What made you specialize in Trusts, Wealth & Estate Planning?

The particular demands of long standing clients of our firm for assistance in these specialised areas of the law.

Michalis MOUAIMIS

MOUAIMIS & MOUAIMIS LLC

Elias NEOCLEOUS

ANDREAS NEOCLEOUS & CO LLC

Elvina MONTANIOS

MONTANIOS & MONTANIOS 92

Panayiotis NEOCLEOUS

ANDREAS NEOCLEOUS & CO LLC What made you specialize in this particular area of practice?

The desire to continue the legal tradition started by my late grandfather Michael Montanios and continued by my father Acis and uncles Eric and Adam in the area of shipping law, for which I specialised in my Masters of Laws degree, in London. 85

Eric MONTANIOS

MONTANIOS & MONTANIOS

Nayia MORPHIS

IOANNIDES DEMETRIOU LLC

What made you specialize in these particular areas of practice?

These are the areas that were of interest to me since my university years. 93

Chrysostomos NICOLAOU

PATRIKIOS PAVLOU & ASSOCIATES LLC

Eugenia ORTIZ NEOCLEOUS

ANDREAS NEOCLEOUS & CO LLC

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 27

COVER STORY

Artem PALEEV

KORPUS PRAVA What made you specialize in this particular area of practice?

It covers a lot of other areas of expertise, which makes us constantly evolve.

George PAMBORIDIS

PAMBORIDIS LLC

97 Constantina Economou

Panayiotis PANAYIDES

GEORGE Y. YIANGOU LLC

104

Yiannis PAPAPETROU

MONTANIOS & MONTANIOS What made you specialize in this particular area of practice?

I chose Employment Law as one of the areas in which I practice because it enables me to help both commercial entities and individuals in matters that are important to them and arise on a day-to-day basis. My involvement with Employment Law issues gave me the opportunity to practise both in the contentious and non-contentious aspects of this branch of the law.

105

Leandros PAPAPHILIPPOU

L PAPAPHILIPPOU & CO LLC

Yiannos Georgiades

Andreas PAPACHARALAMBOUS

PAPACHARALAMBOUS & ANGELIDES LLC

106

L PAPAPHILIPPOU & CO LLC

107 99

Eleni PAPACHARALAMBOUS

Loukis PAPAPHILIPPOU

Angelos PAPHITIS

A.G. PAPHITIS & CO. LLC

PAPACHARALAMBOUS & ANGELIDES LLC 108

George PAPHITIS

A.G. PAPHITIS & CO. LLC 100

Nicolas PAPACONSTANTINOU

PAPADOPOULOS, LYCOURGOS & CO LLC 109

Antonis PASCHALIDES

ANTONIS PASCHALIDES & CO Irene Christodoulou

101

Dimitris PAPADOPOULOS

PAPADOPOULOS, LYCOURGOS & CO LLC 110

Carlos PASCHALIDES

ANTONIS PASCHALIDES & CO

Electra PAPADOPOULOU MAKEDONA 102

PAMBORIDIS LLC

111

Alexia Melanie PASCHALIDOU

PATRIKIOS PAVLOU & ASSOCIATES LLC 103

Nicos PAPAEFSTATHIOU

TASSOS PAPADOPOULOS & ASSOCIATES LLC

28 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

112

Christos PATSALIDES

CHRISTOS PATSALIDES L.L.C

120

Deborah PRIMETT

GEORGE Z. GEORGIOU & ASSOCIATES LLC

George S. Ioannou

113

Stavros PAVLOU

DR K CHRYSOSTOMIDES & CO LLC

114

What made you specialize in this particular area of practice?

Stavros Pavlou

During my training as a solicitor and my years of practice I always really enjoyed dealing with commercial construction matters and real estate because the teams of people (contractors, developers, professional architects, etc.) I have worked with have always been focused on driving projects forward and as a solicitor it is good to have the opportunity to deal with assets which are tangible. It is rewarding to see projects/building develop and feel that you were part of the team that helped achieve that.

Nicholas Ktenas

Nicole PHINOPOULOU

IOANNIDES DEMETRIOU LLC

121

Vasileios PSYRRAS

ANDREAS NEOCLEOUS & CO LLC 115

Chryso PITSILLI-DEKATRIS

DR K CHRYSOSTOMIDES & CO LLC

116

Soteris PITTAS

SOTERIS PITTAS & CO L.L.C

What made you specialize in this particular area of practice?

My shipping background. I had been working in the industry for a few years prior to becoming a lawyer and my first degree was in shipping.

122 117

Polis POLYVIOU

Elena Michail

Anna ROSSIDES

DR K CHRYSOSTOMIDES & CO LLC

CHRYSSAFINIS & POLYVIOU LLC 123

Polakis SARRIS

POLAKIS SARRIS & CO LAWYERS 118

Stella POLYVIOU

CHRYSSAFINIS & POLYVIOU LLC

124

Costas STAMATIOU

ANDREAS NEOCLEOUS & CO LLC 119

Dmitry POPOV

KORPUS PRAVA

What made you specialize in these particular areas of practice?

The nature of my legal studies and the type of transactions handled throughout my career. What made you specialize in this particular area of practice?

I enjoy assisting clients in making the right choice. This is important so that transactions are carried out without fraud and for the benefit of the client.

125

Athanasios STYLIANOU

CHRISTODOULOS G. VASSILIADES & CO. LLC

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 29

Chrysanthos Christoforou

Antonis Glykis

126

Pavlos SYMEONIDES

ANTIS TRIANTAFYLLIDES & SONS

127

Eleni SYMEONIDOU

MONTANIOS & MONTANIOS Eleni Symeonidou

Chryso PitsilliDekatris

132

Dmitry Popov

George TRIANTAFYLLIDES

ANTIS TRIANTAFYLLIDES & SONS

133

Stelios TRIANTAFYLLIDES

GEORGE Y YIANGOU LLC

What made you specialize in this particular area of practice?

Between the years 2002 and 2008, I was employed at the office of the Cyprus Ombudsman, where I was assigned to work with the sector handling immovable property complaints and disputes. The exposure to a wide variety of matters pertaining to Property Law and the expertise acquired during my years in the Public Service let me specialize in this area of practice after joining Montanios & Montanios.

134

Nadia TRYFONIDOU

GEORGE Z. GEORGIOU & ASSOCIATES LLC

135

Avgoustinos TSARKATZIS

CHRISTOS PATSALIDES L.L.C 128

Alexandros TALIADOROS

DR K CHRYSOSTOMIDES & CO LLC

129

Maria TOUMAZI

136

Lefkios TSKIKKINIS

ANDREAS NEOCLEOUS & CO LLC

MONTANIOS & MONTANIOS 137

What made you specialize in this particular area of practice?

I qualified as a Solicitor in London and worked with a firm in the City for seven years dealing with, amongst other things, shipping matters. Since joining M & M I have concentrated on shipping and corporate finance acting mainly on behalf of banks and financial institutions. I find this area of the law interesting and exciting.

130

Phivi TRAMOUNTANELLI

CHRISTOS PATSALIDES L.L.C

131

Antis TRIANTAFYLLIDES

ANTIS TRIANTAFYLLIDES & SONS Andrew Demetriou

30 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Christos VEZOUVIOS

ANDREAS NEOCLEOUS & CO LLC

138

George VRIKIS

G. LEONTIOU LLC

139

Chris YIANGOU

ANTONIS PASCHALIDES & CO

140

Emily YIOLITIS

HARNEYS ARISTODEMOU LOIZIDES YIOLITIS LLC

WHERE THEY WORK A.G. PAPHITIS & CO. LLC Head Office: 84, Spyrou Kyprianou Ave., 4004 Limassol Tel: (+357) 25731000 Fax: (+357) 25761004 e-mail: info@agpaphitis.com Website: www.agpaphitis.com ANASTASIOS ANTONIOU LLC Head Office: 102, Gnaftis Court, 3, Grigoris Afxentiou St., 4003 Limassol Tel: (+357) 25750003 Fax: (+357) 25104574 e-mail: info@antoniou.com.cy Website: www.antoniou.com.cy ANDREAS COUCOUNIS & CO CO. Head Office: 101-102, Lazaros Center, 9 Arch. Makarios III Ave., 6305 Larnaca Tel: (+357) 24822460 Fax: (+357) 24626106 e-mail: couclaw@spidernet.com.cy Website: www.coucounis.com ANDREAS NEOCLEOUS & CO. LL LLC Head Office: 195, Arch. Makarios III Ave., 3030 Limassol Tel: (+357) 2510000 Fax: (+357) 2510001 e-mail: info@neocleous.com Website: www.neocleous.com ANNA GRIGORIEVA & CO. LLC Head Office: 601 & 602, Limassol Center, Block B, 6th Floor, 2 Riga Fereou St., 3095 Limassol Tel: (+357) 25820714 Fax: (+357) 25762224 e-mail: info@sinirma.com Website: www.sinirma.com

ANDREAS NEOCLEOUS is the founder and managing partner of Andreas Neocleous & Co LLC.

I initially chose the law as my field of study because of a strong commitment to justice, which has never left me. My interest in law encouraged me to explore the many fields and specialties available, and over the years I came to understand the need for Cyprus to develop as an international financial services sector in order to provide employment and bring prosperity to the country. For the past twenty years or more I have devoted my efforts to this objective, and despite recent setbacks I strongly believe that Cyprus will continue to play a very important regional role through the provision of highquality professional services.

ANTIS TRIANTAFYLLIDES & SONS Head Office: 2-4, Capital Center, 9th floor, Arch. Makarios III Ave., 505 Nicosia Tel: (+357) 22360000 Fax: (+357) 22670670 e-mail: trianta@triantafyllides.com Website: www.triantafyllides.com ANTONIS PASCHALIDES & CO. Head Office: 502, Galaxias Commercial Center, 36 Agias Elenis St., 1061 Nicosia Tel: (+357) 22661661 Fax: (+357) 22672333 e-mail: info@paschalides.com Website: www.paschalides.com C.D. MESSIOS LLC Head Office: 401, Galaxias Commercial Center, 36 Ayias Elenis St, 1061 Nicosia Tel: (+357) 22460446 Fax: (+357) 22761176

e-mail: info@messios.com Website: www.messios.com CHRISTODOULOS G. VASSILIADES & CO. LLC Head Office: 15, Ledra House, Agiou Pavlou St. Agios Andreas, 1105 Nicosia Tel: (+357) 22556677 Fax: (+ 357) 22556688 e-mail: cgv@vasslaw.net Website: www.vasslaw.com CHRISTOS PATSALIDES Head Office: 41-43, Evagoras Building, 31 Evagoras Ave., 1066 Nicosia Tel: (+357) 22677677 Fax: (+357) 22674422 e-mail: info@patsalides.com.cy Website: www.patsalides.com.cy CHRYSSAFINIS & POLYVIOU LLC Head Office: 8, Anemomylos Building, Michalaki Karaoli St., 1095 Nicosia Tel: (+357) 22361000 Fax: (+357) 22678011 e-mail: info@cplaw.com.cy Website: www.cplaw.com.cy CHRYSSES DEMETRIADES & CO. Head Office: 13, Karaiskakis St., 3032 Limassol Tel: (+357) 25800000 Fax: (+357) 25588055 e-mail: info@demitriades.com Website: www.demetriades.com CLERIDES, ANASTASSIOU, NEOPHYTOU LLC Head Office: 6, Kolokotroni St., 3032 Limassol Tel: (+357) 25274050 Fax: (+357) 25370704 e-mail: info@cyplaw.com Website: www.cyplaw.com DEMETRIOU & MAVRONICOLA LLC Head Office: 4, Kermia Building, 1st Floor, Diagoras St., 1097 Nicosia Tel: (+357) 22872330 Fax: (+357) 22675533 e-mail: office@dmlaw.com.cy Website: www.dmlaw.com.cy DR K CHRYSOSTOMIDES & CO. LLC Head Office: 1, Lampousas St., 1095 Nicosia Tel: (+357) 22777000 Fax: (+357) 22779939 e-mail: info@chrysostomides.com.cy Website: www.chrysostomides.com

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 31

COVER STORY G. LEONTIOU LLC Head Office: 401, Athienitis Kennedy Park, 67 Kennedy Ave., Nicosia Tel: (+357) 22441722 Fax: (+357) 22 879057 e-mail: leontiou@leontioulaw.com

KINANIS LLC Head Office: 12, Egypt St., 1097 Nicosia Tel: (+357) 22558888 Fax: (+357) 22662500 e-mail: kinanisllc@kinanis.com Website: www.kinanis.com

GEORGE Y. YIANGOU LLC Head Office: 203, Kennedy Business Centre, 12-14 Kennedy Ave., 1087 Nicosia Tel: (+357) 22653333 Fax: (+357) 22760918 e-mail: gyiangou@yiangou.com.cy Website: www.yiangou.com.cy

KORPUS PRAVA (CYPRUS) Head Office: 84, Grivas Dighenis Avenue, Office 102, 3101 Limassol, Cyprus Tel: (+357) 25582848 Fax: (+357) 25582868 Website: www.korpusprava.com

GEORGE Z. GEORGIOU & ASSOCIATES LLC Head Office: 1st Floor, 1 Eras St., 1060 Nicosia Tel: (+357) 22763340 Fax: (+357) 22763343 e-mail: admin@gzg.com.cy Website: www.georgezgeorgiou.com GEORGIADES & PELIDES LLC Head Office: 16, Eagle House, 10th Floor, Kyriakos Matsis Ave., Ayioi Omoloyites, 1082 Nicosia Tel: (+357) 22889000 Fax: (+357) 22889001 e-mail: info@cypruslaw.com.cy Website: www.cypruslaw.com.cy HARNEYS ARISTODEMOU LOIZIDES YIOLITIS LLC Head Office: Loucaides Building, 2nd Floor, Corner Arch. Kyprianou & Ayiou Andreou St., 3036 Limassol Tel: (+357) 25820020 Fax: (+357) 25820021 e-mail: info@alycolaw.com Website: www.alycolaw.com HARRIS KYRIAKIDES LLC Head Office: 115, Faneromenis Ave., Antouanettas Building, 2nd - 3rd Floor, 6031 Larnaca Tel: (+357) 24828244 Fax: (+357) 24818877 e-mail: info@kyrlaw.com.cy Website: www.kyrlaw.com.cy HAVIARAS & PHILIPPOU LLC Head Office: 101, 20 Stasandrou St., 1st Floor, 1060 Nicosia Tel: (+357) 22764001 Fax: (+357) 22764003 e-mail: hphlaw@hphlaw.eu Website: www.hphlaw.eu IOANNIDES DEMETRIOU LLC Head Office: 2, Diagorou St., ERA House, Floors 7-12, 1097 Nicosia Tel: (+357) 22022999 Fax: (+357) 22022900 e-mail: info@idlaw.com.cy Website: www.idlaw.com.cy

L. PAPAPHILIPPOU & CO. LLC Head Office: 17, Ifigenias St., Strovolos, 2007 Nicosia Tel: (+357) 22271000 Fax: (+357) 22271111 e-mail: info@papaphilippou.eu Website: www.papaphilippou.eu M.K. LEGAL LTD Head Office: 15, Matrix Tower II, Spyrou Kyprianou Ave.,, 4001 Limassol Tel: (+357) 25752304 Fax: (+357) 25755686 e-mail: info@mk-legal.com Website: www.mk-legal.com MARKIDES, MARKIDES & CO. LLC Head Office: 1-1A, Markides House, Heroes Ave., 1703 Nicosia Tel: (+357) 22779900 Fax: (+357) 22778787 e-mail: info@markides.com.cy Website: www.markides.com.cy MICHAEL DAMIANOS & CO. LLC Head Office: 401, 42E Arch. Makariou III Ave., 1065 Nicosia Tel: (+357) 22021212 Fax: (+357) 22021213 e-mail: info@damianoslaw.com Website: www.damianoslaw.com MONTANIOS & MONTANIOS Head Office: 16, Pandeli Catelaris, 7th Floor, Megaro Diagoras, 1097 Nicosia Tel: (+357) 22660766 Fax: (+357) 22678777 e-mail: e.montanios@montanionslaw.com.cy MOUAIMIS & MOUAIMIS LLC Head Office: 16-18, Zena Gunther St., 3035 Limassol Tel: (+357) 25362233 Fax: (+357) 25373075 e-mail: mouaimis@mouaimis.com.cy Website: www.mouaimis.com PAMBORIDIS LLC Head Office: 45, Pamboridis House, Dighenis Akritas Ave., 1070 Nicosia Tel: (+357) 22752525 Fax: (+357) 22752800

32 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

e-mail: info@pamboridis.com Website: www.pamboridis.com PAPACHARALAMBOUS & ANGELIDES LLC Head Office: 12, Them. Dervis St., 1st floor, 1066 Nicosia Tel: (+357) 22670189 Fax: (+357) 22676976 e-mail: office@palaw.com.cy Website: www.palaw.com.cy PAPADOPOULOS, LYCOURGOS & CO. LLC Head Office: 2-4, Capital Center, 7th Floor, Arch. Makarios III Ave., 1065 Nicosia Tel: (+357) 22676126 Fax: (+357) 22674201 e-mail: office@paplyclaw.com Website: www.paplyclaw.com PATRIKIOS PAVLOU & ASSOCIATES LLC Head Office: 332, Patrician Chambers, Agiou Andreou St., 3035 Limassol Tel: (+357) 25871 599 Fax: (+357) 25344548 e-mail: info@pavlaw.com Website: www.pavlaw.com POLAKIS SARRIS & CO. LAWYERS Head Office: 36, Nicosia Tower Center, 8th floor, Byron Ave., 1506 Nicosia Tel: (+357) 22456000 Fax: (+357) 22670040 e-mail: info@polakissarris.com Website: www.polakissarris.com SOTERIS PITTAS & CO. LLC Head Office: 10, Magnum House, Chrysanthou Mylona St., 3030 Limassol Tel: (+357) 25028460 Fax: (+357) 25028461 e-mail: info@pittaslegal.com Website: www.pittaslegal.com STELIOS AMERICANOS & CO. LLC Head Office: 104 & 701, Athienitis Centennial Building, 48 Themistocles Dervis Ave., 1066 Nicosia Tel: (+357) 22465500 Fax: (+357) 22338500 e-mail: info@americanoslaw.com Website: www.americanoslaw.com TASSOS PAPADOPOULOS & ASSOCIATES LLC Head Office: 2, Chanteclair Building, Sofouli St., 1096 Nicosia Tel: (+357) 22889999 Fax: (+357) 22889988 e-mail: info@tplaw.com.cy Website: www.tplaw.com.cy

OPINION

Competing in a Changing World The Conclusions of the last European Council are an important step to achieve growth.

s long as most European economies are stagnant, our most pressing challenge in the EU is to compete in the world and find drivers of growth and jobs for the future. The Conclusions of the last European Council may seem a long way away from the concerns of Cypriots in the cities and villages, worried about how to get through the current economic difficulties. But they contain some important decisions which can not only help put Cyprus on the road to recovery now, but also help the whole EU to strengthen its ability to compete in what will be a very different world economy over the next decades. And Cyprus will have some natural advantages in that EU-wide effort. Short-term, the measures to promote youth employment will make a difference, in Cyprus and in other Member States. So will the measures to support innovation, and thereby contribute to both GDP growth and employment; and the help targeted at SMEs, which includes almost all companies in Cyprus. The leaders also agreed to look further at how to reduce the burden of regulation on EU companies, as proposed in papers presented to them by the Commission and by the British Prime Minister. Too much regulation works against growth; for small businesses in particular, more time spent filling in forms means less time developing a new product, sealing a new contact or hiring the next young recruit. The UK’s proposals are included in the business taskforce report, prepared by six representatives of small and large businesses of the UK who consulted business partners from across Europe and worked through more than 250 suggestions for reform which will cut the EU red-tape. Their findings support the conclusion that freeing business from some of these burdens could be one of the fastest-acting ways available to get Europe’s economies back up to speed. (See the Foreword and Executive Summary of the report on pages 86-87) The greatest long-term impact, though, will come from the measures which can help promote the EU’s competitiveness into the next decades.

The EU’s GDP can be increased by 4% between now and 2020 if we make good use of digital opportunities

By Matthew Kidd

A key part of this is to establish a single market for the digital economy and boost cross-border e-commerce. We are all increasingly used to using the Internet to access information, communicate and share. The increasing demand for broadband access shows there is appetite to go further. But we are only at the beginning of seizing the economic benefit that’s available, if we take the right steps. Online buying and selling can increase the market overall and therefore GDP (but at the moment only 8% of consumers EU-wide buy goods online across EU borders). There may be new methods of bartering goods and services which can help assets be used more productively. E-processes can reduce all sorts of administrative overheads. Overall, the EU’s GDP can be increased by 4% between now and 2020 if we make good use of digital opportunities and deal with some of the obstacles on the way. That’s a prize worth seizing. The Council Conclusions were an important step forward. Naturally there are many policy issues that we need to consider as the digital single market initiative progresses. We have to strike the right balance between protecting intellectual property while allowing appropriate commercial exploitation, and between protecting the privacy of citizens while allowing the appropriate use of personal data. Commercially, we need to create the conditions that enable innovative new entrants to the market to develop new business models, while not undermining the continued success of established market players. For the UK, the priority areas are modernising the EU intellectual property framework; improving e-commerce by securing a modern legal framework on data protection and improving infrastructure and extending the reach of broadband. Thriving in the Internet world will not depend on size or closeness to your market but on a skilled workforce, able to develop and implement new ideas quickly. The supporting infrastructure will not be of heavy industrial capacity or railway networks but broadband and intellectual skills. That’s just the sort of economic environment in which a country like Cyprus ought to have the best chances to compete successfully.

info: Matthew Kidd is the British High Commissioner to Cyprus.

34 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES

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The Future of Banking in Europe

CYPRUS BANKING

• The challenges and the future of European Banking • Restoring Trust in the Banking System • The Future of Lending • Liquidity, Cash and Working Capital • Banking: New Business Models

Featuring

Chris Jones

Dag Detter

Guido Ravoet

Dr. Ricardo Palomo

Head, Financial Services Practice in EMEA, PwC, UK

Managing Partner and Co-founder of Whetstone Solutions, Sweden

Chief Executive, European Banking Federation, Belgium

Dean, School of Business and Economics, CEU San Pablo University, Spain

Paolo Bordogna

Rym Ayadi

Torbjörn Månsson

Michael P. Haralabidis

Partner, Director of Milan Office, Bain & Company, Italy

Ph.D, Senior Research Fellow, Head, Financial Institutions & Prudential Policy Unit Coordinator - MEDPRO, Centre for European Policy Studies (CEPS), Belgium

Executive Director, DUTB d.d. (BAMC), Sweden

Chief Risk Officer, Hellenic Financial Stability Fund, Greece

Yngvi Orn Kristinsson Chief Economist, Icelandic Financial Services, Association, Iceland

Hans-Joachim Dübel Founder, Finpolconsult, Germany

Stelios Constantinou Partner, Banking Industry Leader, PwC, Cyprus

Pambos Ioannides Advocate and Legal Consultant, Director, Ioannides Demetriou LLC, Non-Executive Director, Covenant Advisory Ltd, Cyprus

The Forum will be of particular interest to senior-level executives, including Chairmen, CEO/CFO/ COOs, Executive Directors, Managing Directors, as well as representatives from the following areas: • Audit • Basel Implementation • Capital Markets • Capital/Liquidity Management • Compliance • Finance • Government Affairs • Legal • Policy • Regulatory Affairs/Reporting • Retail Banking • Risk Management • Treasury • Wholesale

Thursday 5th December, Hilton Park Hotel, Nicosia For further information: IMH, Aigaleo 5, 2057, Strovolos, P.O. Box 21185, 1503, Nicosia. Tel: +357 22 505555, Fax: +357 22 679820,e-mail: events@imhbusiness.com website: www.imhbusiness.com

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INVESTMENT

H S A C M 0 2 € INJECTION FOR N E I D I R E M LE

n a vote of confidence for Cyprus and its tourism industry, Russian investors entered into a €20m share capital increase agreement with the Le Meridien Limassol Spa & Resort last month. The deal will see Russian investing company Emerald Coast Properties Ltd subscribe to a new issue of shares, securing a 50% stake in the 5-star luxury hotel. The agreement between Emerald Coast Properties Ltd and L’Union Nationale (Tourism and Sea Resorts) Ltd, which owns and manages the hotel, will be finalized following the completion of a due diligence review towards the end of January 2014. The cash boost is expected to be used mostly on renovating the hotel and its grounds. Speaking on behalf of Emerald Coast

LE MERIDIEN WILL RECEIVE A SIZABLE SHARE CAPITAL INCREASE TO HELP IT FURTHER CONSOLIDATE ITS POSITION AS THE ISLAND’S MOST EXCLUSIVE

SPA & RESORT

Properties, Alexis Tsielepis, Head of Taxation of Costas Tsielepis & Co Ltd., representing the interests of the Russian investors in Cyprus, described the deal as a “win-win situation for everyone involved.” “With this investment, our client is buying into a most lucrative investment indeed while the Le Meridien will receive a sizable

share capital increase to help it further consolidate its position as the island’s most exclusive spa and resort. At the same time, Cyprus receives perhaps the very first solid foreign investment since the financial crisis of March 2013, demonstrating that the island still offers strong and stable investment opportunities, and that confidence in our jurisdiction, which was so incompetently and unfairly treated by its European family, is regaining its well-deserved strength and momentum with foreign investors.” Tsielepis said. “Our clients,” Tsielepis added, “kept their faith in Cyprus despite it all. They are here to stay.” Costas Tsielepis & Co Ltd, Chartered Accountants, is a member of the Tsielepis Group of Companies, which has been providing tax, corporate, accounting and auditing services to clients in Cyprus and abroad since 1978.

44 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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COVER STORY

ADMINISTRATIVE

SERVICE PROVIDERS ADMINISTRATIVE SERVICES PROVIDERS (FIDUCIARY COMPANIES) HAVE BEEN AT THE FOREFRONT OF EFFORTS TO MAKE CYPRUS A REGIONAL CENTRE FOR PROFESSIONAL AND FINANCIAL/ INVESTMENT SERVICES. A LAW REGULATING THE SECTOR WAS FINALLY PASSED BY THE HOUSE OF REPRESENTATIVES LAST YEAR.

46 George Savvides,

51 52 54 56 58 60 62 64 66 68 70

President of the Cyprus Fiduciary Association Helen Hadjichristoudia, Chair of the Institute of Certified Public Accountants of Cyprus (ICPAC) Committee on Fiduciary Matters Cyprus Fiduciary Association members list Abacus Aspen Trust Group Cyproman Services Ltd Fiducenter (Cyprus) Ltd First Names (Cyprus) Ltd Korpus Prava Orangefield Fidelico Ltd Pagecorp Group Profserve Holdings Ltd Trident Trust

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or a number of years, Administrative Services Providers, better known as Fiduciary Companies, have been at the forefront of efforts to make Cyprus a regional centre for professional and financial/investment services. A law regulating the sector was finally passed by the House of Representatives and things were looking up. How, then, have the fiduciary firms been affected by the bailout of the economy and the downsizing of the banking sector? Gold spoke to George Savvides, President of the Cyprus Fiduciary Association, and Helen Hadjichristoudia, Chair of the Institute of Certified Public Accountants of Cyprus (ICPAC) Committee on Fiduciary Matters.

Fiduciary

George Savvides

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Gold: Last year you were very pleased that the long-delayed law regulating fiduciary service providers was finally approved. But three months later we had the bailout and the ‘bail-in’. First of all, how has your particular sector been affected by what happened? George Savvides: I would say that our sector was the first in line in terms of exposure to the consequences of the unfortunate events of March. The monetary loss suffered by many international investors, as depositors or shareholders of the two affected banks, was a huge blow to the country’s reputation as an international business centre. Restrictions on bank transactions have been relaxed but they still cause considerable disruptions to day-to-day operations. Unfair attacks in the international media and competing countries, eager to signal Cyprus’ disappearance from the international business map, have created even more uncertainty. This has led to constant questioning from clients as regards what may come next in case the numbers don’t add up for meeting financing needs. In addition, the numerous scandals that have come to light, especially in the banking sector and the semigovernment organisations, are causing people to lose trust in the system and the way the state is run. And I am afraid more will come to light in the next few months. To quote Warren Buffett, “Only when the tide goes out do you discover who’s been swimming naked.” Gold: Did investors who did not have deposits in Cyprus Popular Bank and Bank of Cyprus still feel insecure because of the economic and banking crisis? Or are they generally not affected by ‘local problems’? G.S.: The feeling of uncertainty and concern

has been felt by all foreign investors and not only by those who suffered an actual loss. This is perfectly rational because, in addition to all the factors mentioned earlier, they know that the show in Cyprus is now run – at best – in conjunction with our lenders, whose thoughts are on how they will get their money back and not on how to please foreign investors. Gold: Do you predict large outflows of capital once banking restrictions are lifted? G.S.: As things currently stand, it is reasonable to presume that if the restrictions on banking transactions were abolished tomorrow, there would be large cash outflows. Such outflows have been noticed month after month since the imposition of the restrictions, even when they were harsher. What is really needed in order to keep this capital in the country is the restoration of confidence and trust in the banking system and a clear message that the storm has been weathered. However, we have to accept that things will never be the same again, especially in terms of the interest rates offered by banks for deposits, which were not rational anyway. Gold: Have you seen companies from other jurisdictions taking advantage of the situation to tempt clients away from Cyprus? G.S.: There have been – and still are – plenty of cases of companies and even whole countries (usually through their investment promotion agencies) trying to take advantage of the situation. To a certain extent, I find it perfectly reasonable and legitimate to try to turn an unfortunate development on your competitors’ side to your advantage. Besides, foreign professionals acting as advisors or intermediaries would argue that they are simply trying

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WE HAVE TO ACCEPT THAT THINGS WILL NEVER BE THE SAME AGAIN to protect their clients’ interests. That said, I believe that people should still abide by certain values, including accuracy, reality and an ethical approach. Gold: Six months down the line, how are the established fiduciary firms doing? G.S.: I would say that things are much better than initially estimated, particularly with regard to existing business. The number of restructurings (in the broader sense of the term) out of Cyprus has been nowhere near what was first feared. A very important factor for the supportive stance of international investors is the fact that they realised that the crisis in Cyprus was purely a banking one. Furthermore, most international business companies either don’t have a bank account in Cyprus or if they do, it is mainly used for the payment of local fees, taxes and other charges. This was the case even before March and since then it has become even more widespread, with many companies seeking to open bank accounts abroad. On the other hand, fresh business is much harder to secure and this is also evident in the dramatic drop in the number of companies incorporated this year. Of course, one cannot look at things without considering what is going on in the markets in which we have been working. Europe has only just started showing some tiny growth rates, whereas the performance of Russia and the other CIS countries is heavily dependent on energy prices. So without underestimating the effects of what has happened in Cyprus, the reduction in new business is actually due to a number of reasons, some of which are not under our control. Gold: At the recent CIPA International Investment Awards, the representatives of the award-winning companies were united in their assertion that they intend to stay in Cyprus and that they believe in the island’s future. Is this the feeling you get from individual investors who are using the Cyprus Fiduciary Association members’ services? G.S.: As previously mentioned, the volume of existing business leaving Cyprus has been

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ADMINISTRATIVE SERVICES

minimal. And of course the greater the extent of presence (or substance) of an organisation within a country, the more complicated the solution of moving out becomes. So the message given by the award-winning companies is very welcome and they should be applauded for their trust and support. On the other hand, we need to be careful because we have been given a second chance by most international businesses and investors but I don’t think that they’ll easily give us another one. Gold: The Government appears to be determined to faithfully implement the agreement with the Troika but will this automatically get everything back on track as far as the island’s image abroad is concerned? G.S.: The agreement with the Troika is meant to bring Cyprus back to financial stability and economic growth, while also ensuring that structural malfunctions that have existed for decades are dealt with decisively. In this respect, the agreement with the international lenders is a very important tool that will let Cyprus return to the international business arena and shout out loud that it is still here. However, this by itself is not enough; we need to come up with a concerted effort, backed and shared by all those concerned, to stand a good chance of restoring the country’s damaged image. Gold: More than two years ago you wrote an article in Gold about what Cyprus could learn from Luxembourg. We obviously didn’t learn the right lessons. What needs to be done if the island is to emulate Luxembourg as a financial centre? G.S.: First of all, I am among those who be-

WE NEED THE FORMULATION OF A PLAN FOLLOWED BY ITS WELL-ORGANISED, STRICT AND TIRELESS IMPLEMENTATION

lieve that Cyprus has never been a financial centre and I doubt if it will ever manage to become one, though this is not necessarily a bad thing, especially after the events of March. But the number of fully operational banks on the island is pretty small, the range of services is restricted to the basic minimum (mostly related to retail banking), there is lack of sophistication (for example, custody services – a vital component for a place to become a hub for investment funds), and not even a handful of big international brands. Compare this to Luxembourg, where there are around 130 banks offering a vast array of services and appealing to many different legal backgrounds (i.e. civil law, common law, Islamic law, etc.). Luxembourg has been bold enough to take firm decisions that have led it to focus on extensive and sophisticated operations, such as institutionalised collective investment schemes and securitisation vehicles. I have long argued that Cyprus has a long way to go in terms of specialisation, as we have always preferred the “a little bit of everything” approach. We need to change our philosophy and accept that we can not excel in everything and focus on what we can do best. Gold: You made a number of proposals at the time. Were any of them taken on board? G.S.: I regret to say that very little has been done in terms of the issues touched upon in that particular article. Bureaucracy still reigns; very little has also been done on digitalisation of the procedures at the Registrar of Companies; on tax rulings, let me quote the words of Eric Ryan who told your magazine that, “As rules change globally, corporate clients will want to eliminate as much uncertainty as possible. Countries such as Luxembourg and the Netherlands have well established ruling practices, and Cyprus may want to review those models”. Irrespective of the extent and form the tax rulings may take, one thing that definitely needs to be improved is the time required to obtain a reply from the Tax Authorities. Many other suggestions have been made since the time of that article. They include the ability to pay tax liabilities and receive tax refunds in foreign currency for organisations, which have a functional currency other than the euro; the introduction of new products, such as captive insurance, leasing and securitisation vehicles, and the promotion of Cyprus for international call centre services. Another proposal is the transfer of the decision-making powers concerning the citizenship-by-invest-

WE NEED TO CHANGE OUR PHILOSOPHY AND ACCEPT THAT WE CAN NOT EXCEL IN EVERYTHING AND FOCUS ON WHAT WE CAN DO BEST ment scheme from the Council of Ministers to an independent committee, which will add objectivity and transparency to the whole process. Cyprus is an ideal location for establishing substantive operations and the fact that it is the biggest ship management centre in the EU and hosts a quarter of all international companies engaged in the foreign exchange industry is a testament to this. Coming to the Cyprus Fiduciary Association, it has been our principle since its formation that the existence of three different supervisory bodies for fiduciary firms is discriminatory and promotes unfair competition among providers of the same services. More importantly, during these critical times for Cyprus, it opens us up to criticism and mud-slinging from abroad and, in any case, consolidation of regulation for the same or similar services is a measure proposed by the Troika as well as by the Lascelles Commission (which examined the future of the banking sector) and various other bodies. Gold: Do you have a new set of suggestions for the government of President Anastasiades? G.S.: I have many but essentially would urge the President to let the professionals express their ideas and contribute in any way they can to restoring the country’s damaged reputation. Cyprus still has all the advantages that it did at this time last year, including the attractive legal and tax regimes, the quality of the professional services offered, the first-rate infrastructure, the strategic geographical location and much more. What we need is a collective effort by everybody involved, the formulation of a plan followed by its well-organised, strict and tireless implementation. The Cyprus Fiduciary Association is at the disposal of all public and private authorities to work hand in hand, utilising everyone’s experience and expertise.

48 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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SELF-REGULATION DOES NOT IN ANY WAY IMPLY THAT THE LAW IS NOT AS STRICTLY ENFORCED Gold: As Chair of the Institute of Certified Public Accountants of Cyprus (ICPAC) Committee dealing with issues relating to Fiduciary Services, what kind of things do you discuss? Helen Hadjichristoudia: ICPAC has been a strong supporter of the Law Regulating Companies Providing Administrative Services and Other Related Matters of 2012 from its early stages as it was always felt that the introduction of the legislation would provide the industry with the secure professional foundations required to build upon. In view of this, and in anticipation of the legislative introduction, ICPAC proceeded with the establishment of a separate Committee to deal specifically with the fiduciary sector. Over the course of our Committeeâ&#x20AC;&#x2122;s term we have discussed matters in connection with licensing, regulation, guidance and current issues affecting the business of our members. Products of our Committeeâ&#x20AC;&#x2122;s work have been the introduction of a separate Practicing Certificate for our members providing fiduciary services with separate and distinct criteria to be satisfied for its issuance and further amendments to the regulations of ICPAC in order to accommodate such a process.

Helen Hadjichristoudia

Gold: The law regulating fiduciary service providers was finally approved almost a year ago but some commentators believe that allowing accountancy and legal firms to self-regulate their fiduciary service activities is a weakness of the law. How do you respond to this? H.H.: The law regulating fiduciary service providers was enacted in its current form by the lawmaking body of our country, allowing each of the competent authorities to regulate their members. I do not see this as a weakness but rather a strength as ICPAC is in a much better position to effectively monitor, regulate, supervise and, where necessary, impose disciplinary measures on its own members. ICPAC has been a self-regulating body and has been exercising its monitoring role since 2005 by outsourcing this function to the ACCA, one of the largest professional accountancy bodies rec-

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ADMINISTRATIVE SERVICES

CONTRARY TO THE PESSIMISTIC PREDICTIONS AND EXPECTATIONS, WE HAVE MANAGED TO MAINTAIN THE GREAT MAJORITY OF OUR CLIENTS ognised worldwide. Our Institute’s regulations have been amended to bring them in line with the legislation and therefore our self-regulation does not in any way imply that the law is not as strictly enforced. Gold: Impressions often count for a great deal so wouldn’t it give a better impression to foreign investors if all administrative service providers came under the same regulatory authority? H.H.: What matters most to foreign investors is the quality and reliability of the service they receive from Cyprus and not who carries out the regulation, which is nonetheless publicly available information at their full disposal. Having said this, all three competent authorities are in constant liaison and cooperation to ensure across-the-board uniform implementation of the various measures. Gold: Six months after the Eurogroup’s decision on Cyprus, how are the fiduciary firms regulated by ICPAC doing? H.H.: The events of March no doubt had an impact on the international business sector as a whole, which, we need to remember, is one of the highest contributing factors to the Cyprus economy, equalling approximately 45%. Contrary to the pessimistic predictions and expectations, we have managed to maintain the great majority of our clients. I believe that this is due to the high quality service our clients receive and the overall cost of such service in comparison to other jurisdictions, together with the strong long-term relationships built and maintained with our clients. Gold: What is ICPAC doing to help restore the island’s reputation? H.H.: ICPAC’s actions have been multidirectional, all in an effort to restore confidence and trust. Proposals have been put forward to the Government, the Institute’s regulations have been amended to enhance self-regulation and transparency, contributions have been made to the enactment of various legislative acts and full support has been given to CIPA. ICPAC representatives have participated in meetings with the Troika, publications and interviews have been placed with the international press

and further efforts have been made by our members on an individual basis with the aim of restoring client confidence. Gold: Does ICPAC have specific new proposals to improve and protect the fiduciaries sector? H.H.: Our Institute indeed has proposals which, as mentioned earlier, have been made to the Government. More importantly, however, we have been involved in a number of operations targeted at improving and protecting the fiduciaries sector such as our cooperation with the other competent authorities on ensuring uniform regulation, the materialisation of the action plan with the Troika within the agreed timeframes (hence reinforcing the legal framework) and the participation in the Committee specifically-established by the Minister of Energy, Commerce Industry and Tourism for the improvement of the legal and operational framework of the Registrar of Companies, delivering a set of clear proposals. Gold: Are you confident that, by faithfully implementing all the provisions of the agreement with the Troika, Cyprus can regain its place as a regional professional and financial services centre? H.H.: Despite the haircut and the implications it brought with it, many of the measures imposed by the Memorandum effectively rectify a number of weaknesses existing in our systems. The structural reform measures are fully supported by our Institute, some of which were long-running recommendations of ICPAC. It is an undisputed fact that painful reforms mostly occur during difficult times, as in good times complacency tends to grow. We trust that the exit from the Memorandum will be in the near future with the least possible casualties. Gold: In your capacity as Director of Abacus, how have your clients reacted to the haircut of deposits, capital flow restrictions and the blow to the country’s image abroad? H.H.: Our clients, who are essentially wellestablished international organisations, have been affected by the actual decision taken in

50 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

March rather than by the events resulting from that decision. This gave rise to concerns in connection with our ability as an industry to continue. However, business carried on as usual from our side and this helped erase some of our clients’ concerns. Other jurisdictions were investigated at the time but it is apparent now that they still feel that Cyprus is the jurisdiction which serves them best. Gold: Do you predict large outflows of capital once banking restrictions are lifted? H.H.: Our Institute supports the lifting of the capital controls in a well-structured and proper manner. If all controls were immediately removed, then this would inevitably result in large outflows of capital. If the restrictions remain, then they should be supported by the European Central Bank. Gold: Have other jurisdictions taken advantage of the situation since March to tempt clients away from Cyprus? H.H.: Competitive jurisdictions have tried to take advantage of the situation, as would be expected, but with very little success. Gold: Overall, are you optimistic about the country’s long-term future? H.H.: International business and tax systems are changing worldwide. I believe that the other end of the tunnel will find us stronger as a jurisdiction and in a position to handle the new character of the international business industry which will be very different from what it is today.

IT IS AN UNDISPUTED FACT THAT PAINFUL REFORMS MOSTLY OCCUR DURING DIFFICULT TIMES

CYPRUS FIDUCIARY

ASSOCIATION MEMBERS AJK Bureau of Consultants Ltd 1 Naousis St., Suite 2, Karapatakis Bldg 4th Floor, 6018 Larnaca Tel: (+357) 24668800 Website: www.ajkboc. com Aspen Management Services Ltd Elia House, 77, Limassol Avenue, 2121 Nicosia Tel: (+357) 22418888 Website: www.aspen. com.cy Bizserve Consultants Ltd P.O.Box 27670, 2432 Nicosia Tel: (+357) 22375504 Website: www.bizserve. eu Boudica Trust Co Ltd 26, Nikou Pattichi St., 3071 Limassol Tel: (+357) 25828100 Website: www.boudicagroup.com Centaur Trust Ltd 2, Apostolos Varnavas St., 2571 Nicosia Tel: (+357) 22499994 Website: www.centaurtrust.com Chesterfield Management Ltd 7, Katokopias St., Mesa Geitonia, 4007 Limassol Tel: (+357) 25878785 Website: www. groupchesterfield.com Citco (Cyprus) Ltd 10, Diomidous St., 2024 Nicosia Tel: (+357) 22361600 Website: www.citco.com Crystal Cyprus Corporate & Finance Services Ltd 20B, Stasikratous St., Flat 203, 1065 Nicosia Tel: (+357) 22583000 Website: www.crwwgroup.net CYP Intrust Limited 3, Kyriakou Matsi St.,

Roussos Bldg Limassol Tower, Office 5C, 3040 Limassol Tel: (+357) 25875038 Website: www.cypintrust.com Emerald Consulting Ltd 25, Olympion St., 3035 Limassol Tel: (+357) 25839777 Website: www.emeraldgrp.com Epsilou Management Services Ltd Athinon & Anexartisias St., Nora Court 1st Floor, Office 105, 3040 Limassol Tel: (+357) 25342823 Website: www.epsiloutrust.com Ergoserve Consulting Ltd Kolokotroni & Chrysorogiatisis St., 3040 Limassol Tel: (+357) 25274000 Website: www.ergoserve.biz

Tel: (+357) 22766120 Website: www.interstatus.net Intertrust (Cyprus) Ltd 249, 28th October St. (Corner Emiliou Hourmouziou St.), 3035 Limassol Tel: (+357) 25257122 Website: www.intertrustgroup.com

Orangefield Fidelico Ltd Kanika International Business Center 6th Floor, 4, Profiti Ilia St., Germasogeia, Limassol Tel: (+357) 25272727 Webiste: www.fidelico. com

Korpus Prava Corporate Services Ltd 84, Grivas Dighenis Ave., Office 102, 3101, Limassol Tel: (+357) 25582848 Website: www.korpusprava.com

Oxford Management Ltd 2, Agias Fylaxeos & Zenonos Rossides St., Limassol Tel: (+357) 25823330 Website: www.oxfordcy. com

Laveco Ltd 8, Inomenon Ethnon St., Despina Sofia Court, Offices 102&101, 6042 Larnaca Tel: (+357) 24636919 Website: www.laveco. com

Pageserve Ltd Patrician Chambers, 332, Agiou Andreou St., 3035 Limassol Tel: (+357) 25878866 Website: www.pagecorpgroup.com

Eurofast Taxand Ltd 5, Chytron St., Ag. Omologites, 1075 Nicosia Tel: (+357) 22699222 Website: www.eurofast. eu

Lexpro Holdings & Consulting Services Ltd 12, Agias Zonis St., Agias Zonis Center 4th Floor, Office 401, 3305 Limassol Tel: (+357) 25028805 Website: www.lexproholdings.com

Fiducenter (Cyprus) Ltd Vashiotis Business Center, 1, Iakovou Tompazi St., 3107 Limassol Tel: (+357) 25504000 Website: www.fiducenter.com.cy

Midland Consult (Cyprus) Ltd 69, Archbishop Makarios III Ave., Tlais Tower, Office 301, Nicosia Tel: (+357) 22755250 Website: www.midlandconsult.com.cy

First Names Group 20, Spyros Kyprianou Ave., Chapo Central 3rd Floor, 1075 Nicosia Tel: (+357) 22749000 Website: www.firstnames.com

Mutual Trust Cyprus Ltd 9, Vasileos Konstantinou St., Agios Andreas, 1105 Nicosia Tel: (+357) 22772240 Website: www.mutualtrust.com

Interstatus Business Services Ltd 4 Diagorou St., Kermia House, Office 104, 1097 Nicosia

Website: www.opusim. com

Opus Services Ltd 8, Alassias St., 3095 Limassol Tel: (+357) 25878857

Profserve Holding Ltd 57, Agias Fylaxeos St., 3025 Limassol Tel: (+357) 25824168 Website: www.profservecy.com Proteas Management Services Ltd 155, Archbishop Makarios III Ave., Proteas House 5th Floor, 3026 Limassol Tel: (+357) 25849000 Website: www.sofocleous.com.cy Raven Russia Management Company (Cyprus) Ltd 57, Kolonakiou St., Italiaco Court, 1st Floor, Office 101, Linopetra, Limassol Tel: (+357) 25879462 Website: www.ravenrussia.com STM Cyprus Ltd Kennedy Tower, 14, Eleftheropoleos St., 1076 Nicosia Tel: (+357) 22274351 Website: www.stmcyprus.com

Stratus Associates Ltd 20, Solonos St., 3035 Limassol Tel: (+357) 25818692 Website: None TMF Administrative Services Cyprus Ltd 23, Florinis St., Stadyl Bldg 4th Floor, 1065 Nicosia Tel: (+357) 22451327 Website: www.tmfgroup.com Totalserve Management Ltd Totalserve House, 17, Gr.Xenopoulou St., 3106 Limassol Tel: (+357) 25866000 Website: www.totalserve.eu Trident Fiduciaries (Middle East) Ltd Trident Center, 115, Grivas Dighenis Ave., 3101 Limassol Tel: (+357) 25353520 Website: www.tridenttrust.com Trident Trust Company (Cyprus) Ltd 115, Grivas Dighenis Ave., 3101 Limassol Tel: (+357) 25820650 Website: www.tridenttrust.com Vistra Cyprus Ltd 35, Theklas Lysioti St., Limassol Tel: (+357) 25817411 Website: www.vistra. com V.M.L Venture Management Ltd 48, Acropolis Ave., Strovolos, 2012 Nicosia Tel: (+357) 22777711 Website: www.vml.com. cy Worldwide Corporate Services Ltd 32, Kritis St., Papachristoforou Bldg 4th Floor, 3087 Limassol Tel: (+357) 25114000 Website: www.wcs.com.cy

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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SPECIAL ADVERTISING FEATURE

Nicos Nicolaides - Managing Director

ABOUT US

Abacus is a leading independent provider of professional services exclusively to International Business Companies (IBCs) operating from Cyprus. Our services cover the whole spectrum of Corporate Structuring, Business Advisory, Accountancy, Fiduciary and Corporate Administration Services. More specifically, the services we provide include the following: • Advisory Services (corporate structuring, local regulations/compliance, transaction advisory, energy consulting) • Company Formation • Company Administration • Accounting Services • Corporate Secretarial

• Establishment and Administration of private Cyprus ICIS • Trust Services • Fiduciary Services - Nominee Shareholder - Corporate Directors - Company Secretary - Registered office - Bank Signatories • Banking Services • Payroll Services • Escrow Agent Services • Shipping Services We believe that our firm’s main strength, which perhaps constitutes our competitive advantage, is that we do not provide audit services and we are totally independent from the audit firms. We therefore concentrate on

the provision of the services in which we specialise (as referred to above) in a totally unbiased way without any constraints that may be dictated by other interests. And our only concern is the benefit and welfare of our clients. Something else that characterises Abacus is the personal attention that we give to each and every client, irrespective of size. Our philosophy is that the small client of today is the large client of tomorrow. The most important factor for the success of a professional services firm like Abacus is the quality and calibre of its human capital. Our priority, therefore, is the recruitment and retention of appropriately qualified and experienced people. Abacus employees generally have a very sound academic background. A substantial number of them also have a professional qualification such as ACA, ACCA and CPA and we also employ several qualified Chartered Secretaries for the more specialised work of Corporate Secretarial Support. Our clients represent a broad range of industries including Financial Services and Banking, Energy (with an emphasis on oil and gas), Engineering, Construction and Real Estate Development, Telecommunications, Manufacturing, Media and Entertainment, Marketing and Retailing.

CONTACT INFORMATION

ABACUS LTD

Elenion Building, 5, Themistocles Dervis Street, CY-1066, Nicosia Tel: (+357) 22555800 Fax: (+357) 22555801 e-mail: abacus@abacus.com.cy Website: www.abacus.com.cy

SPECIAL ADVERTISING FEATURE

Our commitment is to guide our clients on how to structure, protect and grow the value of corporate investments and private wealth. Our management team comprises of UK Qualified Chartered Accountants and Lawyers. We are regulated as Administration Service Providers by the Institute of Certified Public Accountants of Cyprus (ICPAC). Our international memberships include: the Institute of Chartered Accountants of England and Wales (ICAEW), the Society of Trust and Estate Practitioners (STEP), the International Tax Planners Association (ITPA) and the International Fiscal Association (IFA). Our clients are supported by four (4) main operational divisions offering Corporate Services, Private Wealth Services, Fund Administration Services and Intellectual Property Rights Services.

ABOUT US The Aspen Trust Group was established in 1998 in Nicosia by Andreas Athinodorou and Marina Zevedeou with the vision of providing high quality bespoke services to individuals and corporations who shared their values. The services focused on structuring International

Tax Solutions and Private Wealth management through Cyprus. In the last 15 years we have grown to become an International independent provider of Corporate, Trust and Fund administration services, offering tailored formation and ongoing management support in key financial jurisdictions.

The Aspen Approach We ensure that we understand our clients’ needs. We focus on maximising the value of their corporate and private structures while minimising their tax exposure risks. We offer our guidance every step of the way and establish long-term relationships of trust. We provide a seamless link between the international tax planning advice, day-today operations and reporting of our proposed structures: • We source the tax advice and assist in the architecture of the optimal structure for our clients’ business needs • We implement the structure in accordance with the advice

• We provide day-to-day administration and back-office support in line with the agreed advice • We liaise with third party auditors to ensure financial reporting and tax compliance is in line with the tax advice • We proactively provide our clients with new ideas on improving their company structures and enhancing their business

These services include:

Corporate Services We undertake the incorporation and the ongoing support of Companies, Trusts and other legal entities in key financial jurisdictions, including Austria, Channel Islands, Cyprus, Ireland, Isle of Man, Luxembourg, Malta , Netherlands, Hong Kong, Singapore, Mauritius, Seychelles, UAE, BVI, Cayman Islands and the USA. We can assist with the following ongoing support services in these jurisdictions:

Fund Administration Services We undertake the back office administration of Alternative Investment Funds in Cyprus and other jurisdictions. These services include:

• Provision of Directors and Registered Office Services • Back Office Administration Services • Company Legal and Secretarial Services • Banking Administration and Treasury Services • Accounting and Financial Reporting Services • HR and Payroll Services • Auditing and Financial Reporting Services • Tax Compliance • Substance Office Related Services Private Wealth Services We offer Multi-Family Office services to High Net Worth Individuals and their families.

• Estate Planning • Set-up of Trusts, Foundations and Private Companies • Immigration Services • Second Citizenship Programmes • Insurance Wrapper Solutions • Private Banking arrangements

• Day-to-day Fund Administration • Processing of Fund Subscriptions, Redemptions and Withdrawals • Maintaining Corporate Registers • Legal and Company Secretarial Support • Calculating NAV’s and Updating Portfolios • Reconciliations of Custodian and Broker Accounts • Serving as Independent Directors and Members of Committees Our group is a member of the Cyprus Investment Funds Association (CIFA) and is instrumental in assisting the formulation of the strategy of Cyprus becoming a funds centre. Intellectual Property Rights Services We offer our bespoke IP Rights Services to: Individuals, such as international Athletes and Sports people with high value image rights Corporations with royalty income from

Patents, Trademarks and other types of Intellectual Property rights. Given the myriad of challenges modernday global economy poses on tax planning, a careful assessment is required when choosing a trustworthy partner. We, at The Aspen Trust Group, are dedicated to being worthy of the trust our clients give us, ensuring an added value service for all clients. We welcome new challenges and help our clients navigate through the cross-border aspects of tax planning in this ever-changing environment. We assist clients at all stages of the life of a structure: Planning – Implementation – Ongoing Management – Growth – Exit. You will feel well taken care of and safe in our hands.

CONTACT INFORMATION

Aspen Trust Group

Elia House, 77, Limassol Avenue, CY-2121 Nicosia Tel: (+357) 22418888 Fax: (+357) 22418890 Website: www.aspentrust.com Andreas Athinodorou Chief Executive Officer andreas.athinodorou@aspentrust. com Marina Zevedeou Chief Operations Officer marina.zevedeou@aspentrust.com

SPECIAL ADVERTISING FEATURE

Costas Christoforou - General Manager

ABOUT US The Cyproman group of companies commenced operations in 1996. Initially it concentrated on providing trustee services. Gradually, it has expanded to offer a wider range of services, accommodating the business needs of todayâ&#x20AC;&#x2122;s entrepreneurs. Cyproman has fully-fledged offices in Nicosia and Larnaca, employing more than 70 professionals and staff, and offers similar services in Limassol through its subsidiary firm C.P. Palema

Ltd. Over the last few years, both Cyproman & Palema have become two of the largest providers of Fiduciary and Administration services to a well diversified clientele in Cyprus. Cyproman offers Fiduciary, Trustee, Company Secretarial, Administration, Accounting & Bookkeeping, Payroll and Fund Administration services. Fiduciary and Trustee services include the implementation of all formalities surrounding the formation of appropriate business entities in the

most advantageous jurisdictions, the provision of domiciliary and management services, trustee and escrow agent services, as well as any required facilities to suit diverse client needs. Company Secretarial and Administration services consist of organising and facilitating directorsâ&#x20AC;&#x2122; and shareholdersâ&#x20AC;&#x2122; meetings, along with the preparation of the relevant minutes and supporting documentation, as well as the preparation of requisite documentation reflecting changes in the structure and composition of a business entity and the implementation of such, internally and externally, in accordance with the law and the local authorities of the jurisdiction in which the business entity is registered and functioning. In addition, such services comprise the opening, operation and maintenance of bank accounts with any local or international bank, the issuance of invoices, credit notes, purchase orders and any other such documents, the provision of translation services for most European languages, liaising facilities with bank officers, advocates and other professionals, and assistance on private banking information through banks and prestigious financial services firms. Accounting and Bookkeeping services range from recording all dayto-day bookkeeping, maintaining a computerised general ledger and performing bank reconciliations of all bank accounts, to preparing and submitting VAT returns and VIES declarations, preparing periodic management accounts and annual unaudited Financial Statements, as well as payment of requisite taxes. As experienced professionals who appreciate that the confidential, accurate and timely operation of a

company’s payroll is fundamental to business, Payroll services compose of undertakings such as gathering information and completing all necessary forms, processing monthly payroll, preparation and dispatch of any reports upon an employer’s request, preparation and dispatch of monthly computerised payslips, payment of employees, payment of PAYE taxes, social insurance contributions, medical fund premiums and provident fund to appropriate governmental authorities, assisting in the application for obtaining work and residence permits for principals and expatriate personnel, legalisation and certification of documents, preparing and filing of annual returns. The final area in which Cyproman has developed extensive expertise is in Fund Administration services, which are offered through its whollyowned subsidiary Cyprofund Administration Services Ltd. They entail the maintenance of the register of investors, arranging for the issue, transfer, allotment, conversion, subscriptions and redemptions in accordance with the Offering Memorandum and Articles of Association of a company/ fund and under the supervision and in accordance with the instructions of the company/fund itself and updating the register accordingly, receiving, recording and dealing with letters of administration, powers of attorney, dividend mandates, vesting orders, notices of change of names and other documents affecting the title to shares or any dividends payable and consequently updating the register. Following the custodian’s orders, Cyprofund undertakes the payment or deposit of all monies and securities received and, with the instructions of the company/

fund, Cyprofund prepares and arranges for dividend payments or payments of redemption monies and notifies the investors of all such payments. Cyprofund is committed to dispatching all such circulars, notices of meetings, reports and financial statements to all persons who are entitled to receive them, attending board meetings and general meetings of the company/fund when so required and acts as a proxy agent in connection with the holding of meetings of shareholders, receives and tabulates votes cast by proxy and communicates to the company/fund the results of the tabulation. In addition, Cyprofund determines in the name and on behalf of the company/ fund on each valuation day the Net Asset Value per share and keeps the accounts of the company/fund and such financial books and records as required by law or otherwise for the proper conduct of the financial affairs of the company/fund. Overall Cyproman fosters a collaborative culture where talented individuals can produce their best work. It values innovative thinking; diverse insights and strives to offer an exceptional level of client service through its expertise and professionalism. Cyproman’s management and employees are all united in the effort to collectively achieve the company’s strategic objectives. Cyproman takes pride in the high standards of quality and professionalism. Cyproman does not have any conflict of interest within its services and works with any advisor or bank of its clients’ choice. The protection of clients’ interests and the task of ensuring strict confidentiality, surrounding any and all services offered, are of prime concern and, in this regard, strong internal procedures and controls have been implemented with which Cyproman’s management and all its employees comply.

Cyproman recently announced its obtaining of ISAE 3402 Type II Certification for specified controls applied to its services. The International Standard on Assurance Engagements (ISAE) 3402, which now supersedes SAS 70, has recently been issued by the International Federation of Accountants and provides for an independent assessment of the internal controls in relation to the above mentioned services offered by Cyproman. The review was performed by a Big-4 audit firm. This success follows the issuance of an SAS 70 Type I Report in early 2011 and clearly demonstrates the continuous commitment of Cyproman to improving its services and operations and delivering quality services within a framework of transparency and control.

CONTACT INFORMATION

Cyproman Services Ltd Nicosia 12, Esperidon Street, 4th Floor, 1087, Nicosia P.O. Box 22096, 1517 Nicosia Tel: (+357) 22474000 Fax: (+357) 22474808 Larnaca 4, Archbishop Makarios III Ave. & Corner Kalogreon St., Nicolaides Sea View City, 9th Floor, Offices 903-904, Block A-B CY-6016 Larnaca P.O. BOX 40569, CY-6305 Larnaca Tel: (+357) 24823420 Fax: (+357) 24823421 Website: www.cyproman.com.cy

SPECIAL ADVERTISING FEATURE

Established in 1980, Fiducenter is owner-managed, with all partners being active in the business, providing that extra touch required for establishing a personal approach in creating and maintaining relationships with clients, associates and also internally within the firm. Our strength lies in the complementarity of our accountants, tax advisors, legal experts, asset managers, corporate administrators and other contributors, who co-ordinate their efforts to provide our clients with the best advice and services for the fruitful accomplishment of their targets, whether these relate to the setting-up and running of an entity, restructuring of their operations, the establishment of a presence in a new country, legal, tax or other advice on a specific transaction, etc. Through our direct presence in four of the worldâ&#x20AC;&#x2122;s most attractive financial and business centres, as well as our connections around the globe, we can provide our clients with the most suitable solutions based on their needs and expectations, always at top quality standards and competitive prices.

ABOUT US Fiducenter is an independent provider of professional services, with a presence in Luxembourg, Cyprus, Singapore and Malta. We provide a comprehensive range of international business services, including professional consultation, advisory services

on specific transactions, formation of investment funds, companies, trusts and other investment and business vehicles, bespoke services related to specific sectors and structures and much more. You can find more on the services we offer under the relevant section below.

We aim to distinguish ourselves through the unity of our presence, enabling our clients to have access to the knowledge and expertise of all our members and related to any of the jurisdictions in which we are based, through a single communication channel, thus saving clients the time and costs involved with having to deal with professionals in different jurisdictions, even if these come from the same international organisation. Through this homogeneity of service, we endeavour to provide the desired level of personal

attention to our clients. Furthermore, this integration of our operations enables our clients to benefit from common processes, methods, systems and tools, and our continuous learning culture. We may often discuss matters and hold information of a commercially and individually sensitive nature. Confidentiality, discretion and data protection are absolutely guaranteed in all jurisdictions and in any transfer of information between our offices. We regard regulation and compliance requirements as a positive aspect of financial transactions and as a useful and necessary tool in protecting service providers and the community at large from those with illicit funds or aims. We are licensed and regulated for the provision of services where applicable and we fully comply with all ‘best practice’ guidance to ensure that our own and our clients’ reputation, as well as assets, are fully protected. Indeed, in Cyprus, following the recent enactment of legislation for provision of “Administrative Services”, we are among a few firms, which to date have obtained a licence for the provision of such services. Furthermore, we are actively involved in our industry, something which allows us both to contribute towards the development of the sector and the professionals involved but also to exchange knowledge and expertise with peers. The culmination of this involvement was our instrumental role in the formation of the Cyprus Fiduciary Association, of which we are proud to be the first President.

OUR SERVICES Our most important lines of service are summarised below, accompanied with a brief commentary (where needed) related to examples of work falling un-

der each category. For the full list, as well as more details on our services, please refer to our website, on www. fiducenter.com • Transaction Advisory - establishment of a new venture, international expansion, restructurings, creation of a new contractual arrangement or transaction, etc. • Corporate - including the establishment and running of companies and other vehicles, keeping full and properly ordered records. • Accounting, tax, VAT and payroll • Fund Administration • Marine and Aviation - assessing and arranging qualification under special tax and VAT regimes, registration and importation • Intellectual Property - arranging and administering licences, structuring, assessing qualification to special tax regimes • Estate Planning and Administration - assessing issues such as current and future assets, personal family considerations, tax residency, succession and the provision of tailored solutions to suit the needs of each case • Family Office - with a broad range of specialists in various disciplines, and offices in key jurisdictions, we can structure and manage the family’s assets with the support of a plethora of in-house skills and expertise

CLIENTS CHOOSE TO WORK WITH US BECAUSE… • We offer UNITY of service, a rare quality among international organisations. • We focus on what we do best. • Our more than 30 years of successful presence offers confidence in what we do. • Our team consists only of motivated people who truly share the same phi-

losophy and principles. • As an independent company, all our shareholders are actively involved in the business, giving the extra attention, personal approach and leading by example that distinguishes us from the rest. • We are licensed professionals in all the jurisdictions in which we operate, giving the extra confidence a client requires. • Our policies are designed and implemented always with our clients’ needs in mind in order to offer the best possible service. • We consider confidentiality and protection of private data a matter of utmost importance. • We invest time, money and effort to have the proper safeguards in place. • We aspire to be successful not only financially but also in meeting our social and environmental responsibilities. • We never compromise our philosophy and principles and always strive to be

...in search of excellence

CONTACT INFORMATION

Fiducenter (Cyprus) Ltd 1, Iakovou Tompazi Street, Vashiotis Business Center, CY-3107 Limassol Tel: (+357) 25504000 Fax: (+357) 25504100 e-mail: fiducenter@fiducenter.com.cy Website: www.fiducenter.com

SPECIAL ADVERTISING FEATURE

ABOUT US First Names Group may be a new name in the global trust and corporate services sector but weâ&#x20AC;&#x2122;ve been around for more than 30 years. Formerly IFG Trust and Corporate Group, we broke away from IFG Group Plc in 2012 in a management buyout supported by AnaCap Financial Partners LLP, a London-based private equity firm specialising in Financial Services. Our ability to operate on a global scale via a network of strategically located

offices is fundamental to our success. Our presence in and knowledge of the regulatory landscape in so many of the worldâ&#x20AC;&#x2122;s key financial jurisdictions means we can respond to the varied and specific needs of our clients, either directly or via their trusted advisers. We have more than 450 staff worldwide, all of them valued for their expertise and skills. We have a clear focus on professional qualifications among employees, with many ac-

countants, lawyers, trust and estate practitioners and chartered secretaries providing the necessary experience. We are committed to all of our staff, investing in their professional development to ensure they are always equipped to deal with the ever changing and complex corporate environment. As an independent firm, we are totally free of the conflicts often associated with institution-owned trust companies. This not only gives us the agil-

ity to make decisions quickly but also means we have complete freedom to choose the right banks and investment houses to work with. We do not provide tax or legal advice, choosing instead to work with third-party professionals. We are happy to work with clients or their advisers directly, or as part of a wider team. Our experienced and well-qualified teams of in-house professionals provide advice on and day-to-day management of simple and complex structures established for both private and corporate clients. Often, these structures are established for the purposes of the mitigation and neutralisation of tax and for the protection and preservation of wealth within a secure environment. The uses of such structures are broad and almost limitless. In many cases a bespoke approach and interpretation is required in order to ensure that client objectives are met. We have dedicated teams specialising in the following: Trust Establishment and Administration We have significant experience in establishing trust arrangements for a wide variety of private and corporate clients. We will advise on the set-up of a trust in conjunction with the client’s professional advisers and will act as corporate trustee, ensuring continuity of management and administration. Company Incorporation and Management We provide centralised and co-ordinated management and administration of companies incorporated in a wide variety of jurisdictions with regular reporting tailored to client’s individual

requirements. Our directors and senior staff will be directors of client companies, adding real substance. We also provide all secretarial, administration, banking and accounting related services. Transaction support services Our experienced accountants and inhouse lawyers are well suited to provide support on a wide range of M&A transactions undertaken by our clients like mergers, acquisitions or disposals including drafting or reviewing of relevant agreements, financial or legal due diligence and other necessary M&A support work. How do we differentiate ourselves from our competitors? It’s our independence from financial or legal institutions that means we can offer the very best in trust and corporate services. And it is our independent spirit that gives us the character our clients and professional intermediaries value so highly. It’s a culture of independence that gives our people the freedom to forge long-term, mutually rewarding client relationships and to grow as professionals and prosper as individuals. We understand that all of our clients, from single individuals to major corporations, ultimately want the same simple thing: peace of mind. They want to rest easy in the knowledge that structures are being administered by experienced professionals motivated to deliver the highest standards of corporate governance. We take the time to understand our clients’ individual needs, either working with them directly or through their advisers. And we take pride in our ability to tailor the right solutions, drawing from an extensive, integrated platform of expertise and processes spread across multiple strategic locations.

We’re proud of the service we offer. And we’re proud of the people who make it happen: our First Names. First Names Group is all about the people who have made us what we are. Most professional services organisations recognise that it’s their people who make the difference; at First Names Group we have taken this a step further by embedding that philosophy into the brand itself. Our name symbolizes the value we place on relationships; being on First Name terms with clients and colleagues is a privilege we both value and enjoy. It is people who are at the heart of our success, from the experienced professionals within our company to the clients and intermediaries who repeatedly put their trust in us. The name also represents our commitment to being the ‘First Name’ in the services we offer, in existing and new markets.

CONTACT INFORMATION

First Names (Cyprus) Ltd Chapo Central, 3rd Floor, 20, Spyrou Kyprianou Avenue, 1075 Nicosia Managing Director: Christos Michael Tel: (+357) 22749000

SPECIAL ADVERTISING FEATURE

increase the business value of every client and reduce risks to a minimum. Clients of Korpus Prava can be assured of receiving safe, accurate and clearly-developed solutions for business, as well as a high level of confidentiality. Korpus Prava does not sell services: it provides solutions that work. We offer a full range of services: • Legal and tax consulting • International tax planning • Project consulting • Corporate services • Capital transactions / M&A • Tax disputes • Economic disputes and bankruptcy • Real estate transactions • Intellectual property Korpus Prava is the organiser of the Eurogate International Conference as well as numerous seminars, workshops and round tables devoted to business restructuring, tax optimization and changes to legislation.

Artem Paleev, Managing Partner

Since 2004, the Company has published Korpus Prava. Analytics, a tax and legal journal for business owners and managers. It offers new ways of organising various processes, leading to more productive work and more successful development. Having an open mind and thinking outside the box always guarantees additonal value for everybody. This is one of the key principles that the Company implements in its approach to working with its clients.

ABOUT US At the beginning of 2006, Korpus Prava, a multinational law firm with profound tax expertise, came to Cyprus. Korpus Prava was established in 2003 in Moscow, Russia. From our offices in Russia, Ukraine, Cyprus, Latvia, Malta and Hong Kong, we offer clients a truly international service. Our qualified and friendly staff provides a flexible, reliable and efficient service to all our clients.

The specialists of Korpus Prava design solutions for a variety of business sectors and provide professional services that meet international standards. The staff of the company is fluent in a variety of languages, which ensures smooth and prompt communication with clients, financial institutions, public authorities and helps resolve procedural matters. The mission of the company is to

CONTACT INFORMATION

Korpus Prava (Cyprus) 84, Grivas Dighenis Avenue, Office 102, 3101 Limassol, Cyprus Tel: (+357) 25582848 Fax: (+357) 25582868 Website: www.korpusprava.com

Moscow, Russia Riga, Latvia Kiev, Ukraine Valletta, Malta Limassol, Cyprus

Novosibirsk, Russia

Hong Kong, PRC

Legal and Tax Consulting

International Tax Planning

M&A Projects

Registration and Administration of Companies

Due Diligence

Opening of Bank Accounts

Business Restructuring

Creating and Managing of Hedge Funds

www.korpusprava.com

SPECIAL ADVERTISING FEATURE

ABOUT US Orangefield is an independent global service provider with a wide range of management, administrative and trust services to private and corporate clients as well as private equity, hedge and real estate funds all over the world. At present, we have offices in over 20 jurisdictions including London, New York, Amsterdam, Luxembourg, Berlin, Cyprus, Malta, Munich, Frankfurt, Vienna, Toronto, Hong Kong, Shanghai, Singapore, Johannesburg, British Virgin Islands, etc., and we

employ over 500 professionals all over the world. Orangefield Fidelico Ltd The Cyprus office of Orangefield group was established with a view to providing quality corporate services in Cyprus with unmatched efficiency to international groups and financial institutions globally. Our team consists of professionals who serve clients at a multi-national level. We have built our skills at law firms, (tax) advisory firms and other selected industries, allowing us to offer quick and tailor-

made services. We are diligent and up-to-date when it comes to the latest legal matters and accounting standards. Typical activities include Due Diligence procedures, IPOs of bond issues, and the administration of public listed companies which abide by the Cyprus Securities and Exchange Commission rules and regulations.Â Our clients include groups listed on stock exchanges internationally, leaders in the banking sector and financial institutions. We aim to provide personalized and high-quality services, giving

our clients a ‘one stop’ service for any business activities that they wish to perform in Cyprus.

WHAT WE DO Orangefield acts as a valued partner, with more than 40 years of experience in providing global solutions and professional services to a diverse client base. The members of our team are anxious to familiarize themselves with the challenges clients face. Corporate Services Orangefield provides a wide range of corporate services around the globe. We operate in an entrepreneurial environment so our clients always come first. Our competitive edge lies in our approach towards them. As a middle size group, Orangefield has a personal approach and a hands-on mentality. Our personal approach in the day-today business of our clients is guaranteed by providing them with a single contact person for all their activities worldwide. Their best interest is what we call our business. Private Wealth Services Today’s individuals have increasingly international lifestyles with businesses, homes and assets located all over the world. Tax liability can arise in a number of different countries on the basis of place of residence, location of assets, nationality or domicile. The Orangefield International Private Client Services team is focused on handling the unique needs of high net worth clients and their families, through comprehensive asset and wealth management, fiduciary and trust services. The depth and breadth of our experience, our presence in strategic international jurisdictions and our dedication allow us to serve our clients efficiently and effectively.

Fund Services Today’s fund managers are experiencing increasing challenges in relation to regulation, a global investor base and complex investment instruments. Key attributes of our offering are flexibility, reliability and transparency. We believe in providing customised valueadded solutions by adapting to best fit our clients’ individual requirements. Throughout the entire fund life cycle, we position ourselves as a long-term and trusted partner that fully supports clients fund administration needs. The team at Orangefield have been hand-picked for their industry expertise and our enthusiastic approach to achieving results ensures that we are dedicated to your business success. Over the years, Orangefield has established strong working partnerships with leading financial firms, including investment banks, lawyers, auditors and custodians. We lead the coordination of key relationships relating to fund administration in the jurisdictions in which we operate. A more personal approach is ensured by providing a global client relationship manager who has responsibility to deliver our services in line with our quality standards. We specialise in the sectors of: hedge funds, private equity funds and real estate funds. Real Estate Services Making all the difference in today’s highly competitive markets, outsourcing your real estate accounting and administration services can free you to focus on your core capabilities. Think of us as your strategic partner and a centre of excellence, designed to help you optimise and support your real estate investment process. Typical challenges facing real estate funds include cross-border administration and communication, fund level con-

solidation, property manager reporting, multiple third party relationships, local taxes (VAT), compliance and substance. Operating in over 20 countries worldwide and supported by over 500 professionals with extensive experience using best of breed technology, we differentiate ourselves from other real estate service providers. Real estate clients often prefer corporate structures established in regulated jurisdictions; Orangefield Luxembourg is a CSSF licensed central administrator. We offer a comprehensive top-to-bottom servicing solution throughout the Orangefield Network, including Advent, Yardi and MRI platforms. Allowing London based fund managers the possibility of a fund controller next door, Orangefield London offers NAV reconciliations and other reporting services. Orangefield is committed to providing fast, clear and practical responses to all our clients’ queries. A professional pragmatic approach and quick turnaround are essential qualities of our services provided. We aim to be your optimal partner for any business venture you wish to undertake in Cyprus or abroad, from incorporating your company to innovative tax solutions.

CONTACT INFORMATION

Orangefield Fidelico Ltd Kanika International Business Center, 6th floor 4, Profiti Ilia Street, Germasogeia, 4046 Limassol P.O. Box 50734, 3609, Limassol Tel: (+357) 25272727 Fax: (+357) 25272728 e-mail: info@orangefield.com.cy Website: www.orangefield.com

SPECIAL ADVERTISING FEATURE

ABOUT US Pagecorp Group is a provider of comprehensive corporate and related professional services suitable for organisations and entrepreneurs wishing to establish their business in a low tax and confidential environment which is aligned with the EU laws and regulations. The provision of these services extends worldwide through an international network of reputable affiliates and correspondents, who have been collaborating with Pagecorp Group for many years. The Group’s primary target was to provide the international financial industry with a new qualitative, simplified and effective platform offering a full spectrum

of consulting and administrative services in Cyprus and abroad. Pagecorp Group employs a series of professionals (lawyers, legal consultants, company administrators and accountants) who work with clients on an individual basis to achieve a customised and complete solution for their specific business requirements. The best strategy for the client’s particular needs and circumstances is carefully selected after private consultations. Group members work with investment advisors and other key professionals to provide the most appropriate structure for the client’s needs. Pagecorp Group ensures that clients have effective control of their international investments through careful

planning and unique corporate management techniques and structures. Pagecorp Group has the necessary expertise to assist clients in developing the appropriate structures to minimise taxes, protect their assets, better plan their estates and enhance the privacy of their financial affairs.

PROFESSIONAL SERVICES The Group offers clients the following professional services: Corporate Services • Incorporation of made-to-order or provision of Cyprus shelf companies • Registration of companies in foreign

jurisdictions: through our worldwide network of affiliates and correspondents we provide our clients with companies in many other jurisdictions such as Bahamas, Belize, British Virgin Islands (BVI), Hong Kong, Isle of Man, Panama, Dubai, Seychelles, Singapore, UK, etc. • Management and administration of companies in Cyprus and in all the above jurisdictions • Redomiciliation of companies: Cyprus has introduced appropriate legislation and regulations and is now one of the jurisdictions which allow redomiciliation of Companies in and out of Cyprus. • Management, Administration and Nominee Services: Provision of registered office address, provision of corporate or individual nominee directors and shareholders, company secretarial services etc. • Opening and administration of bank accounts in Cyprus and abroad • Registration of branches in Cyprus • Trust and custodial services • International re-invoicing structures for the reduction of overall tax burdens • Receiving, handling and forwarding of correspondence and representation services Cyprus Holding Companies Cyprus is one of the most attractive countries within the EU in which to set up a holding company. A great number of international businesses have established Cyprus holding companies mainly due to the combination of the low corporate tax, now standing at 12.5%, with the completely tax-free income from dividends and the reduced (or eliminated) withholding taxes as a result of Cyprus’s extensive network of Treaties for the Avoidance of Double Taxation. Cyprus International Trusts Cyprus is a reputable international financial centre with very attractive opportunities for setting up and operating a trust. Asset protection by means of a Cyprus International Trust (CIT) is a very effective legal way of placing the assets of high

net worth individuals beyond the reach of future potential creditors or other claimants. Furthermore, the CIT is used in many other situations, such as tax planning, estate planning, for wealth management, investment, charitable purposes, etc. The recently-amended Cyprus International Trusts Law provides maximum protection and flexibility to trust structures and many other benefits. Pagecorp Group specialises in the creation and administration of trusts and offers trustee services to corporate entities and high net worth individuals from around the world. International Tax Planning Pagecorp Group has extensive experience in assisting clients to minimise their tax liabilities through the proper and effective use of international corporate structures. For many years, major multinational corporations from the international market have been using and benefiting from the international tax planning services of the Group. International Business Centre Always focusing on a client’s particular needs, Pagecorp Group has recently launched the Omega Court International Business Centre (Ω Court IBC) to satisfy the need of businesses for fully-serviced offices. The Ω Court IBC is ideal for overseas organisations wishing to establish a presence in Cyprus and for small and mediumsized businesses that want to cut costs and yet remain flexible in an ever-changing business climate. Ω Court IBC’s professional environment provides clients and guests with comprehensive services to fully satisfy their office requirements, with highly flexible terms, in an ideal location in the business centre of Limassol. Bookkeeping, VAT Registration & Administration The high-quality services offered by our qualified and experienced team of accountants are: outsourcing accounting and financial reporting, maintenance of statutory books and records, payroll processing and administration, preparation of financial statements, management ac-

counts and budgets, VAT and VIES registration, administration and submission of related returns and Intrastat services, tax planning and advice, tax administration, preparation of tax computations, preparation and submission of provisional tax declarations, self-tax assessments, deemed distribution of dividends, personal tax returns and payment of taxes, financial advisory, management consulting, consultation on the systems of internal control, audit services through our affiliates, statutory audit, preparation of audited financial statements and submission of tax return, specific purpose audit and voluntary liquidations. Legal Services Pagecorp Group secures high-quality legal services for clients according to their specific requirements through its associate law firm of Patrikios Pavlou & Associates LLC. Patrikios Pavlou & Associates LLC is a top tier, multi-award winning law firm based in Cyprus with considerable expertise in the international legal market. In 2013, the Firm proudly celebrates the completion of 50 years in the provision of professional, efficient and dedicated legal services in Cyprus and abroad. The Pagecorp Group team will always strive to provide high-quality, comprehensive services and customised solutions to satisfy clients’ needs with efficiency and professionalism.

CONTACT INFORMATION

Pagecorp Group

Patrician Chambers, 332, Agiou Andreou St., 3035 Limassol Tel: (+357) 25878866 Fax: (+357) 25364048 e-mail: info@pagecorpgroup.com Website: www.pagecorpgroup.com (currently under construction)

SPECIAL ADVERTISING FEATURE

Nicos Kacoullis, Managing Director

ABOUT US Profserve is a Cyprus-based Administration Service Provider and Consultancy Firm serving a global clientele via its extensive network of business associates. Our Company Directors have between them amassed decades of experience working in the government, accountancy, legal, financial and business sectors, both locally and internationally

OUR SERVICES Corporate Incorporation and Representation, including registration of companies and all associated administrative, legal and

financial requirements tailored to the clientsâ&#x20AC;&#x2122; specific needs. Administrative and Secretarial From company searches and preparation of official legalisation documentation, to maintenance of statutory company records, financial accounts, minutes and all associated internal affairs. Accounting Preparation of financial statements, payroll services, preparation and submission of VAT, personal and corporate tax returns, preparation of internal management accounts, invoice preparation and dispatch. In addition full company audits through its associated auditing firms.

Management and Business Overview of internal control structures including management information systems, optimisation of procedures and performance strategies to enhance operational standards, improvement of under-performing established companies through management incentives and disposal of non-strategic businesses. Financial and Banking Establishment of bank accounts in Cyprus and abroad, negotiation and liaison with banks for all formalities including fund collection and remittance, credit agreements, loans, guarantees and deposits, foreign exchange and arrangement of on-line services. Taxation Advice and implementation of procedures for optimisation of tax benefits, including direct or indirect taxation and ensuring achievement of most efficient tax targets. Shipping All shipping registration documentation, representation and associated administration procedures, including ship management and financing through our network of associates. Immigration Advice and processing of all required legal documentation, including formal applications in respect of Registration for work permits, pink slips, temporary and permanent residence permits and naturalisation status, through its affiliated companies. Trusts and Trustees All related fiduciary services including implementation and administration of special purpose or discretionary trusts, incorporating mergers and acquisitions, inheritance planning and wealth management, shareholder agreements, provision of trust lawyers.

CONTACT INFORMATION

Profserve Ltd

57, Ayias Filaxeos St., 3025 Limassol Tel: (+357) 25824168 Fax: (+357) 25387995 e-mail: info@profserve.com.cy Website: www.profservecy.com

SPECIAL ADVERTISING FEATURE

(L-R) Alex Alexandrou - Manager Corporate Department Makis Liveras – Client Services Executive Andreas Mercouri – Director Yiannos Ermogenous – Financial Controller Petros Livanios – Managing Director Constantinos Ignatiou – Head Corporate Counsel

ABOUT US GLOBAL REACH, PERSONAL SERVICE Trident Trust is a leading independent provider of corporate, trust and fund services to the financial services sector worldwide. Established 35 years ago, our clients include the world’s largest banks and brokerage firms, Fortune 500 companies, leading law and accounting firms and high net worth individuals and their families. The majority of our clients are located

in financial centres around the world including New York, London, Zurich, Luxembourg, Hong Kong, Singapore, as well as in Russia and the CIS countries. Located in 34 offices in 24 jurisdictions, we are today among the largest organisations in our industry, offering clients access to a range of services that extends from traditional corporate domicile representation to the administration of complex trust and fund structures. Our global footprint

ensures that we service our client base across the world’s time zones. Our multilingual Client Liaison Offices in London, New York, Hong Kong, Zurich, Luxembourg, Dubai, Singapore, Miami and Atlanta guarantee an enhanced level of client attention. With a record of the longest average tenure in our industry, our professional personnel are well-equipped to support our clients with their practical knowledge and extensive experience. In particular, the length of service of

our senior management provides continuity and knowledge that our clients value in times of political, regulatory and economic change. In an era of rapid globalisation of financial services, Trident Trust provides clients with the peace of mind that their affairs are handled professionally by an independent organisation with a proven record of responsiveness, attention to detail, reliability and personal service in excess of three decades. Please visit www.tridenttrust.com for further information.

OUR CYPRUS OFFICE Trident Trust Company (Cyprus) Limited was established in 1996 and is today one of the leading providers of administration and fiduciary services in the local financial services industry. The majority of our more than 50 employees are professionally qualified. We offer our services across a wide range of jurisdictions, principally to law firms, accountants and tax advisors, as well as financial institutions and large international organisations: • Incorporation & Administration of Cyprus Companies • Administration of Offshore Companies • Establishment & Administration of Trusts • Registered Office & Secretarial Services • Nominee Shareholder Services • Directorship (Resident & Non-resident) • Bank Account Opening, Administration & Signatories • Accounting, Bookkeeping & VAT Services • Escrow Agent Services • Payroll Services • Office Facilities – Physical & Virtual Offices • IT Support & Services Our corporate and trust team focuses principally on corporate and commer-

cial matters, with an emphasis on mergers and acquisitions, international tax planning and private equity. Our corporate department is responsible for the formation and administration of Cyprus entities, as well as entities in other jurisdictions offered by our Group. To meet our clients’ often urgent requirements and to ensure fast service, a large number of shelf companies from the 24 jurisdictions around the world in which Trident Trust is located are maintained at all times. Through associate Cyprus law and audit firms we can assist with all corporate and legal matters and provide all auditing services and tax advice on matters relating to Cyprus. These arrangements guarantee a one-stop-shop service for our clients’ corporate needs. Our Cyprus office is dedicated to the values on which the Trident Trust Group has built a 35-year track record of excellence: • Responsiveness – we will not keep you waiting. • Uncompromising attention to detail accuracy in all that we do. • Reliability - we do what we say we will do. • Personal Service – every client is a valued and distinct individual. Dedicated teams are assigned to handle the affairs of each client. Each team consists of a Corporate Counsel (Relationship Manager), Corporate Administrator, Banking Administrator and Accountant, and each one has a backup in case of absence. The team responsible for a client’s affairs will devote the necessary time and effort to ensure that all clients are provided with high quality, efficient and personalised service. Trident Trust Company (Cyprus) Limited is a founding member of the Cyprus Fiduciary Association. Mr Petros Livanios, Managing Director of Trident Trust in Cyprus, has been the association’s vicepresident since its inception.

WHY CHOOSE TRIDENT TRUST CYPRUS? • Experience - we have been successfully servicing the corporate requirements of our clients for 16 years in Cyprus and 35 years globally. • Global Footprint - with a geographic reach that is one of the widest in our industry, we offer clients one-stop access to a range of jurisdictions that few can match. • Pricing - we price our services fairly and transparently. • Independence - we are an independent organisation, free of conflicts of interest and able to provide an unbiased and impartial service. • Professionalism - our staff combine professional qualifications with extensive practical experience. • Staff Continuity - our high level of staff retention means clients can expect to build long-lasting relationships with dedicated teams who will understand their needs and their business. • Standards - we adhere to the highest compliance standards.

CONTACT INFORMATION

Trident Trust Company (Cyprus) Ltd Trident Centre 115, Griva Digeni PO Box 58184, 3731 Limassol Tel: (+357) 25820650 Fax: (+357) 25361857 e-mail: cyprus@tridenttrust.com Website: www.tridenttrust.com

AWARDS

THE 9 WINNERS WERE: Waste Reduction ANIMALIA GENETICS

3rd Green Dot Cyprus Environmental Awards

Product Re-use PHOTOS PHOTIADES GROUP

he 3rd Green Dot Cyprus Environmental Awards were presented at a ceremony at the Cyprus Theatre Organisation’s new auditorium on 31 October, hosted by IN Business magazine and organized by IMH. A total of nine awards were given in recognition of the contribution of companies, organisations, practices, products and individuals to improving the environment in Cyprus. Seven of the awards were voted for by the public and a special judging panel while the winners of two Honorary Awards were selected by the panel.

Green Product/Service ΜY GREEN CYCLE COMPOST, PREMIER SHUKUROGLOU CYPRUS Corporate Social Responsibility for Environmental Issues HELLENIC BANK Organised Group with Significant Environmental Activity CANS FOR KIDS Green Building AMERICAN HEART INSTITUTE/ AMERICAN MEDICAL CENTER

Nikitas Kyriacou and Katerina Christofidou, presenters of the Awards

Dr Christos Christou, American Heart Institute/American Medical Center

Michalis Papaefstathiou, Animalia Genetics Ltd

Green Educational Institute FREDERICK UNIVERSITY Honorary Award Renewable Energy Resources AMBROSIA OILS

Violinist Barbara Lucas entertained the enthusiastic audience

Honorary Award Green Leader Award CHARALAMBOS THEOPEMPTOU Ilona Yiota Michaelidou Photiadou, Photos Photiades Group and Kyriacos Parpounas, Green Dot (Cyprus)

Charalambos Theopemptou, Commissioner for the Environment, Doros Eliodorou, Hellenic Bank and George Michael, IMH

George Z. Georgiou, George Z. Georgiou & Associates George Xinaris, LTV, John Shukuroglou, Premier Shukuroglou Cyprus and Roula Mavronicola, EDEK

Sotiroula Sotiriou, Charalambides Christis

George Georgiou, Lanitis Green Energy Group, Demetris Miscourides, Ambrosia Oils and Constantinos Yiorkatzis, Mayor of Nicosia

Philios Zachariades, Cyprus Employers & Industrialists Federation, Costas Kadis, Frederick University and Adamos Adamou, House Environment Committee

Michael Spanos, Green Dot (Cyprus) Andreas Papanicolaou, Hellenic Bank and Yiangos Hadjiyiannis, CIM

Alexander McCowan and Lakis Charalambous, Cans for Kids

George Theodotou, AlphaMega

Christos Patsalides, Christos Patsalides LLC

Sakis Theodosiou, Green Dot (Cyprus)

kosmikagreen dot.indd 72

Thomas Kazakos, Cyprus Shipping Chamber

Prodromos Prodromou, MP

Christos Malikkides, Ministry of Defence, Charalambos Theopemptou, former Commissioner for the Environment and Niki Mathaiou, Human Resource Development Authority

07/11/2013 17:42

BANKING

e h t f g o n e on i y ic ati a P Pr tin s a r c

o r P

ans-Joachim Duebel, founder of the Berlin-based financial and real estate sector specialist Finpolconsult, recently produced a study for the Centre for Financial Studies of the University of Frankfurt entitled The Capital Structure of Banks and Practice of Bank Restructuring: Eight Case Studies on Current Bank Restructurings in Europe. One of case studies was Laiki (Cyprus Popular) Bank. Duebel, who is one of the speakers at the forthcoming Cyprus Banking Forum, presented by Gold, at the Hilton Park Hotel, Nicosia on 5 December, talks about the Europgroup’s handling of the Cyprus banking crisis. By JohnVickers

Gold: You have written that what happened in Cyprus with Laiki Bank and Bank of Cyprus was “a classic US strategy”. Why do you think it was implemented in Europe? Hans-Joachim Duebel: Because the fatigue of policy makers and their advisors with taxpayer-funded bank rescues had reached a peak by 2012-13. Even junior bond creditors had been left untouched in the first wave of bank rescues in Northern Europe (2008-2010). There is a parallel with the US S&L crisis of the 1980s, when it also took a couple of years to change policies from bail-out to bail-in. The turning point for Europe was, in fact, not Cyprus in November 2012, but Spain in June 2012. At that time, Germany was asked at

the European summit to back up direct recapitalizations of banks while some Spanish Cajas were still offering junior bond holders an exit at par (no losses). This prompted Germany to ask Spain for a sovereign guarantee for the eurozone funds and pass a bail-in law. The ECB turned around on this after Germany had given green light in late July on the OMT. You may see it as a quid pro quo. Gold: You have described as “misguided” the Emergency Liquidity Assistance (ELA) from the European Central Bank. What do you mean? H-J. D.: Let us consider Laiki. Some of the ELA that built up from September 2011 until the ECB pulled the plug in February

2013 had been used to fund collateral – covered bonds and sovereign bonds – that had fallen out of ordinary ECB repo. So far, so good. However, during that period Laiki also was constantly losing large amounts of deposits, mostly from its International Business Unit and from other foreign depositors. Back on the envelope, perhaps half of the ELA turned around and left Cyprus again. Without the ECB providing ELA de facto without limitations, Laiki would have been unable to cater for this capital flight. The ECB understood that supporting capital flight from a bank with solvency problems dramatically undermines the credibility of its overall liquidity policy framework. In September 2013, the ECB tightened its ELA policies. Not

74 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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enough in my view, but it’s a start. Gold: When the Eurogroup took its decision to impose a haircut on uninsured deposits, it was loudly stated that Cyprus was a ‘unique case’ and not a model for the future. How true do you think that is? H-J. D.: Let us first understand why Cyprus got into this situation. Next to the flight of depositors there was a flight of subordinated bond investors from the banks. Bank of Cyprus bought back subordinated debt years after Deutsche Bank had stopped the practice, in May 2011 when the Greek haircut debate was in full swing. Laiki then did a frankly disingenuous deal in June 2012, paying out a lot both in cash and senior unsecured bonds to investors while asking the Cypriot government – i.e. civil servants, teachers and welfare recipients – to foot the bill with fresh equity. Of course, Greek banks had done the same earlier. When you lose your subordinated bond positions in this way, the next step is to call for senior unsecured creditor bail-in. The ECB perhaps just hadn’t done the maths when they proposed a subordinated bond bail-in for Cyprus only by autumn 2012. The Laiki deal also showed that not all senior bond positions were truly legitimate. This made it easy to call for senior bond bail-in. Unique? Well, the question going forward is how much subordinated bonds banks in Europe will be able to issue and retain, in order to truly protect senior bond holders and depositors. The number that we tend to agree on currently is 8% of risk-weighted assets. Two thirds of the large European banks have issued currently below that level, but if they make it I would see the bail-in risk of senior unsecured and depositors going forward as limited. This, by the way, is only formalising what Switzerland and Denmark are already asking from their banks. Gold: The banking system in Cyprus currently faces a dilemma: to maintain capital controls and therefore render the question of trust even more difficult, or to remove controls and watch as billions of euros is withdrawn. What would your solution be to this? H-J. D.: The ECB’s main point of contention has been bank capital. With that issue being addressed I would not see lots of obstacles to lifting the controls. Cyprus is not Iceland, which has no backup when foreign investors pull their accounts and must fear exchange rate destabilisation. I have always seen the Cyprus capital controls

more as a means to buy the government time to technically implement the bail-in. After all, there was a real IT mess within the banks and too many people were able to escape the bail-in in March. Gold: The first Eurogroup decision (rejected by the Cyprus parliament) was for a haircut of all deposits (insured and uninsured) in all banks. Why did the Eurogroup accept something that went against EU principles? H-J. D.: The key reason probably was the high deposit rates paid by all the Cypriot banks. When a German depositor gets 1% and a Cypriot depositor gets 4%, it is hard to persuade the German depositor to pay higher taxes in order to bail out the Cypriot. Another reason was that on February 1, the Netherlands had restructured SNS Reaal Group with a levy imposed on all banks in the country. So the EU thought that they could transfer the model. My advice to Cyprus was always to focus on the problem banks and restructure them rather than do a brush taxation approach. Fortunately, my Cypriot counterparts developed ‘Plan B’ on that basis. Gold: If Cyprus had accepted the original decision, do you think things would have been better today? H-J. D.: You can tax homogenous groups of companies and depositors easily, and the Netherlands is an example. But Cyprus being what it is – an investment hub for the very heterogeneous Christian Orthodox world – I would think that the long-term implications for the banking market would have been more serious. The Russians can to go Serbia or Latvia, where they pay the same low corporate tax rates. Perhaps your Middle Eastern clients would have stayed. It is always better to focus on the problem banks than affect the entire system. A Russian investor in VTB on Cyprus has not lost anything; most investors are able to differentiate. Gold: You mention in your report on eight banks that “many international corporations and individuals… selected Cyprus banks for tax evasion and other illicit purposes” and this was alleged in the international media prior to March 2013. Yet, subsequent investigations have indicated that such allegations were untrue. Has your view changed? H-J. D.: I remember that the Deloitte report that was commissioned by the eurozone in April to double-check on Moneyval’s earlier finding has come to a very different conclusion. If you run a low-tax system, you always

THERE WAS A REAL IT MESS WITHI THE BANKSN AND TOO MANY PEOPL WERE ABLEE TO ESCAPE THE BAIL-I IN MARCH N have a lot of tax evasion with account names being hidden. This is true for all small countries that are in this business. It was unfair to single Cyprus out. Gold: You have described President Anastasiades’ attacks on the ECB’s policy of continuing to provide emergency liquidity to Laiki Bank when it was clearly insolvent and therefore not eligible for such assistance. Why did you find his stance “a highly unusual turn of events”? H-J. D.: It is unusual indeed for countries that depend on financial services to be that outspoken, compare e.g. to Luxemburg’s Jean Claude Juncker’s legendary manoeuvring. I can only congratulate the President on his courage. He has really put pressure on the ECB to change its ELA policy. Remember that this policy has damaged Cyprus – like Ireland, the country now owes odious debt, i.e. debt caused by foreigners who were paid back their investment. He had every right to be clear about this. Gold: Do you believe that the crisis in the Cyprus banking sector could have been dealt with in a different way in March? H-J. D.: It could have been dealt with in a different way in June 2012, when Laiki was restructured. Cyprus would have bailed in subordinated bond investors and perhaps a small proportion of seniors and the government would have taken a far more comfortable position. After that the train was on a collision course. The Europeans should have acted at the latest by November 2012. The four months of agony until March 2013 was a criminal act against investor confidence – both in Cyprus and in Europe – for which we Europeans may have to pay for a long time.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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2014

INVESTORS AD.indd 1

11/7/13 4:30 PM

{November 14 – December 13, 2013}

ISSUE

+ BOOK REVIEWS MONEY: Austerity: The History of a Dangerous Idea By Mark Blyth 82

{money}

78 Opportunity Knocks Interview with George Mountis of The Parthenon Partners 81 A Quiet Revolution The strategic importance of Mergers &Acquisitions to insurers across the globe is set to increase 82 Time for a Reality Check Financial analysis has never been more important

{business}

84 Shrinking emerging market wage gap will reshape global businesses The wage gap between advanced economies and emerging economies, such as China, India and the Philippines will shrink significantly by 2030 86 Cut EU Red Tape The Report from the UK’s Business Taskforce 88 Too Many Companies Defending Future Threats with Yesterday’s Strategies New and continually evolving models of information security are needed to keep

pace with today’s determined adversaries 89 Goal! Emirates takes Skywards Miles members to top football games.

BUSINESS: Thinking in New Boxes: A New Paradigm for Business Creativity By Luc de Brabandere and Alan Iny 89

ECONOMY: The Road to Recovery: How and Why Economic Policy Must Change By Andrew Smithers 91

{economy}

90 London tops International Financial Centre rankings London has come out on top in its annual battle with New York to be named the world’s leading international financial centre. 91 Banking Union progresses at snail’s pace EU Finance Ministers adopt regulations paving the way for a single bank supervision in the eurozone but fail to make significant progress on a single resolution mechanism.

TAX & LEGAL: Concepts of Property in Intellectual Property Law By Jonathan Griffiths and Helena Howe 93 LIFESTYLE: 75 Years of DC Comics: The Art of Modern Mythmaking By Paul Levitz 97

{tax&legal}

92 New Cyprus-Estonia Double Tax Agreement Details of its main provisions.

{lifestyle}

94 Holding Out for a Hero Investing in comic books

93 MEPs call for more women on company boards Target set of 40% by 2020.

98 A Day In The Life Christis Christoforou

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES OF CYPRUS

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investment George Mountis

{MONEY}

BOUTIQUE ADVISORY FIRM THE PARTHENON PARTNERS & CO. SUCCESSFULLY COMBINES ADVISORY SERVICES WITH INVESTMENT AND DEAL STRUCTURING. OVER THE PAST SIX MONTHS IT HAS BEEN INCREASINGLY BUSY WITH RESTRUCTURING DISTRESSED COMPANIES, PROVING THE OFT-REPEATED PHRASE THAT EVERY CRISIS IS AN OPPORTUNITY.

Opportunity

Knocks By John Vickers

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eorge Mountis, regional partner of The Parthenon Partners & Co., is almost apologetic when he admits that the firm has seen its business – especially local business – “grow and grow since March” and he is quick to point out that he and his team strongly advise clients to invest in tangible assets, i.e. in real estate or companies: “We have a client who used to have €30-€40 million in cash in one of the Cypriot banks and he is buying 25% of a shipping company. He wants to invest and obviously the return will be much higher than the interest rates offered by the banks.” These days, many of the firm’s clients tend to be companies in distress, including large and small banks with complicated structures that wish to find solutions. The majority of them are not based in Cyprus but, says Mountis, “In Cyprus we have private individuals and corporates such as developers, shipping companies and private hospitals that are in need of banking advisory and, at the same time, experiencing problems with their banks for restructuring, debt negotiation or valuation.” One of the firm’s strong points, he believes, is its corporate finance valuations. “We have done quite a few for some of the smaller Russian banks and some local banks based in Cyprus,” he notes. Most companies like The Parthenon Partners will say the same things if you ask them what makes them unique. But George Mountis truly believes that he is offering services that no other firm in Cyprus does. So what are they? “Obviously we are not like a Big 4 accounting firm and we are

not saying that we have an army of people serving you,” he acknowledges. “We are a very small boutique investment advisory firm and essentially you outsource us and we become part of your team as your banking and financial advisor.” When he says “we become part of your team,” he means it. “We literally move into your head office and we work there as if you have recruited us to the firm,” he explains. “This is one way in which we are different. We also

BANKERS SHOULD BE BROUGHT IN FROM ABROAD WITH NEW IDEAS AND A NEW MENTALITY

have cases where we are only paid upon success. We have had a couple of situations where the company under restructuring was not in a position to pay us and because we believed in the company, we took shares in lieu of a cash payment. How many companies do you know that do that?” He has a point. We turn to the Cyprus banking sector, of which George Mountis has personal experience, having worked for both Bank of Cyprus and Hellenic Bank. Not only does it require major structural reforms but, he believes, bankers have to shift the way they think and interact with their clients. “We have received numerous complaints about this and although we were hearing similar things a year ago, nobody paid much attention then. Today, with so many companies in distress or a step away from administration, there are huge psychological and financial pressures being brought to bear on owners and directors so the people they are dealing with in the banks need to be retrained in how to approach such situations.” He singles out Bank of Cyprus for a continuing lack of a proper decision-mak-

ing process. “Even if the employees have the authority to take decisions, they are unwilling to do so because they are afraid of the consequences,” he says, and tells of a Russian client who wanted to invest many millions of euros in a particular project. “We called the bank and were told that ‘the person who deals with such matters will be back in a month’! Listen to what they said in all seriousness. There was only one person able to deal with a multi-million euro investment and he was away. This situation has to change radically.” Mountis not only believes that the whole banking system needs to be reformed but he proposes much more radical developments than the ones we have been hearing recently. “I believe that bankers should be brought in from abroad with new ideas and a new mentality and they should take up middle and senior management roles,” he says. He goes even further, suggesting that it’s time for Bank of Cyprus to change its name too. “The brand now has negative connotations in Europe. The bank needs to find a strategic investor and it would be beneficial for it to be under a bigger bank, under a bigger umbrella. It needs to become a much smaller niche bank and to re-engineer and find solutions that will help its problematic clients and their companies stay afloat. Otherwise it will be a big real estate bank with 50% of Cyprus’ real estate assets under its supervision. No-one wants this to happen. It’s a bank, not a real estate investment firm.” On the question of whether BoC should be split in two, Mountis believes that this is unnecessary: “As things are, it is working as a real estate bank,” he says. “The recoveries division is essentially a division that repossesses assets. I believe the bank needs to approach all these developers and work with them, advising them. The people who are currently in the offices need to get out and be there on-site with the developers, just as HSBC and Barclays are doing in the UK. If there is an insolvent or problematic company, the advisors are taken in-house

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investment

YOUNG PEOPLE NEED TO BE MOTIVATED TO STAY HERE

and they do business there together.” The fact that the banking sector is ultimately going to be much smaller than the one we have known is “a good thing for Cyprus”, says George Mountis, since the banks will be healthier and fully recapitalized but they now need to identify which sectors of the economy they should lend to.

CYPRIOT POLITICIANS NEED TO RAISE THE BAR AND BECOME PROFESSIONAL POLITICIANS He believes that the two largest banks on the island can survive, provided that they can successfully tackle their problematic loan books. “They need to change strategy and rethink the way they do business. Having worked for both BoC and Hellenic, I criticise them but I will also give them credit where it’s due and I would say that they have always had a good level of compliance. But they need to do a lot more to reach so-called zero tolerance when it comes to complying with all the directives that are issued.” Given that a major role in the island’s recovery will inevitably be played by the politicians, George Mountis believes that they need to “raise the bar” and become what he calls “professional politicians. If they are not qualified they should become qualified and if they can’t, they should be doing something else.” He gives an example from his own recent experience when he attended a course entitled ‘Diplomacy and Negotiation’ at the Harvard Kennedy School in Cambridge, Massachusetts. “The majority of the students were politicians and MPs from Turkey and I couldn’t help asking myself how many Cypriot politicians would have even considered attending such a course – maybe not at Harvard, there are plenty of other schools. They need to understand that people around the

world are trying to improve themselves, especially when it comes to diplomacy and negotiations of all kinds. Cyprus has so many interests due to its strategic location that we need to be better than the rest when it comes to diplomacy if we are to increase the country’s prosperity. This is very important.” On the issue of the damage done to the island’s credibility as a regional business & financial services centre since March, George Mountis believes that a lot of lawyers, accountants and politicians are “in denial”. Some 70% of The Parthenon Partners’ clients are from Eastern Europe and, he says, their view of Cyprus has been affected. “Many of them are waiting for banking restrictions to be lifted so that they can transfer as much as they can abroad,” he notes. And while acknowledging that there is some investment interest, he suggests that “much of it is from investors who think that they are going to be able to buy hotels at 80% of their value. They think that Cyprus is a distressed destination. Moreover, a lot of the Russians, Eastern Europeans and British expatriates are dissatisfied – remember the promise that title deeds were going to be issued by the end of 2013? Such problems are putting off investors and they need to be tackled once and for all.” It is clearly an uphill struggle to keep clients here, especially when other jurisdictions are offering them things that Cyprus cannot. Nonetheless, Mountis believes that he and others have been “relatively successful” in persuading them to stay. Moreover, he quotes a Romanian client who told him wryly, “You should be happy in Cyprus. We’re going bust and it’s raining. At least it’s nice and sunny where you are.” So can the country restore and improve upon its former reputation? George Mountis thinks it can, but there are lots of prerequisites for such an achievement: “If things change fast and we follow the MoU and, at the same time, we implement measures to kickstart the economy and we manage to bring new banks to Cyprus, then we have a future,” he says.

The Parthenon Partners & Co

he Parthenon Partners & Co is an innovative banking, wealth & trust and asset management advisory partnership, offering one-stop advice on the broadest range of services and solutions for individuals, financial institutions and corporate customers. As a boutique advisory firm, it successfully combines advisory services with investment and deal structuring. The company’s Regional Partner, Dr George Mountis, specialises in investment banking, corporate finance, strategic planning, economics, and restructuring/ insolvency advisory. Prior to joining The Parthenon Partners, & Co, he worked in London as an investment analyst for CB Richard Ellis and for HSBC in the M&A UK team. In 2009, he joined the Group Strategic Development & Planning team of Hellenic Bank in Cyprus and from 2010 until 2013 he worked in the Group M&A & Strategy department of Bank of Cyprus. He was also equity partner in Leaf Research, exiting in 2013.

Having paid out billions of euros to recapitalise the banks, the Government should not think twice about paying a few thousand to advisors who can tell us how to restart the economy, he suggests. “President Anastasiades has already come up with 60 measures to restart the economy but my team did an audit to see how many of them have actually been implemented. The answer is: not even one quarter. If those in authority say they are going to do something, they have to do it.” Mountis is particularly concerned about the brain drain. “There are many highcalibre individuals who are going abroad to work in big international firms abroad where salaries are higher and opportunities are greater. We can’t let this happen. Young people need to be motivated to stay here. There is a lot to be done but at least we can say that we live in interesting times!”

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insurance

{MONEY}

A QUIET REVOLUTION THE STRATEGIC IMPORTANCE OF MERGERS & ACQUISITIONS TO INSURERS ACROSS THE GLOBE IS SET TO INCREASE

new report has revealed that the strategic importance of Mergers &Acquisitions to insurers across the globe is set to increase. However, the report says that transaction volumes will not recover along the same lines as during the last decade. Instead, the next few years will see a ‘quiet revolution’ in global insurance M&A. In the short to medium term, low profitability will have a critical effect on insurance M&A. Weak profitability is closely linked to low investment yields, and is encouraging insurers in mature markets to seek domestic deals and to plan international expansion. The report also finds that technology will continue to grow in influence in insurance deals; political risks, the economic climate and regulatory reform will all continue to shape the market; and Asian and Latin American targets top the wish lists for insurers with capital to spend. Nick Page, transaction services partner at PwC, said: “The global insurance industry’s outlook is improving. The mature economies of Europe and North America are moving towards recovery, while the emerging markets of Asia and Latin America continue to grow. A pick-up in global premiums is forecast, but the industry should not expect a return to the old ways. Insurers are operating in a world where the goal of long-term growth seems to be getting further away. Instead insurers face a range of obstacles including persistently low investment yields, tightening regulation and overcapacity

in many markets.” Key findings from the report include: • Technology grows in influence • Economics and regulation continue to mould the market • Smarter pricing could reduce insurers’ combined ratios by 2-3% Global insurance M&A will continue to generate a steady flow of midmarket transactions, punctuated by the occasional large-cap deal. Over time, M&A will see insurers sort themselves into three groups: Large international insurers with deep technical and financial resources; local and regional firms with distribution-led strategies; and niche players specialising in particular products or customers.

EUROPE

GENERAL INSURANCE In Europe, tough market conditions and rising compliance costs are putting a premium on economies of scale. Non-core disposals by European banks and insurers will generate a stream of bolt-on targets for acquirers, but many general insurers will be prevented from making acquisitions by limited capital. Competition issues may also represent an obstacle in the region’s more concentrated markets. Fragmented markets are likely to see smaller insurers merging in the search for scale. Regional growth opportunities will also become more sought after as general insurers facing slow growth in their home markets will

INSURERS FACE A RANGE OF OBSTACLES INCLUDING PERSISTENTLY LOW INVESTMENT YIELDS, TIGHTENING REGULATION AND OVERCAPACITY IN MANY MARKETS also become increasingly alert to less mature markets closer to home. As some Western European insurers withdraw from Central, Eastern and South-Eastern Europe, others will increase their exposure to the region. As international firms develop regional networks, physical and cultural proximity could help to deliver lower costs as well as higher growth. LIFE INSURANCE There is potential for more inbound Western European deals. In the short term, inbound bids to Western Europe will remain rarer than in the last decade, when several US life insurers used M&A to expand in Europe. Would-be buyers could be put off by low dividends and the complexities of European life insurance. Low valuations in Europe could also represent an investment opportunity for buyers willing to take a longer-term view of the European sector. Insurers from Asia-Pacific, the Middle East and other developing markets will acquire European businesses in search of greater expertise.

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financial analysis

TIME FOR A

REALITY CHECK

{MONEY}

FINANCIAL ANALYSIS HAS NEVER BEEN MORE IMPORTANT By Tasos Aristidou

here is no doubt that the deep economic crisis has made life difficult for every business. Consumers are less willing to spend and banks have limited the available cash flows in the economy. Therefore, in such troubled times, financial analysis is more important than ever. Financial analysis is the process of evaluating a company. It usually includes an analysis of an entity’s solvency, liquidity and profitability. There is a common false presumption that financial analysis is unnecessary since a company’s financial statements are enough to enable someone to judge its performance. However, financial analysis provides much more than the standard information found in the financial statements. This is because the core of financial analysis is not to present the company’s performance and position based on international standards (IFRSs & ISAs) and the statutory regulations. Indeed, when preparing financial statements, international standards – although very important in order to avoid cases of fraud or misrepresentation – can actually create obstacles to a true understanding of the reality of a company. Moreover, the information included therein is often very generic. In contrast, the main focus of financial analysis is to compare current performance with past performance, budgets and comparable competitors in the industry. A financial analyst will go behind the numbers shown in the financial statements and understand their nature, their effect and, most importantly, see whether they are simply fireworks.

A BUSINESS IS ONLY AS STRONG AS ITS CASH FLOW COST CONTROL

A manager needs to know exactly what the company’s expenses are and whether they are necessary or not. Using financial analysis you can: • break down all of the company’s expenses • trace unnecessary increases in overheads and • track down expenses that the company can reduce without affecting its sales level.

renders the use of financial analysis a necessity and it should not be viewed as a costly and unnecessary service. It will give you a glimpse of the company’s position, it will pop out the positives but above all, it will expose the bad habits that could make the company go bust. This is what makes financial analysis a key for every company’s survival.

BOOK REVIEW

INCREASED SALES = INCREASED PROFITS?

When a business experiences a sales increase, managers tend to erroneously believe that the company is doing better. However in many cases, a company’s profit levels may not increase during periods of sales growth. This may be because the company is buying its products at high prices or because it does not control its administrative overheads. Financial analysis allows you to understand the extent of the company’s ability to turn sales into profits and, through a detailed overheads review, to understand the reasons why your company may not be able to achieve this.

CASH IS KING!

A business is only as strong as its cash flow. In today’s economy where the banks are reluctant – or even unable – to lend money, a business cannot survive for long without being solvent. Financial analysis gives you a clear picture of the firm’s cash flow position and its ability to make money. More specifically, through financial analysis you can: • know the company’s average collection period • analyse the company’s ability to meet its short-term obligations and • track down potential liquidity shortage periods. Financial analysis is not a simple task but when used correctly, it provides you with valuable feedback. Today’s economic environment

AUSTERITY: THE HISTORY OF A DANGEROUS IDEA BY MARK BLYTH (OUP USA, 2013) RRP: £14.99 (£10.87 FROM AMAZON.CO.UK)

lyth has written an engaging, powerful economic history of economies that have applied austerity in the past, including the US, UK, Sweden, Germany, Japan and France in the 1920s and 1930s, Denmark and Ireland in the 1980s, and the Baltic states in 2008, demonstrating in each case that austerity did not work. It did not generate growth or reduce debt in any of these cases. He shows that the current crises in Greece, Spain, Ireland, Portugal and Italy are not due to profligate government expenditure but to more differentiated specific factors, including bailouts, recapitalizing, and adding liquidity to the countries’ broken banking systems. He makes the point that other economies cannot follow the German example of high savings and high exports, as the UK and EU seem to expect, since the whole world cannot be a net exporter. It’s impossible to read this book and still believe that austerity is the right policy for dealing with the present eurozone crisis. Will Cyprus prove to be the exception to the rule?

info: Tasos Aristidou is an assistant manager at Horwath DSP (member of Crowe Horwath International). 82 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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wages

SHRINKING EMERGING

{BUSINESS}

MARKET WAGE

GAP WILL RE-SHAPE GLOBAL BUSINESSES

he wage gap between advanced economies and emerging economies, such as China, India and the Philippines will shrink significantly by 2030 according to new analysis published by PwC. India and the Philippines remain at the lower end of wage projection in relative terms but average wages in India could more than quadruple over the period in real dollar terms and more than triple in the Philippines. Real wages in the UK and US are projected to rise by only around a third over the same period, remaining at similar levels to each other. More striking is how substantially the wage gap could close by 2030. India’s current average monthly wage is around 25 times smaller than that of the UK. By 2030, it’s likely it be only 7.5 times smaller. Average wages in the US are currently 7.5 times greater than in Mexico, but the gap could close to a factor of less than 4 times by 2030. Over the same time period, the average monthly Chinese wage could rise to around half that of Spain. John Hawksworth, chief economist at PwC, said: “While any such projections are subject to significant uncertainties, the direction of change is clear. The large wage advantages enjoyed today by many emerging economies will shrink as their productivity levels catch up with those in advanced economies and their real exchange rates rise as a consequence. Places like Turkey, Poland, China and Mexico will therefore become more valuable as consumer markets, while low cost production could shift to other locations such as the Philippines. India could also gain from

INDIA’S CURRENT AVERAGE MONTHLY WAGE IS AROUND 25 TIMES SMALLER THAN THAT OF THE UK.

this shift, but only if it improves its infrastructure and female education levels and cuts red tape.” These trends have a number of potential implications for business strategy, such as: • Companies re-shore their manufacturing or service operations, as some US companies have already started to do, or else move them to cheaper locations. • As current large cost advantages decline, companies move to locations that are initially more expensive but closer to home, gaining more control over supply chains to respond to customers’ changing needs. • Middle income economies Turkey, Poland and China begin offshoring to relatively cheaper economies like Vietnam, India and the Philippines. • Current ‘Western’ offshorers (to India and China, for instance) reorient their operations to sell their goods and services to increasingly affluent local populations. Michael Rendell, PwC partner and Global Human Resource Services leader, said: “Change is continuous and there will be even more movement in the coming years. Companies planning for this today

will find themselves with significant advantages, particularly in terms of people costs. It’s inevitable that the manufacturing and services industries in countries will transform as the cost base evolves, and also that there will be winners and losers. Governments, regulators and business communities need to be ready for that shift.” The PwC analysis is based on estimates of relative average monthly wage levels from the International Labour Organisation (ILO), projected forward to 2030 using results from PwC’s latest World in 2050 report. The real wage projections are in dollar terms and so allow both for domestic real wage growth driven by projected labour productivity trends and estimated future real exchange rate movements. The ILO data relates to estimated average monthly wages across the economy as a whole, not just manufacturing. It should be borne in mind that there are significant difficulties in getting fully comparable wage level data across economies, so these estimates are subject to significant margins of error.

Projected average monthly wage levels relative to US index = 100 COUNTRY 2011 2020 2030 US UK SPAIN TURKEY SOUTH AFRICA POLAND CHINA MEXICO INDIA PHILIPPINES

100 99 74 43 42 33 15 13 4 5

100 99 83 63 57 51 29 19 8 8

100 102 92 86 77 69 45 26 13 13

Source: PwC projections based on ILO data for 2011; real wages index relative in each year to US = 100

84 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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CUT

bureaucracy

{BUSINESS}

D RE PE TA

The Report from the UK’s Business Taskforce

n June, UK Prime Minister David Cameron tasked a group of six business leaders to make a range of proposals to ensure that the EU single market makes it easy for businesses in Europe to trade across borders, and to ensure that the EU regulatory framework is competitive in the global market. The Foreword and Executive Summary of the report, signed by Marc Bolland (Marks & Spencer), Ian Cheshire (Kingfisher), Glenn Cooper (ATG Access), Louise Makin (BTG), Dale Murray, CBE (Entrepreneur and Angel Investor) and Paul Walsh (Diageo), are as follows:

Foreword Firms face a challenge. They produce superb

products, offer world-class services and benefit from being able to sell to a European market of 500 million customers. But they are often encumbered by problematic, poorlyunderstood and burdensome European rules. The impact is clear: fewer inventions are patented, fewer sales are made, fewer goods are produced and fewer jobs are created. The burden also falls heaviest on small and medium-sized firms who make up the vast majority of businesses. This would be bad enough if the world was standing still – but it isn’t. The global economy is being re-shaped at breakneck speed. In the past decades, political systems have changed, new players have emerged on the markets, as well as new materials, new technologies and workers who are better skilled than ever. To compete in this fast-changing economy requires regulation that promotes growth, better access to markets and the availability of new sources of energy. When US companies can get new products licensed and to market in days, it should not

take weeks or months in Europe. When small and medium-sized enterprises are crucial to creating new jobs, it doesn’t make sense for the EU to extract £300 million from UK businesses alone to implement new data protection rules. When innovation is so important for future businesses, it is self-defeating that new EU regulations have accompanied a 25% drop in biomedical research, and that complex and diverse rules on sales, promotions, labelling and web content hamper e-commerce. And when the discovery of shale gas in the United States has led to that country’s industrial renaissance, Europe must help its chemical, plastics and steel industries, now paying several times more for gas than their US rivals, get the same benefits. As businesspeople, we are convinced that these and many other problems must be addressed if British and European firms are to compete in the global marketplace. We need regulation to operate in a pan-European market. We are not against regulation per se. But we need regulation that is pro-growth and pro-innovation. To help sweep away barriers to growth, we were asked by Prime Minister David Cam-

eron to develop a set of recommendations for reform for the British and European governments as well as the EU institutions. And we, in turn, asked British and European businesses what they thought. With input from hundreds of firms, individuals and business associations across Europe we have developed 30 priority recommendations to address five kinds of barriers:

• Barriers to overall competitiveness • Barriers to starting a company and employ-

ing staff • Barriers to expanding a business • Barriers to trading across borders • Barriers to innovation.

If these are implemented, billions of pounds, euros, zloty and kroner could be saved, while thousands of new firms and new jobs could be created: • In the digital economy alone, estimates suggest that reforms could add 4% to Europe’s GDP; • Removal of all outstanding EU barriers to trade in services could lead to an additional gain to the EU economy of 1.8% of EU GDP;

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WHEN INNOVATION IS SO IMPORTANT FOR FUTURE BUSINESSES, IT IS SELF-DEFEATING THAT NEW EU REGULATIONS HAVE ACCOMPANIED A 25% DROP IN BIOMEDICAL RESEARCH • A successful transatlantic trade deal could, in the long-term, boost the EU economy by some €120 billion annually; • Whilst removing the requirement to write down health and safety risk assessments could save businesses across the EU some €2.7 billion. In particular, the Services Directive – which aims to remove outstanding barriers to free trade in services in the EU – has failed to realise its full potential, due to poor and uneven implementation across the EU. Addressing this must be a key priority, given that the services sector is a key driver of competitiveness, growth and jobs. And further liberalisation of telecoms, transport, construction, and legal services, is of crucial importance in creating the right environment for competitive European businesses to prosper. But it isn’t enough just to remove existing rules: Europe must avoid adding new ones. And when new rules are necessary they must be unashamedly pro-growth. Some of us run large corporations, others manage smaller business. Yet we all believe this. We have therefore developed principles that we think should be applied to any new regulations or legislation. They should function as a first common-sense filter through which any new EU proposals must pass. We have called these the COMPETE principles – because if they are used they will make Europe more competitive. Many reports have been written about removing European rules, including by European governments and the European Commission. This isn’t the first such report and it won’t be the last. Indeed, European Commission President Jose Manuel Barroso has just published a review of regulation, committing the EU to screen two-thirds of all European rules for their commercial fitness – a welcome move. Yet for all the reports, change is still needed. We therefore call on the British and European governments, on the European Commission and the European Parliament to implement our findings. For while this report is written by businesspeople and for the British government, its recommendations, if implemented, will benefit all of Europe, helping firms start, employ staff, grow, expand, innovate and export.

Executive Summary

his report is drawn from evidence we received from some 90 UK businesses and business organisations, and over 20 business organisations across Europe. It sets out a range of proposals to ensure that the EU single market makes it easy for businesses in Europe to trade across borders, and to ensure that the EU regulatory framework is, and remains, competitive in the global market place. We call on the European Commission to adopt a new ‘common sense filter’ for all new proposals – the COMPETE Principles. No new EU legislation should be brought forward which does not successfully pass through this filter. Competitiveness test One-in, One-out Measure impacts Proportionate rules Exemptions and lighter regimes Target for burden reduction Evaluate and Enforce As well as these overarching principles, we also looked at specific pieces of existing EU legislation, and proposals in the pipeline, that hold businesses back. The removal of unnecessary regulatory burdens in areas which are critical for job creation and growth will free up businesses across the EU to lead the way towards economic recovery. We highlight barriers in the following five areas: We have identified Barriers to Overall Competitiveness. To address these, the EU should: • Ensure the full implementation of the Services Directive across the EU • Ensure data protection rules don’t place unreasonable costs on business • Refrain from bringing forward legislative proposals on shale gas • Drop proposals to extend report-

ing requirements to non-listed companies. We have identified Barriers to Starting a Company and Employing People. To address these, EU Governments should be allowed flexibility to decide: • When low-risk companies need to keep written health and safety risk ASSESSMENTS

• How traineeships and work place-

ments should be provided. • For new employment law proposals the starting presumption should be that microenterprises are exempt. When inclusion is sensible (e.g. a beneficial proposal) micros should have a proportionate regime. In particular the: • Pregnant Workers proposals should be withdrawn • Posting of Workers Directive should not introduce mandatory new complex rules on subcontracting • Existing legislation on Information and Consultation should not be extended to micros, and no new proposals or changes to existing legislation should be made • Working Time Directive should keep the opt out; give more flexibility on on-call time/compensatory rest; clarify there is no right to keep leave affected by sickness • Agency Workers Directive should give greater flexibility for individual employers and workers to reach their own arrangements that suit local circumstances and give clarity to companies that they only need to keep limited records • Acquired Rights Directive should allow an employer and employee more flexibility to change contracts following a transfer. We have identified Barriers to Expanding a Business. To address these, the EU should: • Drop costly new proposals on

environmental impact assessments • Press for an urgent increase of the current public procurement thresholds • Exempt more SMEs from current rules on the sale of shares • Minimise new reporting requirements for emissions from fuels • Drop plans for excessively strict rules on food labelling • Remove proposals to make charging for official controls on food mandatory • Remove unnecessary rules on SMEs transporting small amounts of waste • Withdraw proposals on access to justice in environmental matters • Withdraw proposals on soil protection. We have identified Barriers to Trading Across Borders. To address these, the EU should: • Take action to create a fully functioning digital single market • Rapidly agree measures to cap card payment fees • Remove international regulatory barriers which inhibit trade • Reduce the burden of VAT returns, and stamp out refund delays • Drop proposals on origin marking for consumer goods. We have identified Barriers to Innovation. To address these, the EU should: • Improve guidance on REACH to make it more SME-friendly • Rapidly agree the new proposed Regulation on clinical trials • Improve access to flexible EU licensing for new medicines • Introduce a risk-based process for the evaluation of plant protection products. We urge the European Commission, European governments, and the European Parliament to take these recommendations forward rapidly.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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cybersecurity

Too Many Companies {BUSINESS}

Defending Future Threats with Yesterday’s Strategies

NEW AND CONTINUALLY EVOLVING MODELS OF INFORMATION SECURITY ARE NEEDED TO KEEP PACE WITH TODAY’S DETERMINED ADVERSARIES

xecutives have increased security spending and have substantially improved technology safeguards, processes, and strategies. Their adversaries, however, continue to outpace them, according to The Global State of Information Security® Survey 2014 released by PwC US in conjunction with CIO and CSO magazines. “Our survey results reveal that while there have been improvements in security at companies today – which is a positive sign – many organisations are lagging behind their opponents, and this poses significant problems for the future,” said Mark Lobel, a PwC Advisory principal focused on cybersecurity. “It is essential that executives actively re-evaluate and update their security strategies and practices on a continual basis to keep pace with today’s threat actors. Without an agile approach to information security, organisations will be underprepared for the evolving and increasingly sophisticated attacks that may be more complicated, complex, and damaging.” According to the global survey of more than 9,600 executives, the �� number of security incidents detected in the past 12 months increased by 25% over last year; however, the number of respondents who do not know how many incidents occurred has doubled over the past two years. “Given today’s escalating threats, organisations need to implement new technologies that can continually monitor the network, applications and data for anomalous activity that might indicate a security incident in progress,” said Bob Bragdon, publisher of CSO. Smartphones, tablets, the “bring your own device” (BYOD) trend and the proliferation of cloud computing have elevated security risks, yet efforts to implement mobile security programmes do not show significant gains over last year and continue to trail the increasing use of mobile devices. While 47% of respond-

THE GLOBAL STATE OF INFORMATION SECURITY® SURVEY 2014

he Global State of Information Security® Survey 2014 is a worldwide study by PwC, CIO magazine, and CSO magazine. Readers of CIO and CSO magazines and clients of PwC from around the globe were invited via e-mail to take part in the survey. The results discussed in the report are based on the responses of more than 9,600 executives including CEOs, CFOs, CISOs, CIOs, CSOs, vice presidents, and directors of IT and information security in 115 countries. Some 36% of respondents were from North America, 26% from Europe, 21% from Asia Pacific, 16% from South America, and 2% from the Middle East and Africa. The margin of error is less than 1%. To see the survey findings in detail, visit: www.pwc.com.cy/technologyconsulting (under “Our Publications” section) or www.pwc.com/gsiss2014.

ents use cloud computing – and among those who do, 59% say that security has improved – only 18% include provisions for cloud in their security policy. The survey found that, while most respondents have implemented traditional security safeguards (such as VPNs, firewalls, encryption of desktop PCs), they are less likely to have deployed tools that monitor data and networks to provide real-time intelligence about today’s risks. In today’s elevated threat landscape, it is critical that organisations rethink their security strategy so that it is integrated with business needs and strategies and is prioritized by top executives. Yet the survey found that many respondents have not done so. Collaboration with others to improve security has become a

key way to gain knowledge of dynamic threats and vulnerabilities, yet only 50% of respondents said they collaborate. “Integrated security should be a pivotal part of an organisation’s business agenda and culture – and every employee, supplier and partner should understand and agree to follow your security policy,” said David Burg, PwC’s Global and US Advisory Cybersecurity Leader. “Building and sustaining a culture of security awareness will also require the full support of top executives, including the CEO and board members. It cannot happen without them.” Respondents say the top three obstacles to improving security are (1) insufficient capital funding, (2) a lack of vision on how future business needs will impact security, and (3) a lack of leadership from the CEO or the Board. “You can’t fight today’s threats with yesterday’s strategies,” said Gary Loveland, a PwC Advisory principal focused on cybersecurity. “What’s needed is a new model of information security, one that is driven by knowledge of threats, assets and the motives and targets of potential adversaries.” Insiders, particularly current or former employees, are cited as a source of security incidents by most respondents. And while many believe nation-states cause the most threats, only 4% of respondents cited them, whereas 32% pinpoint hackers (those who gain unauthorized access to a computer or network to steal information or cause harm) as a source of outsider security incidents.

IN TODAY’S ELEVATED THREAT LANDSCAPE,

IT IS CRITICAL

THAT ORGANISATIONS RETHINK THEIR SECURITY STRATEGY

88 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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travel

{BUSINESS}

GOAL!

BOOK REVIEW

EMIRATES TAKES SKYWARDS MILES MEMBERS TO TOP FOOTBALL GAMES.

embers of the Emirates Skywards frequent flyer programme now have exclusive opportunities to redeem their Miles for tickets to matches of the world’s renowned football clubs sponsored by the airline. This season, tickets are available for matches played by AC Milan, Arsenal, Hamburger SV, New York Cosmos, Olympiacos, Paris Saint-Germain and Real Madrid. General admission tickets can be redeemed starting from just 2,000 Miles while Emirates Skywards members in premium tiers can redeem Miles for VIP seating in designated hospitality areas and experience the games at the highest level of luxury. The redemption Miles required vary by game and football club. All tickets are offered at a first-come first-served basis and are limited to two tickets per booking. “Along with tens of thousands of passionate supporters, Emirates Skywards members have the unique opportunity to use their Miles to experience the atmosphere of top football games,” said Brian LaBelle, Senior Vice President Emirates Skywards. “Emirates Skywards is more than just about earning and spending Miles – it’s going beyond the travel experience to allow our members to enjoy exclusive privileges and creating a more rewarding frequent flyer programme. It is also our way of appreciating our loyal customers and their confidence in our services.”

THINKING IN NEW BOXES: A NEW PARADIGM FOR BUSINESS CREATIVITY BY LUC DE BRABANDERE AND ALAN INY (RANDOM HOUSE INC., 2013) RRP: £14.99 (£10.34 FROM AMAZON.CO.UK)

Joining Emirates Skywards is free and members receive benefits every time they fly. There are four membership tiers – Blue, Silver, Gold and Platinum. Benefits for Skywards members include travel and lifestyle rewards, priority check-in, lounge access, extra baggage allowance and bonus Miles, depending on the membership tier. Members earn Skywards Miles when they fly on Emirates and partner airlines and through a wide range of leisure and lifestyle partners. Skywards Miles can then be redeemed for a range of rewards such as flights on Emirates and other partner airlines including Qantas, easyJet, TAP, JetBlue and Alaska Airlines, and for flight upgrades, hotel accommodation, excursions with Arabian Adventures, car rentals and concert tickets. Members can also choose to donate their Miles to a range of charity partners including The Emirates Airline Foundation and Sightsavers. Emirates has an extensive sponsorship portfolio of football clubs: AC Milan, Hamburger SV, New York Cosmos, Olympiacos FC, Paris Saint-Germain, Real Madrid and Arsenal, whose home ground is the Emirates Stadium.

e are frequently encouraged to “think outside the box” but do we know what “box” we need to think outside? Here, two strategic innovation experts argue that to thrive in a world of accelerating change, creativity is paramount but most organisations fail to make the imaginative leaps that ensure long-term success. To make sense of the world, we all rely on assumptions, on models – on what the authors call “boxes”. However, they say that thinking “outside the box” is not the answer. True ingenuity needs structure and “new boxes” that balance self-awareness with hard analysis and bold brainstorming. Among the real-world case studies is BIC, which changed from seeing itself as a ballpoint pen company to realising that it was actually in the “inexpensive disposable plastic items” business, the company opened its eyes to a host of new opportunities – disposable lighters, razors, and even mobile phones. This fascinating look at the positive results of creative thinking in business and elsewhere comes with a simple 5-point plan to kickstart your imagination.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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finance

{ECONOMY}

LONDON TOPS International Financial Centre rankings

ondon has come out on top in its annual battle with New York to be named the world’s leading international financial centre (IFC) by The Banker. London leads this year’s IFC ranking, which measures the performance of the IFCs in a series of financial market, business and economic indicators, and puts a premium on international appeal rather than size. The UK capital scores similarly to New York – last year’s leader and now in second place – within the financial markets data category, but excels in factors such as business friendliness and the depth of the various business clusters present in the city. London also generates the largest value of outward as well as inward foreign direct investment in the financial sector. It is worth noting London’s leadership in various components that contributed to its financial markets score, such as the number of new foreign listings (a total of 36 against New York’s 29) and the issuance of international debt securities ($3,401 billion against

LONDON EXCELS IN FACTORS SUCH AS BUSINESS FRIENDLINESS AND THE DEPTH OF THE VARIOUS BUSINESS CLUSTERS PRESENT IN THE CITY New York’s $1,977 billion). However, New York still boasts the largest volumes of assets under management – $920 billion – among the firms that it plays host to. Singapore and Hong Kong are in third and fourth positions, respectively, the latter displacing Frankfurt, which is now in fifth place. Small shifts are present throughout the ranking, with the only noticeable exception being Mexico City, which jumped from 30th place in the 2012 ranking to 15th position this year. The Latin American centre – the highest scoring in its region – boasts a growing international stock exchange, which last year hosted its largest ever initial public offering. The $4.13 billion listing of the Mexican operations of Spanish bank San-

tander at the end of 2012 confirmed the rising international reputation of Mexico City as an IFC to be reckoned with. Also of note is that the second-highest-placed Latin American IFC is Panama City, ahead of Sao Paulo. The Brazilian metropolis is widely perceived to be the region’s main financial gateway but the city’s sizeable financial markets are not yet matched by a high quality in factors such as business friendliness and cost indicators, where Panama City scores highly. The Panamanian capital also scores impressively when it comes to economic factors. The Asian IFC that has shown the greatest improvement is Beijing, moving from 36th position in 2012 to 32nd this year in the overall ranking. It now ranks seventh among Asian IFCs, overtaking eighth-placed Kuala Lumpur. Like Beijing, Bangkok has also climbed up four positions in the global ranking and comes in ninth regionally. Despite dropping one place in the global ranking, San Francisco has improved its regional standing and now stands third in North America, up from fourth position last year. San Francisco-based Wells Fargo’s stellar performance in the latest financial year has pushed the Californian city to fifth place from eighth in the banking pre-tax profit table. Wells Fargo, the world’s eighth largest bank by Tier 1 capital, posted pre-tax profits of $28bn in 2012, up 20% on 2011. In terms of cost factors, the number one global IFC is Copenhagen. The Danish capital, widely perceived to have expensive labour and cost of living levels, offers employers office occupancy costs lower than many emerging market locations, as well as exceptionally low employment termination costs. In the specialised financial centres table, the Cayman Islands retains its lead, although Jersey replaces Guernsey in second position. Bermuda and Barbados are the most improved, each jumping three positions to sit in fifth and eighth place, respectively. Most of the data for the specialised financial centres ranking is supplied to The Banker by each centre. In the current financial environment, some chose not to respond to our survey, which is why Cyprus, for example, does not feature in this year’s tables.

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banking

BANKING UNION

{ECONOMY}

PROGRESSES AT SNAIL’S PACE

EU FINANCE MINISTERS ADOPT REGULATIONS PAVING THE WAY FOR A SINGLE BANK SUPERVISION IN THE EUROZONE BUT FAIL TO MAKE SIGNIFICANT PROGRESS ON A SINGLE RESOLUTION MECHANISM. By Philippe Gudin de Vallerin

n October, the ECOFIN Council adopted the regulations creating a Single Supervisory Mechanism (SSM), following the vote by the European Parliament in September. The regulations will come into force five days after their publication in the Official Journal of the European Union (OJ) and the European Central Bank (ECB) will take over direct supervision of eurozone banks 12 months later. An ECOFIN press release reports that the direct recapitalisation of banks by the European Stability Mechanism (ESM) will be possible only after the SSM is established, implicitly ruling out the possibility that this instrument could be used in case a capital shortfall is identified during the balance sheet assessment. However, the ESM can currently contribute to bank recapitalisations via governments of member states that have requested a financial assistance programme. In case the planned balance sheet assessment and the stress test exercise identify capital shortfalls for a bank, and if the bank is not in a position to raise capital in the markets, nor is the government able to finance a capital injection, then the ESM could contribute, but within the framework of a programme and as a loan to the member state. The ECB has repeatedly put pressure on national governments in recent weeks so that they commit to provide financial backstops for banks that fail the ECB’s tests (in particular big

BOOK REVIEW

banks with large capital shortfalls) but the October statement does not really address this question.

THE SRM WILL PROBABLY BE DELAYED UNTIL 2015 The ECB is expected to announce a timetable, a method, and some details on how the work will be conducted. Then it will be up to governments and national supervisors to explain how they will follow this up with efforts to clean up the balance sheets of banks that fail the tests and, in particular, how new state aid rules will be applied and whether junior bondholders will be bailed in. As expected, member states failed to make significant progress on the Single Resolution Mechanism (SRM). Although finance ministers repeated that they wanted to reach an agreement as soon as possible (ideally by December) so that the SRM can be come into force right after the SSM is established, Germany continued to reject the Commission’s proposal put forward last July. We believe that an agreement at the ECOFIN before December is very unlikely, and therefore the SRM will probably be delayed until 2015. As long as the banking union remains incomplete (including a SRM and a deposit guarantee scheme) the link between banks and sovereigns will not be fully broken and financial fragmentation will continue to prevail.

THE ROAD TO RECOVERY: HOW AND WHY ECONOMIC POLICY MUST CHANGE BY ANDREW SMITHERS (JOHN WILEY & SONS, 2013) RRP: £18.99 (£10.56 FROM AMAZON.CO.UK)

ndrew Smithers, one of a handful of respected economists to have accurately predicted the most recent global financial crisis, offers prescriptive advice and economic theory on avoiding the next one. He argues that the current low interest rates and budget deficits have prevented the recession from becoming a depression but that such policies cannot be continuously repeated and a new consensus for action must be found. He offers practical guidance on reducing government, household, and business debt, on changing economic incentives for the management class that currently inhibit long-term growth, and on rebalancing national economies both internally and externally. Further, he explains how central bankers must broaden the economic theories that guide their decisions to include the major factors of debt and asset prices. Described as “one of the five best, most dispassionate, erudite analysts in the world”, Smithers explains convincingly why, as the global economy continues the long climb out of recession, it is imperative that central bankers and other economic decision-makers do not repeat the mistakes of the past.

info: Philippe Gudin de Vallerin is Chief European Economist at Barclays plc. THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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double taxation

{TAX&LEGAL}

NEW CYPRUS-ESTONIA

DOUBLE TAX AGREEMENT By Philippos Aristotelous

new Double Taxation Agreement (DTA) between Cyprus and Estonia took another step towards ratification with its approval by the Estonian Parliament on 25 September 2013. The Cyprus government ratified the agreement in February this year. Assuming that the final steps of the process are completed before the end of 2013, the agreement will enter into force on 1 January 2014. Until it enters into force, the Cyprus tax authorities will normally allow unilateral relief for Estonian tax paid in accordance with their normal practice. Like all of Cyprus’s recent double taxation agreements, the new agreement with Estonia follows the latest Organisation for Economic Cooperation and Development (OECD) Model Treaty, in this case the 2010 version. Its main provisions are as follows.

DIVIDENDS, INTEREST AND ROYALTIES

Dividends, interest or royalties paid by a company that is a resident of one country to a resident of the other will be taxable only in the latter country.

CAPITAL GAINS

Capital gains derived by a resident of one country may be taxed in the country in which the property concerned is situated where it relates to: • the disposal of immovable property situated in the other country • the disposal of shares or comparable interests deriving more than 50% of their value from immovable property situated in the other country, or • movable property forming part of the busi-

ness property of a permanent establishment which an enterprise of one country has in the other. All other gains may be taxed only in the country of residence of the person or company making the disposal.

ELIMINATION METHOD

Double taxation will be eliminated in Cyprus by allowing credit against Cyprus tax payable for any Estonian tax paid. The credit cannot exceed the Cyprus tax payable in respect of the income concerned. In Estonia, double taxation will be eliminated by exemption from Estonian tax of any income which has been taxed in Cyprus. However, any such exempt income may be taken into account in calculating Estonian tax on the taxpayer’s other income.

EXCHANGE OF INFORMATION The article of the Cyprus-Estonia agreement dealing with exchange of information reproduces the corresponding article of the OECD Model Treaty verbatim. It also permits the use of information received by a contracting state for purposes beyond the assessment of tax, subject to this being legal under the laws of both states and subject to the consent of the competent authority of the state providing the information. A protocol to the agreement requires the country making the request for information to provide further particulars in order to demonstrate the foreseeable relevance of the information requested, including: • the identity of the person under examination • details of the information requested and the form and manner in which the requesting state wishes to receive it

THIS IS THE FIRST DOUBLE TAX TREATY EVER CONCLUDED BETWEEN THE TWO COUNTRIES • the tax purpose for requesting the information • the reason for believing that the requested information is held by the tax authorities to whom the request is addressed, or is in the possession or under the control of a person within their jurisdiction • the name and address of any person who may hold the information requested, if known • a declaration that the provision of such information is in accordance with the legislation and the administrative practices of the requesting state (where the requested information is found within the jurisdiction of the state in question, the relevant authority may obtain the information according to its laws and according to the terms of its ordinary administrative practices), and • proof that the requesting state has exhausted all practical means available in its own territory to obtain the information. These requirements effectively rule out fishing expeditions based merely on suspicion.

COMMENT

Since Estonia did not apply the 1982 double tax treaty between Cyprus and the former Soviet Union, this is the first double tax treaty ever concluded between the two countries. Estonia, like Cyprus, is among the world’s smaller states, but it has a dynamic economy with a high number of start-ups and numerous businesses in the technology sector. The new agreement provides an opportunity to increase business and investment between the two countries.

info: Philippos Aristotelous is an Advocate – Partner at Andreas Neocleous & Co LLC. 92 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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women

{TAX&LEGAL}

U-listed companies should aim to ensure that at least 40% of their non-executive board members are women by 2020, so as to promote gender equality in economic decisionmaking, according to draft rules proposed by the European Commission and backed by the European Parliament’s Women’s Rights and Gender Equality and Legal Affairs committees last month. In 2012, only 15% of nonexecutive board members of the EU’s largest companies were women. “Today’s vote on the joint report by the Women’s Rights and Legal Affairs committees sends a strong call for EU legislation to step up women’s membership of, and participation in, the boards of listed companies. What is currently a reality in some EU member states will soon be extended to the single market as a whole and all EU listed companies, thereby making the most of the talents of many qualified and highly skilled women”, said Greek MEP Rodi Kratsa-Tsagaropoulou. “It is important that the directive should be broad in scope and that many listed companies are required to use the open and transparent procedure when selecting their non-executive directors,” said Austrian rapporteur Evelyn Regner. “We do not have an exemption for family enterprises or specific sectors but we have strengthened the penalties that member states should apply when companies do not fulfil the directive’s requirements. Now, it is up to the Council to agree a common position so that negotiations between the Council and Parliament, as co-legislators, can start”, she added.

MEPs backed a Commission proposal to ensure gender balance on boards for publiclylisted companies. They called on them to ensure that at least 40% of their non-executive board members represent the under-represented sex. Listed companies would have until 2020 to reach the target while public companies should do so by 2018. According to the draft proposal, the rules approved would not apply to small and medium-sized enterprises. However, MEPs encouraged member states to support SMEs and provide incentives to improve gender balance on their boards too. They further proposed that these rules should also apply to companies where less than 10% of workforce is of the under-represented sex. MEPs called for a transparent, open and meritocratic recruitment procedure in which gender balance is borne in mind throughout. Where candidates are equally well qualified, priority should go to the candidate of the under-represented sex, at every stage of this procedure. MEPs stress that qualifications and merit must remain the key criteria. Companies that fail to abide by the rules will be required to explain why to the competent national authorities in member states and describe the measures taken and planned

MEPS STRESS THAT QUALIFICATIONS AND MERIT MUST REMAIN THE KEY RECRUITMENT CRITERIA to achieve it in future. Penalties, such as fines, should be imposed for failing to follow transparent and open appointment

MEPs call for more women on company boards TARGET SET OF 40% BY 2020.

procedures, rather than for failing to achieve the target. MEPs propose that “exclusion from public calls for tenders” should be added to the list of possible penalties which, they say, should be mandatory, rather than indicative as the Commission has proposed. The amended draft legislative resolution was approved by 40 votes to 9, with 2 abstentions. The committee negotiators received a mandate to start negotiations with EU ministers.

BOOK REVIEW CONCEPTS OF PROPERTY IN INTELLECTUAL PROPERTY LAW BY JONATHAN GRIFFITHS AND HELENA HOWE (CAMBRIDGE UNIVERSITY PRESS, 2013) RRP: £75 (£63.75 FROM AMAZON.CO.UK)

ntellectual property law faces the challenge of balancing the interests of right holders and users in the face of technological change and inequalities in information access. This collection of essays, which is part of the Cambridge Intellectual Property and Information Law series, reflects on the interaction between intellectual property and broader, more traditional notions of property. It explores the way in which differing interpretations of the concept of property can affect the scope of protection in the law of copyright, patent, trade marks and confidential information. With contributions from leading and emerging scholars from a variety of jurisdictions, the book demonstrates how concepts of property can assist in shaping a conceptually coherent and balanced response to the challenges faced by intellectual property law. The editors have divided the book into “Intellectual Property as Property” and “Re-Shaping Intellectual Property Rights: The Role of Concepts from Wider Property Law”. For those working in the specific area, this is an invaluable compilation of studies, edited by two leading university lecturers on IP and copyright issues.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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investing in comic books

{LIFESTYLE}

HOLDING OUT

FOR A HERO

THANKS TO THEIR SHARP ILLUSTRATIONS, COUPLED WITH DESCRIPTIVE PROSE, SUCCINCT DIALOGUE, AND ICONIC CHARACTERS, COMIC BOOKS HAVE ENDURED SINCE THEIR FIRST PRINTING IN THE UNITED STATES IN 1933. WHAT WAS A CHILDHOOD PASTIME FOR SOME HAS BECOME A LIFELONG PASSION FOR OTHERS. AND FOR SOME OF THEM, THEY HAVE BECOME A HEROIC INVESTMENT. By Chloe Panayides

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WHEN THE ECONOMY IS DOING GREAT, PEOPLE HAVE MORE DISCRETIONARY INCOME AND THEY BUY COMIC BOOKS

“S

uperman saves the day!” A mighty proclamation; a stalwart resolution to a heroic tale. Who would suppose fiction could become fact? And yet…Staring foreclosure in the face, one unsuspecting couple certainly did not anticipate being saved by comic book heroes when they set about the laborious task of emptying the house they had lived in for over 50 years. Inside a wilting box, tucked away in their basement, lay a copy of Action Comics No. 1 published in June of 1938, noted for featuring the first ever appearance of Superman: unique, rare, and highly valuable. Courtesy of a prominent comic book dealer, it sold in June of this year for $436,000. Thanks to Superman, the couple avoided losing their home. Verifying the longevity of comics, Vincent Zurzolo, co-owner of Metropolis Collectibles and the Comic Connect website,, alludes to the consistency with which worldwide comic book conventions draw crowds of 30,000 to 150,000: “People with very big bank accounts are showing up in costumes.” Zurzolo continues with good humour: “Nowadays, it’s cool to be a nerd.” Jests aside, comic books are indeed more than simple reading reverie: they inspire utter immersion in the worlds created. Gemma Adel, customer service supervisor of the authentication firm, Comic Guaranty Company (CGC), confirms the view from the market that, whilst those navigating stocks must be wary of external politico-economic activity affecting their

trade, the comic book industry is securely passion-driven, largely devoid of booms and busts. Zurzolo agrees. He says of those interested in comic books: “When the economy is going poorly, people are looking for alternative forms of investment. When the economy is doing great, they have more discretionary income and they buy comic books.” Zurzolo maintains, indeed, that the industry has been going from strength to strength: “I used to say that comic books were in their infancy, but now I say they are in their adolescence and have a long way to go.” Considering that Zurzolo’s companies have brokered the top three-grossing comic book sales of all time – most notably, the near mint-condition copy of Action Comics No. 1 that fetched $2.16 million at auction in December 2011 – Zurzolo’s surety cannot help but inspire curiosity as to the monetary benefits of the market. He maintains that “There’s a comic book for every budget and a budget for every comic book.” Whether a hard-core investor (interested purely in acquiring wealth), an obsessive collector (pursuing the meticulous capturing and cataloguing of every issue of a distinguished series), or the quick buck buyer (interested in picking up issues that may be sold quickly at an inflated price), the first step in the comic book quest lies in abiding by three key rules: isolate, grade, and protect. With such a vast array of comic book publishers, series and characters around, fathoming and navigating the enigma of buying options requires great amounts of time and attention. Home research via the Internet, as well as reaching out to seasoned veterans in the market (from dealers to associations), is a priceless use of the prospective investor’s time in isolating which comics to target. John Graham, owner of Graham Crackers Comics, demarcates the history of comics into two key ages: the Golden Age (comics printed in the 1930s and 1940s), and the Silver Age (prints spanning 1955 to 1970). Whilst investment-worthy options post-1970 are currently thought to be more limited

(Graham singles out the 1974-printed Amazing Spider-Man No. 129 featuring the Punisher and The Incredible Hulk No. 181 in which Wolverine made his debut), Graham himself recently chose to invest a hefty $2 million in Golden Age comics, and $500,000 in Silver Age comics, expecting to make a 10% return on his investment. Vintage comics, Graham explains, featuring the first appearance of classic characters, or the latter’s origin stories (in which it is explained how a character – be it hero or enemy – came to be), have consistently appreciated in value over time. Take a near-pristine copy of Amazing Fantasy No. 15 from 1962, in which the first Spider-Man tale was told. It would have sold in its year of publication for a mere $0.12. The latest to sell in 2011 – a near mint copy, no less – commanded $1.1 million. Whether Golden, Silver, or post-1970, what is true of all comics is that they are in limited supply. In contrast to other select renewable commodities, comic books are not reprinted. Consider, then, the fact that as inherently unique as a first appearance or an origin issue of a key character already is, the sheer scarcity of copies further intensifies how much they are coveted. A wide fan base, a limited supply: the prospect for growth is unbound. For this reason, current comics should not be dismissed entirely. Certain series, such as 30 Days of Night, The Walking Dead, and Mouse Guard, have done particularly well of late, with copies initially costing anywhere between $3-5 now selling for hundreds of dollars. Learning from history, first issues of modern comics should always

DISNEY PURCHASED THE RIGHTS TO MARVEL COMICS IN 2009 FOR AN INCREDIBLE $4 BILLION be considered a subject of interest (for example, The Walking Dead No. 19, featuring the first appearance of Michonne, now has an asking price of

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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investing in comic books

Best of the Best F or your perusal: a collection of key sales that have helped to elevate the comic book industry. Take note not only of the prices, but also of the characters and stories that seem to constantly demand attention.

1. Value: $2.89 million Action Comics No. 1

It is thought that there are no more than 100 copies of Action Comics No. 1 left in the world, very few of which have been awarded a decent grade. The first appearance of Superman, coupled with a plethora of additional well-loved characters, this issue has been firmly placed atop the pedestal of comic book perfection.

2.Value: $2.57 million

Detective Comics No. 27

Batman begins: literally. This issue saw the very first appearance of Batman, Gotham City and Commissioner Gordon. It was enough to inspire one buyer to part with $2.57 million.

3. Value: $715,000

Superman No. 1

A collection of recycled content (plus a few new pages elaborating on the character’s back story), Superman No. 1 is nevertheless the Man of Steel’s first dedicated comic.

4. Value: $535,000

Detective Comics No. 1

Whilst nothing of particular significance is featured in this

issue, it does mark the beginning of the DC empire, which went on to give the world some of the most beloved comic book characters (Batman, Superman, the Green Lantern…the list is endless).

5. Value: $499,000

Marvel Comics No. 1

Not only is this issue the genesis of Marvel Comics, it also features the debut of the iconic android, the Human Torch. Costumed detective The Angel, also takes his first bow.

All-American Comics No. 16

Value: $478,000

Meet Alan Scott. An average man, he miraculously survives a train crash, and emerges clutching a mysterious lantern complete with green flickering flame that induces flashbacks to two millennia past. Learning to wield the green flame’s power, he seeks vengeance for the rail disaster. In the process, he becomes the famous Green Lantern.

7.Value: $440,000 Batman No. 1

Whilst this particular comic does not constitute Batman’s very first appearance, it is his first solo comic, comprising entirely new material. Throw in the first appearance of Catwoman and the Joker, and some industry insiders are left wondering how the buyer was so lucky to get it for such a bargain price.

8.Value: $407,000

Amazing Fantasy No. 15

Faced with creating the final issue of an

already ailing adult-oriented anthology, editor Stan Lee took a risk: he introduced a timid teenage hero none suspected would one day take over the world. Yes, the said teenager morphed into Spiderman, and the rest, as they say, is history. Amazing Fantasy No. 15 enjoyed boosted sales (though it was still cancelled), and Spiderman received his very own comic book series, The Amazing Spiderman.

9. Value: $404,000

Action Comics No. 7

Some industry insiders call this particular sale ‘perplexing’, considering that there are no first appearances or major story arc developments that may be credited to the issue. Still, the story does feature Superman joining the circus as a star attraction to help good-natured owner, Mr Jones, fend off debt-collectors. Is it a sight to see worth $404,000? For one zealous bidder, it obviously was.

10. Value: $279,000

Fantastic Four No. 1

The Human Torch, Invisible Girl, the monstrous Thing, and Mr. Fantastic himself: a formidable team introduced in a landmark issue, created by Marvel in response to Detective Comics’ (DC) Justice League of America. The story charts the Fantastic Four understanding and harnessing their powers, ready to put them to good use. Considering the original $0.10 selling price, its current value is a mighty victory.

96 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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Come All Ye Faithful!

beacon of hope for all those interested in comic books in Cyprus, Ant Comics, located in Old Nicosia, depicts itself as a one-stop-shop for all those interested in comic books, graphic novels, and related

anywhere between $150-$1,000 depending on condition). Moreover, targeting variant covers – through which alternative artwork is produced based upon guest illustrators’ interpretation of the story – will ensure even more rarity still. With growing Hollywood grandeur and the sharpening focus on comic book characters being portrayed in motion pictures (Disney purchased the rights to Marvel Comics in 2009 for an incredible $4 billion), it is also worthwhile keeping track of what succeeds at the Box Office. Though some comic book movies recede into movie history abyss, there are some efforts that are well-received and rewarded (think of 2012’s smash hit, The Avengers). Introducing classic characters to an entirely new generation will certainly lend itself to the bolstering of market prospects in the future, as child comic book fans grow into nostalgia-stricken adults seeking to recreate the magic of their childhoods. Indeed, the power of nostalgia should not be underestimated. Children of the 1980s were captivated by the antics of Teenage Mutant Ninja Turtles. Now, all grown up, one fan chose to part with $22,752 at an auction in June 2011 in order to acquire a copy of Teenage Mutant Ninja Turtles No. 1, published in 1984. So, with prospective targets isolated, it is time to engage in grading. Unlike other investable commodities, for which condition is absolute and resolute, the comic book industry has developed an alternative system: grading. Companies, such as industry-leader CGC, asses a comic book’s condition (taking into account missing pages, page tears, creases, stains, and other marks), bestowing upon the copy a numerical grade between zero and ten. The higher the grade, the higher the quality. Gemma Adel recounts that the firm has encountered novice restorations far more often than fakes, and advises that whilst intentions may be good, any kind of repainting or repairing will actually take away from the value. Grading is a crucial

merchandise. Servicing the growing interest in comic books in Cyprus, Ant Comics provides a forum through which to peruse and purchase all the latest issues and volumes. Furthermore, November 02, 2013 marked the store’s

fourth annual Ant Comics Fest, featuring the presentation of original artwork by budding graphic novel writers, an all-day retro gaming competition, screenings of movies, and discounts on comics and selected graphic novels.

process of verification resulting in certification of authenticity and quality. The comics are returned in sealed plastic, complete with bar code and hologram. With the grading system in place, buyers and sellers have the opportunity to trade within their means. If you happen to have an unrated original of Marvel’s Silver Age Daredevil No. 1 that also happens to be dog-eared, torn or loose-stapled, you will still be able to sell the copy to an eager buyer on a lower budget for anywhere between $400-$600. Compare, now, with the buyer uncapped by financial constraints desiring of a pristine copy: a 9.2 graded copy sold in 2011 for $12,100. Thus, whilst all is not lost if a comic book is awarded a lower grade, everything must be done within an investors’ power to ensure that its condition is protected as far as possible. Numerous tactics are available. Comic board backings to combat the bending of pages, plastic bags to protect against stains, and a climate controlled environment to prevent heat, humidity and dampness compromising your comics, are just a few of the steps one may undertake to maintain condition. Industry experts advise that, in essence, the less a comic is handled, the better. If and when the time comes to sell, reach out to auction houses such as Heritage Auctions or Pacific Comic Exchange, which specialise in rare and valuable comics. Likewise, engage in personal research in order to garner an idea of current real time prices and competition. When working with a comic book store, be clear as to your expectations and set up a consignment. Industry insiders are clear: the comic book industry has consistently shown impressive growth over the years, and whether you are a long-time fan or a novice just dipping your toes into the water of investment for the first time, abiding by the rules (isolate; grade; protect) will at least give you a fighting chance of becoming the hero of your own comic book investment stories.

BOOK REVIEW 75 YEARS OF DC COMICS: THE ART OF MODERN MYTHMAKING BY PAUL LEVITZ (TASCHEN GMBH, 2010) RRP: £135 (£83.70 FROM AMAZON.CO.UK)

or comic book fans, there is no better publication anywhere. This massive tome was published in 2010 to celebrate the 75th anniversary of DC Comics and it is absolutely stunning. With 720 pages, more than 2,000 images, covers, original illustrations, photographs, film stills, and collectibles, not to mention over 100,000 words, it is the ultimate tribute to the publishers and creative team behind some of the world’s greatest fictional heroes. Weighing in at 7kg, this is not a book for your shelves or the coffee table – it could be the table itself – and it’s not cheap, though the Amazon price makes it more reasonable and the total price for delivery to Cyprus is ₤97.07 (€119.18). In its seven chapters, from pre-1938 publications up to the Digital Age, Paul Levitz has contributed in-depth essays tracing the company’s history. Massive foldout timelines and an in-depth appendix including biographies of the artists, writers, editors, publishers, and actors who cast the spell make this an invaluable reference for any comic book fan. And Christmas is coming…!

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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A Day in the Life

Christis M. Christoforou The Chief Executive Officer of Deloitte, tells us why he didn’t become a doctor and which English football stadium is like a second home to him. “I get up at 6.00am every day and I am often

at the office by 6.30. Breakfast is just a cup of tea. Since January I’ve adopted a healthier way of life – it was my New Year’s Resolution and for once I managed to keep it. As a result I’m 30 kilos lighter than I was 10 months ago, thanks mainly to avoiding sweets, alcohol and carbohydrates. I also try to do some treadmill exercise a couple of times a week. When I arrive at work, my policy is to make sure that, by the time I see anyone else, I don’t have a single unread or unanswered e-mail in my inbox. Most of my day is then spent in meetings with clients and organisations to which I offer my services as an accountant. My father was an accountant so I suppose that had an influence on my choice of career, although he never pushed me in that direction. When I was younger I wanted to become a doctor but I was afraid of blood and I still am – I faint at the sight of it! I toyed with the idea of architecture because I like design and creativity but I ended up doing accounting. Of course, I wouldn’t want to be an architect in the current economic climate. In the end my first degree was in Economics & Quantitative Methods at the

University of East Anglia, after which I worked in London for five years and took my Chartered exams. I got married at 21 – we’ve now been married for 32 years – and we have a daughter, who is a chartered accountant and a son who has just graduated from university and started his professional exams in London. As happened in my case, growing up in a particular environment has an influence on what you do later but I would actually recommend the accounting education to everyone; it opens a lot of doors even if you don’t want to go into the profession. I usually have lunch with clients and sometimes I skip it completely. Afternoons usually mean more meetings and although the day at work ends at 7.30, that’s when the social responsibilities for the night start, usually at home with clients or friends. When it comes to relaxation I’m not much of a movie person, although I usually see the latest James Bond adventures when they come out. My great pas-

The James Bond movies are the only ones that I go to the cinema to see.

sion is football so that’s almost the only thing I watch on TV. Despite studying in Norwich and London, my longstanding love is Manchester City where I’m a season ticket holder. I supported them back in the ‘60s so, of course, I’m very happy that they have finally started doing well in recent years. I like music and my taste is for romantic “slow songs” as we used to call them, both Greek and English, for example “Leaving on a Jet Plane” by John Denver which I now have on my iPhone.

I wish I could be there every week.

The best thing about my job is that I get to meet a lot of people and in Cyprus there is a lot of personal recognition. In bigger countries you’ll hear people say “The auditors are here” whereas in Cyprus they’ll say “Christis is here” which gives me a certain satisfaction. The worst thing about my job is that I can’t “switch off” when I leave the office. My partners will tell you that it’s not unusual for them to receive e-mails from me at 2 or 3 in the morning. Weekends are spent with the family and we often have friends round on Saturdays and might go for a drive on Sundays. At 53 I’m too young to think about retirement. I’ve been in this position since 2005 so there are still opportunities for greater responsibility. I wouldn’t mind living in London if I had to and I also love New York. My business takes me to lots of places every couple of weeks and whenever I go away I try and take an extra day, especially if I’m in the UK so I can go watch my team. As a family man, my main ambition is to see my children happy. Over and above that, I would say that I hope one day to die healthy. From a professional point of view, my ambition is to be able to retire by my own decision. In both cases, I want to go when I’m ready!”

I like John Denver’s relaxing style of music.

98 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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CMY

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