GOLD Magazine Issue 41 by Kevi Chishios

Issue 41 August 14-September 13, 2014

6 EDITORIAL 8 UP FRONT 18 FIVE MINUTES WITH…

+ 80

+ OPINION

TOP

LAW FIRMS

IN CYPRUS

THREE YEARS AGO (SEPTEMBER 2011) FOR THE 6TH ISSUE OF GOLD, WE COMPILED A LIST OF THE TOP 50 LAW FIRMS IN CYPRUS. WE REVISIT THE SUBJECT AND PRESENT AN UPDATED LIST OF MORE THAN 60 COMPANIES, FROM THE BIGGEST AND LONGEST-ESTABLISHED TO NEW BOUTIQUE FIRMS.

PL SPECIAL ADUS VERT

FEATURE ISING of th e Top law firm 80+ in Cyprus s

FINANCING THE NEW ECONOMY By Dr. George Theocharides

THE WAY FORWARD? By Dr. Constantinos Charalambous

93 | DRIVING AN IDEA FROM CONCEPT TO PRODUCT How Yiannis Gavrielides created Covve, an online application that reinvents the professional address book.

94 | FINGER ON THE PULSE

82 | WIND OF CHANGE Alexandros Economou, founder of the newly-established eponymous law firm, shares his experiences of embracing change.

A leading global tech company will soon be celebrating 60 years in Cyprus.

86 | BETTER REGULATION + BETTER BANKING = BETTER FUTURE Interview with Robert Priester, Deputy Chief Executive and Executive Director of the Wholesale and Regulatory Policy Department of the European Banking Federation.

90 | BEING DYNAMIC WORKS

FEATURE

Angelos Gregoriou, CEO, and George Georgiou, Managing Director, Dynamic Works, give Gold an insight into the intricate workings of the company.

20| KEEPING THE FAITH Interview with Constantinos Economides, Managing Director Cyprus and Malta of Orangefield Fidelico.

24 | DELIVERING EXCELLENCE DHL’s Cyprus operations go from strength to strength.

26 | THE LONG & WINDING ROAD Andreas Karapatakis, Founder and Managing Director of the AJK Group, reflects on what Cyprus needs to do to become a competitive investment destination. 4 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

94 100 {money} 102 {business} 106 {economy} 108 {tax & legal} 110 {lifestyle}

EDITORIAL ISSUE 41 AUGUST 14 - SEPTEMBER 13, 2014 PRICE €4.95

Legal Eagles

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80 8 0+ TOP

ew lawyers will not be familiar with well-known quotations by famous writers, including Shakespeare and Mark Twain, that are, shall we say, less than complimentary about their profession. And while we all like to poke fun at those whom we perceive to be less than totally ethical (“The trouble with the legal profession is that 98% of its members give the rest a bad name”), we are at the same time aware that good lawyers are absolutely essential to the smooth running of a democratic society. Here, the legal profession has always been held in great esteem and, as an essential part of the island’s significant and thriving professional services sector, it has played a substantial role in developing Cyprus’ reputation as a leading regional international business centre. The Cyprus Bar Association has almost 3,000 members and, despite everything that has happened during the past 18 months, that number continues to rise. In September 2011, the cover story of the 6th issue of Gold featured a list of the Top 50 Law Firms in Cyprus. It was the first issue of the magazine that quickly sold out and one about which we continued to receive enquiries for months on end. Today, almost three years later, we revisit the list which has been enlarged and fully updated. The big firms are still the big firms but the trend towards smaller boutique providers of specialised legal services is on the rise and this is clearly reflected in the composition of the list. It is also notable that many firms are starting to offer advice on sectors that are relatively new to Cyprus such as Oil & Gas and Intellectual Property, both of which have garnered considerable interest over the past couple of years in particular. The legal profession is a key component of the professional services sector but not the only one and while elsewhere in this issue we include an interview with Alexandros Economou, a lawyer who is in the process of setting up his own firm (page 78), we also cover other areas including banking, in the form, of an interview with Robert Priester of the European Banking Federation (page 84), wealth management by talking to Andreas Karapatakis (page 26), administrative services and more in our interview with Constantinos Economides (page 20) and technology, for which we profile NCR Cyprus and Dynamic Works (pages 94 and 88 respectively). In next month’s issue, we shall be bringing you information about the annual CIPA International Investment Awards, the ceremony for which takes place on 10 September at the Presidential Palace. This is the third year of the awards, hosted by Gold, in honour of foreign companies that have invested in Cyprus and in recognition of their contribution to the island’s economy and reputation. Previous winners of this prestigious award include companies active in the sectors of shipping, oil & gas, banking, education, investment, retail, online entertainment and more. Finally, I am delighted to note that, thanks in part to our advertisers but also to our subscribers, readers and associates, this issue of Gold is the biggest that we have ever produced. I trust that it will provide you with some good holiday reading. Enjoy what’s left of the Cyprus summer and we’ll be back in mid-September.

John Vickers, Chief Editor john@imhbusiness.com

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BANKING How Spain restructured its system

BITCOIN The Future of the Digital Currency

INTERVIEWS Peter Greenberg Matthew Kidd Alexis Tsielepis

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6- ;/, (<+0; 7YVMLZZPVU PU *`WY\Z

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

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+ ANDREI HUDZASVILI, KYRIAKOS KYRIAKOU, ROBERT PRIESTER MONEY

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The richest UK-based Cypriots

Constantinos Economides Alexandros Economou Andreas Karapatakis

Covve DHL Cyprus Dynamic Works

PLUS: MONEY / BUSINESS ECONOMY TAX & LEGAL LIFESTYLE / OPINION

PUBLISHED BY IMH ISSN 1986 - 3543

MANAGING DIRECTOR

George Michail

GENERAL MANAGER

Daphne Roditou Tang MEDIA MANAGER

Elena Leontiou EDITOR-IN-CHIEF

John Vickers JOURNALISTS

Effy Pafitis, Chloe Panayides CONTRIBUTORS TO THIS ISSUE

Constantinos Charalambous, Anthony Day, Marina Ioannou, Costas Markides, George Theocharides ART DIRECTION

Anna Theodosiou SENIOR DESIGNER

Alexia Petrou PHOTOGRAPHY

Jo Michaelides MARKETING EXECUTIVE

Kevi Chishios SALES & BUSINESS DEVELOPMENT EXECUTIVE

Phivos Karayiannis ADVERTISING EXECUTIVES

Irene Georgiou, Christopher Constantinou OPERATIONS MANAGER

Voulla Nicolaou SUBSCRIPTIONS

Myria Neophytou PRINTERS

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

UP FRONT

Hubert Frach and Domingos Soares de 6SP]LPYH L_JOHUNPUN )LUĂ&#x201E;JH legend EusĂŠbioâ&#x20AC;&#x2122;s signed jersey.

mirates and Portugalâ&#x20AC;&#x2122;s most sucJLZZM\S MVV[IHSS JS\I )LUĂ&#x201E;JH OH]L signed a three-year agreement that THRLZ ,TPYH[LZ [OL JS\IÂťZ 6MĂ&#x201E;JPHS Airline Partner until 2016. The deal JVTLZ Q\Z[ [^V `LHYZ HM[LY ,TPYH[LZ ILNHU Ă&#x2026;PNO[Z [V 7VY[\NHS HUK OPNOSPNO[Z [OL HPYSPULÂťZ ongoing commitment to expand its presence in [OL JV\U[Y` 3PZIVU QVPULK [OL ,TPYH[LZ UL[^VYR in July 2012. The agreement was unveiled last month by Hubert Frach, Emiratesâ&#x20AC;&#x2122; Divisional Senior Vice President Commercial Operations West, and +VTPUNVZ :VHYLZ KL 6SP]LPYH *,6 VM )LUĂ&#x201E;JH The sponsorship deal gives Emirates brand vis-

EMIRATES PARTNERS WITH BENFICA PIPSP[` H[ [OL ,Z[mKPV KV :WVY[ 3PZIVH L )LUĂ&#x201E;JH as well as promotional rights. Emirates will also be able to capitalize on advertising opportunities VU )LUĂ&#x201E;JHÂťZ TLKPH WSH[MVYTZ ^OPJO ^PSS PUJS\KL digital activations. The airline will also receive player access and interactive hospitality rights. )LUĂ&#x201E;JH PZ VUL VM [OL TVZ[ Z\JJLZZM\S JS\IZ PU the world, having conquered several domestic titles, and is the only club to have won all PortuN\LZL JVTWL[P[PVUZ 0U[LYUH[PVUHSS` )LUĂ&#x201E;JH OVSKZ two European Champion Club Cups. Emiratesâ&#x20AC;&#x2122; football sponsorship portfolio includes Arsenal FC, Real Madrid, AC Milan, Paris Saint Germain 7:. /HTI\YNLY := HUK 6S`TWPHJVZ -*

HILTON CYPRUS Voted Leading Cyprus Business Hotel

ilton Cyprus was named the countryâ&#x20AC;&#x2122;s Leading Business Hotel for the second consecutive year at the World Travel Awards 2014. Held in Athens on August 2, the annual global travel awards are among the most highly coveted, prestigious recognitions distributed within the international travel and tourism industry.Â Hilton Cyprus Manager Charis Michael commented, â&#x20AC;&#x153;I am delighted to see Hilton Cyprus recognised at

these well-respected awards, especially for the second consecutive year. â&#x20AC;&#x153;This demonstrates our teamâ&#x20AC;&#x2122;s outstanding commitment to providing Hiltonâ&#x20AC;&#x2122;s world-renowned hospitality to our guests.â&#x20AC;? This year, 213,000 industry professionals participated in the voting process of the World Travel Awards, which is scrupulously monitored and independently audited.Â

CASINO RESORT LICENCE IN 2015

yprus will grant its first casino resort licence within the next year, officials revealed last month. â&#x20AC;&#x153;This will be one of the most important infrastructure projects in Cyprus in coming years,â&#x20AC;? Government Spokesman Nicos Christodoulides said. The licence will be valid for 30 years, with the successful bidder entering into an exclusivity agreement for 15 years. The state will impose a 15% tax on gross income from gambling, Christodoulides noted in a statement. The creation of casinos on the island is viewed by the current Government as vital to the development of Cyprusâ&#x20AC;&#x2122; tourist product, in stark contrast compared to the previousâ&#x20AC;&#x2122; Governmentâ&#x20AC;&#x2122;s refusal to pursue the notion of introducing legal gambling to the island. The authorities will soon invite expressions of interest in a two-stage selection process, once approval of the relevant legislation is approved by the House of Representatives.

Î&#x153;Î&#x2019;Î&#x2018; from the CIM and INBusinessNews.com

he Cyprus Institute of Marketing and INBusinessNews.com are offering for yet another year 2 full scholarships for the CIM MBA programme, of total worth â&#x201A;Ź13,200. This is a unique opportunity for Cypriot professionals and very well timed having in mind the severe Ă&#x201E;UHUJPHS JYPZPZ The Cyprus Institute of Marketing and INBusinessNews. JVT ILPUN SLHKLYZ PU [OLPY YLZWLJ[P]L Ă&#x201E;LSKZ OH]L QVPULK forces to promote this great initiative which offers the opportunity to two professionals to enhance their career

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

prospects by acquiring a world-class MBA. The CIM MBA is accredited by SEKAP and was ranked in 2010 as 16th HTVUN ,\YVWLÂťZ 9PZPUN :[HYZ ^^^ Ă&#x201E;UK`V\Y4)( JVT The CIM MBA has been offered for more than 25 years with great success through evening classes in Nicosia & Limassol. The scholarships application process ran throughout July and the number of applications was evidence of the overwhelming success of the initiative. Interviews will be taking place this month and the names of the successful applicants will be announced in September.

Updated Property Valuations Online

yprusâ&#x20AC;&#x2122; Department of Lands and Surveys has released updated property valuations for some 500,000 properties located throughout the island. As part of the bailout agreement with the Troika of international lenders, Cyprus completed the revaluation of half a million properties in June. Though it was expected that Immovable Property Tax for the year would be levied based upon the new land values, the drafted bill was not approved by parliament. Nevertheless, the revised property valuations are available to the general public, via the following link: www.moi.gov.cy/moi/dls/dls. nsf/dmlindex_en/dmlindex_ en?OpenDocument

MeritKapital Acquires Direct Clearing Membership at CSE

MeritKapital Ltd has acquired the status of Direct Clearing Member of the Cyprus Stock Exchange (CSE) from 6 August 2014. Clearing members are persons or entities involved in the liquidation of transactions. In particular, Direct Clearing Members deal with the liquidation, undertake risk taking trading, and clearing transactions, drawn from the same as trading members. To be accepted as a *SLHYPUN 4LTILY H Ă&#x201E;YT T\Z[ OH]L WLYTPZZPVU MVY [OL ZHMLRLLWPUN HUK HKTPUPZ[YH[PVU VM Ă&#x201E;UHUJPHS PUZ[Y\TLU[Z HZ KLĂ&#x201E;ULK PU 3H^ 0 A basic prerequisite for acquiring the status of Direct Clearing Member is that a company must have previously obtained Trading (Market) Membership.

UKRAINIAN TOURIST ARRIVALS SOAR BY 64.9%

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ourist arrivals from both Russia and Ukraine have displayed a significant increase this year, according to figures released by the Statistical Service of Cyprus. In the first six months of 2014, arrivals from Russia increased by 17.6%, whilst incoming Ukrainian travellers soared by 64.9%. Hotels in Agia Napa/Protaras, Limassol

and Paphos have, in particular, benefitted from this increase, with all three resorts serving as popular destinations amongst Russian and Ukrainian tourists. Whilst there is no obvious explanation for the sudden increase, stakeholders from the tourism industry praise Cyprusâ&#x20AC;&#x2122; safe and welcoming environment as being key to its continued popularity with Russian and Ukrainian tourists.

JUNCKER TO CREATE FINANCE DIRECTORATE?

he new European Commission President, Jean-Claude Juncker, is considering plans which include appointing an EU financial services tsar, charged with regulating the Londonâ&#x20AC;&#x2122;s financial services sector and ensuring financial stability in the region, according to the Financial Times. Juncker is reportedly mulling over the creation

of such a powerful standalone finance directorate in the context of his task of dividing commission portfolios and rearranging areas of responsibilities assigned to European Commissioners. EU financial regulation is currently overseen by Michel Barnier, former French foreign minister and Commissioner for Internal Market and Services. FT commented that the new finance

directorate would probably move banking and markets units from Barnierâ&#x20AC;&#x2122;s department and combine them instead with the financial stability unit stripped from the department for Economic and Financial Affairs. Though a frontrunner for the position has yet to be announced, prospective candidates reportedly include Dutch Finance Minister and Head of the Eurogroup, Jeroen Dijsselbloem.

CORRECTION

In the last issue of Gold, the name of entrepreneur Hector Kolonas was spelt wrongly on a number of occasions. We apologise for the error. THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 9

presents

September 2014 | Presidential Palace, Nicosia.

ORGANISERS

ext month, the gardens of the Presidential Palace in Nicosia will once again be transformed into the impressive venue for the CIPA International Investment Awards ceremony which takes place in September. The International Investment Awards are being organised for the third consecutive year by IMH, Gold magazine and the Cyprus Investment Promotion Agency (CIPA) and the event takes place under the auspices of the President of the Republic, Nicos Anastasiades.

UNDER THE AUSPICES OF H.E. THE PRESIDENT OF THE

The annual CIPA International Investment Awards aim to reward international investors, individuals and companies in Cyprus, who deserve to be recognized for their substantial contribution to the establishment of the country as an international business centre. Since 2012, CIPA International Investment Awards have been given to two individuals and 17 organisations that have either invested directly in Cyprus or have contributed to the growth of the country as an International Business Centre. The awards are a tribute

SILVER SPONSOR

and a “thank you” gesture to all those who have helped in their own way to establish the reputation of Cyprus as International Business Centre. The evening will begin with a Gala Dinner and entertainment. This year’s CIPA International Investment Awards are presented by PwC Cyprus. The Gold Sponsor is Eurobank and the Silver sponsor is TFI Markets. There will be complete coverage of the event, with details of the awardwinning firms, in the next (September 14-October 13) issue of Gold.

GOLD SPONSOR

PLATINUM SPONSOR

UP FRONT

ICAEW and d CISI llaunch h Diploma in Corporate Finance in Cyprus

AEGEAN NAMED BEST REGIONAL AIRLINE IN EUROPE

or the 4th consecutive year, Greece’s Aegean Airlines was recognised as the Best Regional Airline in Europe at the recent 2014 World Airline Awards. The awards are based upon passenger reviews and evaluations, for more than 245 airlines worldwide The 2014 Skytrax World Airline Awards were based on 18.85 million completed customer surveys, with more than 100 customer nationalities from over 160 countries participating. The Awards were held this year as part of the Farnborough International Airshow 2014. “It is of great importance for

a Greek airline to be honoured with the award for Best Regional Airline in Europe for the 4th consecutive year and to receive the acknowledgment of passengers worldwide,” said Vice Chairman of Aegean Airlines, Eftichios Vassilakis. “Aegean has a secure grip on this award as Best Regional Airline in Europe, being a repeat winner again in 2014,” said Edward Plaisted, CEO of Skytrax. “This award recognizes the front-line service quality being delivered by Aegean Airlines staff across all customer-facing areas, both in the airport and onboard environment, and it is their success that we are honoring today with this award,” Plaisted continued.

Embassy Closings

he Hungarian embassies in Cyprus and Estonia will close in the middle of September while new ones are soon to open in Mongolia and Ecuador, it was announced earlier this month. The embassies in Ulan Bator and Quito respectively will open on January 1, 2015. Additionally, consulate generals will open in Kazan in Russia, Dusseldorf and Stuttgart in Germany, and Ho Chi Minh City in Vietnam. The Hungarian embassies in Nicosia and Tallinn will close on 15 September. Meanwhile, the Embassy of Denmark in Nicosia closed on 1 August.

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

CAEW (Institute of Chartered Accountants in England & Wales) and the Chartered Institute for Securities & Investment (CISI) have launched a diploma in Corporate Finance. ;OL VUS` ZWLJPHSPZ[ KPWSVTH VM P[Z RPUK [OL X\HSPÄJH[PVU ^PSS IL KLSP]LYLK I` [OL *`WY\Z 0U[LYUH[PVUHS 0UZ[P[\[L VM 4HUHNLTLU[ HUK PZ HPTLK H[ LZ[HISPZOPUN HUK THPU[HPUPUN [OL OPNOLZ[ Z[HUKHYKZ VM WYVMLZZPVUHS ZRPSS HUK JHYL PU HSS JVYWVYH[L ÄUHUJL [YHUZHJ[PVUZ ;OL KPWSVTH ^OPJO OHZ ILLU QVPU[S` KL]LSVWLK I` 0*(,> HUK *0:0 ^PSS LUHISL ÄUHUJL WYVMLZZPVUHSZ [V KL]LSVW [OLPY RUV^SLKNL ZRPSSZ HUK L_WLY[PZL PU JVYWVYH[L ÄUHUJL HZ ^LSS HZ OLSWPUN [OLT NHPU YLJVNUP[PVU HZ SLHKPUN PUK\Z[Y` ZWLJPHSPZ[Z ;OL ÄYZ[ L_HTPUH[PVUZ ^PSS [HRL WSHJL PU +LJLTILY 2L]PU 4VVYL *0:0 .SVIHS )\ZPULZZ +L]LSVWTLU[ +PYLJ[VY ZHPK! ¸( JHUKPKH[L ^OV [HRLZ [OL PUP[PH[P]L [V W\[ [OLTZLS]LZ [OYV\NO [OL Diploma in Corporate Finance ZOV^Z H OPNO SL]LS VM JVTTP[TLU[ [V [OH[ JHYLLY WH[O (JJVYKPUN [V H YLJLU[ ZWLLJO THKL I` 7YLZPKLU[ (UHZ[HZPHKLZ [OL *`WYPV[ LJVUVT` PZ VU [OL ^H` [V YLJV]LY` ^P[O LMMVY[Z [V H[[YHJ[ UL^ PU]LZ[TLU[Z HUK JYLH[L UL^ QVIZ <UKLY[HRPUN H WYVMLZZPVUHS X\HSPÄJH[PVU H[ [OPZ [PTL PZ HU PU]LZ[TLU[ MVY IV[O WV[LU[PHS JHUKPKH[LZ HUK ÄYTZ ^PZOPUN [V LTWSV` [OLT ¸>VYRPUN PU JVYWVYH[L ÄUHUJL JHU VMMLY HU L_JP[PUN JHYLLY JV]LYPUN HJ[P]P[PLZ PUJS\KPUN I\`PUN HUK ZLSSPUN JVTWHUPLZ YLZ[Y\J[\YPUN H ÄUHUJPHSS` [YV\ISLK I\ZPULZZ HUK OLSWPUN JVTWHUPLZ [V YHPZL JHWP[HS [V M\UK NYV^[O ¹ For more information, visit the 0*(,> VY *0:0 ^LIZP[LZ

CYSEC STARTS CERTIFICATION EXAMS he Cyprus Securities and Exchange Commission (CySEC) has announced that applications are now being accepted for the examinations leading to registration in the Public Register of Certified Persons employed by Cyprus Investment Firms, Credit Institutions, Management Companies and Investment Companies of Variable Capital. There will be two online examination sessions, in groups of 12 candidates, every Tuesday, starting from September 30, 2014. It is noted that, until the end of November 2014, examinations

will be conducted only in English. Examinations in Greek will be offered from December 2014 onwards, and the Greek language exam Workbook is expected to be ready in September. The syllabus for the Basic and the Advanced Examination has been posted on CySEC’s website under the section “Certifications and Public Register – Examination syllabus”. The Basic Examination will last for one hour and will consist of 50 multiple choice questions. The Advanced Examination will last for one and half hours and will consist of 70 multiple choice questions.

CHRISTOS THE FIRST NAME IN ETHICS

We are one of the worldâ&#x20AC;&#x2122;s largest independent providers of trust, fund and corporate administration services. We are committed to helping our clients protect, nurture and grow their wealth. Above all, we are a people business. To find out more about our services and to get to know us better, visit www.firstnames.com

UP FRONT

THE RICHEST T

CYPRIOTS

en Cypriots featured in the recent edition of the Sunday Times Rich List, LQFOXGLQJ ÀYH HXUR ELOOLRQaires. Not surprisingly, none of them OLYHV LQ &\SUXV DQG \RX PD\ QRW KDYH KHDUG RI KDOI RI WKHP

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

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CCCI

BUSINESS LEADER AWARDS October 2014 | Limassol

Organisers

Cyprus Chamber of Commerce and Indusrty Î&#x2019;y invitation only

THE CYPRUS CHAMBER OF COMMERCE & INDUSTRY,

IN COLLABORATION WITH IMH AND THE MAGAZINES IN BUSINESS AND GOLD, ORGANISES THE CCCI BUSINESS LEADER AWARDS,

THE INSTITUTION THAT HONOURS LEADERSHIP AND EXCELLENCE IN BUSINESS AND PROMOTES INDIVIDUALS FROM THE BUSINESS AND BROADER SOCIO-ECONOMIC SECTOR.

WE PAY TRIBUTE TO SUCCESSFUL LEADERS, POWER, INNOVATION, PERCEPTION AND KNOWLEDGE. WE RECOGNISE VISION AND THE ABILITY TO TURN IT INTO ACTION. WE HONOUR INTEGRITY AND ENTREPRENEURIAL ETHICS.

INTERVIEW

five minutes with...

Capt. Andrei Hudzasvili Managing Director, Cymare Shipmanagement Ltd

ow far has the shipping industry been affected by the financial crisis in Cyprus? I think the banking crisis affected practically all local shipping companies to a larger or lesser extent. We all had to endure some difficulty when the banks were closed for the period surrounding the bailout in March 2013, but, other than that, local shipping was mostly unscathed compared to some other industries. However, along with the continuing global financial crisis and its impact on the shipping industry, it created additional financing and cost-related challenges for local companies. The crisis prompted some companies to undergo a reorganisation of their ship management or/and crew management activities to ensure proper cost-effectiveness. How far is Cymare actively involved in promoting Cyprus abroad as a prime shipping destination? We are a small outfit and, for us, the best way to promote Cyprus abroad is by consistently demonstrating our expertise and professionalism in our everyday business activities and building on effective relationships with all our international partners, associates and vendors. The image of our ships abroad is equally important, not only because they are flying the Cyprus flag but because the ships’ sound technical and cosmetic conditions provide another opportunity to promote the business to potential

customers. Our ships, when trading abroad, are ambassadors for the company and the country. Are you looking to expand your operations and activities? We offer a wide range of ship management activities, including full technical, commercial and crewing management, but we are certainly looking to expand our fleet and operations. Presently we are concentrating mostly on the small LPG tankers segment trading primarily in the Mediterranean and the Black Sea areas but our experience and expertise allows us to extend the management business to any type of ships. In particular, we are looking to strengthen our activities in the Black Sea. On the issue of shipping legislation, how does Cyprus compare with its international competitors? Maritime legislation and ship registry jurisdiction in Cyprus is very attractive indeed, especially when it comes to the tax system applicable to ship owners and vessels and that puts the country in a strongly competitive position in the industry. The attractiveness of the legal framework has, in fact, prompted many European and other shipping companies to set up their local offices on the island. It is likely that international competition will intensify between flag state registries but Cyprus, with its excellent maritime services and friendly legislative structure, has all competitive advantages to stand the test of time pretty well.

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Could you elaborate as to the tax benefits? Put simply, under the current tonnage tax and income tax law approved by the EU, any profit that is gained by a shipowner from the operation of vessels and other shipping activities is fully exempt from taxation. Only an annual tax on the net tonnage of the vessel is payable, based on a calculation using a scale of fixed coefficients where the total amount always remains the same. The tax benefits are applicable not only to Cyprus flag shipowners but to owners of other flag ships, ship managers and charterers. This extremely favourable tax system, along with the low ship registration costs, has created great prospects for the local shipping environment and future tonnage growth. What is the biggest challenge for ship management companies at present? Ship managers are still under pressure due to commercial circumstances, so they need to find a balanced strategy between cost-effectiveness when dealing with ship operating budget items and opportunities for ‘smart’ growth by looking at fading traditional and new alternative options for financing. Many, and in particular small, owners would like to see ship managers exercising more rigorous cost control in operating their assets; otherwise they may find moving their ships into in-house management as a worthy choice for the time.

PROFESSIONAL SERVICES

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G N I P KEE theFAITH We shall not cease from exploration And the end of all our exploring Will be to arrive where we started And know the place for the first time “Little Gidding” by T.S.Eliot

S I DEPARTED FROM MY MEETING WITH CONSTANTINOS ECONOMIDES, MANAGING DIRECTOR CYPRUS AND MALTA OF ORANGEFIELD FIDELICO, MY THOUGHTS TURNED TO THE ABOVE LINES BY T.S.ELIOT, AND NO WONDER: DURING OUR TALK, ECONOMIDES EXPRESSED HIS DETERMINATION TO HONOUR WHAT HE TERMS THE ‘PROCESS’ IN ANY VENTURE ONE MAY EMBARK UPON, BY UNFETTERING ONE’S AMBITIONS, AIMING AND PREPARING FOR THE TOP EVEN WHEN STARTING FROM THE BOTTOM. AND TO THOSE WHO HAVE BEEN PROPHESYING CYPRUS’ DEMISE, ECONOMIDES IS ADAMANT: WITH PRAGMATISM, CONCERTED EFFORT AND ABSOLUTE FIDELITY, WE CAN REACQUAINT OURSELVES WITH THE CYPRUS WE THOUGHT WE ONCE KNEW. By Chloe Panayides | Photograph by Jo Michaelides

Gold: Tell us a little about Fidelico’s conception, prior to the merger. Constantinos Economides: Following my time working in London, I joined Deloitte Cyprus for three years. I had friends who, at the time, were contemplating establishing their own law firm, and they asked me to join them. And so it was that, alongside the law firm, I set up Fidelico. I suppose it was the right time to set up a business: in 2006, it was raining clients! And Fidelico actually grew very quickly. Whilst there

was no regulation back then, we at Fidelico insisted that we do all that had to be done to adhere to absolute transparency. We were compliant even if the regulation was not there to force us to be. Gold: And in 2011, Fidelico merged with Orangefield. How did that come about? C.E.: We were engaged in serious talks with five different companies, and actually had offers from all of them. In effect,

we chose Orangefield because it possessed an entrepreneurial spirit that really distinguished it from its competitors. Gold: The idea of entrepreneurship and its importance is ubiquitous in Cyprus now. Do you feel this is a consequence of the crisis? C.E.: Certainly. The crisis has made people confront certain facts and rethink the idea of having a strategy. They have realised not only the importance of establishing a strategy but of diversifying it. That is, it’s not good enough to simply have a ‘Plan A’; a company should have Plans A through Z, and have them running in tandem to ensure preparedness against every eventuality. The economic instability on the island demands that professionals adapt quickly to current conditions rather than simply demonise them. Adaptation does not neces-

THE TIME HAS COME FOR CYPRUS TO ESTABLISH ITSELF AS AN ATTRACTIVE FUND JURISDICTION

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PROFESSIONAL SERVICES

OUR CLIENTS DON’T CARE ALL THAT MUCH ABOUT THE STRESS TESTS, PURELY BECAUSE THEY WON’T BE BANKING WITH LOCAL BANKS FOR A LONG TIME CYPRUS IS UNEQUIVOCALLY NOT – AND NEVER HAS BEEN – A FINANCIAL CENTRE sarily mean a degradation of standards or quality of services. Orangefield Fidelico still treats its clients with the same level of integrity and professionalism. Cypriots are adaptable and innovative by nature so there’s no reason why this practice should not constitute the very make-up of our businesses’ DNA. Gold: Moreover, opinion is intensifying that mergers and acquisitions actually present a viable solution in light of current conditions. What are your thoughts on this? C.E.: I believe that circumstances are changing globally. Compliance and transparency have become not only desirable but compulsory. It’s put a lot of pressure on the industry and our country as a whole. A successful merger with an international group is certainly a good way to go in responding to this rising pressure. We have gained know-how from 30-plus years of experience. Suddenly, my professional trials and problems that needed overcoming are battles that have already been won by Orangefield’s extensive experience. Gold: How does the partnership function? Do you feel you’ve retained your autonomy? C.E.: We speak weekly, and meet at least twice a year. It’s definitely not a case of having someone looking over our shoulders. We have a lot of autonomy, but we have common targets that we have to meet, which not only presents a profitable learning curve, but helps focalise business practice. The group is owned in large part by a private equity firm, which is how it’s expanded from New York to Shanghai, and it makes everything a little more numerical. It balances out everyone’s goals and the management of the group.

Gold: What does your client list look like? C.E.: We actually have zero Cypriot clients but we set up structures and different types of entities in Cyprus on behalf of foreign clients. They are not only attracted to Cyprus because of its favourable tax regime; the access that the island provides to different markets is invaluable. For example, a UK firm trying to carry out a transaction with a Russian company will do so through Cyprus. Orangefield’s network has helped immeasurably to develop our own network, giving us the credibility to knock on the doors of multinationals. Some of our clients are listed on the London Stock Exchange through their Cyprus-based entities. Gold: In terms of nationality, how would you describe your clientele? C.E.: Approximately, 25% of our clients are Russians; 30-40% are from Central Europe and the rest a global mixture. Gold: Have Central Europeans traditionally used Cyprus as a base, or is this a rising market? C.E.: Central European countries, such as the Czech Republic and Hungary, have actually been using Cyprus for many years. However, there has been a lot of renewed interest recently, courtesy of the citizenship scheme. We, personally, don’t market the citizenship scheme aggressively (because of what happened in Malta), and it hasn’t changed the way we do business. Still, it’s good to be able to offer different services. Gold: So how does Orangefield Fidelico market and promote Cyprus? C.E.: I truly believe that the time has come for Cyprus to establish itself as an attractive fund jurisdiction. For this to be achieved, it will require a great deal of

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support and assistance from a range of stakeholders. Whilst the Cyprus Investment Funds Association exists, people are only just learning about it. Admittedly, there has been a lot of momentum recently locally for the promotion of Cyprus as a funds industry. Gold: How can Cyprus cohesively achieve this? C.E.: Without a doubt, we need a bigname bank to establish itself here in order to be able to effectively promote Cyprus as a funds jurisdiction and to gain the trust that we need. The Government needs to go out and sell Cyprus. It needs to offer a big-name bank a package it simply can’t refuse in terms of tax relief for a period of time. Also, a key element in this process is pursuing the correct legal framework to obtain the best possible investor protection and straight-through processes, to give fund players – like custodians, managers, and administrators – the necessary incentives. Gold: Is there sufficient regulation currently in place? C.E.: Local regulation needs to be strengthened. We need to show the world that we’ve learnt our lesson and are making good on past mistakes. Regarding regulation, a law was passed in 2012, which was meant to regulate all firms offering fiduciary services in Cyprus (traditionally, these companies were lawyers, accountants, and independent firms). The problem is that lawyers and accountants managed to exempt themselves from this regulation, continuing, rather, with selfregulation. Cyprus is simply too small for self-regulation. So now we have 1,400 companies offering fiduciary services and only 200 that are properly regulated under the law. The rest are self-regulated. This simply isn’t good enough. Gold: What would bringing about an effective change require with regard to this? C.E.: Ideally, the biggest players in the market should understand the benefit of abiding by and coming under the umbrella of the regulating law and, should these big players comply, a change would happen overnight. This is what we’re pushing

for; otherwise, we can’t effectively develop Cyprus as a fund jurisdiction. Gold: You mentioned the idea of trust earlier. Will the stress tests help in inspiring trust in the island’s banking sector? C.E.: Honestly, our clients don’t care all that much about the stress tests, purely because they won’t be banking with local banks for a long time. Greek banks have become more popular, such as Piraeus Bank and Eurobank. Hellenic Bank has a real chance to lead the banking industry in Cyprus but only time will tell if it is ready to step up to the plate and fill the big boys’ shoes. Everyone’s waiting to see if it’ll succeed. I feel that the more pressing issue is that, internationally, there is a lack of education as to what actually happened here, and this is egregiously detrimental. A year after the financial turmoil erupted on the island, so-called ‘Cassandras’ from all over the world have been disproved regarding Cyprus’ economic demise with the economy having been upgraded twice already. As opposed to really grappling with what happened here, many people are merely crossing Cyprus off of their professional list. We need to educate them accordingly. Gold: What do you propose? C.E.: We are one of the founding members of the Cyprus Fiduciary Association, which is pushing for the appointment of a big name PR firm to take on the task of educating the world responsibly and accurately. Contrary to popular belief, perhaps it wasn’t the best use of resources to increase the Cyprus Investment Promotion Agency’s (CIPA) budget. Instead, why not employ a PR firm from, for example, the US, with international experience and exposure, to work in Cyprus’ favour? Gold: What are your views regarding the practice of bringing in foreign expertise – is this important? C.E.: Definitely, and we simply don’t do it enough. Everyone’s been criticising the management of Bank of Cyprus for putting all of its eggs in one basket (I’m referring to the Greek bonds catastrophe). But who appointed the management? We never ask the right questions in Cyprus and, in

my opinion, instead of merely highlighting the mistakes made, we should be probing how the wrong people kept getting appointed to the wrong positions in the first place, thus affording them the opportunity to make these drastic mistakes. We’re talking about a bank with €20 billion worth of deposits, and people with no experience leading it. There’s also been a lot of criticism as to the salaries of the management of certain banks; that, for example, €300,000 a year is too much. On the contrary, I believe that if we had brought in people with real, tangible, international and varied experience, we should have been paying them in the six figure range. Why? Because you get what you pay for. And that’s precisely what happened in Cyprus. Gold: Sound leadership certainly affords an opportunity to promote Cyprus’ overall ‘brand’ to the professional world. C.E.: It does and the need to complete with our product is both pressing and vital. We mustn’t try to be something we’re not. For example, Cyprus is unequivocally not and never has been a financial centre – a business centre, yes, but not a financial centre – so why pay lip service to this abroad, resulting in the projection of the wrong image? Gold: Where do you think this fragmentation comes from? C.E.: I believe that every venture has a starting point, a processing phase, and an end point. In Cyprus, we don’t focus on the process, only the start and end points. It’s like delivering a speech without preparing adequately for it. How can we speak with confidence and inspire our listeners without preparing properly? We can’t. We need to change this on a fundamental level, starting with how we educate our children. Education from a young age needs to afford the opportunity to appreciate this full cycle and then, hopefully, in the next

generation we’ll see some changes in professional practice overall. The lack of focus on – and understanding of – processing stems from times having been too easy. Once upon a time, anyone could establish a business, acquire a loan, and seemingly – superficially – prosper. This doesn’t hold true, obviously, in times of economic downturn, and Cyprus has learnt this the hard way. Moreover, our society tends to look at the face value of wealth. In Cyprus, you either have it or you don’t. No one looks at how someone may have acquired their wealth or success and what they had to go through or whence they came. Gold: The name Fidelico was clearly not chosen by accident! C.E.: Absolutely not! Fidelico is inspired by the Latin word for fidelity, plus ‘co’ for company, thus encompassing the idea of togetherness, faithfulness and loyalty. It represents our relationship with our clients. We went through quite a process to find the name, as well as the purple colour of the original company logo (prior to adopting Orangefield’s trademark colour). We read many studies at the time on business colour, and chose purple for its simultaneous display of both dynamism and calmness. We try to embrace the idea of processing in every crevice of the company’s make-up. Gold: When you started out, did you imagine that the company would grow to its present size? C.E.: We always thought of going global. And this comes back to honouring the process. Our starting point may have been the setting up of a local company but we took all the precautions and necessary steps to allow this local company to grow into a global entity (an end point of sorts). Our business’ main core has never been limited to the borders of a single country, or even a continent.

WE HAVE 1,400 COMPANIES OFFERING FIDUCIARY SERVICES AND ONLY 200 THAT ARE PROPERLY REGULATED UNDER THE LAW. THIS SIMPLY ISN’T GOOD ENOUGH. THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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LOGISTICS

DELIVERING EXCELLENCE DHLâ&#x20AC;&#x2122;S CYPRUS OPERATIONS GO FROM STRENGTH TO STRENGTH.

inos Ioannides, Country Manager DHL Express Cyprus, tells Gold about the services the company provides, the challenges it faces and its plans for the future. Gold: What is the size of the courier industry in the domestic market? Dinos Ioannides: According to the annuall report of the Commissioner of Electronicc Communications and Postal Regulation, thee international express courier industry movess more than 500,000 express shipments perr annum. In terms of the local express courierr industry, excluding services offered by the Cy-prus Post Office, DHL represents more than n half the market.

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Gold: Describe the services you provide. D.I.: DHL Express in Cyprus provides express courier services. As the worldâ&#x20AC;&#x2122;s most international company, we connect Cyprus with more than 220 countries and geographical areas, catering to both the import and export needs of our customers. Transit times typically vary from next day to 2 or 3 days. We provide a comprehensive range of optional services, varying from earlier deliveries to an excellent insurance coverage of goods transported. As the first company to provide international courier services in Cyprus, I can honestly say that we have an in-depth knowledge of the local market which, leveraged with an extensive knowledge base and skill

set gained from serving the global market for nearly 45 years, results in an unparalleled level of customer satisfaction. This can be verified by our local Net Promoter Approach (NPA) scores as well as our longstanding position as market leader. We are focused in our approach as we only do Express. If we don’t do it well, we simply are not viable. We provide unmatched continuity and stability across all our touch points. There is a reason that people often refer to their express shipments as DHL, even if they use a different provider. Gold: DHL recently launched an online platform to facilitate its customers. How does it work and what does it offer to clients? D.I.: Our online services are not new but they are constantly evolving. Both account holders and occasional users of our service can browse our website and receive information or a quotation, track their shipment or even request an import or export. I believe that we are one of very few companies that provide a direct link to the Managing Director via the company website. Our account holders are provided with access to a web-based system enabling them to liaise with DHL online, which can significantly enhance their productivity. Gold: What role do you think logistics services could play in the economic recovery of Cyprus? D.I.: We have a long way to go in Cyprus in terms of efficiency, productivity and competitiveness and we can learn a lot from logistics which, I would say, is simply the art of getting something where it needs to be, when it needs to be, in an economically viable fashion. On the other hand, it is obvious that we need to spread our wings and seek development opportunities outside the confines of our wounded economy. DHL can provide access to overseas markets (and, for our island, all markets are overseas). No matter what the size of the established enterprise or startup, we can provide the infrastructure on which it can build its international reach. This is what we do. We facilitate worldwide trade. There are

many success stories, in Cyprus and globally, that show how companies have used us to grow from local to international. Gold: These days Corporate Social Responsibility is said to be at the top of many companies’ agenda. How do you define CSR and, in this respect, what is DHL’s contribution to broader Cypriot society? D.I.: Corporate Social Responsibility is in danger of becoming a catchphrase or PR vehicle. It is not at the top of our agenda. Agendas can easily change with prioritisation shifts. It is, however, at the core of our global strategy and interwoven into how we do what we do. There are three pillars to our CSR strategy: GoGreen (supporting the environment), GoHelp (providing humanitarian aid wherever needed) and GoTeach (supporting the right to learn). In Cyprus we try to focus on local needs which, unfortunately, are increasing at an alarming rate. As a relatively small operation, we try to stretch our resources to the best of our ability in order to offer as much as we can. For instance, we support the Cyprus Volunteer Doctors in their efforts to offer free medical treatment at their clinics. We also sponsor projects that we deem worthwhile. Since last year, we have been the logistics partner for the Limassol international Marathon. For these efforts, we depend greatly on the voluntary work of our people. We will see more in this area in the future. In terms of the economy, we have maintained a healthy track record since 1980. We have shielded our employees from the effects of the downturn and stood by our clients through crises such as the destruction of Vasilikos power station and the period when the banks were closed in March 2015. As I have already mentioned, we are a facilitator of business. Our job is to make sure our customers can do theirs. We don’t sell shipments. We sell stability and peace of mind and an uninterrupted service, no matter what may be going on in the environment. Gold: What, in your opinion, are likely to be the most critical challenges facing your industry in the next decade? D.I.: One big challenge is capacity planning in a rapidly changing global environment.

PEOPLE OFTEN REFER TO THEIR EXPRESS SHIPMENTS AS DHL, EVEN IF THEY USE A DIFFERENT PROVIDER

DHL

Dinos Ioannides

DHL is the global market leader in the logistics industry and “The Logistics Company for the world”. DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network, composed of more than 220 countries and territories and some 285,000 employees worldwide, it offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting environmental protection, disaster management and education. DHL is part of Deutsche Post DHL. The Group generated revenue of more than€ 55 billion in 2013.For more information: www.dpdhl.com

We live in a globalised economy which dictates – for now at least – that our industry needs to connect anyplace to anyplace else in a fast and efficient manner. We deal daily with serious upheavals and literally any issue anywhere in the world can affect our operations – war, volcanoes, strikes, riots, bad weather or currency fluctuations. It is a challenge to build a complex machine, with significant shareholder funds, and at the same time ensure that it is not rigid but highly adaptable and to do so profitably. One also has to take into account shifts in global trade, transportation modes, the role of emerging economies and the evolution of e-commerce. In Cyprus there is no end to these challenges and not only for our industry. We are called upon, not simply to weather the storm and emerge blinking when it passes, but to get our act together during the worst part of it and turn around a situation, the handling of which will determine the future quality of life of our children and grandchildren. Gold: What are your future plans for DHL Express Cyprus? D.I.: We will continue to invest in our service and enhance our core offering. We will keep striving to achieve our mission to be “The Logistics Company for the World”. We owe what we are to our customers and so we aim to become the most customer-centric service provider. We have developed a culture of continuous improvement, which means that, every day, we intend to live up to “Excellence. Simply delivered”

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WEALTH MANAGEMENT

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THE LONG & WINDING

ROAD AS THE AJK GROUP ENTERS ITS THIRD DECADE, FOUNDER AND MANAGING DIRECTOR ANDREAS KARAPATAKIS REFLECTS ON HOW IT HAS GROWN OVER THE YEARS AND ON WHAT CYPRUS NEEDS TO DO TO BECOME A SUCCESSFUL AND COMPETITIVE INVESTMENT DESTINATION. By John Vickers | Photograph by Jo Michaelides

n 1993, back in his home town of Larnaca after eight years in the United States, Andreas Karapatakis had been doing various jobs including working in the Department of Statistics and teaching at a local college when he decided to set up his own company to carry out market research. As any businessman will tell you, things don’t always go according to plan and, in this case, a request for fiduciary services led Karapatakis to enter a sector about which he admits he knew nothing about at the time. Over two decades later, he heads a thriving group of companies with offices in another seven countries.

Andreas Karapatakis does not exactly shun the media spotlight but he has never sought it out either. Seated in his stylish office on the top floor of the tower block that bears the Group’s name, he exudes the quiet confidence of someone who knows his profession inside out as he talks about the global professional services sector and Cyprus’ place in it. Softly-spoken and modest about his own achievements, he fondly recalls the AJK Group’s simple beginnings: “When the first client came along, what was required was totally outside the scope of my knowledge but I managed to pick it up quite fast! Over the years we have grown and expanded into different markets and, obviously, we now offer many more

CYPRUS IS THE ONLY JURISDICTION WITH THREE REGULATORS OF THE SAME INDUSTRY

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WEALTH MANAGEMENT

products and services than we did when we started. We have gone beyond the fiduciary spectrum and are heavily into asset management and investment advisory,” he explains, referring to a relatively new aspect of the business that is now five years old and growing rapidly. The original bold step of adapting the scope of the company to meet client demand has continued for more than 20 years and, as a result, AJK now has seven offices outside Cyprus (in London, Singapore and Zurich as well as the Bahamas, British Virgin Islands, Mauritius and Belize) providing a variety of client services. Those locations were clearly not selected by chance. It sounds as if AJK had adopted the old saying, “If you can’t beat ‘em, join ‘em.” Was that indeed why the group expanded into jurisdictions viewed by Cyprus as serious competitors? Yes and no, says Karapatakis. “The locations were driven either by client demand or because we thought that a certain location would give more appeal to the Group and its products and would attract more clients. We were among the first European firms to set up in Singapore and we’ve attracted a large number of clients there from Europe. Initially our idea was to attract Asian clients to our Swiss operation.” AJK has been in Switzerland for more than 10 years: “We have nine people working in our Zurich office, which has become a centre for servicing clients from Central Europe. We are the only Cypriots with an infrastructure in Zurich.” Given the locations of the group’s eight offices, Karapatakis in a perfect position to see and know how Cyprus compares with the countries it sees as its competitors for High Net Worth investors, companies and funds. So where exactly do we stand? “We have advantages in some areas,” he says, citing the high level of education of professionals here and the excellent level

WE ARE NOT IN A POSITION TO KEEP MILLION-DOLLAR CLIENTS IN CYPRUS

of services they provide. “We have a serious advantage in this regard but we have a serious disadvantage when it comes to key issues such as regulation, infrastructure and banking.” On the regulatory aspect, Andreas Karapatakis notes that Cyprus is the only jurisdiction with three regulators of the same industry: “In every other country where we operate, if you want to get into the fiduciary business you have to obtain a licence from a single regulator that covers everyone, whatever their profession – lawyer, accountant or administrative service provider. Cyprus is the only place I know where this is not the case. In my view, because of this we give the impression that we lack regulation.” Impressions count and, while the island’s law and accounting firms will insist that they have a high level of self-regulation, Karapatakis believes that the island is undeniably lacking in other areas: “I think we have been blessed with a considerable amount of luck and things are moving very nicely,” he says, “but there is no planning and no infrastructure to move forward.” Will the new Alternative Investment Funds (AIF) Law make it easier for the island to attract funds and managers? Karapatakis believes that it will certainly be helpful. “So far Cayman, Luxembourg and Ireland have been the biggest players and Malta is coming up quite fast. I think that collective investment schemes are a must and they will complement and complete the range of products that Cyprus has to offer but we are still a long way from this being successful.” Are there specific things that the Government and the House of Representatives could be doing to improve the investment environment? “Absolutely,” he replies. “The first thing that someone who is using a particular investment vehicle looks for is security: Is his investment going to be safe? So, first of all, the Government needs to provide an environment of safety for everybody and the way to do that is through stability, consistent regulation and infrastructure. The services industry is very well developed and there is an abundance of educated people here, which gives credibility to the island but when it comes to infrastructure we are lagging behind. And the problems with the

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AJK Group

he AJK Group began operations in May 1993 in Cyprus, and since then it has evolved into a highly respected International Fiduciary and Wealth Management Group, operating MYVT ZL]LU PUKLWLUKLU[ M\SS` ÅLKNLK VMÄJLZ 0[ LTWSV`Z H [V[HS VM T\S[PSPUN\HS and multi-disciplined professionals and Z\WWVY[PUN Z[HMM ^P[O ZPNUPÄJHU[ L_WLY[PZL PU [OL NSVIHS ÄUHUJPHS HUK JVYWVYH[L PUK\Z[Y` (12 WYV]PKLZ ZLY]PJLZ PU [OL ÄLSKZ VM *VYporate and Financial Consulting, the Formation and Administration of Companies, Foundations and Trusts, Fiduciary Services, Investment Advisory, Asset Management HUK >LHS[O (KTPUPZ[YH[PVU :LY]PJLZ The Group, which is wholly owned by its management, has built its reputation by being fully committed to a business philosophy and working environment that enZ\YLZ Z[YPJ[ JVUÄKLU[PHSP[` OPNO X\HSP[` HUK ZLY]PJL L_JLSSLUJL

banks are not helping.” Karapatakis agrees with those who believe that the presence of a major foreign bank would make a big difference to foreign clients in Cyprus. “Even somewhere like the Bahamas – a small place with a mainly tourist focus – all the major private banks are present,” he says. “UBS, Credit Suisse, you name it. It’s the same in Mauritius. For some reason we haven’t managed to bring them here and I honestly don’t know the reason why. Maybe we haven’t marketed Cyprus properly or we simply haven’t convinced them that it’s worth their while to be here.” Noting, moreover, the number of banks that once had a presence on the island, such as UBS and HSBC, and have since left, he adds, “If we manage to bring even one of the top ten banks here, the whole profile of the island is going to change. At the moment this is our biggest drawback. They will not be competition for the local banks and just one will change the whole atmosphere. Persuading them to do so should be a joint initiative by the government and the private sector. If we attract one, the rest will follow.” One area in which the Government has

acted concerns the citizenship scheme and Andreas Karapatakis has already seen the positive effects of the amended regulations. “We have arranged a significant number of citizenships for existing clients and the scheme is working quite successfully. I have heard from other professionals that there is a demand for this and while I don’t think it will last for long – there is competition from Malta which is offering our scheme in a different package and there are rumours flying around there days about possible new regulations on dual citizenship in Russia – but I think it’s something we should take advantage of while we can. People are buying property and bringing money here, which is the whole point of the scheme.” Given that AJK has an office in Singapore, which regularly tops the global rankings for ease of doing business, one imagines that it must be quite difficult is it to persuade clients to choose Cyprus as the best place to carry out their business or tax planning. It all comes down, says Karapatakis, to recognising the areas in which Cyprus has a genuine advantage and those which are beyond its capabilities. “Even before the banking crisis there were areas in which Cyprus simply can’t compete,” he says, citing the example of private banking. “In the private banking sphere, which concerns very rich clients, we can’t compare with places like Singapore, Zurich or London.” The AJK Group focuses mostly on High Net Worth Individuals (HNWIs) and on the private banking and asset management side, which is precisely why it needs to have offices in those locations, Karapatakis explains. Moreover, there is more to having HNWIs as clients than merely providing a favourable tax regime: “Our focus tends to be on the Ultra-High Net Worth Individual, who wants safety, security, privacy and a lot of things to do. He needs a great deal of attention, he needs solutions. Unfortunately, in all these things, we cannot match the competition,” admits Karapatakis. “We are not at that level here and the industry does not cater for such people. We are not in a position to keep million-dollar clients in Cyprus. They want something more prestigious, regulated, solid.” Although in theory, HNWIs may not be especially concerned about costs, it is a

fact that doing private banking business in Singapore or London can be cheaper than it is in Cyprus. “For a long time I felt that it was easier to do certain things in London than in Cyprus, although the landscape is now changing and the same level of difficulty is starting to apply everywhere,” Karapatakis notes.

IF WE MANAGE TO BRING EVEN ONE OF THE TOP TEN BANKS HERE, THE WHOLE PROFILE OF THE ISLAND IS GOING TO CHANGE On the commercial banking side, he recognises that “We have been doing quite well. Some clients are gradually beginning to use the banks for commercial business again – they buy and sell, though they don’t keep the profits here because they still don’t feel safe enough – but on that front we have always been pretty good and it’s picking up again.” While many foreign clients of Cyprus service providers were not directly touched by the events of March 2013, there has definitely been a tangible effect on the industry as a whole. “I speak with a lot of my colleagues in the bigger and smaller offices and you will not find anyone who will tell you that the impact has not been huge,” says Andreas Karapatakis, noting that while existing clients have stayed because their money is kept elsewhere, new business is no longer coming from the traditional markets. “I have spoken with people who are talking about other markets but, personally, I have not seen new business coming in that should give us hope. We lost credibility, and this, coupled with the other events happening around us, is hitting us even more.” Those “other events” concern international pressure on the industry as well as

new regulations coming up in Russia and those that are now in place in Poland. “The industry is being attacked from all sides,” he says, adding: “Something which, in my view, many people are not taking seriously enough is the fact that the growth of the industry but also of the Cyprus economy will depend on the proposed new “deoffshorisation” laws in Russia. The way I see the package now, I think it will seriously affect us, the banks and everyone here – and not only in Cyprus.” The AJK Group has just started its third decade of operations but despite a certain pessimism about the fiduciary side, the Group’s founder remains positive and optimistic about his next 10 years. “Fortunately, our business here does not only deal with the corporate and fiduciary sectors – I think that part is going to be reduced globally – and we’re involved in a lot of other areas which have seen significant growth. I see the Group moving towards financial innovation, asset management and investment banking. Everything has a life cycle, which is why, for the past five years, we have been diversifying across products and regions and getting regulated in other areas.” While growth is not predicted to return to the economy until next year and 2016, the recent bond issue and upgrades by the main rating agencies have led to what Andreas Karapatakis describes as “a certain amount of euphoria” but he is not convinced by what he sees as an over-optimistic timetable: “The average person is suffering and we still have a long way to go, possibly 2-3 more years, before we see real growth. I think there is every possibility that 2015 may not be the year of recovery and that we will need more time.” Finally, I ask if Karapatakis intends to keep the Group’s local operations in Larnaca. Has he never been tempted to relocate to Limassol or Nicosia? The very idea provokes laughter: “No! I love this place! I am from Larnaca, I grew up here and I don’t think that being in Larnaca has had any negative impact on the business. We have always been here and we have grown so much. If it works, why change it? In any case, distances are so short in Cyprus. Driving to another town to see a client is no big deal. We’re staying here!”

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 29

OPINION

Financing the New Economy Alternatives to the banks are needed

ne of the biggest obstacles to kickstarting the economy and returning to growth is, obviously, the lack of sufficient liquidity in the market to finance consumers and businesses. This is natural, given the fact that almost all financing comes from the banking sector and we know all about the problems they are facing and their need to deleverage. This deleveraging will take some time and, in the process, the banks will be reluctant to give out new loans. So how can we deal with this pressing issue? Can something drastic happen with the banks that will allow them to provide liquidity to the market? Could we discover or develop alternative forms of financing, i.e. non-bank financing? The fact that Bank of Cyprus has recently managed to raise €1 billion of new equity from foreign investors is very important as this will increase its capital ratio, allow it to pass the upcoming ECB stress tests with ease, and thus bring back confidence to the system. I am hoping that Hellenic Bank will find ways of raising its share capital prior to the stress tests (by issuing more shares or converting contingent convertible bonds into share capital), and that the Cooperative Central Bank will also manage to pass the stress tests without any extra government support. Furthermore, the legal framework in relation to foreclosures and the forced sales of mortgaged property will need to be put into place, mainly to put pressure on those loan holders that can – but are reluctant to –service their loans, to start doing so. If these things happen, I expect that by the beginning of next year the situation will have improved with at least more effective restructurings of problematic loans. It’s also important in the restructuring process that lending rates gradually fall. However, I don’t see many new loans being given out as the deleveraging process will have to continue. Since the banking sector will not be able to finance the new economy adequately, we shall need to find alternative ways. As capital requirements have become stricter following recent bank failures, bank financing will gradually be replaced by other sources. Recent statistics show that, in the US, bank lending constitutes only 25%-30% of the available financing, with the rest coming from the capital markets and the “shadow banking system”. What is this? It is a system that pro-

In the US, bank lending constitutes only 25%30% of the available ÄUHUJPUN

By Dr. George Theocharides

vides bank-like activities through non-bank financial intermediaries such as hedge funds, money market mutual funds and securitization vehicles. These entities receive funding through short-term borrowing and use these sources to provide leverage for corporations or for securities trading. They have the benefit that they are not subject to the same strict regulations imposed on the traditional banking system. In Europe (including Cyprus), it’s the reverse, i.e. the majority of financing comes from the traditional banking sector, but this trend will gradually change. If we had a wellfunctioning capital market, we would not be in such a difficult situation right now. We shall also need to turn to innovation to help financing small and medium enterprises (SMEs) which form the bulk of our economy. What might such an innovation be? “Peer-to-Peer” platforms, such as MarketInvoice, or SME Markets that operate in the UK could be such an innovation. MarketInvoice brings small firms together with investors via an online marketplace, whereby the former sell their unpaid invoices at a discount. Small firms receive the liquidity they so badly need, while investors get a rate of return for the services they provide. SME Markets is an online marketplace that brings together and matches borrowers and lenders, and operates as a facilitator offering expert financial assistance. This makes lending more accessible to companies in need and is more cost efficient. We also need to utilize more foreign structural funds. The recent interest in Cyprus by institutions such as the European Bank of Reconstruction and Development (EBRD), the European Investment Bank (EIB), the International Finance Corporation (IFC) or KfW (a German government-owned development bank) is positive and we need more of it if we want to kick-start the economy. Finally, for these alternative forms of financing to have an effect, the right legal framework needs to be in place, companies in Cyprus need to start providing reliable and timely financial statements for lenders to assess, and the new economic model envisioned by the government needs to incorporate other industries (apart from the traditional ones, such as energy and technology) to give choices to foreign investors where to lend.

info: Dr. George Theocharides is Associate Professor of Finance and Director of MSc Financial Services at the Cyprus International Institute of Management (CIIM).

30 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES

COVER STORY

+ 80 TOP

LAW FIRMS

IN CYPRUS “IF THERE WERE NO BAD PEOPLE, THERE WOULD BE NO GOOD LAWYERS.” CHARLES DICKENS, THE OLD CURIOSITY SHOP

he legal profession has always been a popular one with Cypriots and while other traditional choices (the civil service, semi-government organisations and banks) have recently lost most of their sheen, the idea of becoming a lawyer continues to attract ambitious and educated young people. Hopefully, their choice of career is not solely based on Charles Dickens’ famous quotation (above). Many of Cyprus’ leading politicians, four of its seven presidents (including Nicos Anastasiades) and many past and present party leaders have studied law and/ or worked in the profession. The Cyprus Bar Association, which has been the professional body for lawyers on the island since 1960, currently has more than 2,900 members, which suggests that Cyprus is one of the five countries in the world with the

largest number of lawyers per capita (with Israel, the US, Brazil and Spain. Three years ago (September 2011) for the 6th issue of Gold, we compiled a list of the Top 50 Law Firms in Cyprus. It proved to be an extremely popular subject, not least with the firms that were included. Since then, the professional services sector has been affected first by the global financial crisis and, more recently, by problems specific to Cyprus. Lawyers have always played a key role in this hugely important sector of the economy and, even in today’s more difficult environment, the best ones survive and new ones continue to join their ranks. Whether attracted by the profession’s perceived prestige and impressive lifestyle or by the more idealistic possibility of having a chance to change things for the better on a local or individual scale, there is no shortage of would-be legal experts on the island. In compiling the following updated list

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

of the leading law firms on the island, Gold consulted various international sources, including the Legal 500 and the Chambers guides as well as IMH’s own extensive data, and the resulting list of 85 is, we believe, a fairly accurate selection of those firms that have earned themselves a deserved reputation for excellence. They range from truly huge international operations such as Andreas Neocleous & Co LLC, which employs 133 lawyers, to those operating with 100 fewer professionals than the country’s biggest law firm. For reasons of their own, a few of the firms we approached for details declined to provide them. They have been included in the list, nonetheless, with publicly available information. No firm has paid to be included in the list, nor has payment of any kind been sought. Firms are listed in strictly alphabetical order according to their official names.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 31

80+ TOP

COVER STORY LAW FIRMS IN CYPRUS

83, Spyros Kyprianou Avenue, Eleneion Building, 4th-SVVY 6MÃ&#x201E;JL 3HYUHJH ;LS! -H_! >LIZP[L! www.aageorghiouSSJ JVT *VU[HJ[ L THPS! 3H^-PYT'HHNLVYNOPV\SSJ JVT

C. HADJIOANNOU 2. A. & CO

& CO. 3. A.G.PAPHITIS LLC (AGP LAW FIRM)

Head of the Firm: Angelos G. Paphitis NUMBER OF LAWYERS: 10 NUMBER OF PARTNERS: N/A MAIN AREAS OF PRACTICE Civil, Commercial & Corporate Law | Financial Services Advisory. Total Number of Employees: 21

/LHK 6MÃ&#x201E;JL (KKYLZZ!

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KAKOYIANNIS 4. A. & ASSOCIATES LLC

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KARITZIS & 5. A. ASSOCIATES LLC

Head of the Firm: Antonis Karitzis NUMBER OF LAWYERS: 4 NUMBER OF PARTNERS: N/A MAIN AREAS OF PRACTICE Shipping | Corporate & Commercial | Corporate Litigation | Civil & Criminal Litigation | Immigration | Tax | Trusts | Administration of Estates | Administrative & Constitutional Law. Total Number of Employees: 8 /LHK 6MÃ&#x201E;JL (KKYLZZ! (YJOIPZOVW 4HRHYPVZ 000 (]LU\L (NPVZ 7H]SVZ *V\Y[ )SVJR ) [O -SVVY 3PTHZZVS ;LS! -H_! >LIZP[L! ^^^ RHYP[PaPZ JVT *VU[HJ[ L THPS! THPS'RHYP[aPZ JVT

6. ANASTASIOS

ANTONIOU LLC

Head of the Firm: Anastasios A. Antoniou NUMBER OF LAWYERS: 4 NUMBER OF PARTNERS: 1 MAIN AREAS OF PRACTICE Competition Law | EU law | Commercial Litigation | Shipping/Maritime Law. Total Number of EMPLOYEES: 7

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

VAFEAS 7. ANDONIS & PARTNERS LLC

Head of the Firm: Andonis Vafeas NUMBER OF LAWYERS: 3 NUMBER OF PARTNERS: 1 MAIN AREAS OF PRACTICE Corporate | Trust Law |Business | Contracts | Litigation. Total Number of Employees: 4 /LHK 6MÃ&#x201E;JL (KKYLZZ! 9PNH -LYLV\ :[YLL[ 6TLNH *V\Y[ th Floor, 6MÃ&#x201E;JL 3PTHZZVS ;LS! -H_! >LIZP[L! ^^^ ]HMLHZSH^ JVT *VU[HJ[ L THPS! H]HMLHZ']HMLHZSH^ JVT

COUCOUNIS 8. ANDREAS & CO LLC

Head of the Firm: Tasos Coucounis NUMBER OF LAWYERS: 5 NUMBER OF PARTNERS: 3 MAIN AREAS OF PRACTICE Litigation | Company Law | Immovable Property Law | Contract Law | Tort Law. Total Number of Employees: 10 /LHK 6MÃ&#x201E;JL (KKYLZZ! (YJOIPZOVW 4HRHYPVZ 000 (]LU\L 3HaHYVZ *LU[YL st -SVVY 6MÃ&#x201E;JLZ 3HYUHJH ;LS! -H_! >LIZP[L! ^^^ JV\JV\UPZ JVT *VU[HJ[ L THPS! JV\JSH^'ZWPKLYUL[ JVT J`

ANDREAS M. MYLONAS 9. & CO. LLC

Head of the Firm: Andreas Mylonas NUMBER OF LAWYERS: 3 NUMBER OF PARTNERS: 1 MAIN AREAS OF PRACTICE Corporate & Business | Mergers & Acquisitions | Renewable Energy | Foreign Investments in Cyprus & abroad | Trusts & Asset Protection | Overseas Corporate Services | Intellectual Property. /LHK 6MÃ&#x201E;JL (KKYLZZ! (NPHZ-PSH_LVZ :[YLL[ 4LNHYV *OHYHSHTIV\Z st-SVVY 3PTHZZVS ;LS! -H_! >LIZP[L! ^^^ T`SVUHZSH^Ã&#x201E;YT JVT *VU[HJ[ L THPS! PUMV'T`SVUHZSH^Ã&#x201E;T JVT

NEOCLEOUS 10. ANDREAS & CO LLC

If you could introduce a new piece of legislation to Cyprus on any issue at all, what would it be and why?

Head of the Firm: Andreas Neocleous (Chairman) NUMBER OF LAWYERS: 133 NUMBER OF PARTNERS: 17 MAIN AREAS OF PRACTICE Admiralty & Maritime | Banking & Finance, including Project Finance | Corporate & Commercial | Mergers & Acquisitions | Competition& EU Law | Intellectual Property | Information Technology & e-commerce | Litigation & Arbitration | Tax Law& International Tax Planning | Real Estate I Immigration. Total Number of Employees: 200

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11. ANDREAS SOFOCLEOUS & CO

Head of the Firm: Andreas Sofocleous NUMBER OF LAWYERS: 18 NUMBER OF PARTNERS: 3 MAIN AREAS OF PRACTICE Corporate and Commercial| Formation of Cyprus companies | Formation of Offshore companies | Banking and Finance | Intellectual Property | Litigation & Arbitration | Real Estate | Tax Planning | Admiralty &Shipping Law | Immigration Law. /LHK 6MĂ&#x201E;JL (KKYLZZ! 7YV[LHZ /V\ZL (YJOIPZOVW 4HRHYPVZ 000 (]LU\L 3PTHZZVS ;LS! -H_! >LIZP[L! ^^^ ZVMVJSLV\Z JVT J` *VU[HJ[ L THPS! PUMV'ZVMVJSLV\Z JVT J`

12. ANTIS TRIANTAFYYLIDES &

SONS LLC

Head of the Firm: Antis A. Triantafyllides NUMBER OF LAWYERS: 28 NUMBER OF PARTNERS: 3 MAIN AREAS OF PRACTICE Corporate and Commercial | Banking and Finance | Litigation & Arbitration. /LHK 6MĂ&#x201E;JL (KKYLZZ! (YJOIPZOVW 4HRHYPVZ 000 (]LU\L *HWP[HS *LU[LY th -SVVY 5PJVZPH ;LS! -H_! >LIZP[L! ^^^ [YPHU[HM`SSPKLZ JVT *VU[HJ[ L THPS! [YPHU[H'[YPHU[HM`SSPKLZ JVT

13. ANTONIS PASCHALIDES & CO LLC

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CHARIDEMOU 14. ARETI & ASSOCIATES LLC

Head of the Firm: Areti Charidemou NUMBER OF LAWYERS: 15 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Corporate | Banking & Finance | Shipping & Admiralty | Property | Litigation | Immigration. Total Number of Employees: 35 /LHK 6MĂ&#x201E;JL (KKYLZZ! =HZPSPZ4PJOHLSPKLZ :[YLL[ 3PTHZZVS

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ADVOCATES 15. CA (POURGOURA & ASPRI LLC)

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MESSIOS LLC 16. C.D. Head of the Firm: Constantinos D. Messios NUMBER OF LAWYERS: 8 NUMBER OF PARTNERS: Î?/A MAIN AREAS OF PRACTICE Commercial (local and international transaction based work) | Dispute Resolution (including complex multi-jurisdictional litigation and arbitration and a great deal of construction-related work) | Financial Services (advice on all aspects of regulatory and compliance work).

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 33

80+ TOP

COVER STORY LAW FIRMS IN CYPRUS

Total Number of Employees: 14

-SVVY 5PJVZPH

/LHK 6MÃ&#x201E;JL (KKYLZZ!

If you could introduce a new piece of legislation to Cyprus on any issue at all, what would it be and why?

36, AgiasElenis Street, Galaxias Commercial Centre, 4th )ORRU 2IÃ&#x20AC;FH 1LFRVLD Tel: Fax: Website: www.messios.com Contact e-mail: messios@messios.com

G. 17. CHRISTODOULOS VASSILIADES & CO LLC

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& 18. CHRISTOPHI ASSOCIATES LLC

Head of the Firm: Christophoros Christophi (Managing Partner) NUMBER OF LAWYERS: 3 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Company & Corporate Law | Corporate Litigation | Litigation | Labour Law | Intellectual Property | Administrative Law | Family Law. Total Number of Employees: 6 /LHK 6MÃ&#x201E;JL (KKYLZZ! :W`YVZ 2`WYPHUV\ (]LU\L *OHWV *LU[YHS 6MÃ&#x201E;JL 5PJVZPH ;LS! -H_! >LIZP[L!^^^ SH^`LY JVT J` *VU[HJ[ L THPS! PUMV'SH^`LY JVT J`

PATSALIDES 19. CHRISTOS LLC

Head of the Firm: Christos Patsalides (Founding and Managing Partner) NUMBER OF LAWYERS: 9 NUMBER OF PARTNERS: 3 MAIN AREAS OF PRACTICE Corporate | Litigation | Fiduciary Services | Tax | Media. Total Number of Employees: 18 /LHK 6MÃ&#x201E;JL (KKYLZZ!

Evagorou Street, Evagoras Building, 4th

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Client | Intellectual Property | Property | Regulatory Compliance |Tax. Total Number of Employees: 160 /LHK 6MÃ&#x201E;JL (KKYLZZ!

AND 20. CHRYSSAFINIS POLYVIOU LLC

Head of the Firm: Polyvios G. Polyviou NUMBER OF LAWYERS: 25 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Banking Law | Insurance Law | Competition Law | Company Law | Mergers & Acquisitions | Business Law | Employment Law | Aviation Law | Media Law | Arbitration Law. Total Number of Employees: 65 /LHK 6MÃ&#x201E;JL (KKYLZZ! 4PJOHSHRP 2HYHVSP :[YLL[ (ULTVT`SVZ )\PSKing, 4th -SVVY 5PJVZPH ;LS! -H_! >LIZP[L! ^^^ JWSH^ JVT J` *VU[HJ[ L THPS! JOY`ZZHÃ&#x201E;UPZ WVS`]PV\'JWSH^ JVT J`

DEMETRIA21. CHRYSSES DES & CO LLC

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

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ANASTAS23. CLERIDES SIOU NEOPHYTOU LLC

Head of the Firm: Stavros Clerides NUMBER OF LAWYERS: 12 NUMBER OF PARTNERS: 3 MAIN AREAS OF PRACTICE Corporate | Commercial | M&A | Tax | Private Equity & Joint Ventures. Total Number of Employees: 25 /LHK 6MÃ&#x201E;JL (KKYLZZ!

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COVER STORY

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TSIRIDES & 25. COSTAS CO LLC

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EROTOCRITOU 26. C.P. & CO LLC

Head of the Firm: Costas P. Erotocritou (Senior Managing Partner) NUMBER OF LAWYERS: 10 NUMBER OF PARTNERS: 4 MAIN AREAS OF PRACTICE Corporate & Commercial (Registration & Management of Companies & Trusts)| Company formation Cyprus| Marine | Shipping Company formation and Ship Financing| Finance | Banking | Insurance | Real Estate | Trade Marks | Aviation Law | Tax Law & International Tax Planning | European Union Law | e-Business | Criminal Law | Arbitration & General Litigation. Total Number of Employees: 15 /LHK 6MÃ&#x201E;JL (KKYLZZ! 6S`TWPVU :[YLL[ 3PIYH ;V^LY th Floor, 3PTHZZVS ;LS! -H_! >LIZP[L! ^^^ LYV[VJYP[V\ JVT *VU[HJ[ L THPS! [OLTPZ'JWLYV[VJYP[V\ JVT

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& ASSOCIATES 27. DANOS LLC

Head of the Firm: Alexis Danos (Managing Partner) NUMBER OF LAWYERS: 13 NUMBER OF PARTNERS: 4 MAIN AREAS OF PRACTICE Cyprus Company Incorporation and Management | Global Corporate Services | Real Estate | Wills & Succession | Litigation & Arbitration | Debt Collection | Personal Injury/Medical Negligence| Intellectual Property | Immigration Law | Employment Law | Family Law/Matrimonial Law | Constitutional & Administrative Law. /LHK 6MÃ&#x201E;JL (KKYLZZ! 5PJVZPH ;V^LY *LU[YL th -SVVY 3VYK )`YVU (]LU\L 5PJVZPH ;LS! -H_! >LIZP[L! ^^^ J`WY\ZSLNHSZLY]PJLZ L\ *VU[HJ[ L THPS! PUMV'J`WY\ZSLNHSZLY]PJLZ L\

28. DEMETRIOU MAVRONICOLA LLC

Head of the Firm: Athos Demetriou &Christina Mavronicola NUMBER OF LAWYERS: 8 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Litigation | Banking & Finance | Mergers& Acquisitions | Commercial Law. Total Number of Employees: 11 /LHK 6MÃ&#x201E;JL (KKYLZZ!

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K. CHRYSOSTO29. DR. MIDES & CO LLC

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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Total Number of Employees: 62 /LHK 6MÃ&#x201E;JL (KKYLZZ! 3HTWV\ZHZ :[YLL[ 5PJVZPH ;LS! -H_! >LIZP[L! ^^^ JOY`ZVZ[VTPKLZ JVT *VU[HJ[ L THPS! PUMV'JOY`ZVZ[VTPKLZ JVT J`

& 30. D.SIZINOS ASSOCIATES LLC

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A. STEPHANOU 31. ELIAS LLC

Head of the Firm: Elias A. Stephanou NUMBER OF LAWYERS: 5 NUMBER OF PARTNERS: 1 MAIN AREAS OF PRACTICE Criminal Law Total Number of Employees: 6 /LHK 6MÃ&#x201E;JL (KKYLZZ!

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& 32. EMILIANIDES KYRIAKIDES LLC

Head of the Firm: Constantinos Emilianides & Thelma Kyriakides NUMBER OF LAWYERS: 5 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE All aspects of Intellectual Property Law Total Number of Employees: 8 /LHK 6MÃ&#x201E;JL (KKYLZZ!

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Y. YIANGOU 33. GEORGE LLC

PAPANDREOU & CO 34. E. LLC

Head of the Firm: Elena Papandreou NUMBER OF LAWYERS: 5 NUMBER OF PARTNERS: 1 MAIN AREAS OF PRACTICE Commercial | Corporate |Banking & Finance |Trusts | Shipping Employment. Total Number of Employees: 7 /LHK 6MÃ&#x201E;JL (KKYLZZ!

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Z. 35. GEORGE GEORGIOU & ASSOCI-

ATES LLC

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If you could introduce a new piece of legislation to Cyprus on any issue at all, what would it be and why? Â¸*`WY\Z OHZ NYLH[ WV[LU[PHS HZ H YLNPVUHS JVTTLYJPHS SP[PNH[PVU JLU[YL 0U [OPZ YLZWLJ[ ^L HYL PU PTTLKPH[L ULLK VM UL^ SLNPZSH[PVU ^OPJO ^PSS MHJPSP[H[L [OL YLJVNUP[PVU HUK LUMVYJLTLU[ VM MVYLPNU Q\KNTLU[Z HUK HYIP[YHS H^HYKZ ZPUJL [OL J\YYLU[ SLNPZSH[PVU OHZ ILLU PU[LYWYL[LK PU H ]LY` YLZ[YPJ[P]L THUULY I` [OL *V\Y[Z We also need new legislation to give further powers to the *V\Y[Z PU [OL HYLH VM PU[LYPT YLSPLM HUK [V MHJPSP[H[L [OL speedy resolution of appeals in this area. Finally, we need [V HTLUK [OL *`WY\Z *VTWHUPLZ 3H^ PU VYKLY [V TVKLYUPaL P[ PU [OL HYLH VM WYV[LJ[PVU VM TPUVYP[` ZOHYLOVSKLYZ ZPUJL [OL J\YYLU[ WYV]PZPVUZ HYL UV^ V\[KH[LK Â¹ (3,?(5+96: ;:090+,: *6:;(: ;:090+,: *6 33*

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

/LHK 6MÃ&#x201E;JL (KKYLZZ!

CONSTAN36. GEORGIA TINOU-PANAYIOTOU

LAW OFFICE in association with GSL LAW & CONSULTING LTD (Cyprus)

Head of the Firm: Georgia Constantinou-Panayotou NUMBER OF LAWYERS: 3 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Corporate & Tax Law | Mergers & Acquisitions | Commercial & Contract Law | Trust Law | Banking & Finance | Commercial Litigation | Fiduciary & Corporate Services. Total Number of Employees: 13 /LHK 6MÃ&#x201E;JL (KKYLZZ! 2HSSPWVSLVZ (]LU\L 6MÃ&#x201E;JL 7 * 5PJVZPH ;LS! -H_! >LIZP[L! ^^^ NJWSH^ JVT J` *VU[HJ[ L THPS! PUMV'NJWSH^ JVT J`

COVER STORY

& MYLO37. GEORGIADES NAS LLC

If you could introduce a new piece of legislation to Cyprus on any issue at all, what would it be and why?

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& 38. GEORGIADES PELIDES LLC

& 39. GLAFKOS.RAPHAEL CO L.L.C.

Head of the Firm: Michael G. Raphael, Barrister-at-Law NUMBER OF LAWYERS: 6 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Corporate | Family | Sports | Civil | Litigation | Recoveries. Total Number of Employees: 8 /LHK 6MÃ&#x201E;JL (KKYLZZ! /VTLY (]LU\L *@ 5PJVZPH ;LS! -H_! >LIZP[L! ^^^ YHÃ&#x2026;H^J` JVT *VU[HJ[ L THPS! PUMV'YHÃ&#x2026;H^ JVT J`

KALOGIROU & 40. HARIS CO LLC

Head of the Firm: Haris Kalogirou NUMBER OF LAWYERS: 3 NUMBER OF PARTNERS: 2

MAIN AREAS OF PRACTICE Property Law | Probates | Banking Law. Total Number of Employees: 7 /LHK 6MÃ&#x201E;JL (KKYLZZ!

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41. HARNEYS ARISTODEMOU

LOIZIDES YIOLITIS LLC

Head of the Firm: Demetris Loizides (Managing Partner) NUMBER OF LAWYERS: 14 (+ 4 TRAINEES) NUMBER OF PARTNERS: 5 MAIN AREAS OF PRACTICE Corporate & Commercial | Banking &Finance | Mergers & Acquisitions. Total Number of Employees: 27 /LHK 6MÃ&#x201E;JL (KKYLZZ! ;/ 6J[VILY (]LU\L nd rd Ã&#x2026;VVY 3PTHZZVS ;LS! -H_! >LIZP[L! ^^^ OHYUL`Z JVT *VU[HJ[ L THPS! KLTL[YPZ SVPaPKLZ'OHYUL`Z JVT

42. HARRIS KYRIAKIDES LLC

Head of the Firm: Harris Kyriakides (Managing Partner) NUMBER OF LAWYERS: 14

& 43. HAVIARAS PHILIPPOU LLC

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 37

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KITROMI47 KANNAVA, LIDOU & CO LLC

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& 44. Î&#x2122;.FRANGOS ASSOCIATES LLC

Head of the Firm: Iosif Frangos NUMBER OF LAWYERS: 10 NUMBER OF PARTNERS: 1 MAIN AREAS OF PRACTICE Accident & Personal Injury | Administrative Law | Banking & Finance | Corporate Litigation | Cross-Border Litigation |Debt Recovery | Employment Law | Family Law | International Law (Public and Private) | International Debt Collection & Recovery | Wills & Estate Administration | Alternative Dispute Resolution (Arbitration & Mediation) | Corporate, Accountancy and Tax (through Bybloserve Management Ltd) | Real Estate & Construction | Wills &Probate | Immigration (Residence & Citizenship). Total Number of Employees: 45 /LHK 6MÃ&#x201E;JL (KKYLZZ! 7H[YVU :[YLL[ 3HYUHJH ;LS! -H_! >LIZP[L! ^^^ MYHUNVZSH^ JVT, ^^^ I`ISVZLY]L JVT *VU[HJ[ L THPS! PUMV'MYHUNVZSH^ JVT

K. 45. IKAROS TYPOGRAPHOS &

Head of the Firm: Ikaros Typographos NUMBER OF LAWYERS: 4 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Full service business minded law firm Total Number of Employees: 6 /LHK 6MÃ&#x201E;JL (KKYLZZ! (YJOIPZOVW 4HRHYPVZ 000 (]LU\L 4P[ZPZ )\PSKPUN 5V 6MÃ&#x201E;JL 5PJVZPH ;LS! -H_! >LIZP[L! ^^^ [`WVNYHWOVZ JVT *VU[HJ[ L THPS! PUMV'[`WVNYHWOVZ JVT

46. IOANNIDES DEMETRIOU LLC

Head of the Firm: Pambos Ioannides NUMBER OF LAWYERS: 17 NUMBER OF PARTNERS: 4 (+1 FOR NOBEL TRUST LTD) MAIN AREAS OF PRACTICE Advocates & Legal Consultants Total Number of Employees: 34 /LHK 6MÃ&#x201E;JL (KKYLZZ!

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

Head of the Firm: Maria Kitromilidou NUMBER OF LAWYERS: 10 NUMBER OF PARTNERS: 4 MAIN AREAS OF PRACTICE Banking, Finance & Corporate Law Total Number of Employees: 24 including partners /LHK 6MÃ&#x201E;JL (KKYLZZ!

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PRAVA 49. KORPUS Head of the Firm: Artem Paleev (Managing Partner) NUMBER OF LAWYERS: 3 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Law | Tax | Corporate Services | M&A | Corporate Finance. Total Number of Employees: 13 /LHK 6MÃ&#x201E;JL (KKYLZZ! .YP]HZ +PNOLUPZ (]LU\L 6MÃ&#x201E;JL 3PTHZZVS ;LS! -H_! >LIZP[L! ^^^ RVYW\ZWYH]H JVT *VU[HJ[ L THPS! J`WY\Z'RVYW\ZWYH]H JVT

& KORFIO50. KOUSHOS TIS ADVOCATES &

LEGAL CONSULTANTS

Head of the Firm: Kyriacos J. Koushos & George Th. Korfiotis NUMBER OF LAWYERS: 9 NUMBER OF PARTNERS: 6

COVER STORY

TH. 52. KYRIAKOS MICHAELIDES & CO

Head of the Firm: Kyriakos Michaelides NUMBER OF LAWYERS: 6 NUMBER OF PARTNERS: 3 MAIN AREAS OF PRACTICE Corporate & Commercial | Banking | Finance & Derivatives | Litigation & Arbitration | Intellectual Property | Technology & Telecommunications | Real Estate & Construction | Employment | Immigration & Personal Injuries | Company Registration & The Cyprus Holding Company. /LHK 6MÃ&#x201E;JL (KKYLZZ! 0WWVRYH[V\Z :[YLL[ 5PJVZPH ;LS! -H_! >LIZP[L! ^^^ R[TSH^ JVT *VU[HJ[ L THPS! VUSPUL'R[TSH^ JVT

ZAMBARTAS LLC 53. L.G. Head of the Firm: Louise Zambartas & George Zambartas NUMBER OF LAWYERS: 8 NUMBER OF PARTNERS: N/A MAIN AREAS OF PRACTICE Cyprus Family Law | Risks in Ship Financing | Cypriot Companies | Yacht Registration | Tonnage Tax | Cyprus Ship Arrest | Cyprus Wills and Estates | Probate in Cyprus | Escrow Services | Buying Cyprus Property | Company Formations | Limitation Warning | Fraud & Assets Recovery | Death Inquests. Total Number of Employees: 16 /LHK 6MÃ&#x201E;JL (KKYLZZ! :W`YVZ 2`WYPHUV\ (]LU\L ,\YVOV\ZL Z[ -SVVY .LYTHZVNLPH 3PTHZZVS ;LS! -H_! >LIZP[L! ^^^ aHTIHY[HZSH^VMÃ&#x201E;JLZ JVT *VU[HJ[ L THPS! YLJLW[PVU'aHTIHY[HZSH^ JVT J`

PAPAPHILIPPOU 54. L. & CO

Litigation & Arbitration | Mergers & Acquisitions | Real Estate. Total Number of Employees: 33 /LHK 6MÃ&#x201E;JL (KKYLZZ! 0Ã&#x201E;NLUPHZ :[YLL[ :[YV]VSVZ 5PJVZPH ;LS! -H_! >LIZP[L! www.papaphilippou.eu *VU[HJ[ L THPS! PUMV'WHWHWOPSPWWV\ L\

& 55. MARKIDES MARKIDES LAW FIRM

Head of the Firm: Alecos Markides & Hermione Markides (Managing Partners) NUMBER OF LAWYERS: 11 NUMBER OF PARTNERS: 4 MAIN AREAS OF PRACTICE Litigation | Intellectual Property Law | Company Law/Overseas Entities | Competition Law | Trusts | Banking Law | Tax Law | Public Law. /LHK 6MÃ&#x201E;JL (KKYLZZ! 4HYRPKLZ /V\ZL ( /LYVLZ :[YLL[ 5PJVZPH ;LS! -H_! >LIZP[L! ^^^ THYRPKLZ JVT J` *VU[HJ[ L THPS! PUMV'THYRPKLZ JVT J`

SPANOS 56. MARKOS & CO

Head of the Firm: Paris Spanos & Maria Spanou-Anastasiou NUMBER OF LAWYERS: 5 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Corporate Law | Commercial Law | Property Law | Tax Law | Litigation Total Number of Employees: 10 /LHK 6MÃ&#x201E;JL (KKYLZZ!

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& 57. MOUAIMIS MOUAIMIS

ADVOCATES

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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COVER STORY LAW FIRMS IN CYPRUS

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LAW STYLIANOU 58 LC & DRAKOU LLC

Head of the Firm: Lora Stylianou NUMBER OF LAWYERS: 3 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Corporate Law & Commercial Law | Mergers& Acquisitions | Company Formation & Administration anywhere in the world | Intellectual Property Law | Banking | Finance & Capital Markets | Employment Law | Property & Estate Planning | Maritime Law | General Litigation. Total Number of Employees: 5 /LHK 6MÃ&#x201E;JL (KKYLZZ! ALUVUVZ:VaV\ :[YLL[ 5PJVZPH ;LS! -H_! >LIZP[L! ^^^ SJSH^ JVT J` *VU[HJ[ L THPS! PUMV'SJSH^ JVT J`

P. 59. LELLOS DEMETRIADES LAW

OFFICE LLC

Head of the Firm: Lellos P Demetriades NUMBER OF LAWYERS: 8 NUMBER OF PARTNERS: 4

& 60. M.ELIADES PARTNERS LLC

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

DAMIANOS 61. MICHAEL & Co LLC

Head of the Firm: Michael Damianos NUMBER OF LAWYERS: 2 NUMBER OF PARTNERS: 1 MAIN AREAS OF PRACTICE International & Local Mergers & Acquisitions | General Corporate Advice (including Corporate Disputes) | Winding Up of Companies | Capital Markets | Banking | Energy | General Commercial Work |Fiduciary Services | Real Estate | Immigration to Cyprus for non-EU High Net Worth Individuals. Total Number of Employees: 3 /LHK 6MÃ&#x201E;JL (KKYLZZ! 6MÃ&#x201E;JL , (YJOIPZOVW 4HRHYPVZ 000 (]LU\L 5PJVZPH ;LS! -H_! >LIZP[L! ^^^ KHTPHUVZSH^ JVT *VU[HJ[ L THPS! PUMV'KHTPHUVZSH^ JVT

& 62. MICHAELIDES MICHAELIDES

Head of the Firm: Andreas Michaelides NUMBER OF LAWYERS: 6 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Corporate & Commercial | Litigation & ADR | Regulatory | Governance & Compliance | Employment. Total Number of Employees: 10 /LHK 6MÃ&#x201E;JL (KKYLZZ! 9PNH -LYLV\ :[YLL[ 6TLNH *V\Y[ th Ã&#x2026;VVY 3PTHZZVS ;LS! -H_! >LIZP[L! ^^^ TPJOHLSPKLZSH^ JVT *VU[HJ[ L THPS! PUMV'TPJOHLSPKLZSH^ JVT J`

& 63. MONTANIOS MONTANIOS LLC

Head of the Firm: Eric Montanios (Senior Partner), Acis Montanios (Managing Partner) NUMBER OF LAWYERS: 20 NUMBER OF PARTNERS: 8 MAIN AREAS OF PRACTICE Shipping & Maritime | Corporate & Commercial | Banking & Finance | Trusts, Wealth & Estate Planning | Litigation | Labour& Employment Law | Property/ Real Estate. Total Number of Employees: 43 /LHK 6MÃ&#x201E;JL (KKYLZZ! +PHNVYHZ /V\ZL 7HU[LSPZ *H[LSHYPZ :[YLL[ 5PJVZPH ;LS! -H_! >LIZP[L! ^^^ TVU[HUPVZSH^ JVT J`

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A. KYRIAKIDES 64. NASOS & PARTNERS LLC

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MOUKTAROUDES & 65. N. ASSOCIATES LLC

Head of the Firm: Nicolas Mouktaroudes NUMBER OF LAWYERS: 4 NUMBER OF PARTNERS: 1 MAIN AREAS OF PRACTICE Corporate Law | Corporate & Commercial Litigation | Shipping & Maritime Law | Mergers& Acquisitions | Immigration Law | Property Law. Total Number of Employees: 5 /LHK 6MĂ&#x201E;JL (KKYLZZ! (NPHZ -`SH_LVZ :[YLL[ 5PJVSHZ *V\Y[ nd Ă&#x2026;VVY 6MĂ&#x201E;JL 3PTHZZVS ;LS! -H_! >LIZP[L! ^^^ TV\R[HYV\KLZ JVT *VU[HJ[ L THPS! PUMV'TV\R[HYV\KLZ JVT

PIRILLIDES 66. N. & ASSOCIATES LLC

Total Number of Employees: 24

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69. PAPADOPOULOS LYCOURGOS

& CO LLC

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PAVLOU & 70. PATRIKIOS ASSOCIATES LLC

Head of the Firm: Stavros Pavlou NUMBER OF LAWYERS: 25 NUMBER OF PARTNERS: 5

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THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 41

80+ TOP

COVER STORY LAW FIRMS IN CYPRUS

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N. KOURTELLOS 74. P. & ASSOCIATES LLC

Head of the Firm: Dr. Pavlos Neofytou Kourtellos NUMBER OF LAWYERS: 5 (+ 2 LEGAL ASSOCIATES) NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Complex Commercial Litigation | International Arbitration Law | Corporate & Commercial Law | International Trusts & Asset Protection | Business Crime & Fraud Disputes | Company & Insolvency Law | Investment Services Law | Corporate Fiduciary Services | Constitutional & Administrative Law | Banking & Finance Law | Intellectual Property Law. Total Number of Employees: 7 /LHK 6MÃ&#x201E;JL (KKYLZZ!

MAIN AREAS OF PRACTICE Litigation & Dispute Resolution| Corporate Law & Mergers & Acquisitions | Banking & Finance Law | Capital Markets Law & International Tax Planning | Real Estate | Trusts & Asset Protection | Intellectual Property | IT | Internet & e-commerce Law | Administrative & Constitutional Law | Ship Registration. Total Number of Employees: 60 /LHK 6MÃ&#x201E;JL (KKYLZZ! 7H[YPJPHU *OHTILYZ (NPV\ (UKYLV\ :[YLL[ 3PTHZZVS ;LS! -H_! >LIZP[L! ^^^ WH]SH^ JVT *VU[HJ[ L THPS! PUMV'WH]SH^ JVT

& 71. PELECANOS PELECANOU LLC

Head of the Firm: Andros G. Pelecanos NUMBER OF LAWYERS: 5 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Corporate Law | Corporate Administration | Criminal Law/Litigation | Civil Litigation | Family Law | Property Law | Immigration Law. Total Number of Employees: 10 /LHK 6MÃ&#x201E;JL (KKYLZZ! 8 ;V^LY th -SVVY 0VHUUP 2VUK`SHRP :[YLL[ 3HYUHJH ;LS! -H_! >LIZP[L! ^^^ WLSLJHUVZSH^ JVT *VU[HJ[ L THPS! PUMV'WLSLJHUVZSH^ JVT

72. PELAGHIAS CHRISTODOULOU VRACHAS LLC

Head of the Firm: George Pelaghias, Alexandra Pelaghias-Christodoulou, & Petros Vrachas (Managing Partners) NUMBER OF LAWYERS: 7 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE General Litigation | Corporate & Commercial | Land Law | Probate & Trusts | International Tax Planning & Business Investment | Shipping Law | Aviation Law | Banking | Taxation | Financial Services | Energy Law | Immigration Law | Insurance Law. Total Number Of Employees: 9 /LHK 6MÃ&#x201E;JL (KKYLZZ! ;OLTPZ[VJSLZ +LY]PZ :[YLL[ /H^HPP 5PJVZPH ;V^LY [O -SVVY 5PJVZPH ;LS! -H_! >LIZP[L! O[[W! WLSHNOPHZSH^ JVT *VU[HJ[ L THPS! PUMV'WLSHNOPHZSH^ JVT

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

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SARRIS & 75. POLAKIS CO., LLC

Head of the Firm: Polakis Sarris (Managing Partner) NUMBER OF LAWYERS: 10 NUMBER OF PARTNERS: 4 MAIN AREAS OF PRACTICE Corporate and Tax Law. Total Number of Employees: 32 /LHK 6MÃ&#x201E;JL (KKYLZZ!

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VAKIS LAW 76. PYRGOU FIRM

Head of the Firm: Melina Pyrgou, Demetris Vakis, Despo Andreou NUMBER OF LAWYERS: 7 NUMBER OF PARTNERS: 3 MAIN AREAS OF PRACTICE Corporate/Commercial. Total Number of Employees: 11 /LHK 6MÃ&#x201E;JL (KKYLZZ! 3HTIV\ZH :[YLL[ 5PJVZPH ;LS! -H_! >LIZP[L! ^^^ W`YNV\]HRPZ JVT *VU[HJ[ L THPS! PUMV'W`YNV\]HRPZ JVT

77. SCORDIS PAPAPETROU & CO

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PITTAS 78. SOTERIS & CO LLC

Head of the Firm: Soteris Pittas NUMBER OF LAWYERS: 10 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Corporate & Commercial Litigation | Corporate & M&A | International Tax Planning. Total Number of Employees: 23 /LHK 6MÃ&#x201E;JL (KKYLZZ! *OY`ZHU[OV\ 4`SVUH :[YLL[ 4HNU\T /V\ZL 3PTHZZVS ;LS! -H_! >LIZP[L! ^^^ WP[[HZSLNHS JVT *VU[HJ[ L THPS! PUMV'WP[[HZSLNHS JVT

AMERICANOS 79. STELIOS & CO LLC

Head of the Firm: Stelios Americanos (Managing Partner) NUMBER OF LAWYERS: 12 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Corporate & Commercial Law | Mergers & Acquisitions | Banking & Finance | Litigation & Arbitration | Real Estate & Construction | Intellectual Property | Ship Registration & Finance | International Tax Planning | Financial Services | Company Incorporation & Compliance Services. Total Number of Employees: 32 /LHK 6MÃ&#x201E;JL (KKYLZZ!

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N. 80. STYLIANOS CHRISTOFOROU & ASSOCIATES

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83. TORNARITIS LAW FIRM

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& KONNARIS 81. SYMEOU LLC (SK Law FIRM)

Head of the Firm: Panikos Symeou & Christakis Konnaris NUMBER OF LAWYERS: 8 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Corporate & Commercial | Tax Planning | Intellectual Property & Trademarks | Trusts | Acquisition of Properties | Ship Registration | Litigation. Total Number of Employees: 22 /LHK 6MÃ&#x201E;JL (KKYLZZ! :W`YVZ 2`WYPHUV\ (]LU\L :2 /V\ZL 3PTHZZVS ;LS! -H_! >LIZP[L! ^^^ ZRSH^ Ã&#x201E;YT JVT *VU[HJ[ L THPS! PUMV'ZRSH^ Ã&#x201E;YT JVT

82. TASSOS PAPADOPOULOS

& ASSOCIATES LLC

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& 84. TRIANTAFYLLIDES CHRISTOFOROU LAW

FIRM

Head of the Firm: Christos Triantafyllides & Stylianos Christoforou NUMBER OF LAWYERS: 14 NUMBER OF PARTNERS: 2 MAIN AREAS OF PRACTICE Company Formation & International Business | Cyprus Tax Law | Acquisition of Immovable Property in Cyprus | Company Legal Audit | Intellectual Property Law | Employment & Labour Law | Medical Negligence | Wills & Probate | Arbitration. Total Number of Employees: 20 /LHK 6MÃ&#x201E;JL (KKYLZZ!

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MILTIADOU & 85. YIOTA ASSOCIATES LLC

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THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 43

6TH CYPRUS

PROFESSIONAL

SERVICES TO INTERNATIONAL BUSINESS

CONFERENCE

)HDWXUHG 6SHDNHUV

SPECIAL SUPPLEMENT

TOP LAW FIRMS

IN CYPRUS

On the following pages, 18 of the Top 80+ Law Firms provide a detailed presentation of their services, areas of practice, history and philosophy.

The firms are the following: â&#x20AC;˘ A.C. Hadjioannou & Co â&#x20AC;˘ A.G. Paphitis & Co. LLC â&#x20AC;˘ A.Karitzis & Associates LLC â&#x20AC;˘ Andreas M. Mylonas & Co LLC â&#x20AC;˘ Andreas Neocleous & Co LLC â&#x20AC;˘ Christos Patsalides & Co LLC â&#x20AC;˘ *OY`ZZHĂ&#x201E;UPZ HUK 7VS`]PV\ 33* â&#x20AC;˘ Costas Indianos & Co, (K]VJH[LZ 3LNHS *VUZ\S[HU[Z â&#x20AC;˘ Costas Tsirides & Co LLC â&#x20AC;˘ Elias A Stephanou LLC â&#x20AC;˘ Harneys Aristodemou Loizides Yiolitis â&#x20AC;˘ 0 -YHUNVZ (ZZVJPH[LZ 33* â&#x20AC;˘ Ioannides Demetriou LLC â&#x20AC;˘ 2HUUH]H 2P[YVTPSPKV\ *V LLC â&#x20AC;˘ 2VYW\Z 7YH]H *`WY\Z â&#x20AC;˘ Pamboridis LLC â&#x20AC;˘ Stylianos N. Christoforou & Associates Law Firm â&#x20AC;˘ Symeou & Konnaris LLC

46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80

SPECIAL ADVERTISING FEATURE

A.C. Hadjioannou & Co

Left to right Standing: Nitsa Hadjioannou, Associate, Costas Hadjioannou, Partner Seated: Nicos Hadjioannou, Partner

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

.C. Hadjioannou & Co is an independent law firm providing national and international legal services including litigation, where necessary, arbitration, advisory services on specific transactions or on planning a business or network or administration, and formation of companies, trusts investment funds and other investment or business vehicles as well as bespoke services related to specific sectors and structures. Established in 1948, it is one of the oldest Law Firms in Cyprus. Originally a sole practice, it has grown through the years into a medium size law firm with main offices in Nicosia and offices in Limassol, Larnaca and Paphos. The firm is and always has been owner-managed, with the partners participating in and overseeing the services and ensuring the development of lasting relationships with clients based on confidence and reliance. The advice provided and solutions proposed are thus always customized to the clientâ&#x20AC;&#x2122;s needs and circumstances. A wide range of synergies developed through the years with foreign law firms and

independent professionals such as accountants, bankers/ financial advisers and surveyors, both local and international, enables us to provide integrated advice/solutions tailored to the clientâ&#x20AC;&#x2122;s requirements. Our firm consists of English trained lawyers who through their involvement in litigation are able to know the reaction of the Courts to certain matters which may and often is different to the academic approach or interpretation. Our advice is based on this experience and clients are often advised of the risks of adopting an approach which, though open on an academic level, may not be so agreeable on a practical level. Members of our firm have participated over the years in practically all the major civil cases before the Courts of Cyprus, contributing to authoritative decisions of the Supreme Court which guide the practitioner and bind the Authorities. These cases have involved, inter alia, land, taxation, public law, human rights, companies, trusts, administration of estates, commercial/contractual matters, admiralty jurisdictions matters, banker-client relationships, electronic communications and insurance law. Our firm is currently one of the leading firms supporting the claims through the courts

of depositors and shareholders of Cyprus Popular Bank and Bank of Cyprus, both on the administrative level (i.e. illegality/unconstitutionality) of the decisions of the Central Bank as well as on the civil level (recovery of the deposits and damages). As legal advisors of a telecoms provider for over fifty years we have wide and extensive experience in procurements, joint ventures and acquisitions – both national and international – intellectual property and confidentiality, commercial contracts, data protection and information technology law as well as electronic communication law and regulation, competition law and personnel matters. We are considered experts in land law, an area of the law in which our firm has been involved since its establishment. Members of the firm have contributed to the drafting of the latest legislation relating to land acquisition and the specific performance of contracts and the process of land division and also the issue of separate title deeds for apartments and houses. Contractual requirements for the purchase of immovable property, provisions for the protection of the purchaser of

tenements in projects under development, and the denomination of boundaries and resolution of boundary disputes are currently the main topics of our involvement and advice, as well as litigation. As advisors to an insurance company we have wide experience in insurance law and claims on insurance policies. We are also advisers to ship registration agencies and ship surveyors and we provide the relevant legal and support services, including ship registration. We adhere to the ethics and traditions of our profession and strictly protect the confidentiality of our clients’ commercial and other information with which we are entrusted. Our goal is to provide clients with the most suitable solutions and support, based on their requirements, at reasonable fees. In promoting and protecting our clients’ interests, either ex ante planning or drafting documents, setting up vehicles, or ex post when they are infringed, we advise or adopt pragmatic and cost-efficient approaches and solutions while, at the same time, advising on available alternatives and allowing the client to elect the course to be followed or the solution pre-

ferred, always in full knowledge of the consequences, risks and costs. Our advice will invariably enable the client to take an informed decision.

AREAS OF PRACTICE

Although we have been involved in one way or another in practically all areas of the law, our main areas of practice are: • LAND Sale contracts, leasing land development, disputes over land. • CORPORATE Including formation of companies and other legal entities, running of companies and keeping proper records as well as disputes involving company management and shareholder rights. • JOINT VENTURES, ACQUISITIONS AND MERGERS Shareholders Agreements and contractual arrangements, Due Diligence and risk identification. • ELECTRONIC COMMUNICATIONS Regulation and Provision of services. • PROCUREMENT of all kind of equipment or systems on a turnkey or on a supply basis. • COMMERCIAL TRANSACTIONS including drafting of contracts and disputes over written or oral

arrangements and practices. • TRANSACTION ADVISORY Advice on specific transactions or specific structures or setups. • INFORMATION TECHNOLOGY AND DATA PROTECTION Regulation Contractual Arrangements Infringement. • INTELLECTUAL PROPERTY AND CONFIDENTIALITY including registration of registrable property and remedies for infringement. • TRUST FORMATION AND ADMINISTRATION OF ESTATES AS WELL AS FAMILY PLANNING Assets distribution. • BANKING AND FINANCE Banker/client disputes, banking contracts. • PUBLIC ADMINISTRATIVE LAW AND TAXATION including tax planning. • REGULATORY compliance matters, product liability • ADMIRALTY Jurisdiction disputes and ship registration. • INSURANCE and personal injury claims. • COMPETITION LAW • EMPLOYMENT CONTRACTS • CLAIMS IN TORT Trespass, defamation, slander of goods, medical or professional malpractice

CONTACT INFORMATION A.C. HADJIOANNOU & CO

4, Alkaiou Street, 1060, Nicosia | Tel: (+357) 22759170/22769175 | Fax: (+357) 22752950 L THPS! VMÄJL HKTPU'HJOHKQPVHUUV\SH^ JVT c >LIZP[L! ^^^ HJOHKQPVHUUV\SH^ JVT

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 47

SPECIAL ADVERTISING FEATURE

A.G. Paphitis & Co. LLC

A Angelos G. Paphitis, Founder and Managing Director

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

GP Law Firm (A.G. Paphitis & Co. LLC) is one of the fastestgrowing, full-service, multiawarded international law firms and business consultants in Cyprus. Clients from all over the world, including private individuals and corporations, banks, multi-million and multi-billion groups and foundations, rely on AGP’s lawyers and consultants for tailor-made, clear advice to help them succeed in their objectives. We are proud of AGP’s committed and fresh-minded people who are determined to help you succeed in your endeavours, whatever these may be, from private matters to large business imperatives. We strongly believe that hard work, personal attention and an immediate response to clients’

needs, backed with focused professionalism and talent, is what sets us apart. OUR SERVICES Headquartered in Limassol at AGP Chambers, at 84, Spyros Kyprianou Avenue, AGP was initially founded as company & commercial boutique law firm, which very shortly afterwards expanded to become a fullservice firm. It is currently divided into three main departments, as follows: Litigation Department Our litigation team undertakes every kind of civil commercial and company law advisory, advocacy, pleading and drafting work, regarding among others real estate, commercial and immigration issues and every kind of court case,, including complex and high stakes corporate and company law disputes, commercial, real estate and contractual disputes, family and matrimonial disputes, personal injuries, insurance and road traffic accident claims, landlord and tenant disputes and general civil litigation disputes in Cyprus and abroad.

AGP Law Firm was recognised for the third consecutive year as a Leading Law Firm in Cyprus in Dispute Resolution, listed among the top Cyprus Law Firms by the Legal 500. Dispute Resolution Award 2014 by the Legal 500 EMEA: “A.G. Paphitis & Co. LLC gives clients ‘a clear understanding of the picture and the options’. The group has experience representing local banks [...]. Angelos Paphitis is ‘a brilliant lawyer”. Commercial & Corporate Department AGP initially focused exclusively on company law advisory before its expansion to a full-service firm. The fast growth of our firm is due to our unconditionally high standards and our members’ solid academic background and experience in consulting corporate organisations and international groups on their company law, group structuring and corporate governance matters. We have taken over the representation of

international groups, including some of the biggest groups in the CIS countries. In addition to company law advisory, our Corporate & Fiduciary Service Department represents a number of companies for their day-to-day management and administration, their AGMs and EGMs, providing all the necessary minutes and resolutions in order to ensure full compliance with Company Law requirements. Since our foundation, we have been consistently highly rated in the main legal directories. Furthermore, from 2010 to 2014, we were honoured by multiple organisations as Corporate Governance Law Firm of the Year in Cyprus. However, please note that our awards and rankings are just one indication of the value of our firm and the commitment of our team. Corporate and M&A Award 2014 by the Legal 500 EMEA: “The ‘deeply knowledgeable and very client-oriented’ team at A.G. Paphitis & Co. LLC provides ‘constructive legal advice and profound analyses’. [...]. The

‘outstanding Angelos Paphitis’ finds opportunities when it seems the chances are gone; he looks from different angles to provide solutions clients need.”

Financial Services Advisory, Private Banking and Portfolio Management Department Headed by Angelos Paphitis, the firm represents a significant number of investment & financial services companies located in Cyprus and abroad. Our Banking and Financial Services Advisory Department offers various services among which are the following: Financial & Banking Advisory, Asset Management & Portfolio Management Advisory, Regulatory Compliance, AntiMoney Laundering and Risk Management Advisory. AGP has undertaken licensing of a great number of Financial Services (FX) firms in Cyprus (by the Cyprus Securities and Exchange Commission) and worldwide (New Zealand by FMA, Belize by FSC, BVI by FSC, UK by

FSA [now FCA]). We assist the companies applying for Investment Firm licences to overcome every legal challenge or issue that may arise during the application procedure. Our comprehensive package includes the preparation of business plans, financial, forecasting, drafting of operations manuals, compliance manuals, AML and Risk Management manuals, etc. As far as our wealth management advisory is concerned, our team comprises two former highranking bank employees who offer high-standard banking advisory to our clients. Our long track of achievements in the field of Financial Services Advisory is a result of our proactive and client-focused approach: Banking and Finance Award 2014 by the Legal 500 EMEA “A.G. Paphitis & Co. LLC’s ‘excellent’ team has expertise spanning banking, asset management, regulatory compliance, and anti-money laundering. Angelos Paphitis is highly recommended.”

CONTACT INFORMATION AGP LAW FIRM

AGP Chambers, 84, Spyros Kyprianou Avenue, 4004 Limassol, Cyprus | Tel: (+357) 25731000 | Fax: (+357) 25761004 e-mail: agp@agplaw.com | website: www.agplaw.com

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 49

SPECIAL ADVERTISING FEATURE

A. Karitzis & Associates L.L.C.

Left to right Standing: Zenonas Liasides, Antonis Karitzis, Andreas Damianou Seated: Emily Hadjichristoforou, Koula Michaelidou, Andrea-Maria Moundi, Elena Karitzis

“T

rust” is a word of immeasurable value and immense gravity. It is surprising that law firms all over the world, irrespective of their size and magnitude, working both on a local or international level, seldom use this word to describe their otherwise impressive profiles to the public, given its connotations for outstanding value and significance.. For A. Karitzis & Associates LLC (“AK”), “Trust” is a cornerstone and a value which accompanies our team members in each

and every transaction while servicing our clients and is literally embedded in our firm’s business environment. To us, “Trust” is of the utmost value and lays the healthiest foundations for an enduring relationship based on confidence and respect with our clients, partners and associates. It is part of our firm’s culture, a constituent element of all our thoughts, intentions, actions and communications. This is what makes us different from other law firms. It is Our Value. We pride ourselves on our accomplishment of gaining the trust of our clients and having them consider us as trustworthy. It is a great victory to see clients recommending us with enthusiasm, underlining our values

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and especially the trustworthiness which characterizes our firm and the people who comprise it. But the greatest victory of all is to

“

TRUST IS OUR VALUE

an insatiable desire for work while working in a collaborative and friendly environment, where everybody is equal with different responsibilities. Everybody strives towards the same goal: to provide our clients with cost-effective, innovative and pragmatic legal services, always with the utmost consideration and profundity.

”

see new clients instinctively trusting us, inter alia, with all their property and the administration of their companies, instantly, since they recognize the trustworthiness that surrounds us. AK is characterized by its simplicity and modesty. Our people have

AK is not just a law firm; it is more than just a team of people; it is a family composed of young, dedicated, determined, talented, conscientious and hard- working people with valuable legal insights, serving clients in a methodical and collaborative manner with the aim of providing an exceptional standard of legal services. Our clients are not only our

“financiers”; we consider them as part of our family. Most of our clients and associates have become good and valuable friends, with whom we share and discuss our concerns, exchanging thoughts and ideas not only on business but also on a private level. Our aim is to build friendly and pleasant business relationships which will endure over the long haul; and we are very proud to have managed it. While AK grows, it remains sharply attuned to its core values which define and determine its professional character and friendly business relationships with clients, partners and associates and which are there to sustain and leverage our success: • Trust • Integrity • Equality • Respect • Modesty • Collaboration and Teamwork • Innovation and Improvement • Methodology • Relentless Striving towards Excellence • Proximity, Sincerity and Good Humour AK provides a wide range of legal and other services which focus mostly on Cyprus and EU laws, regulations and procedures. It also offers services pertaining to the administration and management of companies and businesses. In addition, its diverse, strategic and valuable network of clientele, associates, alliances and prominent business and other people, furnishes AK with the knowledge, experience, flexibility and capability to bring before investors a broad

range of promising and attractive investments while, at the same time, providing all the requisite information and advice on the legal considerations involved and any necessary assistance with the acquisition of governmental, local or community licences/permits required for pursuing and realizing the investment. The broad range of services offered by AK, the depth of its knowledge and resources, the interaction with different industries and the experience of the people comprising the firm, all provide it with an in-depth and diverse insight into the Cypriot and EU legal, regulatory and procedural framework and what drives the various industries and markets. This enables AK to navigate across complex issues and practices, to understand needs, strengths and weaknesses and address the cases and assignments of its clients in a cost-effective manner, confidently and to the highest standards.

AREAS OF PRACTICE

AK possesses particular experience and knowledge of the following main areas of Cyprus and/or EU law and practice: Litigation Our team of lawyers have considerable experience in Civil Litigation, including Corporate and Commercial Litigation. We have been, and currently are, handling complicated and highvalue disputes with complex legal and procedural issues involved. We have practical experience and

deal with cases in all divisional Courts and tribunals, i.e. the District Courts, the Family Court, the Rent Control Tribunals, the Industrial Disputes Tribunal, the Admiralty Court and the Administrative Court. We have also considerable experience and practice before the Supreme Court. Corporate We provide a complete range of services in the corporate field. We opine and advise companies on issues arising under the Companies Law of Cyprus and of other relevant laws affecting or relating to corporations. We incorporate companies in Cyprus at the Registrar of Cyprus Companies, a field in which we have great expertise, valuable collaboration and good relations, as well as in other jurisdictions. We also provide nominee and administration services. Commercial We draft contracts relating to various areas of law with many issues involved; namely, inter alia, agreements on the sale of properties, sale of shares, shareholders agreements, wills, loan agreements, assignments, pledges, shipping contracts (MoA, charter agreements, etc.), mortgages or other securities, sale of business, joint ventures, sale of goods, employment agreements, tenancy agreements, settlement of matrimonial or proprietary issues, etc. We also provide legal opinions on the various aspects and areas of the Cyprus and

EU substantial or procedural legislation and regulations. Shipping Apart from drafting and reviewing shipping contracts and providing legal opinions on Cypriot shipping legislation, due to our knowledge and experience, we also acquire expertise on ship registration, mainly under the Cyprus flag. Immigration We deal with all kind of services pertaining to the procedures at the Immigration and Migration Departments, including issuing of Visas, Residence and Work Permits, Citizenship, etc. Our office was one of the few to have submitted, together with our associates, before 1 June 2014, a Group application for the issue of citizenship to clients who had invested a minimum amount of €2 million pursuant to the New Policy of 19 March 2014.

OTHER

• TAX ADVISORY • INTERNATIONAL AND DOMESTIC TRUSTS DRAFTING AND ADMINISTRATION • ACTING AS ESCROW AGENTS • DRAFTING AND ADMINISTRATION OF WILLS • ADMINISTRATION OF ESTATES • PROPERTY ISSUES • ROAD AND MARINE ACCIDENTS

CONTACT INFORMATION A. KARITZIS & ASSOCIATES L.L.C.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 51

SPECIAL ADVERTISING FEATURE

Andreas M. Mylonas & Co LLC

ndreas M. Mylonas & Co LLC is an independent boutique business law firm, one of the new generation of Cyprus law firms based in Limassol, built on delivering personal attention and unflagging dedication to individuals and corporations. Our firm focuses on those areas of law related to business activity and corporate law, and is committed to providing its clients with outstanding, highly personalized, legal representation in the areas of Commercial and Corporate, Renewable Energy, Trust and Asset Protection, Tax Planning and Commercial Litigation. As a full-service law firm in Cyprus, we provide a range of legal services covering all areas of the law, including registration of Cyprus companies, corporate and fiduciary services in Cyprus and abroad.

OUR PHILOSOPHY

Andreas Mylonas, Founder and Managing Director

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We act as a “single window” to businesses and corporations and our approach to the legal practice is to focus exclusively on providing an effective and value-added solution to our clients’ affairs. We always tailor our services to achieve the unique goals of each client, providing a new value proposition. Whether legal advice, tax

advice, corporate structuring advice, or just the formation of a company in Cyprus or in any other jurisdiction, these are things that we are able to offer directly. By putting all our services under one umbrella, we are also able to offer a better financial outcome for the client.

OUR MISSION

Our mission is to offer our clients first-class value-added professional assistance, paired with an in-depth understanding of their particular areas of business. We are focused on results, a commitment to excellence, creative thinking, systematic innovation and acting globally in order to add maximum value to businesses and corporations.

OUR CODE OF CONDUCT Ethics We always conduct our services honestly and honourably. Our advice and services take proper account of ethical considerations, together with the protection and enhancement of the moral position of our clients and associates. Integrity, Confidentiality, Trust and Credibility Our commitment to integrity begins with complying with all the laws, rules and regulations where we do business. We are committed to maintaining the highest degree

of integrity in all our dealings with potential, current and past clients. Special Fiduciary Duties We act in the best interests of the beneficiaries and have a duty of full disclosure. Our firm recognize that it owes scrupulous good faith, candour and care in the management of the beneficiaryâ&#x20AC;&#x2122;s interests. Conflict of interest Due to the sensitive nature of our particular consultancy services, we will not provide a service to a clientâ&#x20AC;&#x2122;s direct competitor and we generally try to avoid any dealings with competitor companies, even after the cessation of services to a particular client.

OUR EXPERTISE Corporate & Business, Mergers & Acquisitions, Private Equity Transactions, International Business The firm offers legal advice to its clients in all areas of Company Law and Corporate Governance. We can assist our clients or associates in determining the most secure legal and innovative structures for operations such as incorporations, mergers, acquisitions, corporate governance, disposals or reorganizations of businesses or groups and legal due

diligence. Moreover, we can help individuals and corporations with administering their business structures and advise on how to organize and formalize relations among company shareholders and stakeholders. We also advise and provide recommendations for the incorporation of companies worldwide, the formation of Trusts, and all corporate service matters. We offer legal and business support combined with professional advice on corporate finance and taxation matters and we are also able to undertake business- and finance-related issues in order to provide our clients with the best possible and most valuable solutions. We also handle the completion of corporate resolutions linked to capital increases, equity contributions, differentiation of class rights, transfers of shares, restructuring and insolvency services. Renewable Energy The Firm offers legal advice to its clients regarding the Renewable Energy Sources (RES) market, such as Photovoltaic Parks, wind farms, biomass, biogas and geothermal energy, encompassing all aspects of transactions entailed by RES ventures. We offer our advice on the full range of issues governed by the Renewable Energy Sources Law, including regulatory compliance, competition,

mergers and acquisitions, financing, commercial and trading contracts, commercial and corporate advice and energy taxation issues. The areas in which we provide expert legal advice to the RES market include: â&#x20AC;˘ RES advising on licensing, compliance and regulatory issues â&#x20AC;˘ RES advising on joint ventures and SPVs â&#x20AC;˘ RES M&As, shareholder relationships and corporate transactions â&#x20AC;˘ Undertaking legal due diligence and company law compliance â&#x20AC;˘ Undertaking the creation of a suitable corporate structure â&#x20AC;˘ Support for infrastructure projects including EPC â&#x20AC;˘ Commercial transactions drafting and advisory â&#x20AC;˘ Providing representation in Energy dispute resolution and litigation â&#x20AC;˘ Advising on competition issues Our firm has been involved in major projects in Cyprus, advising parties in relation to M&A, shareholder relationships, due diligence and EPC for 23 MW Photovoltaic parks. Also, our firm acts and holds a portfolio on behalf of a number of international investment groups involved in renewable energy projects in Cyprus and abroad.

Intellectual Property In todayâ&#x20AC;&#x2122;s business environment, Intellectual Property has become a key value for every company as it is the driver of innovation and commercial potential. Having an exclusive set of rights in the market gives a company an essential advantage. Intellectual Property is the only way to convert innovation and ideas into profit. Without having protection of its Intellectual Property Rights, a company risks having no potential pay-off and being copied by a competitor. Intellectual Property is a fastmoving and complex area of law, which affords protection to innovative and creative endeavours. In order to establish the IP box regime, we can consult you in the areas of Trademarks/Designs (national, EU-community, international registration), Patents, Copyright and Domain Names and provide services such as the setting up of an IP structure, Drafting of License agreements and royalties, transfer of ownership and consultation regarding managing the IP structure. The firm believes in commitment to our communities, providing extensive and worthy pro bono work and corporate social responsibility. We believe in a we-can-do attitude and by constantly creating value for the unique goals of each client, we generate even more sustainable value and give our clients a competitive advantage.

CONTACT INFORMATION ANDREAS M. MYLONAS & CO. LLC (NPHZ -`SH_LVZ 4LNHYV *OHYHSHTIV\Z Z[ Ă&#x2026;VVY 3PTHZZVS *`WY\Z c 7 6 )V_ ;LS! c -H_! c >LIZP[L! ^^^ T`SVUHZSH^Ă&#x201E;YT JVT c L THPS! HT`SVUHZ'T`SVUHZSH^Ă&#x201E;YT JVT

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 53

SPECIAL ADVERTISING FEATURE

Andreas Neocleous & Co LLC

A Andreas Neocleous, Founder and chairman of the board

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

ndreas Neocleous & Co LLC is the largest law firm in Cyprus by a considerable margin and is generally recognised as the leading firm in south-east Europe and the Eastern Mediterranean region. In Cyprus we have more than 130 feeearners operating out of three offices and an international network of offices in Moscow, Kiev, Prague, Budapest, Brussels and Sevastopol. All the independent legal rating organisations place us at the top of their rankings. We are the only Cyprus firm to achieve a top-tier rating in every practice area from the Legal 500 and Chambers Guides, a distinction achieved by only a handful of firms worldwide. Having pioneered the development of business links with Russia and Eastern Europe two decades ago, we have unmatched experience of assisting clients in investing in these dynamic and rapidlygrowing economies. In recent years we have widened our geographic horizons to include clients in Asia, particularly in China and India, the Middle East and South America.

Alone among law firms in Cyprus we have followed a strategy of specialisation, supported by investment in technology, knowledge infrastructure and an international network. Specialisation enables our people to keep at the forefront of developments in their respective fields and to develop a depth of expertise that is not possible for a general practitioner, given the complexity of modern business. We are organised into two main streams, namely noncontentious advisory work and similar activities, and contentious work such as dispute resolution. Within each of these there are specialist teams. For example, our corporate and commercial group includes specialist teams for banking and finance, corporate and M&A, tax and tax planning, insolvency and restructuring, EU and competition, intellectual property and data protection. Our dispute resolution group is organised into four teams, each dealing with a particular area of litigation. There are also industrysector groups, each of which focuses on a particular sector, such as shipping, real estate, financial services and insurance. We are the only firm in Cyprus which is fully departmentalised and equipped with the necessary information technology and knowledge management infrastructure to

“What stands out is the quality of the team’s advice, and that the lawyers are extremely commercial. They give you the legal answer and the commercial solution.” Chambers Europe Guide

deal with the needs of today’s multinational work, allowing us to match the levels of service offered by the world’s major legal centres with our in-depth knowledge of cross-border transactions. More than half our clients in number (and a much greater proportion in value terms) are international companies. All our staff speak English and we have staff speaking almost every European language. Our success in the marketplace enables us to recruit the best people, to provide them with challenging, interesting work and to give them unmatched scope to develop their career. Our guiding philosophy is to understand our clients’ aims and objectives, and to work with each client to achieve those objectives, by providing the best, business-oriented advice and assistance. We provide our clients with practical solutions to the business issues they face, rather than abstract theoretical analysis. We recognise that time is precious in today’s fast-paced business environment and we pride ourselves on our responsiveness and on getting things right first time. Each of our specialist lawyers is familiar with the latest developments in his or her field, and does not have to spend time getting up to speed in a particular area, at the client’s expense.

This saves our clients money as well as time.

MAIN AREAS OF PRACTICE Admiralty and Maritime: 1 PARTNER, 5 OTHERS This department deals with registration under the Cyprus and other flags and all aspects of ship finance. It also handles collisions, charter party disputes and executions of judgments against assets of shipping companies worldwide. Banking and Finance, including Project Finance: 2 PARTNERS, 11 OTHERS The department advises on the Cyprus aspects of major international financing transactions, including Master ISDA Agreements, secured and unsecured loans, derivatives, raising of debt and loan capital and netting agreements. It has strong links with commercial and investment banks, international development banks, trust companies and underwriters. Corporate and Commercial/ Mergers and Acquisitions: 4 PARTNERS, 41 OTHERS The department advises on

corporate management and governance, formation, merger and acquisition of companies in Cyprus and abroad, corporate reconstruction and reorganisation, capital raising transactions, and private equity work. It has particular expertise in investment via Cyprus to and from Russia, Eastern Europe and Asia. Competition and EU Law: 1 PARTNER, 4 OTHERS This department advises multinational enterprises investing in Cyprus on competition and merger control issues arising from international merger agreements, agency and distribution arrangements and joint ventures. Members of the department work closely with their colleagues in other departments to ensure compliance with EU requirements. Intellectual Property, Information Technology and e-commerce: 1 PARTNER, 6 OTHERS Advising on the acquisition, registration and protection of copyright, designs, patents and trademarks, the licensing and franchising of technology and passing-off actions.

Litigation and Arbitration: 7 PARTNERS, 30 OTHERS This department handles administrative law, admiralty, international trade law, land, matrimonial and traffic accident cases, debt collection, defamation, negligence and other torts,and conducts domestic and international arbitration, mediation and other forms of ADR. Tax Law and International Tax Planning: 2 PARTNERS, 25 OTHERS The department advises on tax law and treaties, plans structures for multinational companies and High Net Worth Individuals, and handles tax disputes. Recent tax reforms in Cyprus provide tax planning opportunities for local and international businesses and individuals. Real Estate and Immigration: 1 PARTNER, 3 OTHERS This department deals with all types of property-related work, from acquisition of residences to large scale development projects. Our immigration group has an excellent track record in handling applications for residence permits and for Cyprus citizenship for investors.

CONTACT INFORMATION ANDREAS NEOCLEOUS & CO LLC

Neocleous House, 195, Archbishop Makarios III Avenue, P O Box 50613, Limassol, CY 3608 | Tel: (+357) 25110000 Fax: (+357) 25110001| e-mail: info@neocleous.com | Website: www.neocleous.com

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 55

SPECIAL ADVERTISING FEATURE

Christos Patsalides LLC

he Law Firm Christos Patsalides LLC was established in 1996 in Nicosia, Cyprus by the Managing Partner of the firm, Christos Patsalides. Our Law firm’s goal is to provide only top quality services. It is made up of experienced and reputable advocates as well as highly-educated and excellently- trained staff in

all specialised legal fields. At Christos Patsalides LLC, our values are professionalism, consistency, integrity, and efficiency. Services Christos Patsalides LLC offers a wide range of services covering all aspects of law. Our priority is to respond to the specific characteristics and needs of each client with

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confidence and directness, and our aim is to provide the best possible service and solutions to all legal issues that may arise in relation to our clients’ needs. The quality of our services, the special and trusted expertise of our firm’s various departments, together with the formation of the required structures for the speedy and efficient management and finalisation of all cases and

claims, have marked the dynamic course of our firm in Cyprus. The firm’s Corporate and Litigation Departments both act for a particularly large customer portfolio with high expectations, with excellent organisation and professionalism, full secretarial support and sophisticated computer systems which guarantees the full implementation of all cases assigned to us.

Litigation Dept The Litigation Department of Christos Patsalides LLC provides legal representation in a wide range of law areas and, especially, debt recovery, family law related cases (divorces, alimony, parental care and rights, property disputes), administrative law matters, (appeals to the Supreme Court for the annulment of administrative acts relating to broadcastingrelated matters, issues of public tenders, asylum seekers related matters, hiring matters and promotion issues in the public sector, etc.), civil and trade law cases (contracts, torts, including traffic accidents), cases of employment law, European Law (European Court of Human Rights, European Community Law) and Criminal cases (in the District and Criminal Court). Corporate Services With the lowest corporate tax (12.5%) in the European Union, Cyprus is considered a very attractive jurisdiction for doing business. Our corporate services include the formation and incorporation of companies, the voluntary liquidation of a company, the establish-

ment and management of trusts and related services such as the establishment, management and representation of Cypriot and offshore companies, the provision of trustee services for shareholders, directors, secretary and registered office of the company. A very important part of our services relates to advisory support concerning various tax matters, tax planning restructuring, consultation for investment funds, dividend distributions, tax differences, capital gains tax, stamp duties, Value Added Tax and much more. An especially important service provided by Christos Patsalides LLC is the redomiciliation of a company to and from Cyprus. Cyprus’ redomiciliation legislation was enacted on July 28, 2006, as an amendment to the Companies Law Cap.113, to permit: • Foreign (non-Cypriot) companies to redomicile to Cyprus; and • Registered Cyprus companies to be redomiciled abroad. The existing business of a foreign company continues, without interruption, as a Cyprus company since the first company is not dissolved, but simply ‘moves’ to Cyprus. Ex-

isting companies can choose to change their seat of incorporation to Cyprus without going through a liquidation and recontribution process in the current jurisdiction so it is not necessary to wind up their activities and restart under a new company shell and it is lesstime consuming and more costeffective for the clients. The ability to redomicile companies to and from Cyprus opens up a new planning dimension for investors and traders. Foreign companies can now easily benefit from the Cypriot corporate tax regime, an option that many clients prefer. Intellectual Property Christos Patsalides LLC has a very reputable Intellectual Property (IP) Department. We provide services including the search and registration of trademarks, national, community and international trademarking together with the provision of the registration of tradenames, the validation of patents, national, European and international patent registration and validation. A few of the reasons why companies and individuals

are encouraged to register patents and trademarks in Cyprus are the following: • Cyprus has adopted the EU directives enabling it to recognize CTM and CD registrations. • Cyprus is a party to the Madrid Agreement and Protocol and PCT through which international patent or trademark applications are recorded in Cyprus. • Cyprus is a member of the Office for Harmonization in the Internal Market (OHIM) for the registration and protection of Trademarks and Industrial Designs within the European Community. • Due to the accession of Cyprus to the European Union as a full member on May 1, 2004, Cyprus legislation has been harmonized in order to bring Intellectual Property Law into line with the requirements of the acquis communautaire. • Commercial activity on the island creates the necessity to offer protection to the IP rights of physical and legal entities in order to validate such activity. An important part of the abovementioned services is provided by our affiliated company, Christos Patsalides Corporate Management Ltd.

CONTACT INFORMATION CHRISTOS PATSALIDES L.L.C. ADVOCATES & LEGAL CONSULTANTS

31 Evagoras Avenue, Evagoras Building, Suites 41 - 43, 1066 Nicosia, Cyprus | Tel: (+357) 22677677 | Fax: (+357) 22674422 e-mail: info@patsalides.com.cy | Website: www.patsalides.com.cy

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 57

SPECIAL ADVERTISING FEATURE

Chryssafinis & Polyviou LLC

C Polyvios G. Polyviou, Senior Partner

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

hryssafinis and Polyviou is one of the leading and most prestigious firms of Cyprus operating for more than a century. Established in 1903 by the late N.G. Chryssafinis, it has continued for generations to provide the highest standards of legal services both in the local and in the international sector. It is based in Nicosia and its clients include mainly banks, investment and insurance companies, utilities and public enterprises, airlines, petroleum companies and others. It also has a wide range of reputable international clients. Its strong reputation has been built on values and has been appraised for the full commitment to its clients, its long-term professional relationships, the quality and cost-effectiveness of its services and the continuous accessibility and legal support that it provides to its clients. It is has also been proven to be one of the most active law firms in Cyprus in litigation matters handling cases on a

daily basis before the Courts of Cyprus, including the Supreme Court where, over the years, it has created strong precedents in complex legal matters. The firm’s extensive and powerful network of correspondent law firms, which includes some of the world’s leading firms, allows it to provide effective and efficient legal support to the needs of its clients worldwide. The firm is highly rated at an international level by the Legal 500 and Practical Law Company and it is an active member of the International Chamber of Commerce in Cyprus with which it co-organises seminars in Cyprus and also joins with them in seminars organised by the ICCC abroad. It is also a member of MI InterAct.

THE TEAM

The Firm currently employs over 60 people, 25 of whom are highly qualified lawyers in their own fields – Banking Law, Insurance Law, Competition Law, Company Law, Mergers and Acquisitions, Business Law, Employment Law, Aviation Law, Media Law, Arbitration Law and others. The Senior Partner of the firm, Mr. P.G. Polyviou, handles complex cases before

all the District Courts of the Republic as well as the Supreme Court of Cyprus and European Tribunals where he has appeared in a number of important cases. The Managing Partner, Mrs. Stella Polyviou, heads the Litigation Department and, under her auspices, the firmâ&#x20AC;&#x2122;s experienced litigation team handles a wide variety of general, civil and commercial litigation in the fields of corporate, banking, employment and personal injuries cases as well as civil and commercial contract and tort law issues

MAIN AREAS OF PRACTICE Banking and Finance Law The Banking and Finance Department specializes in Mergers and Acquisition, Competition Law, employment issues, drafting and consultation and is headed by the Senior Partner, Mr. P.G. Polyviou. The firm is also extensively and actively involved in the litigation issues on these fields of law. Administrative and Regulatory Law The firm has been instructed

on various occasions by the Government of the Republic of Cyprus and by the House of Representatives in connection with the carrying out of various legal tasks, including the representation of the Republic before European Courts and Tribunals. Insurance, Employment and Commercial Law The Firm has a long history of experience in these areas of law and has a very strong team of legal experts. Not only does the firm provide expert advice but its clients are also represented in court by the Managing Partner, Mrs Stella Polyviou and her experienced Litigation Department team. International and Corporate Law The Firm has a separate Department dealing specifically with international and corporate law matters. The Department provides the full range of corporate services, ranging from the incorporation of companies to the drafting of related corporate agreements and the provision of all the necessary legal support for the management and annual operation of companies. The Department,

which deals with both local and international companies as well as with the setting up and administration of international trusts, is headed by Mrs Stella Kammitsi. At the same time its qualified team of lawyers provides to its corporate clients all the required legal advice and support in restructuring and reorganizations, mergers and acquisitions, joint ventures, listing on local and foreign markets, corporate finance and redomiciliation. It also assists in escrow, fiduciary and trust arrangements. The services extend to drafting and registration, if required, of any security documentation, liaising directly with banks and finance institutions, issuing legal opinions and carrying out legal due diligence checks. Recent Landmark Cases The firm has been advising on a number of complicated and impressive transactions known to the professional sector, which reflects the professionalism and high ranking of the firm both locally and internationally and its wide reputation. Most of these cases are unknown to the wider public as the firm avoids â&#x20AC;&#x201C; to the greatest possible extent â&#x20AC;&#x201C; attracting

publicity to the cases it is dealing with, in order to ensure the privacy of its clients and of their business transactions. Litigation Department: Over the last three months, the Litigation Department has successfully represented its clients in discharging a range of interim orders, which were issued on an ex parte basis and, by virtue of which, clientsâ&#x20AC;&#x2122; assets worth more than â&#x201A;Ź400 million were frozen. International Corporate (Restructuring and Finance) Transactions Recently the International Corporate Department team has been advising on an international financing transaction of over US$500 million by providing one of the largest international banks with legal feedback and support from the perspective of Cyprus law on all the required agreements and legal documentation, by issuing a Cyprus law Legal Opinion, and by liaising and working very closely with the lawyers of all the other jurisdictions involved in the transaction.

CONTACT INFORMATION CHRYSSAFINIS AND POLYVIOU LLC 4PJOHSHRP 2HYHVSP :[YLL[ (ULTVT`SVZ 6MĂ&#x201E;JL )\PSKPUN [O -SVVY 5PJVZPH 7 6 )V_ 5PJVZPH Âś *`WY\Z ;LS! c -H_! c L THPS! JOY`ZZHĂ&#x201E;UPZ WVS`]PV\'JWSH^ JVT J` c >LIZP[L! ^^^ JWSH^ JVT J`

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 59

SPECIAL ADVERTISING FEATURE

Costas Indianos & Co, Advocates & Legal Consultants banks, municipalities and individuals.

AREAS OF PRACTICE Our main areas of practice are the following:

CORPORATE LAW

Over the years, the firm has acquired a local & international client base comprising international corporations, individual businessmen and investors, ship owners & ship owning companies, commercial

TAXATION & TAX PLANNING

Antonis Indianos, Managing Director

ostas Indianos & Co, Advocates & Legal Consultants was established in 1924. Our law firm provides custom-made legal services with a focus on quality, time efficiency and confidentiality.

Our firm has a long experience in corporate law and we currently provide the following legal services: • Company registration: Cyprus, Hong Kong, Malta, BVI & other jurisdictions • Fiduciary services • Administration, Redomiciliation and Liquidation of Companies • Cyprus International Trusts • Cyprus Investment Firms • Cyprus Investment Funds • Joint Ventures & CrossBorder Transactions • Contracts & Agreements • Due Diligence & Company Search • Escrow Agent Services

Together with Corporate Services, our law firm provides tax planning advice to clients wishing to optimise their international business activities.

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

The main advantages of Cyprus taxation are the following: • Corporate Tax 12.5% • 2.5% effective tax on royalties • Tax exemption on dividend income • No capital gains tax on sale of securities/shares or immovable property situated abroad • No withholding tax on payments from Cyprus • No thin capitalization rules • No estate duty • Unilateral tax credit relief • EU directives • Double Tax Treaty network

CYPRUS INVESTMENT FUNDS Our firm provides this service in collaboration with a licensed financial consultant in order to provide the following: • Advice and directorship for AIFs registered in Cyprus. • Preparation and advice on the content of the application to the relevant authorities including monitoring thereafter. • Provision of fund administrative services accounting and bookkeeping reporting to the relevant authorities.

• Administration and prov sion of external parties services i.e. custody, audit, brokers, and banks. The legislation of 200(I)/2004 transposing the Collective Investment in Transferable Securities (UCITS IV Directive) allows the incorporation of open ended public funds, namely Mutual Funds (MF) and Variable Capital Investment Companies (VCIC), both of which are regulated by the Cyprus Securities and Exchange Commission (CySEC). The funds can be offered to the public at large and may be sold across the EU, subject to a brief registration procedure with each country’s regulator. (For all legal and financial conditions presently applying to Cyprus public funds please refer to the “Cyprus Investment Funds” page of our website www.indianos. com.cy) The legislation transposing the Alternative Investment Fund Managers Directive (“AIFMD”) legislation makes provision for the authorization, ongoing operation and transparency of Alternative Investment Funds (AIFs). The International Collective

Investment Scheme (ICIS Law of 1999) is the only type of AIF in Cyprus. The Law regulates private funds under the authority of the Central Bank and there is restriction as to their investment scope. (For all legal and financial conditions presently applying to Cyprus private funds please refer to the â&#x20AC;&#x153;Cyprus Investment Fundsâ&#x20AC;? page of our website www.indianos.com.cy) The new legal framework for AIFs will put them under the authority of CySEC with four types of AIFs, namely, a Fixed Capital Company, Variable Capital Company, Limited Partnership or Common Fund, established by either a limited or unlimited number of persons and for a limited or unlimited duration. (For all other conditions please refer to our website www.indianos.com.cy) The tax advantages for UCITS and AIFs are similar to those of the Cyprus Company.

SHIPPING LAW With the recent Merchant Shipping Tonnage Tax

Legislation 44(I) 2010 providing benefits to ship owners, managers and charterers, Cyprus remains one of the worldâ&#x20AC;&#x2122;s largest ship registries and one of the largest third-party ship management centres. Shipping is one of the main activities of the firm which provides legal services to clients for shipping loans & mortgages, registration and administration of Cyprus shipping companies, registration of ships under the Cyprus flag and registration of ships under flags of other jurisdictions.

IMMIGRATION LAW (CITIZENSHIP) The firm provides legal advice and assistance to both EU and non-EU clients for the acquisition of residence & work permits, including the European Permanent Resident Immigration Permit (Category F) for third country nationals investing in Cyprus. According to the new legal framework of the Civil Registry Law there are six different ways for an applicant to

acquire Cyprus citizenship by exception, all including the obligation to purchase a permanent residence in Cyprus of at least â&#x201A;Ź500,000 + VAT, except for point 2 below. Furthermore, for paragraphs 1, 2,3,4,6 below, the minimum investment can be reduced from â&#x201A;Ź5 million to â&#x201A;Ź2.5 million for an investor participating in a collective investment worth at least â&#x201A;Ź12.5 million. 1. â&#x201A;Ź5 million investment in State Bonds. 2. â&#x201A;Ź5 million investment in financial assets of Cyprus Companies or Cyprus Organisations. 3. â&#x201A;Ź5 million direct investments in real estate, developments & infrastructure. 4. â&#x201A;Ź5 million investment in companies residing and operating in Cyprus that he has acquired, incorporated or in which he has participated. 5. â&#x201A;Ź5 million deposit in a Cyprus bank for a minimum period of 3 years which can be personal or of private entity or of a trust with the applicant being the beneficiary.

6. â&#x201A;Ź5 million investment combination of a) to e): a) Investments in state bonds b) Investment in financial assets of Cyprus Companies of Cyprus Organisations c) Direct investments in real estate, developments & infrastructure d) Incorporating, acquiring or investing in Cyprus Companies e) Deposits to Cypriot Banks 1. Any foreigner who has suffered impairment in the Bank of Cyprus or Laiki Bank on his deposits of at least â&#x201A;Ź3 million as of March 15th 2013 due to measures imposed on the two banks, may still apply for Cypriot citizenship provided that he/she invests the remaining amount (necessary to sum up to â&#x201A;Ź3 million) in one of the above mentioned ways, except investment combination. Other areas of practice include: â&#x20AC;˘ REAL ESTATE â&#x20AC;˘ LITIGATION â&#x20AC;˘ INHERITANCE LAW â&#x20AC;˘ FAMILY LAW â&#x20AC;˘ INTELLECTUAL PROPERTY

CONTACT INFORMATION COSTAS INDIANOS & CO, ADVOCATES & LEGAL CONSULTANTS +PHNVYV\ :[YLL[ [O -SVVY 6MĂ&#x201E;JLZ 5PJVZPH c 7 6 )V_ *@ 5PJVZPH c Tel: (+357) 22675231 / 22665232 | Fax: (+357) 22669678 | e-mail: indianos@indianos.com.cy | Skype: anthony.indianos | Website: www.indianos.com.cy

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 61

SPECIAL ADVERTISING FEATURE

Costas Tsirides & Co LLC

C Alexandros Tsirides, Managing Director

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

ostas Tsirides & Co LLC was formed in 1970 by its founder, Costas Tsirides, and since then it has been established as one of the most reputable and respected law firms in Cyprus. The firm’s head office is in Limassol, the commercial centre of the island and home to many national and international businesses. In over 44 years of successful practice, we have managed to build a large clientele from all over Cyprus as well as internationally. Many of our clients are reputable and established in their field and they require both a speedy service and a high level of expertise from their consultants. Our firm was established as a General Practice and it has remained so over the years, even though each member of the firm now specializes in a different area of the law. Our lawyers, each a specialist in his/her own field, offer our clients a large variety of services covering all aspects of law. Our firm is committed to

each and every one of our clients and we handle each case with respect and discretion, aiming to develop a personal relationship with our clients, based on mutual trust. This philosophy has always helped us offer our expertise by understanding the true needs of our clients and we pride ourselves on the fact that all our clients – private or commercial, individuals or corporate – receive the same personal service and care. The above values are fundamental to our approach and will always remain so. In addition, the lawyers of our firm act as arbitrators, legal advisors and serve as members of the Board of Directors of a substantial number of companies, both private and public, registered and/or carrying out business in Cyprus and abroad. Our firm is a member of B.G.I. a worldwide association of independent law firms. (www.balms.com) Costas Tsirides & Co. LLC has received the following awards: 2010-2014 Business Formation Law Firm of the Year in Cyprus Award from Corporate INTL legal awards 2010 Boutique Law Firm of the year in Cyprus Award from Corporate INTL Global awards

Our firm is a member of B.G.I. a worldwide association of independent law firms.

2011 Litigation Law Firm of the year in Cyprus from Corporate INTL legal awards 2011 & 2013 Business Formation Law Firm of the Year in Cyprus Award from Global Law Experts Practice Awards 2014 Business Formation Law Firm of the Year in Cyprus Award from Corporate INTL Global awards.

AREAS OF PRACTICE The firm provides services in the following areas: Civil Litigation Our firm has a long history and experience in dealing with civil litigation and has been involved in litigation representing both local and foreign high networth clients. Our work includes: • contractual issues • commercial matters (including company and partnership matters and civil fraud) • land and property disputes (including ownership and trust claims) • negligence claims (including personal injuries, economic loss and technical disputes) • professional negligence matters • breach of statutory duty • administrative law • family law

Arbitration The firm is in a position to provide its clients with services in the field of arbitration law as required. Members of the firm have substantial experience in arbitral proceedings of commercial disputes, acting both as counsels and as arbitrators. We have a broad experience in a variety of commercial areas from construction law and cases involving disputes ranging from breach of contract to fraud and breach of fiduciary duty. Members of the firm have been appointed as members of the Chartered Institute of Arbitrators. Corporate & Commercial Our firm has been heavily involved with international business and has established strong, dedicated department dealing exclusively with corporate formation and administration. This department consists of lawyers, paralegals, accountants and clients managers. We have succeeded in attracting and maintaining a strong client portfolio including major industrial and financial groups from Central Europe, Russia, Ukraine and other CIS countries and the Middle East. Costas Tsirides & Co LLC offers a full range of services from company formation to the admin-

istration and management of a company. Our firm can also act as the legal advisor to both local and international companies in their everyday dealings. The range of services provided includes: • Advising and assisting in the Formation of a new Company • Administration & management of companies • Full domiciliation services • Shareholders’ agreements • Takeovers, mergers and acquisitions • Legal Due Diligence services • Partnership formation and dissolution • Loan, agency and distributorship agreements • Joint Ventures • Competition Law • Intellectual Property The firm also specializes in takeovers, mergers and acquisitions and has acted as legal consultant in transactions where Cyprus Law is involved. Our firm has also extensive experience in IPOs and listings of Cyprus companies on various stock exchanges worldwide. Other areas in which the firm specialises are shareholder’s agreements, partnership agreements, partnership formation and dissolution, agency and distributorship agreements and joint venture agreements.

Property & Conveyancing Costas Tsirides & Co LLC is one of the leading law firms in Cyprus, with vast experience in Real Estate and Property Law, offering a wide range of services. Construction Law Our firm also provides the full range of construction law advice and assistance. Trusts & Probate Our firm offers a full range of trust services. We undertake the setting up of local or Cyprus international trusts and members of our firm can act as trustees. The firm also specializes in Probate law. We offer a full range of services including the drafting of wills, administration of estate and probate litigation. Banking and Finance The firm offers specialist expertise in litigation, drafting and advisory work relating to retail banking and financial services. Our clients include some of the country’s leading commercial banks.

CONTACT INFORMATION COSTAS TSIRIDES & CO LLC

Grivas Dighenis Avenue, Panagides Building - 2nd Floor | P.O.Box 56250, 3305 Limassol | Tel: (+357) 25820810 Fax: (+357) 25359772 | e-mail: info@tsirides.com | Website: www.tsirides.com

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 63

SPECIAL ADVERTISING FEATURE

Elias A. Stephanou LLC

Left to right Marios Spyrou, Vasilis Charalambous, Elias A. Stephanou, Andreas Christou

riminal law, is the most interesting and challenging area of law. The penal code, CAP. 154, as it has been amended throughout the years, is the main legislation that covers a variety of criminal acts or omissions. There are also other specific

pieces of legislation or regulations, which cover various criminal activities and which regulate citizen’s behaviour. When we refer to “crimes” our mind usually goes to cases of murder, theft or robbery, sexual offences, misuse of drugs, threats, or even traffic offences. Criminal law, though, may apply also in numerous business- and corporate-related cases. Crimes of corruption,

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misuse of power by a public officer, tax and social insurance evasion, bribery, fraud, issuing blank cheques and other similar crimes, are often committed by businessmen and companies. Moreover, a person or a legal entity may be charged for the commission of a crime, if they violate laws and regulations regarding, copyright, employment, health and safety at work, protection of the environ-

ment, operation of factories and other industries, pollution of sea/land/air, business operation and licenses and various other issues. Businessmen, companies or company directors might find themselves in a police station as suspects or in the dock as defendants in court. Company Directors may also be suspects or accused for a company’s illegal actions or omissions. On the

other hand, they may become victims of malicious behaviour. Business- and corporate-related crimes are not unknown to the Cyprus Justice system, especially nowadays with a great number of such cases being tried daily by Cyprus courts. In such cases, what is needed is a law firm that has the knowledge and the expertise to provide a client with the outmost support and advice, from the moment he/she is called to the police station. Due to their nature, business- or corporate-related criminal cases are often complicated. Being so, there is an enhanced need for support by experts in this particular field.

THE FIRM

Elias A. Stephanou LLC, is a newly-established firm based in Nicosia. It deals mainly with criminal cases of all kinds and all degrees of seriousness, and provides its clients, whether victims or accused, with legal services. The firm was established in February 2013 by managing director Elias Stephanou, who has dealt in the past with numerous criminal cases before the District and Assize Courts of Cyprus, primarily as a prosecutor in the Attorneyâ&#x20AC;&#x2122;s

General office and, later, as a defence lawyer, when he moved in the private sector. His involvement in various criminal cases has helped him evolve fast as a defence lawyer, as well as an academic in this special area of law. Elias is a lecturer on Criminal and Evidence Law in the Law Department of the University of Nicosia, as well as a visiting lecturer at the University of Cyprus, the Open University and the Police Academy. He has also published various legal articles and he has contributed to legal books. It is worth mentioning that he was the legal editor and the author of the conclusion of the book Financial Crime in Businesses â&#x20AC;&#x201C; Prevention, Investigation, Deterrent (Î&#x;ÎšÎşÎżÎ˝ÎżÎźÎšÎşÎŹ Î&#x2022;ÎłÎşÎťÎŽÎźÎąĎ&#x201E;Îą Ď&#x192;Ď&#x201E;ÎšĎ&#x201A; Î&#x2022;Ď&#x20AC;ÎšĎ&#x2021;ÎľÎšĎ ÎŽĎ&#x192;ÎľÎšĎ&#x201A; â&#x20AC;&#x201C; Î Ď Ď&#x152;ÎťÎˇĎ&#x2C6;Îˇ, Î&#x201D;ÎšÎľĎ ÎľĎ?Î˝ÎˇĎ&#x192;Îˇ, Î&#x2018;Ď&#x20AC;ÎżĎ&#x201E;Ď ÎżĎ&#x20AC;ÎŽ.) The other members of the team are also specialised in the field of Criminal Law. With a university background in Criminal Law and Criminal Justice and thanks to the experience gained over the years by appearing and practising before the Criminal Courts of Cyprus, the members of our firm can handle all kinds of criminal cases and sup-

port defendants, suspects and victims all over Cyprus with professionalism. Moreover, the team can defend wanted persons in European Arrest Warrant or other international extradition procedures. The firm can also escort victims to police stations and provide them with guidance as to how to proceed with a complaint. Also, upon the instructions of a client, lawyers from the firm may attend a criminal case, observe, keep records and inform the client how a case that concerns them is proceeding. In general, Elias A. Stephanou LLC can provide professional legal advice and assistance to anyone involved in any kind of criminal case. In addition, our firm can help clients understand various pieces of legislation and explain in simple language what a law or regulation prohibits in relation to the operation of a company or a business, in order to avoid being exposed to any sort of criminal liability by performing or omitting to perform certain acts. Private Prosecution Cases The company also offers legal

services in Private Prosecution Cases. Such cases may be initiated by private individuals against other persons and/ or legal entities for the commission of crimes punishable with a maximum penalty of up to five yearsâ&#x20AC;&#x2122; imprisonment. Every victim, whether a natural person or a legal entity, has the right to take criminal action against the perpetrator of a crime which has affected him/her. Cases of this nature usually concern the issuing of blank cheques or some sort of fraudulent behavior. Our Clientele Our firm has a variety of local and foreign clients, both natural persons and legal entities. So far, we have supported businessmen and companies from UK, Russia, Israel and other European Countries in criminal cases. It is worth mentioning that when the economic crisis began, we were called upon by various large firms, reputable businessmen, company directors and banking executives requiring advice. Moreover, we often handle cases in the Criminal Courts in which directors and companies are defendants.

CONTACT INFORMATION ELIAS A. STEPHANOU LLC ;OLTPZ[VJSLZ +LY]PZ :[YLL[ UK Ă&#x2026;VVY 5PJVZPH c 76 )6? 5PJVZPH c ;LS! Fax: (+357) 22274501 | e-mail: info@stephanoullc.com | Website: www.stephanoullc.com

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 65

SPECIAL ADVERTISING FEATURE

Harneys

Aristodemou Loizides Yiolitis LLC

ristodemou Loizides Yiolitis (Harneys Cyprus), a Cypriot law firm founded in 2006, merged with Harney Westwood &Riegels (Harneys) a member of the Offshore Magic Circle group of law firms in 2009, to become the only international law firm with an on-the-ground presence in Cyprus. As a part of the international Harneys network with offices in the British Virgin Islands, Cayman Islands, Hong Kong, London, Singapore, Montevideo and Uruguay, Harneys Cyprus is well-equipped to provide legal service built around professionalism, personal service and rapid response. The firm has a wide international network of preferred law firms and is able to assist clients in their work across the globe without compromising quality and successfully remains at the forefront of legal developments by ensuring that it is always one step ahead of the market and ready to assist clients with their needs as they arise. The firm is known for delivering commercially pragmatic advice to its clients and providing efficient solutions to their legal needs. Since the day of its establishment, the firm has also ensured Demetris Loizides, Managing Partner

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

that its philosophy captures the essence of an international trend of investment into and via Cyprus, driven by the favourable Cyprus tax regime by providing a seamless service to clients wishing to take advantage of Cyprusâ&#x20AC;&#x2122; extensive network of double tax treaties. At the same time, Harneys Cyprus successfully nurtures close relationships with its high-profile international clients which include international commercial and investment banks, leading international law firms, international leasing companies, multinational corporations and high net worth individuals.

AREAS OF PRACTICE Corporate & Commercial The Corporate department is well known for providing commercially astute advice and practical solutions to legal obstacles, drawing on a deep understanding of corporate law and the intricacies of the local legal market. The department has a wealth of experience in dealing with high-level deals and regularly assisting international clients with complex corporate issues, including IPOs on foreign regulated markets (e.g. London Stock Exchange, NASDAQ, Warsaw Stock Exchange); crossborder transactions of any size and complexity; mergers and acquisitions; joint ventures; corporate governance matters and shareholder issues; due diligence in connection with acquisitions involving private and public

Cypriot companies. Recent deals include acting for TCS Group Holding PLC, the 100% parent company of Tinkoff Credit Systems Bank (TCS Bank) in relation to an offering of global depositary receipts (GDRs) listed on the London Stock Exchange, being the largest IPO listing in 2013 of a Cypriot issuer, which was led by Managing Partner Demetris Loizides as well as acting on the sale and purchase of 50.1% of the shares in Euroset, Russia’s largest mobile communications retailers, in a $1.2 billion sale transaction, led by partners Emily Yiolitis and Margarita Hadjitofi. The Corporate team has been described by clients quoted in Chambers and Partners as “practical, very quick and efficient” and is known for “tackling sophisticated transactions”, with Managing Partner Demetris Loizides described as “deeply knowledgeable” by The Legal 500. Banking & Finance Harneys Cyprus is recommended as a Top Tier firm for Banking & Finance in a variety of leading independent international legal directories. Typical transactions handled by the Banking & Finance team include advising on international financing and security structures through Cypriot companies and acting as Cyprus counsel for lenders or borrowers. In addition, in spring 2013, Harneys launched its Cyprus Banking Group to support clients in the aftermath of the March 2013

events. Recently the department represented Jefferies International Limited and Jefferies LLC in Emma Delta Finance’s noteworthy high yield offering in 2013, relating to the privatisation of a controlling stake of the Hellenic Football Prognostics Organisation S.A. (OPAP). The sale of the 33% of OPAP by the Greek government constitutes the country’s first major privatisation. The firm won an award for its role in the High Yield Deal of the Year category of IFLR’s 2014 European Awards. The Legal 500 recommends Banking & Finance partners Pavlos Aristodemou and Nancy Erotocritou, with clients commenting that they both have “unshakeable dedication” and give “the highest standard of advice.” Asset Management and Investment Funds Harneys Cyprus’ Asset Management and Investment Funds department offers clients expert advice on cross-jurisdictional operations. The department advises internationally renowned asset managers and banking groups on Cypriot Law matters as well as several Cypriot Investment Firms on all regulatory aspects of their operations. Given the additional regulatory requirements imposed by the recently enacted AIFMD, the department is increasingly involved in advising international and local asset managers. As a part of the

Harneys family, Harneys Cyprus is the only law firm in Cyprus that can offer consolidated crossjurisdictional advice on AIFMD matters involving offshore funds and/or offshore fund managers. Litigation Although Harneys Cyprus initially distinguished itself from other Cypriot law firms by focusing solely on transactional work and did not represent clients in litigation proceedings, it has recently successfully launched its litigation department and has already made a dynamic entry into the market. The department handles high-level commercial and corporate disputes for international businesses, appearing before the district courts and the Supreme Court in proceedings such as shareholders’ disputes, corporate fraud, injunctive reliefs and recognition and enforcement proceedings of foreign judgments/arbitral awards. The Harneys Cyprus litigation department is particularly wellversed in dealing with (and able to assist clients with) contentious issues relating to the March 2013 banking crisis. Bespoke Private Client Services Harneys Cyprus’ private client department offers support to High Net Worth Individuals and businesses on complex schemes and tax optimisation. Partner

Emily Yiolitis, also the Chair of the Society of Trust and Estate Practitioners in Cyprus (STEP Cyprus), works with clients to achieve asset protection and estate planning and has been described by Chambers & Partners as “well versed in family succession planning, double taxation treaties and cross-border tax matters”. Testimonials Harneys Cyprus is committed to providing fast, reliable and commercially relevant legal advice and, as a result, the high quality legal services in a range of corporate and private client practice areas that the lawyers of the firm provide are consistently highly rated and recommended by leading independent international legal directories such as Legal 500, Chambers and Partners, IFLR1000, Citywealth and Who’s Who among others. “[Harneys Cyprus service is] akin to that of Magic Circle law firms.” – LEGAL 500 “[Harneys Cyprus] enjoys a strong reputation with international clients, who appreciate the team’s dynamic attitude.” – CHAMBERS EUROPE “They are very clear, commercial and technically top-notch.” – CHAMBERS GLOBAL, CLIENT COMMENT “We insist on the best and that’s what Harneys delivers” – CHAMBERS GLOBAL, CLIENT COMMENT

CONTACT INFORMATION HARNEYS ARISTODEMOU LOIZIDES YIOLITIS LLC

313, 28th October Avenue, 3105 Limassol | Tel: (+357) 25820020 | Fax: (+357) 25820021 e-mail: demetris.loizides@harneys.com | Website: www.harneys.com

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 67

SPECIAL ADVERTISING FEATURE

I. Frangos & Associates LLC

Frangos & Associates LLC is a leading Cyprus law firm providing a comprehensive range of legal services from its own freehold premises in Larnaca, located just minutes away from the international airport. Our team comprises lawyers, tax advisors, administrators and staff with specific expertise in their field. Founded in 2000 by Mr. Iosif Frangos, it has rapidly expanded to become the largest law firm in Larnaca.

MANAGEMENT

Iosif Frangos (LLB, LLM) Managing Partner (joseph@frangoslaw.com, joseph@bybloserve. com ) Maria Raphael (LLB,LLM) Head of Legal and Litigation Department (maria@frangoslaw.com)

DIVERSE CLIENTELE

Over the years, we have created a large and diversified client base, comprising individuals and corporations ranging from local and international entities to financial institutions, public authorities and all the major Cypriot commercial banks. They represent a broad spectrum of sectors, including finance, banking, real estate, industry, trade, information technology, telecommunications and sports. Our staff is multilingual, hence efficient communication with Iosif Frangos, Managing Partner

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

our international clients is easily achieved.

AREAS OF PRACTICE

Our versatile law firm operates in a departmental basis, covering the following areas of practice; 1. Litigation 2. International Debt Collection and Recovery 3. Alternative Dispute Resolution (Arbitration and Mediation ) 4. Transactional practice 5. Corporate, Accountancy and Tax 6. Real Estate and Construction 7. Wills and Probate 8. Immigration ( Residence and Citizenship ) 9. Sports Litigation • Accident and Personal Injury • Administrative Law • Banking and Finance • Company Law • Competition Law • Construction Law • Corporate Litigation • Cross-Border Litigation • Criminal Law • Debt recovery • Employment and Pensions • Enforcement of court and arbitration decisions in Cyprus and abroad • European Law • Family Law • Insurance Law • International Law ( Private and Public) • Intellectual Property Law • Sports Law

• Tax Law • Torts • Wills and Estate Administration International Debt Collection and Recovery Our professional debt collection team provides our clients with worldwide collection services aiming at the collection and recovery of debts of individuals or entities located or owning property abroad. Arbitration and Mediation We frequently engage in domestic and international arbitration, both as acting counsels and as members of arbitration boards. Members of our firm are also accredited to serve as mediators. Transactional Practice We engage daily in transactional practice outside the courtroom, which may include: • Negotiating and planning business and other transactions • Reviewing, structuring and drafting contracts and legal documents, interpreting and analysing legal documents and contracts • Out-of-court settlement attempts and negotiating disputes • Extensive legal research into nearly every field of law • Drafting legal opinions on complex issues • Conducting complex due diligence reports

Corporate, Accountancy and Tax

Bybloserve Management Ltd is an affiliate of I. Frangos & Associates LLC, which provides specialised corporate management, trust ,fiduciary and financial services to a respectable volume of High Net Worth Corporations and Individuals around the globe. Services: Worldwide Corporate Services We register, manage and administer companies in all major jurisdictions Banking Services Our close links and cooperation with the banking sector in Cyprus allow us to provide a vast range of banking services with any of the major banks in Cyprus. Management & Administration Services Our firm is in a position to provide the A-Z of corporate management and administration. Accounting Our office operates a complete accountancy department with qualified and experienced accountancy personnel. Corporate and Personal Taxation Our tax specialists can provide advice and assistance in the areas of Personal Taxation, Corporate Taxation, International Tax Planning and Structuring, V.A.T and other indirect taxation.

International Tax Planning Our firm has extensive experience in advising clients on changes to domiciliary, corporate restructures, tax minimization strategies, taking advantage of double tax agreements arrangement and the use of Special Purpose Vehicles (SPVs) for tax optimization For more information, visit www. bybloserve.com Real Estate and Construction Our Real Estate and Construction Department is mainly engaged in legal work for foreign individuals and entities purchasing property in Cyprus for residential or investment purposes. Having built a large international clientele over the years, we can now offer our clients a ‘one stop shop’ including but not limited to the following services: • Contract Drafting • Land Registry registrations /transfers/searches • All matters affecting and/or related to the acquisition of immovable property by foreigners including permits, residence permits etc. • Property Management • Estate and Tax Planning Wills and Probate Over the years we have dealt with many estate administration cases. We are also well equipped to act as will executors or estate administrators. Main services: • Trusts • Drafting of Wills • Probate and Estate Administration

• Advice on contested wills • Resealing foreign grants • Probate Litigation Immigration (Residence and Citizenship) Our Immigration Law team, thanks to many years of experience with clients of different nationalities, is able to identify and advise you on the most viable solution which meets your needs, based on your specific circumstances. The department deals with: • EMPLOYMENT PERMITS • TEMPORARY RESIDENCE PERMITS • PERMANENT RESIDENCE PERMITS • FAMILY REUNIFICATION PERMITS • CYPRUS CITIZENSHIP APPLICATIONS • LONG-TERM RESIDENCE PERMITS • PROPERTY ACQUISITION PERMITS Sports Our firm has represented a number of Cypriot First Division football clubs and individual football players over the years. We have tremendous experience in this aspect of law, comprising, inter alia, drafting and legally analysing contracts with players, players’ agents and football clubs. Our firm has litigated in front of football adjudicating bodies including the Cyprus Football Association (CFA), FIFA and the Court of Arbitration for Sport (CAS).

CONTACT INFORMATION I. FRANGOS & ASSOCIATES LLC

10, PatronStr, 6051Larnaca | P.O. Box 40665, 6306 Larnaca | Tel: (+357) 24812581 | Fax: (+357) 24812583 e-mail: info@frangoslaw.com | Website: www.frangoslaw.com

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 69

SPECIAL ADVERTISING FEATURE

Ioannides Demetriou LLC Standing left to right Nayia Morphi, Christos Frakalas, Christina Ioannidou Seated left to right Andrew Demetriou, Pambos Ioannides

oannides Demetriou LLC (or idlaw as it is also known to its clients) is a leading law firm. The founders of idlaw, Pambos Ioannides and Andrew Demetriou, require no introduction. They are established and respected lawyers, advising a portfolio of both local (public and private sector) and international clients, which is second to none. Their clients include, amongst others, the Electricity Authority of Cyprus, Hermes Airports Ltd, the Cyprus Stock Exchange, the University of Cyprus, the Open University of Cyprus, the Cyprus Agricultural Payments Organisation, Hilton Hotels, Cyprus Forest

Industries, local and international banking and financial institutions and trading houses, High Net Worth foreign companies and individuals having business interests in Cyprus or running their business through Cypriot companies.

• DISPUTE RESOLUTION SERVICES (ARBITRATION, MEDIATION, CONCILIATION) • PROCUREMENT • COMPETITION • TAXATION • TRUSTS AND ESTATES

MAIN AREAS OF PRACTICE

They are ranked as leading individuals in the legal directories in their respective spheres of expertise. Their standing within Cypriot legal circles is such that they are not only involved in some of the largest civil cases in Cyprus but they are also appointed as arbitrators on the recommendation of their peers in some of the most high profile and complex arbitrations with a Cyprus element, both in Cyprus and overseas.

• COMMERCIAL LITIGATION • MERGERS AND ACQUISITIONS • BANKING AND FINANCE • INTERNATIONAL AND LOCAL CORPORATE LEGAL SERVICES • FULL CORPORATE FIDUCIARY AND ADMINISTRATIVE SERVICES (THROUGH NOBEL TRUST LTD)

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

Ioannides Demetriou LLC’s corporate vision is to be the first point of reference whenever its clients encounter legal problems. Nowhere is adherence to the vision more aptly demonstrated than with the founders of idlaw. They are constantly approachable to all their clients, be they large or small. Clients know that they can rely upon idlaw to respond speedily, effectively and efficiently with sound advice and firm action whenever the situation demands. Ioannides Demetriou LLC’s founders are, however, keen to point out that idlaw does not begin and end with them. Their partners and associates are very much part of a team, with each individual having his/her contribution to make to the whole. A contribution that is both valued and relevant. Partners Christina Ioannidou and Christos Frakalas are fast becoming recognised as leaders in their fields with glowing reviews and satisfied return clients in their spheres of legal practice, which are corporate law and civil litigation respectively. Christina and Christos are assisted by their respective established teams of Senior Associates and Associates, with whom they have a close and effective working relationship. Every lawyer at idlaw, from the highest-ranking partner to the most junior advocate, is constantly aware of the need to give absolute dedication to the needs of their clients and to quality standards that have been the hallmarks of the firm’s success.

Nobel Trust Ltd Ioannides Demetriou LLC is unique in its approach to the ancillary services which form such an important part of the armoury of legal services offered by Cyprus’ top commercial law firms. The firm has established an independent fiduciary services arm under the direction of Nayia Morphi, a chartered accountant. Nayia has extensive working experience in the taxation and fiduciary service lines in both the UK and Cyprus. Nobel Trust is authorised and regulated by the Cyprus Securities and Exchange Commission for the provision of administrative services. Nobel Trust is very much in the vanguard of a new breed of Cypriot Service Providers. Nobel Trust concentrates its efforts on clients of substance who are capable of demonstrating that their presence in Cyprus is strategic rather than opportunistic. Ioannides Demetriou LLC and Nobel Trust Ltd have achieved accreditation as Investors in People, thereby demonstrating their commitment to staff development and continuous improvement. In addition, Ioannides Demetriou LLC, is one of the few law firms in Cyprus to be ISO certified. idlaw is a member of the following legal networks: • LEGALINK • TERRALEX • MERITAS • ENERGY LAW GROUP (ELG)

Considering that idlaw was formed only seven years ago, albeit by way of a merger between two established and respected professionals, it is a remarkable achievement that the firm almost immediately took its place amongst the highest echelons of Cyprus’ legal profession. idlaw believes that an emphasis on quality and continuous improvement is the hallmark of its success. Despite this success, the firm remains low key when it comes to listing its achievements, preferring to rely upon what others say about it: LEGAL 500 Banking and Finance Pambos Ioannides’ ‘impressive’ team at Ioannides Demetriou LLC always produces ‘high-class work’. Clients include HSBC (Cyprus branch), Eurobank EFG and Standard Chartered. Corporate and M&A Demonstrating ‘in-depth knowledge of corporate law’, the team at Ioannides Demetriou LLC attracts praise for its ‘on-point advice and high-level business acumen’. Practice head Pambos Ioannides ‘gives clients the comfort of reliability and legal ingenuity’, and Christina Ioannidou is ‘very sharp and professional’. CHAMBERS EUROPE Corporate & Commercial What the team is known for: An experienced department in the areas of project finance,

banking law, contract law and construction. Particular recognition in the energy sector. A member of the Terralex, Meritas and Legalink legal networks. Strengths: (Quotes mainly from clients) “The partners have a good combination of knowledge of the legislation and solid experience of advising on complex structures.” Work highlights: Advised the government of Cyprus on two licensing rounds and production sharing contracts in relation to offshore hydrocarbon deposits. Advised Cyprus Popular Bank on its joint venture with CNP Assurances of France to create the largest life insurance group in Cyprus. Ioannides Demetriou LLC continues to advise the new entity. Managing director, Pambos Ioannides, “knows the law inside out. He dissects complex issues and presents them in a simple manner.” Dispute resolution What the team is known for: Highly experienced, with an impressive international client base of leading financial institutions and businesses as well as public entities. Handles ADR, arbitration and civil litigation. Notable practitioners Andrew Demetriou represents clients in a wide range of commercial and corporate disputes. His in-depth knowledge of construction, public procurement and environment law makes him a popular choice for disputes related to infrastructure projects. Sources universally recog-

nise managing director Pambos Ioannides as a high-calibre litigator. His areas of expertise include corporate and competition disputes and international arbitration. Christos Frakalas is a noted figure in the market for his involvement in civil litigation and arbitration. Real estate and construction What the team is known for: A prominent name for construction law matters in Cyprus. Considerable experience of handling highway, airport and energy construction projects. Notable practitioners Andrew Demetriou is a noted name in this field. He is also known for his expertise in dispute resolution. Tax What the team is known for: Advises clients and represents them in front of the tax authorities. Client roster includes banks, high net worth individuals and multinational companies. Can draw upon the expertise of chartered accountants. Strengths (Quotes mainly from clients) “The team combines excellent knowledge of the legislation with solid experience on complex structures.” “The team is reliable, fast in replying and works at a high level.” Notable practitioners Nayia Morphi is the main contact for clients.

CONTACT INFORMATION IOANNIDES DEMETRIOU LLC

2, Diagorou St., ERA House, Floors 7-12, 1097 Nicosia, Cyprus | Tel: (+357) 22022999 | Fax: (+357) 22022900 Website: www.idlaw.com.cy | e-mail: info@idlaw.com.cy

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 71

SPECIAL ADVERTISING FEATURE

Kannava, Kitromilidou & Co LLC

Κ Left to right Varnavas Playbell, Maria Kannava, Maria Kitromilidou & Kathryn Psillidou

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

annava, Kitromilidou & Co LLC is a Cyprus law firm offering a comprehensive and wide range of legal services to international and local clientele. The firm is located in Limassol, Cyprus’s prevailing international business centre, and occupies three stories of a beautiful modern building in the city centre. The firm, together with its affiliated corporate service provider AMF Global Limited, currently employs 28 fee earners in total including 13 lawyers, 4 of which are partners, and 15 administration and secretarial staff. We take pride in the fact that, since our establishment approximately 5 years ago, we have grown into a most dynamic law firm, playing a leading role on the legal front not only in Cyprus but internationally. We are especially proud that, in the midst of the unprecedented global financial crisis, which considerably affected Cyprus and our industry in particular, we

have achieved exponential growth, reaching the quality of service, network, client base and size equal – if not greater – to law firms that have been operating in this industry for several decades.

OUR TEAM

Our legal team consists of a balanced combination of experienced and skilled specialists together with talented and creative young individuals, all highly educated with diversified backgrounds and experiences who, together, form an ideal blend for the provision of the highest level of legal services. Our core aspiration vis-à-vis our services is to be bespoke, efficient, cost-conscious and timely at all times, producing the best possible results for our clients. We always follow a pragmatic, problem-solving approach, we acknowledge and comprehend the clients’ needs and objectives (business or otherwise) and always have the appropriate solution to offer, boilerplate or innovative as the particular case may require. We always look ahead and strive to improve and expand the services we offer, so we are constantly kept updated with developments and new legal opportunities and solutions for clients. We are easy to reach at any time

and close to our clients in support of all their needs. Reference should also be made to our firmâ&#x20AC;&#x2122;s support and administrative staff made up of multilingual, enthusiastic, friendly and approachable people who have been carefully selected to support our value package to our clients.

AREAS OF PRACTICE

Our firm covers the whole legal spectrum, offering services in practically all areas of law including Corporate/Commercial Law, Banking/Finance Law, Financial Regulation/Investment Services, Fund Administration, Trusts/Corporate Administration, Inheritance, Real Estate Law, Intellectual Property, Employment Law, Immigration Law, Civil/Criminal Litigation, Corporate Litigation/Arbitration, Matrimonial Disputes/ Family Law and Maritime/ Shipping Law. SPECIAL REFERENCE SHOULD BE MADE TO OUR CORE PRACTICE AREAS, NAMELY: Corporate/Commercial Our services range from routine day-to-day corporate governance/administration and com-

pany formation both in Cyprus and in several offshore jurisdictions, to the provision of legal services and advice on complicated cross-border transactions, international joint ventures and M&As, corporate finance, venture capital projects, corporate structuring and tax planning. Our services include legal service and support for any form of commercial activity between legal or natural persons such as acquisition or sale of assets, products or services. Banking & Finance Customarily acting for major international credit institutions, the services we provide range from drafting and reviewing underlying loan and security documentation, finance leasing documentation, indemnities and guarantees; putting together various funding programmes, undertaking requisite due diligence and advising on the capacity of Cyprus Obligors to enter into financing transactions and also advising on the validity and enforceability of various financing and security documents in the context of financing transactions; advising on the issue of various equity instruments, such as preference securities, hybrid instruments and bonds.

Financial Services Regulation In collaboration with our business associates, we provide comprehensive advice on laws, regulations and practice relating to banking, investment services and activities, insurance, funds and other regulated activities. The services we provide range from preliminary advice on establishment, assistance with licensing applications with the relevant regulatory authorities, requisite ongoing administration and legal support services, specific and customized advice on compliance issues, drafting and review of relevant documentation.

DIFFERENTIATION

Given the saturation of the legal industry, our goal is to offer a more evolved and a more advanced value package to our clients. We purport to achieve this, primarily, by strict adherence to our core objectives, namely professionalism, quality of service, cost-effective and timely service but, at the same time, we feel that what sets us apart is a fresh, creative mindset and the constant drive to enhance, develop or even reinvent conventional methods of thinking and doing business.

For instance, our firm is of the view that the corporate services industry in Cyprus is moving away from conventional holding company structures to more organised and regulated structures and our firm has therefore invested considerably in obtaining knowledge, expertise and experience in the structuring and establishment of mutual funds, both in Cyprus and abroad, and we often find that such structures suit our clientsâ&#x20AC;&#x2122; business/commercial needs. Another objective of our firm is to continue to grow sustainably by extending our already wide network of business associates, accountants, banks, tax specialists and business consultants so that we may, in essence, become a hub or a boutique â&#x20AC;&#x153;one stop shopâ&#x20AC;? where our clientsâ&#x20AC;&#x2122; business/commercial needs may be addressedin a collective and coherent manner.

ASPIRATIONS

Our aim is to maintain and further enhance this course of continuous development, to offer the best value for our clients, to innovate and exploit the opportunities arising within this present volatile legal and regulatory environment, both for our firm and our clients.

CONTACT INFORMATION KANNAVA, KITROMILIDOU & CO LLC 4HYRV\ )V[ZHYP UK YK Ă&#x2026;VVYZ 3PTHZZVS 7 6 )V_ 3PTHZZVS c ;LS! -H_! c L THPS! PUMV'RWRSLNHS JVT c >LIZP[L! ^^^ RWRSLNHS JVT

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 73

SPECIAL ADVERTISING FEATURE

Korpus Prava (Cyprus)

Artem Paleev, Managing Partner

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

Î&#x161;

orpus Prava was incorporated in Moscow, Russia in 2003. Thanks to its best practice experience and fast rate of development, Korpus Prava has since established offices in Russia, Ukraine, Cyprus, Malta, Latvia and Hong Kong. The objectives of the firm include protecting the interests of prudent and diligent businessmen when dealing with partners and government authorities, the enhancement of clientsâ&#x20AC;&#x2122; business efficiency and reduction of risks.

WE DELIVER A FULL RANGE OF SERVICES: â&#x20AC;˘ Legal and tax advice â&#x20AC;˘ Transformation of financial statements in compliance with IFRS â&#x20AC;˘ International tax planning â&#x20AC;˘ Project consulting

â&#x20AC;˘ Corporate services â&#x20AC;˘ Capital transactions / M & A â&#x20AC;˘ Tax disputes â&#x20AC;˘ Resolution of commercial disputes and filing for bankruptcy â&#x20AC;˘ Real estate transactions â&#x20AC;˘ Intellectual property Our extensive experience of cooperation with contractors in different countries has proved that the only effective way of addressing clientsâ&#x20AC;&#x2122; requests is through the availability of in-house advisors performing their duties in compliance with corporate quality standards. Accordingly, the commencement of the development of Korpus Prava corporate practices in 2006 was marked by establishment of the office in Cyprus. Practical experience relating to establishment of our own practices, using common standards and infrastructure from scratch, allowed us within a short period of time to open offices in Hong Kong and Latvia in 2012 and an office in Malta in 2013. Our commitment to international business with strict quality standards and deadlines has

resulted in the establishment of high requirements with regard to our team of experts. At present our personnel consists of professionals who speak English, Chinese, Russian, Latvian and Greek, which allows us to address the most complex projects in various jurisdictions. Our experts, as well as reliable partners with a proven track record, provide registration services and professional administration of companies and trusts in Cyprus, Malta, Hong Kong, Latvia, Great Britain, the Netherlands and other jurisdictions. Korpus Pravaâ&#x20AC;&#x2122;s corporate practice, apart from the delivery of requested service to clients, entails a detailed investigation of each case in cooperation with tax and legal specialists and the provision of the solution that most effectively matches the task. A transparent pricing policy and fixed service fees allow our clients to plan from an early stage the budget for the implementation of projects, the registration and annual

administration of companies in various jurisdictions. Despite the global locations of our offices and different time zones, we try to be as close as possible to our customers. Our single telephone number allows all our clients to contact any expert in any office of Korpus Prava. When the project requires the engagement of several offices, the project manager is always appointed for the best convenience and benefit of the client. Procedures relating to incorporation of companies and opening bank accounts are conducted without ensuring the personal presence of clients in a particular jurisdiction. In cases where a meeting is held in person, we are always ready to organize it in the most convenient office of the company. In 2013, Korpus Prava was one of the first to receive a licence for the provision of corporate services in Cyprus, which once again confirmed our high standards that ensure that our quality of services meets the requirements of European regulators.

CONTACT INFORMATION KORPUS PRAVA (CYPRUS) .YP]HZ +PNOLUPZ (]LU\L 6MĂ&#x201E;JL 3PTHZZVS c ;LS! c -H_! >LIZP[L! ^^^ RVYW\ZWYH]H JVT

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 75

SPECIAL ADVERTISING FEATURE

Pamboridis LLC

P George Pamboridis, Senior Partner

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

amboridis LLC is a general commercial and corporate law firm with offices in Cyprus (Nicosia) and Greece (Athens). The firm was founded in 2003 and is headed by Dr. George Pamboridis assisted by four Partners and a number of senior and junior Associates in both jurisdictions. We aspire to meet all the legal needs of our clients, corporations and individuals, not only in Cyprus and Greece but also in the South East Europe and the Near and Middle East. We aim to offer full legal support to our clients and to offer our international clientele a local insightinto the markets of the jurisdictions where we operate offices. The firm is committed to a very strict Anti-MoneyLaundering policy and strives to fully comply with all relevant laws and regulations of the EU, the Republic of Cyprus and the European and Cyprus Bar Association.

We regularly run internal seminars updating our staff on any developments in this area and we work closely with our clients to secure their interests through strict KYC procedures. Our firm introduced a new policy in 2008, under which members of the firm are encouraged to undertake work for and on behalf of NGOs, Non-Profit making Organisations and charities on a pro bono basis.

AREAS OF PRACTICE

With the exception of criminal law, Pamboridis LLC engages in all the main fields of law with a special focus on all the aspects of modern corporate and commercial law.Our areas of expertise include: Public Procurement Dispute Resolution The firm provides comprehensive legal support services in national and international public procurement and advises public authorities. The firm is involved in cases pertaining to matters of administrative law and has extensive experience in public tender procedures and other public procurement procedures. Members of our team have also worked on the side of the Government for the

issuance of public tenders. Furthermore, our litigation department engages in administrative procedures challenging public tenders and public procurement procedures. Members of our litigation department have a track record of appearances before the Supreme Court for the judicial review of awards of public tenders. Energy We are able to represent clients throughout the energy sector, from major international and national oil companies through to independent juniors, funders, investors, state-owned companies and the government. In addition, we have established a firm relationship with one of the largest global law firms boasting a global energy footprint unmatched by any other law firm. We are able to provide a comprehensive range of services and we consider that we have unrivalled expertise in advising on dispute resolution including international arbitration relating to energy, advising on projects concerning upstream and midstream infrastructure and downstream dissemination of products as well as acquisitions and disposals of oil and gas-related interests and assets, regulatory/health and

safety compliance, shipping and trading of natural gas and financing, including funding acquisitions, project financing for developments, funding cash calls, security structures over assets and trading of oil products,. Corporate Law The firm provides full and high-level support on all stages of the corporate clientâ&#x20AC;&#x2122;s business expansion, be they singleowner start-up or publicly listed multinationals. Establishment of new corporations, expansions in the new fields of business, group structuring or re-structuring, increase of share capital and alternative modes of financing, listing on public markets and all issues of corporate governance are among the fields of expertise of the members of the firm. Commercial Law Contracts: The firm has extensive experience in drafting and negotiating on behalf of their clients commercial transactions, extending from simple agreements to more elaborate instruments like SPAs or Shareholders Agreements containing put or call options, tag and drag along clauses, Russian-roulette

or Texas-shootout clauses and deadlock avoidance clauses. Commercial contracts varying from sale of goods and services to joint ventures or franchising, are quite common to members of the team. Mergers and Acquisitions Members of the team have been involved in significant M&A transactions either locally, within Cyprus or Greece, or regionally extending beyond the boundaries of the jurisdiction where they operate offices. The firm has expertise in all stages of M&As including negotiations and drafting of agreements and supporting instruments, tax advice on the specific transactions (including group restructuring), legal due diligence and HR matters as well as on matters of Competition and Anti-trust law. Capital Markets & Public Listings The firm has been engaged by companies to act as their legal advisors in their flotation on the Cyprus Stock Exchange and has acted on behalf of companies during their IPOs both in Cyprus and abroad, Members of the firm have carried out independent legal due diligence

on companies seeking to list financial instruments on capital markets. International Shipping Law The firm provides regional and international support to ship owners, cargo interests, insurers and P&I clubs as well as bankers dealing with the shipping industry. The firm regularly provides ship registration services and flagging advice to its clients and engage in all aspects of S&P as well as finance dealings, including negotiations and drafting of agreements and security instruments as well the drafting of legal opinions based on the results of a due diligence on the ship owning vehicle. General Litigation The firm maintains a strong litigation department offering support to clients before the Cyprus Courts at every level. It specializes on commercial litigation but the department also acts on behalf of clients in matters of administrative law disputes, admiralty issues and labour law matters. The litigation department also handles all the Alternative Dispute Resolution cases and engages in regional and international arbitrations and mediations.

CONTACT INFORMATION PAMBORIDIS LLC 7HTIVYPKPZ /V\ZL +PNLUP (RYP[H (]LU\L *@ 5PJVZPH c ;LS ! c -H_! L THPS! PUMV'WHTIVYPKPZ JVT c >LIZP[L! ^^^ WHTIVYPKPZ JVT

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 77

SPECIAL ADVERTISING FEATURE

Stylianos N. Christoforou & Associates Law Firm

ince its establishment in 2005, Stylianos N. Christoforou & Associates Law Firm has aimed to provide a full and comprehensive service in a wide range of legal areas, offering clients significant and competitive representation. At a time of huge change in the financial marketplace, Stylianos N. Christoforou & Associates Law Firm is determined to stay one step ahead by offering flexibility and original ways of thinking, adding tangible value to clients. Headquartered in Nicosia, the firm is a boutique law firm with a mission to offer distinguished quality and unparalleled expertise.

AREAS OF PRACTICE

Stylianos N. Christoforou, Managing Partner

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

The firm provides clients with a totally customised, integrated service in all aspects of legal work, constantly winning praise for its approach on a broad and extensive range of legal, consultancy, corporate, international tax planning and arbitration services. The firm has extensive experience in an broad range of claims, from small-scale litigious mat-

ters to highly complex corporate agreements. Litigation, Arbitration and Dispute Resolution All avenues of dispute resolution are actively considered when advising clients in choosing the method most suitable for them. The quick and effective resolution of disputes with as little disruption to clients’ business as possible remains central to the way each case is approached. The target is to structure litigious or other strategies which fit clients’ personal, commercial and financial needs, regardless of the complexity of their case. The firm also shares technical and commercial experience in identifying and quantifying corporate and conflict management risks, advising senior level board members, corporations and some of the ‘Big Four’ accounting firms. The firm’s clientele consists of High Net Worth private individuals, private and public companies, the largest private hospital on the island as well as a number of Cyprus-based branches of international audit and accounting firms. Specific areas of practice include Company & Commercial Litigation, Employment and Labour Law, Debt

Collection, Banking Litigation, Corporate Fraud and Asset Recovery, Restructuring and Insolvency Litigation International Arbitration, Personal Injury, Medical Law, Property Litigation, Family Law. In recent years, the firm has gained extensive experience in Property Investment Recovery Claims, representing over 150 British Property buyers in legal actions against developers and Cypriot Banks for mis-selling of Swiss Franc Loans. Corporate Law The firm offers advice on a broad spectrum of corporate work such as takeovers, private merger and acquisitions transactions, corporate restructurings and liquidation, joint ventures and specialist expert and custom-made advice on commercial, tax, employment and corporate governance issues. In that way clients can be certain that the firm is able to arrange any related issue that can come up in a corporate transaction. In addition, the firm retains connections with other international law firms and specialists, including international tax consultants, bankers, company and trust formation corre-

spondents as well as investment management consultants. This platform provides confidence to clients that services of the highest quality both in the domestic and international level are present as their business is expanded. Employment and Labour Law The firm is one of a handful of law firms on the island that has expertise in Employment and Labour Law. Its managing partner consults on a daily basis with a good number of the largest enterprises in Cyprus and also provides seminars to entrepreneurs on all aspects of Employment and Labour Law. Advice is offered on a wide range of employment issues, from unfair dismissal and redundancy claims, working conditions, labour discrimination, HR policies to restructuring and relationship breakdowns. The aim of the advice offered is twofold: to relieve the stress that every day employment issues cause to general managers, HR persons or owners of small and middle sized enterprises on the one hand and to direct the employers to the correct way of

handling such disputes so that a healthy balance of the employment relationship with the employee is maintained on the other hand. The Cyprus Employment Law Tool In view of the expertise gained the Firm has developed the first and only mobile application on legal matters in Cyprus. The Cyprus Employment Law Tool provides managers, HR persons, employees and everyday people with an easy-to-use, mobile database of all matters regarding Cyprus Employment and Labour Law. Whether you are a General Manager, a Human Resources professional or an employee, all the information about the general principles of Employment Law in Cyprus is now instantly accessible for search and review by downloading the Cyprus Employment Law Tool. The application has been extremely well received by entrepreneurs and HR professionals who consider it a practical reference toolkit. The application may be downloaded on smart phones and tablets from

the Apple Store, the Google Play Store or used through the Firmâ&#x20AC;&#x2122;s website. Real Estate The firm handles commercial property and planning projects. Developers, funders and occupiers can receive advice on issues such as the acquisition, sale, leasing, obtaining of permissions and licenses. Immigration Law In 2011 the Cyprus Citizenship-by-Investment programme was promoted as a viable avenue for investors to obtain the Cypriot citizenship, since then the programme has seen several updates with the Council of Ministers in Cyprus approving a new plan on May 24, 2013 enabling foreign nationals to gain citizenship if they meet certain criteria set out by the Ministry of Interior. The Firmâ&#x20AC;&#x2122;s immigration law team provides exclusive legal advice and assistance through all the steps concerning the obtaining of Cypriot citizenship by exception to foreign investors and has to date assisted a number of investors to obtain the valuable Cypriot passport.

CONTACT INFORMATION STYLIANOS N. CHRISTOFOROU & ASSOCIATES LAW FIRM ,]HNVYV\ (]L 0YLUL )\PSKPUN :\P[L 5PJVZPH c ;LS! c -H_! L THPS! PUMV'ZUJSH^ L\ c >LIZP[L! ^^^ ZUJSH^ L\

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 79

SPECIAL ADVERTISING FEATURE

Symeou & Konnaris LLC Panikos Symeou, Founder and Managing Partner

Christos Konnaris, Founder and Managing Partner

he law firm Symeou & Konnaris LLC, trading as SK Law Firm, is a pioneering, prominent law firm which has expanded rapidly in recent years, offering legal services under various jurisdiction laws across a range of practice areas.

The firm’s policy is to deliver expert legal services in an environment that encourages professionalism and strict confidentiality. The firm is recognized in each of its core practice areas – companies & offshore, tax law and international tax planning, banking and finance, real estate, intellectual property and trusts – and is retained on a regular basis by national and international entities in a wide range of industries. The firm’s clients are large domestic and international entities, international law

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

firms, well-known national and international banks, family and individual entities, financial institutions, commercial and residential real estate developers, attorneys and professional accountants. These clients benefit from the firm’s ability to combine international knowledge with local experience. The advocates and legal advisers at Symeou & Konnaris LLC place great emphasis on maintaining and enhancing longstanding relationships and their substantial knowledge of each client’s business. Panikos Symeou, co-founder

and Managing Partner of the firm, says: “The success of the firm, its rapid expansion and the awards achieved are a direct result of the personal attention, quick response and high standards of excellence reflected in the services carried out.” Christakis Konnaris, cofounder and Managing Partner of the firm, adds: “Guided by ethics, the highest values, experience and professionalism, the firm operates with confidentiality, commitment and complete dedication to all its clients.” The firm deals additionally

with the regulatory framework which covers registration of investment firms in Cyprus and abroad as well as fund registration taking advantage of Cyprus tax advantage and other benefits which derive from Cyprusâ&#x20AC;&#x2122; legislation and double tax treaties.

AREAS OF PRACTICE Corporate and commercial The firm has a great reputation in this area and it has also been awarded as the Corporate Law Firm of the Year 2014 by the â&#x20AC;&#x153;Corporate INTL Global Awardsâ&#x20AC;?. Over the years, the lawyers in this department have accumulated great experience working in this demanding environment and are able to deliver high quality and rapid results in areas including company formation and acquisition of companies in Cyprus and abroad, the provision of legal advice on commercial transactions, the drafting of legal opinions on a wide range of commercial matters, preparation and drafting of commercial and corporate agreements, including sale agreements, hiring and leasing of goods agreement, escrow services, conducting corporate due diligence reports, formation and administration of Cyprus international trusts, corporate reorganization, dealing with mergers and, finally,

corporate management and domiciliation and secretarial services. Intellectual property and trademark Trademarks play an increasingly vital role in todayâ&#x20AC;&#x2122;s global economy. Our firm specializes in registering, monitoring and preserving trademarks which are important to preserving corporate identity. Tax Planning Cyprusâ&#x20AC;&#x2122; geographical location, favourable tax regime, the existence of a wide network of tax treaties, a stable banking system and a solid legal framework, the island has become a favourable and ideal location for direct and indirect investments, offshore activities and a hub for international business. With tax planning viewed as a necessity in the modern-day business arena, the firm takes into account all aspects of taxation and associated legislation, enabling the provision of detailed international tax planning, consultancy on investment opportunities both onshore and offshore, and professional consultancy in relation to the setting up of optimal international business group structures and specialized vehicles. Trusts The management and administration of trusts is a core

area of Symeou & Konnaris LLCâ&#x20AC;&#x2122;s practice. We specialize in the set-up of trusts in Cyprus and elsewhere in the world and offer trustee services to large corporate entities as well as to High Net Worth Individuals. Furthermore, our firm provides comprehensive advice and services on International Trust drafting, trustees services, wills drafting, wills execution, probate and estate administration. Shipping Cyprus has today one of the worldâ&#x20AC;&#x2122;s largest ship registries because of the well-established maritime infrastructure and the substantial tax incentives offered to the shipping industry. We provide legal services to clients for shipping loans & mortgages, the registration of Cyprus shipping companies, registration of ships under the Cyprus flag and registration of ships under flags of other jurisdictions. Banking As a result of the firmâ&#x20AC;&#x2122;s network and excellent relations with associates, the firmâ&#x20AC;&#x2122;s consultants are able to open bank accounts with reputable banks worldwide and act with them for relevant professional banking services and, in addition, to obtain assistance in raising finance for clients.

Acquisition of properties The firm also provides services which extend to assistance in the acquisition of properties within Cyprus and/or abroad and providing the necessary legal support for such acquisitions. Support is also available for setting up local offices, assistance in the recruitment of skilled labour within Cyprus and the provision of support to accommodate clientsâ&#x20AC;&#x2122; needs, bearing in mind their personal objectives, organizational requirements and jurisdictional particulars. Litigation The firm houses an excellent team of litigators who are able to handle all types of litigation, protecting each clientâ&#x20AC;&#x2122;s interests in a broad range of fields.

OUR MISSION

To help our corporate and individual local and international clients achieve their business and financial objectives, on a worldwide scale by offering high quality services in all areas of law. RECOMMENDED / LISTED BY Corporate Law Firm of the Year in Cyprus

CONTACT INFORMATION SYMEOU & KONNARIS LLC :W`YV\ 2`WYPHUV\ :[YLL[ :2 /6<:, 3PTHZZVS *`WY\Z c ;LS! c -H_! L THPS! PUMV'ZRSH^ Ă&#x201E;YT JVT c >LIZP[L! O[[W! ^^^ ZRSH^ Ă&#x201E;YT JVT

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Gold 81

CLIENTS NEED TO FEEL THAT YOU’RE THERE FOR THEM WHENEVER AND WHEREVER

ALEXANDROS ECONOMOU LLC HAS RECEIVED ITS REGISTRATION FROM THE REGISTRAR OF COMPANIES. IT IS NOW FULLY INCORPORATED AND LICENSED.

PROFILE

WIND OF CHANGE CHANGE IS SELDOM EASY TO ENDURE, THOUGH IF TREATED AS A NEW BEGINNING AS OPPOSED TO A CONCLUSIVE END, IT MAY JUST FACILITATE A PROSPEROUS AWAKENING OF THE SELF, BOTH PROFESSIONALLY AND PERSONALLY. ENGROSSED IN A STATE OF METAMORPHOSIS, ALEXANDROS ECONOMOU, FOUNDER OF THE NEWLY-ESTABLISHED EPONYMOUS LAW FIRM, SHARES HIS EXPERIENCES OF EMBRACING CHANGE WITH GOLD. By Chloe Panayides | Photography by Jo Michaelides

t was the pre-Socratic philosopher, Heraclitus, who expounded the belief that change is the only constant in life. Far from being a stigma, ever-present change is praised as being both fruitful and favourable. Alexandros Economou seems to appreciate this concept only too well. Our meeting has been convened in his neatly-designed apartment and, whilst sipping an early morning espresso, we are inspired to meditate on this topic thanks to the personal and professional transition Economou is undergoing. He explains: “I was fresh out of studying when I joined Chrysses Demetriades & Co. LLC in 1998, having previously completed a nine-month internship with the company. “Save for a one-year fixed-term contract

with the then Chairman of the Cyprus Commission for the Protection of Competition in 2002, I had the honour of serving this esteemed company for some 16 years.” And, yet, Economou reveals, the time has come for this chapter of his professional career to close, for new ventures to be begin, and for the engendering of a metamorphosis. “My time at Chrysses Demetriades was invaluable. Besides having a wealth of knowledge at your fingertips thanks to the high calibre of the company, it also afforded rich opportunities to take on different projects,” Economou says enthusiastically. So what was the impetus behind the establishment of Alexandros Economou LLC? Economou jests: “Can I plead the 5th?” Pausing pensively, he continues with care:

“There’s no simple answer. All relationships give rise to issues, especially when you’re as many as nearly 20 partners in a firm. There can’t always be harmony. I felt that this was an opportunity to start my own law firm, which can grow with my own ideas and initiatives that have been moulded over the years.” Seemingly unfazed by the pervading downturn in the market, exacerbated by the events of March 2013, Economou is insistent that now is as opportune a time as any to embrace change: “The pie of legal services in Cyprus always was, and always will be, substantial. Whilst some naysayers fear the recent tax-related developments around the world, and the current situation in Russia (weak rouble, Ukrainian crisis, and the deoffshorisation efforts) as marking a demise

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PROFILE

of sorts, I feel that, on the contrary, it is an opportunity for Cyprus to become a serious and stable financial services centre for those seeking real tax optimisation. The people who know and trust in the professionals of Cyprus have not departed. It is our job to honour that trust and provide the best service possible, and this will lead to new clients and, inherently, more work.” Interested in garnering feedback as to what it is like to establish one’s own company in Cyprus, I probe Economou for details of his experience: was it smooth-running and simple, or a befuddling process aggravated by ubiquitous bureaucracy? “In all honesty, it has been a massive undertaking. I’ve had to handle everything from A-Z, so it’s been a real labour of love. Thankfully, I have good friends who have helped me through the process. Actually, the most difficult part of setting up has been finding appropriately qualified and experienced staff to join the team. I certainly want this venture to grow with partners and associates.” And what other ideas does Economou have regarding his newly-established law office? Is there, I ask, an underlying philosophy to which he will be adhering in order to ensure best business practice? “Undoubtedly, first and foremost comes reliability. Clients need to feel that you’re there for them whenever and wherever. Secondly, I believe in sticking to things that you know: knowing your strengths and weaknesses – and thus knowing yourself – is paramount. “This law firm will certainly work off the expertise it has at hand, meaning that we will be flexible and collaborate where necessary with other law firms and professionals who have the necessary skills and experience. This is crucial in optimising time and providing a top-notch service. Also, I believe resolutely in the personal touch – a mutual understanding between client and lawyer – which is something that’s difficult to attain in a big firm.” The term “personal” is used often and freely and, in a not uncanny homage to the meaning of the word, “personal” means something different to each individual. For Economou, he confides, personal is all about focusing on the little details: As an example, he says: “I will never let my secretary call a client; I will take the time

THE CRISIS

MAY JUST

DIFFERENTIATE BETWEEN THOSE

WHO TRULY PROVIDE HIGH

QUALITY

SERVICES AND THOSE WHO ARE LESS FOCUSED ON DELIVERING THEM

to do it myself. And that doesn’t just mean calling on a professional basis, but checking intermittently that all is well with them personally too. Moreover, being personal is listening to their ideas and helping them achieve their aims. Undermining a client and assuming you know best can be detrimental to inspiring trust. They must know that you respect them, and truly will heed their wants, answer their questions, and tend to their every need.” Is this what sets a professional service office apart from its competitors, I ask? “I believe it’s a good start,” Economou acknowledges. “But there is a host of other factors as well, such as being able to cope with tight deadlines, working with, and as, a team. Most often, especially in transactional work, and banking and finance matters, a host of law firms and other professionals from numerous jurisdictions are involved. As many competitors as they are in these fields in Cyprus, I know them all by name.” Speaking of names, can Economou reveal the identity of anyone set to be joining his new practice soon? “Not yet! I’m looking for premises, more

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

associates (one is already working with me) and a trainee lawyer or two to begin with; hopefully a partner by the end of the year as well. Overall, I’m very hopeful for the future.” Pressed to divulge details of areas the law firm will focus on, Economou states decisively: “I prefer to refrain from setting boundaries for now. We’ll be covering a range of areas, such as corporate and commercial, with a particular focus on transaction work, and banking and finance, restructurings and securities offerings, various energy matters, EU and Cyprus competition law, and selected aspects of EU law. In the short-term, I won’t be dealing with litigation, though this is subject to change. “I consider this new phase as a process of metamorphosis. We will grow controllably, evolve naturally, and be uncompromising when it comes to quality.” As to the most important quality that Economou seeks in his collaborators? “Definitely good character: people to whom I can relate. I also respect those who can draw on their experiences and respond to new situations accordingly. It’s a paramount quality in an ever-changing world.” Unsurprisingly, news of Economou’s departure from his previous position and of his fresh undertaking has not taken long to permeate the professional services sector; even, he tells me, on a global scale. “The industry is insular, so even companies abroad that I’ve worked with previously – located in a range of destinations from Moscow to London – have already become aware of the change and have been in touch to express their support.” With the flow of the conversation having diverted our attention to the professional services industry as a whole, Economou shares his view of the status quo: “Survival and growth are predicated on an enthusiasm for work and the wish to learn and to evolve. The crisis may just differentiate between those who truly provide high quality services and those who are less focused on delivering them. “The situation, so far, in Cyprus has been ‘easy’, and up until a certain point, professionals were providing services to foreign clients as though at a grocery store, that is, disorderly,” he says. “But the tax landscape globally is changing. There’s no room for this kind of complacency anymore.”

OPINION

The Way Forward? Regional Economic Development could be one answer to Cyprus’ problems

ver the last three years, traditional macroeconomic models of economic development have come under scrutiny. Sceptics maintain that the failure of the free market economy is a consequence of flawed assumptions and inaccurate hypotheses. I respectfully disagree. A reader of economics should recognise that economic theories do not come up with a rule for parsimony at all times. In other words, depending on social conditions, an economic theory may be inappropriately applied by policymakers. Economic theory may be compared to a weapon: when used properly, it can yield the required result. In the hands of a criminal, it can lead to destruction. During the current economic crisis, I have observed what I call the “microsizing” of the macroeconomy. Financial institutions, for example, have traditionally focused on microeconomic decision-making, as a means of maintaining liquidity and profitability. Certain of their implications for the macroeconomy, such as their ability to create credit, have been studied extensively and been fused with basic macroeconomic theories. Regardless, in the last couple of years, the focus has shifted from the macroeconomy to the microeconomy as a means of achieving economic growth. As such, regional economics has been gaining attention, attested by the ongoing discussions about changing the number of municipalities in Cyprus in order to enhance efficiency. Regional economics maintains that a country can be separated into several regional economic micro-organisms that convert inputs into public and private goods. When analyzing a regional economy, two approaches are used: The Export Base Analysis (EBA) model identifies those economic sectors that are deemed to be exporting. The mathematical formulation of the location quotient variable calculated under

An economic theory may be inappropriately applied by policymakers

By Dr. Constantinos Charalambous

EBA describes: (1) the region’s share of the total production, or quantity supplied, of the products of an industry available to the nation, and (2) the region’s share of the nation’s consumption or quantity demanded. If the difference is positive, the region produces a greater share of the nation’s production than it consumes and the excess is assumed to be exported. An EBA places particular emphasis on the export sector of a regional economy because it is theorized that export activities constitute the driving force of a local market and subsequently lead to cash inflows. The second approach is known as the Shift and Share Analysis model. The goal of shiftshare analysis is to indicate the relative economic growth rate of the region’s industries as compared to national trends and determine the level of industrial diversification. By comparing local economic sectors with their national counterparts, one can observe whether the region is gaining or losing a competitive advantage. This is vital information for potential investors who will inject money in the regional economy. It is important to note that the aforementioned theories have already been applied in the case of the Municipality of Larnaca. The energy and transport sectors have traditionally formed the economic basis of the town and its surrounding areas and constitute an important employer for the local population. Local policymakers now know with mathematical accuracy that reinforcing these two sectors will result in a multiplier effect in employment and productivity. The results obtained by the regional economic analysis of Larnaca can be used on a national level by expanding the analysis to other municipalities and districts. The models can clearly identify the main economic sectors for each municipality and thus become a guide for local policymakers to correctly allocate scarce resources.

info: Dr. Constantinos Charalambous is a Professor of Economics and Head of the Department of Research and Development at PA College in Larnaca. He maintains a popular

economic blog at www.everyday-economist.com.

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BANKING

BETTER REGULATION +BETTER BANKING =BETTER FUTURE

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

Europe’s banks fund a large part of the economy and play a crucial role by lending to households, governments and business. The European Banking Federation (EBF) is the united voice of banks established in Europe and it fully supports the Banking Union project and pro-actively contributes to the Single Supervisory Mechanism implementation. It also looks forward to progress on the Single Resolution Mechanism, but has expressed strong reservations on the proposal regarding banks’ restructuring, which may be detrimental to the economy. Robert Priester, Deputy Chief Executive and Executive Director of the Wholesale and Regulatory Policy Department of the EBF, spoke to Gold about these and other issues. By John Vickers

Gold: The last few years have been difficult for your members. Has the recent progress towards a Single Supervisory Mechanism (SSM) made them – and you – more optimistic about the future of the banking sector? Robert Priester: I think it’s fair to say that it has contributed massively towards bringing back more confidence, especially to the eurozone and that’s a very significant achievement for the European Union. In that sense it’s a very good start but it affects only 18 – soon to be 19 – countries of the eurozone that have decided to go down that road. The EBF would prefer to see solutions of this nature for all EU member states and all banking markets. Gold: Aren’t some of the non-eurozone members willing to adopt the SSM? R.P.: They may be eventually but up to now none of the other EU member states have gone as far as indicating that they will be part of the SSM. I suspect that, after an initial period when the world will be looking at the SSM how it works and what the ECB is doing – it will reinforce the strength and stability of banks in the eurozone as there will be a much more homogenous regime of supervision across the markets that fall under the ECB and therefore funding conditions will benefit from that. Some of the smaller

member states outside the eurozone will see the benefit of the stability that the SSM has generated, together with the fact that it may become easier for such markets with small banking sectors and currencies to gain access to international capital markets under more advantageous conditions. This may persuade them to adopt the SSM. Gold: What are the main challenges facing European Banking at present? R.P.: One of the two biggest challenges is that of regaining the confidence and trust of the people of Europe and further afield. Banks are very important intermediaries for financing in Europe and the market structure has grown in such a way that the first and main ports of call for funding are the banks. This is something that we have inherited from the past but, at the same time, banks are still regarded with a degree of suspicion and mistrust by small and medium sized enterprises. Policymakers, too, are still not sure whether to believe that the banks have drawn lessons from the crisis. Changing these negative perceptions remains a really big challenge. The second challenge facing European banking has to do with all the regulatory reform that has been agreed and put in place in the aftermath of the global financial crisis. Banks need to absorb it and adjust their

way of doing business, their IT platforms and systems, and they are being asked to implement some drastic and very tough new rules within a relatively limited and short timespan. This is a big issue and a big challenge, and it comes at a time when everybody has expectations that banks will keep lending to the economy when the conditions for doing so have become much more strict and, on the whole, the economic recovery hasn’t really taken hold yet so it remains to be seen if such a demand for funding really exists in the market at present. Gold: Is it correct to speak about ‘European Banking’ as if it is a single entity with a common set of problems or are things actually much more complicated? R.P.: Things are indeed a bit more complicated than that! However, we have seen a significant shift back towards a desire to integrate financial services markets and the way in which banks operate. One of the main consequences of the financial crisis has been that supervisory entities in the different member states, under pressure from their parliaments and politicians, have been pulling back a lot of what had been achieved in opening up the internal market for the banking industry, and even though

WE’RE NEVER GOING TO GET

A SINGLE

MARKET

SUCH AS WE

SEE IN THE

UNITED STATES

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BANKING

the worst of the crisis is hopefully behind us, that ‘pull-back’ still persists. With the SSM, things are changing and we already have the Bank Recovery and Resolution Directive (BRRD), which requires all member states to put mechanisms in place where all the supervisors will have the same type of tools and the same understanding of when to use them. So we are moving back in the direction of having a more harmonised and unified framework. I would also point out that, while all the attention at the moment is on the ECB and the SSM, we should not forget the European Banking Authority whose main focus and objective is to put a single rulebook in place so that all banks operating in the 28 member states have the same set of rules and apply them in the same way. This means that all the non-SSM countries will still be cooperating with each other and the ECB. In the eurozone, instead of 18 different supervisory entities, the ECB will be in charge for those 18 territories,which will make intra-market coordination for the bigger banking groups easier but also make the supervision of groups more effective. Things are moving the right direction but we still have a long way to go before we can talk about an integrated single European banking market.

laid much of the blame for the need for a bailout on the banks and, while they were clearly lacking in areas such as corporate governance, they were not entirely responsible for what happened. How hard is it for private commercial enterprises (the banks) and governments to cooperate for the common good? R.P.: It shouldn’t really be that hard! But in the years that led up to the crisis, it could be argued that the low inflation environment led everybody to believe that the risk was not as high as it turned out to be. Perhaps everybody took their eye off the ball a bit and, certainly, the politicians who have to go back to their electorate and promise growth that will sustain their country’s welfare and wealth are keen to keep that idea going.

WITH REGARD

TO CYPRUS

THERE WAS A

and that should help banks and politicians to start working more closely together towards creating an environment in which growth can return. I think that politicians are still mistrustful of the banking industry and they feel that there is a certain degree of responsibility to be laid at the industry’s door, which is why they keep coming up with further or new initiatives which, in my view, doesn’t help to create an environment in which it’s possible to go forward. Banking structural reforms are still being talked about, even though there has been so much reform already: there is higher capital, more liquidity, bank resolution is in place, bail-in is there, derivatives transactions have been made more transparent, central clearing is much more prevalent nowadays… do we still need to cut the banks into pieces because we perceive them as being “too big to fail”? More proposals are on the table and they are creating uncertainty about whether we are finally finished with all the rules and can focus on putting them in place and allowing the banks to get back to doing the business that they are expected to.

BIT OF ‘LEARNING BY DOING’ BY THE

Gold: Would you ever describe any of your members as “too big to fail” or are they all responsible for their actions and the consequences? R.P.: All banking entities must be accountable for their actions and that is the basis upon which our market economy has been built. In any other sector that would be the norm and the expectancy. However, a bank is in a very difficult situation whereby it absorbs short-term excess savings from a particular market and converts that for others who need longer-term lending and if it disappears all of a sudden because it can’t live up to its liabilities, this may create a serious problem for the economy. I think this is the reason why the banks are, on the one hand, recognised as being so important but, on the other, viewed with such distrust at the moment. Part the difficulty faced by both politicians and supervisors in the early days of the crisis was that some of the banks had become very big, others had become very complex, others had very extended

EUROPEAN

Gold: Is the Single Supervisory Mechanism going to lead to better banking? R.P.: That is certainly what we hope. I think it will give less opportunity for some of the regulatory arbitrage that might have been prevalent in the precrisis days, where large groups could understand how supervision in one country was different from another and take advantage of it. With the EBA and with the ECB as the single supervisor, there is a drive to bring the differences in supervisory intensity to a close, to ensure that all supervisors have the same understanding and the sanctions regime everywhere is much more closely aligned. So yes, I think that all this will contribute to better banking because there will be greater supervision in place.

AUTHORITIES

INVOLVED

Gold: In Cyprus, the previous government

So it’s then a question of whether it can be expected of the banks to call time and whether the supervisors can play a kind of role. Although there seem to have been a certain focus on trying to make sure that each individual banking institution was supervised correctly and that they were within the requirements set out by the law in terms of capital levels, liquidity management, etc., nobody seems to have picked up on the whole macro-economic or macro-prudential aspect in the runup to the crisis. Such elements have now been taken on board

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

connections and networks and there was no dedicated way of resolving a bank in a way that would not disrupt the broader market functioning, leaving them with no other choice but to bail out such institutions. One of the most important pieces of reform to be put on the agenda was the Bank Recovery and Resolution Directive (BRRD), which very clearly creates a regime in Europe whereby a bank or parts of a bank can be wound up and other parts can be kept going in ant orderly fashion. Together with the deposit guarantee scheme, this should provide a mechanism whereby a private entity can be told “You’ve messed up and you need to be taken out of the market,” and that can be done without impacting depositors, other banks in the market or the economy as a whole in an overly disruptive manner. Gold: In March 2013, you expressed the EBF’s concern over the original plan to bail-in insured depositors and your subsequent approval of the Cypriot parliament’s rejection of the idea. Given that the eventual agreement led to the closure of the country’s second largest bank and serious losses for depositors in it and in Bank of Cyprus, do you still think that the original plan was worse? R.P.: We have always been very clear that the deposit guarantee scheme plays a very important role in the functioning of the banking market. If you go through the various problems that we’ve seen in the eurozone due to the overindebtedness of a number of member states and banking sectors that are very closely connected with governments, you’ll see that there has never been a standard way of handling crises. In that sense, without wishing to be disrespectful, with regard to Cyprus there was a bit of ‘learning by doing’ by the European authorities involved. And it happened at a time when, in a highly politicised environment, we were seeing increasingly sharp contrasts between northern and southern Europe around the question of who should be supporting which part of government and bank debt. As for how we at the EBF reacted, I think we were pretty much shocked that insured depositors would be included as a first step. I think it’s an exaggeration to say that we “approved” the final outcome: we didn’t approve it but we

couldn’t really see a different way forward. And, of course, the bail-in regime was something that we had been working towards getting on the statute books. I appreciate that, when this happened in Cyprus, the bail-in regime wasn’t yet in place and it wasn’t law so there was a little bit of liberty taken but I think it was important to come to this particular solution for the eurozone as a whole. We were fully appreciative of the difficulties that it posed in Cyprus and, to this day, we acknowledge that significant contributions and sacrifices have been – and still are –being made by the Cypriot people and the Government. Gold: Given that the EBF plays a role in EU policymaking regarding banks, and the bail-in decision was something that had been discussed, weren’t you still surprised that it was used in the case of Cyprus? It was, after all, unprecedented. R.P.: Surprised, no, but in Greece we had seen that negotiations took place with the bondholders about the haircut that was to be applied and that is something we were expecting as a way forward for Cyprus too. I think that things were precipitated in the heat of the moment and under the pressure of the international spotlight. There was, also, the misunderstanding that much of the impact would be felt outside the EU since a number of major bondholders and depositors were neither Cypriots nor EU citizens, which probably led to a preference for the solution that was arrived at in the end. Gold: Since then, European leaders have made a point of saying they will no longer “spend taxpayers’ money” on future bank rescues. As an association representing banks and bankers, do you agree with this approach? R.P.: Yes, it’s the right approach to set that out and to make the regime clear. From the beginning of 2015, it will be the legal norm in the EU and investors in bank bonds will know and understand this. Some of the problems that have arisen over haircuts or the bail-in regime are due to the fact that they were not part of the contractual arrangments and, therefore, some investors were completely taken aback by what happened, even describing it as ‘misappropriation’. We have always been supportive of finding a regime that is based in law, the details of

Robert Priester will be one of the key speakers at the 2nd Cyprus Banking Forum on the 9 October at the Hilton Park Hotel, Nicosia. The conference is organized by IMH and Gold in association with the Association of Cyprus Banks. For more information:

Tel: 22505555 e-mail: events@imhbusiness.com Website: www.imhbusiness.com

which are known upfront and investors are aware of the risk and the bail-in obligation. Gold: One of the EBF’s stated aims is to achieve a single market in financial services. How close is this? R.P.: I think we still have some way go but, as I indicated earlier, the Single Supervisory Mechanism is very much on the cards, together with the EBA’s objective of arriving at a single rulebook, not only in terms of the letter of the law but also in the way that supervisors apply it in the different banking jurisdictions of the EU. The whole concept is starting to gain traction and will certainly be put into practice. Of course, we remain a union of 28 member states with their own contractual laws, insolvency laws and consumer protection laws and they are still, to a great extent, dominated by national regulation so there will be differences. We’re never going to get a single market such as we see in the United States where everyone has the same language and the same legal system but that’s not the aim. We should certainly try to get a single rulebook and a level playing field for the banks to compete on, enabling them to offer the best possible services to their customers in such an environment.

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COMPANY PROFILE

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By Chloe Panayides | Photography by Jo Michaelides

Gold: What was the impetus behind your inception? Angelos Gregoriou: Embracing our generationâ&#x20AC;&#x2122;s new technologically-enabled era is key in ensuring that businesses are truly the best that they can be. At Dynamic Works, we are intensely focused on inspiring this evolution and revolution, aiding clients to elevate their standards and reach the next level of their business practice in each market we serve. George Georgiou: Back in 2003, we were the first company in Cyprus to equip local entities with the necessary tools to manage their website at affordable prices, as well as the first to offer fully integrated web/CRM solutions. We spearheaded the development of cloud-based eShop solutions, with no initial investment, just a monthly fee, as well as providing full-blown digital marketing services. Overall, weâ&#x20AC;&#x2122;re confident that, more than a decade since our founding, we are a leading company in our field, and have set the bar high. Gold: Indeed, which industries and markets do you serve? G.G.: We are flexible across the board, delivering solutions for enterprises working within banking, Forex, insurance, governmental bodies, education, travel & tourism, retail, healthcare, NGOs, new media, property development, real estate, and more. Gold: And summarising succinctly, what, then, is your core practice? A.G.: Our suite of solutions suits any modern business that is dedicated to attaining a complete state-of-the-art online presence, based on strong user experience, web design and development expertise, social media strategy and implementation, and mobile applications. Furthermore, we usually empower our solutions offerings with a completely flexible and

expandable modern Customer Relationship Management (CRM) solution. More specifically, we design, develop and integrate the organisationâ&#x20AC;&#x2122;s â&#x20AC;&#x153;publicâ&#x20AC;? and â&#x20AC;&#x153;privateâ&#x20AC;? worlds allowing for automated, successful management of their customer relationships, which inherently drives growth and achieves high performance for their business. Gold: What are your key products and services? G.G.: All our solutions are based upon a powerful, flexible and scalable technology platform, the Dynamic Works Framework (DWF). DWF is completely modular; however, modules are grouped to form our two core products: DWCMS is a powerful Web Content Management System that allows you to manage your content across your website, intranet, extranet or portal, whilst DWCRM allows you to transform raw data into meaningful and valuable information. A.G.: Meanwhile, xSelio Commerce, being based on both DWCMS and DWCRM, is an off-the-shelf, cloud-based eShop solution that provides everything a business needs to grow online. Furthermore, based on DWF we offer solutions focused on industry segments, for example, Forex, and Academic. Gold: You seem to have a vast variety of products and services: how do you ensure that customersâ&#x20AC;&#x2122; individual needs are unfailingly met? A.G.: We approach each customer as being of equal importance to us, studying their diverse business environments and offering targeted solutions that allow them to stand out from their competitors in the fast changing markets they represent. Our solutions are always a result of thorough planning, ensuring that mutual targets are met through Dynamic Worksâ&#x20AC;&#x2122; state-of-the-art technologies. G.G.: We also always ensure that our clientsâ&#x20AC;&#x2122; voices

Our long-term commitment is to continue to be an organisation that is Internet-savvy, innovative and customer-focused THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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COMPANY PROFILE

success stories

are heard by listening to their needs and wants, then generating ideas and solutions accordingly. We are incredibly results-driven and, as such, we do everything in our power to ensure that we deliver.

to continue to be an innovative and customer focused organisation.

Gold: And do you feel that your services are limited by your physical location in Nicosia? A.G.: Definitely not! Our 15 staff members are organised in such a way that we can reach maximum efficiency and effectiveness without compromising creativity, quality and personal touch. G.G.: We have clients all over Cyprus – so this involves a lot of travelling for all of us – but partnering with each individual client from concept planning to design, from development to testing, from implementation to launch, and the provision of dedicated and personalised support is highly important! Furthermore, despite the fact that we both have a busy schedule, we are personally involved in every project, ensuring that our clients receive maximum value and attention.

Gold: What does your client base look like in Cyprus? G.G.: Our clients represent a range of industries, and are situated all over the island. For example, we are working closely with Hermes Airports, Hellenic Bank, European University, InSIDE Limassol, St. Raphael Resort, the House of Representatives, the Apollonion Hospital, the Paphos Aphrodite Festival, and many, many more.

Gold: Do you have a long-term goal that helps to direct your daily business practice? G.G.: Certainly: our long-term commitment is to continue to be an organisation that is Internet-savvy, innovative and customer-focused, honouring our commitments through state-of-the-art technologies and real value for our clients. Gold: As I understand, you’ve been honoured for your commitment to customer satisfaction and information security standards. Could you elaborate? A.G.: We have, indeed. To persistently improve customer satisfaction and to provide a basis for business excellence, Dynamic Works has achieved ISO 9001: 2008 Certification under the ISO/IEC 90003 international guidance for Software Development. We have also been formally awarded ISO 27001: 2005 Certification by one of the top certification bodies in the world, NQA. The ISO 27001 certification was awarded following a rigorous auditing process and means the company has been independently certified and awarded the internationally recognised highest information security standard. Gold: Why do you think such awards are important in enhancing a business’ offering? G.G.: Increasingly, we’re finding that companies are now required to achieve or maintain compliance with certain industry standards. Many organisations are keen to do business with a service provider that has a certified system already in place, such as for information and data security standards. It’s a stamp of approval that assures customers that we are working to deliver only the very best on an international scale. What is the company’s underlying philosophy, and how do you ensure you stay ahead of your competitors? A.G.: Our entire philosophy is based on an unyielding commitment to excellence and real value in the results we deliver to our customers through our technological leadership. Our long-term commitment is

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

HERMES AIRPORTS 0U (WYPS VM [OPZ `LHY +`UHTPJ >VYRZ PTWSLTLU[LK [OL SH\UJO VM º*`WY\Z (LYVWVSPZ» MVY /LYTLZ (PYWVY[Z THYRPUN H UL^ LYH MVY *`WY\Z» HPYWVY[Z VU ZVJPHS TLKPH ;OL Z[YH[LN` ILOPUK [OL JVUJLW[ ^HZ [V JYLH[L VUSPUL JVTT\UP[PLZ MVY [OL PZSHUK»Z HPYWVY[Z LUOHUJPUN WHZZLUNLYZ» L_WLYPLUJLZ [OYV\NO -HJLIVVR ;^P[[LY @V\ ;\IL HUK 0UZ[HNYHT >OPSZ[ NL[[PUN MHUZ HUK MVSSV^LYZ PZ H Z[HY[ P[ PZ VUS` [OL [PW VM [OL PJLILYN ;OL YLHS JOHSSLUNL SPLZ PU LUNHNPUN [OLT HUK KYP]PUN YLZ\S[Z MYVT [OPZ LUNHNLTLU[ 0U [OL SHZ[ KH`Z HSVUL [OL *`WY\Z (LYVWVSPZ -HJLIVVR 7HNL NLULYH[LK H [V[HS YLHJO VM TPSSPVU \ZLYZ ^P[O LUNHNLK \ZLYZ PU [OL ZHTL WLYPVK ;OPZ TVU[O ^L [VVR P[ H Z[LW M\Y[OLY SH\UJOPUN H UL^ ^LIZP[L MVY /LYTLZ (PYWVY[Z >L HZRLK! >OH[ JV\SK ^L KV [V THRL WHZZLUNLYZ MLLS TVYL SPRL ^LSJVTL N\LZ[Z& ;V ÄUK [OL HUZ^LYZ ^L KPYLJ[LK V\Y H[[LU[PVU [V WHZZLUNLYZ Å`PUN PU VY V\[ VM 3HYUHJH HUK 7HWOVZ (PYWVY[Z HUK HU`VUL WPJRPUN \W VY KYVWWPUN VMM 6\Y V]LYHSS HPT ^HZ [V THRL SPML H[ 3HYUHJH HUK 7HWOVZ HPYWVY[Z LHZPLY HUK [OL [V[HS Å`PUN L_WLYPLUJL TVYL LUQV`HISL

A FOREX COMPANY (ZWPYPUN [V KLSP]LY [OL \S[PTH[L [YHKPUN L_WLYPLUJL +ÙHTPJ >VYRZ OLSWLK H FVYL_ JVTWHU` [V KLZPNU HUK KL]LSVW H Z[H[L VM [OL HY[ VUSPUL WYLZLUJL JVUZPZ[PUN VM HSS [OL YLX\PYLK THYRL[PUN LSLTLU[Z MVY JYLH[PUN HU PTWYLZZP]L ÄYZ[ SVVR [V WYV]PKPUN [OL ULJLZZHY` [VVSZ [V [OL MVYL_ [YHKLY [V VWLU H 3P]L VY +LTV HJJV\U[ \ZPUN H ZTVV[O HUK LHZ` [V \ZL PU[LYMHJL ;OL J\Z[VTLYZ JHU SVN VU [V [OL ^LIZP[L HUK [YHKL ^P[OPU H 3P]L VY +LTV LU]PYVUTLU[ 0U ZÙJ ^P[O P[Z VUSPUL HJ[P]P[` V\Y JSPLU[ PZ UV^ \[PSPZPUN [OL WV^LY VM H JVTWSL[L HUK PU[LNYH[LK *94 =PZP[VY HJ[P]P[` PZ TVUP[VYLK HSSV^PUN V\Y JSPLU[Z [V MVSSV^ \W VU [OLPY SLHKZ PUJYLHZL ZHSLZ ZH]L [PTL HUK NYV^ [OLPY I\ZPULZZ I` PTWYV]PUN WYVZWLJ[ HUK J\Z[VTLY L_WLYPLUJLZ [OYV\NO HSS L_PZ[PUN [V\JO WVPU[Z ;OL Å V^ VM PUMVYTH[PVU HUK HJJV\U[ JYLH[PVU WYVJLK\YLZ HYL JVU[YVSSLK \ZPUN HU HK]HUJLK >VYRÅ V^ LUNPUL :[H[\Z YLWVY[Z HYL H]HPSHISL [V OLSW PTWYV]L VWLYH[PVUZ HUK PUMVYTH[PVU PZ THKL LHZPS` HJJLZZPISL ÔLU ULLKLK ;OL Z`Z[LT PZ ZLHTSLZZS` PU[LNYH[LK ^P[O [YHKPUN WSH[MVYTZ LUYPJOPUN [OL J\Z[VTLY»Z YVSL HUK NP]PUN M\SS HJJLZZ [V [YHKPUN PUMVYTH[PVU Z\JO HZ J\Z[VTLY IHSHUJLZ HUK J\Z[VTLY [YHKPUN HJ[P]P[`

Gold: What has your growth trajectory been like since your inception, and how do you envisage Dynamic Works expanding its reach? A.G.: Our domestic growth has been extraordinary. Having achieved an established and solid local presence, we are actually looking to collaborate with international strategic alliance partners in key locations, who share our vision, to help us establish an ever greater presence. DW Partner Connect is a programme we’ve developed to get in touch with worldwide partners who have the ability and resources to represent us through a dedicated team who understands their market, and regional culture. Furthermore, we intend to invest more in vertical solutions. A very good example of a vertical solution is our integrated package offering for Forex companies, the vital trilogy of CRM – Customer Dashboard – Web/CMS. Success stories will be presented during the Cyprus Forex Industry Conference, which will take place on November 7 in Limassol. G.G.: Finally, we are also giving strong emphasis to our Cloudbased solutions: xSelio Commerce was launched last November, and Mando App, a cloud-based mobile solution for the Food and Beverage industry, has been launched but will be officially commercialised in October.

DRIVING AN ENTREPRENEURSHIP

Idea from Concept to product

“Y

ou have an idea for a business; it does not need to be a mind-blowing innovation. It just needs to solve a problem you understand well”. So says Yiannis Gavrielides, a Cypriot entrepreneur who was working as a consultant for a large corporation in London when he realized that one of his colleagues had spent valuable time looking for a “warm” contact at a potential client, without knowing that Yiannis already knew a senior person who could open the door. Yiannis thus found a problem and had an idea about how to solve it. “Bounce your idea off friends, build a group of people that can help you deliver it, create a business plan, find capital, and ask for lots of help along the way; get out of your comfort zone, be decisive, well planned and determined,” he advises. Together with his partner, Alex Protogerellis, he founded Covve, an online application that reinvents the professional address book, empowering contact owners and enabling companies to extract business value from their informal contact network. Through a highly intuitive interface for contact network visualisation, Covve enables the professional to better understand the reach and power of his/her address book. It then extends this reach through a company-wide, anonymous view of colleagues’ contacts; and because no-one’s address book is perfect, Covve’s innovative tools make sure that it is always as complete and up-to-date as possible. Recognising the sensitivity of the personal address book, Covve was designed with privacy and data protection as a top priority. Covve comprises of a team of diverse, highly qualified and driven individuals who bring collective experience across geographies and across sectors including strategy and technology consulting, deep technical

delivery, UI and UX design, management and entrepreneurship. The product has been designed for and was tested by professionals. After a successful alpha release in a law firm, Covve was publicly launched last month. Covve received structural EU funds and support, now provided within the framework of Startup Europe, the European Commission Digital Agenda action plan, supported by Vice President Neelie Kroes. The team also secured investments through an early stage venture fund, DataElite, backed by big Silicon Valley investors and leading technology advisors, and other private investors with relevant experience and strong professional networks. Gavrielides points out that we are experiencing a new industrial revolution, where the dissemination of knowledge, the dissolution of national barriers, and the significantly lower capital expenses in starting

The appetite for investment in startups is high and so are government grants aiming to boost innovation and entrepreneurship. up, allow for smart, driven individuals to become part of the revolution and drive change. “The appetite for investment in startups is high and so are government grants aiming to boost innovation and entrepreneurship. All these leave few excuses

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

not to consider entrepreneurship in technology” he adds. If you have an innovative ICT/web idea and you are interested in entrepreneurship in Cyprus, Yiannis and another Cypriot entrepreneur and investor, Theo Middleton, can help you get started. Together, they have founded Invelopment Partners, a Cypriot company through which they partner with and invest in talented young individuals, helping them to set up businesses. Information can be found at www. invelopmentpartners.com OTHER OPTIONS THAT CAN GET YOU STARTED IN ENTREPRENEURSHIP IN CYPRUS INCLUDE: • Benefit from a funding like the European Commission funding for SMEs under Horizon2020. The European Commission is hand-picking potentially disruptive businesses to invest and support as part of the SME Instrument. Your business could receive up to €3 million in funding, and world-class business support and mentorship. In total, more than € 2.8 billion will be allocated for the SME instrument from 2014 to 2020. Apply to http://ec.europa. eu/easme/sme_en.htm • If you have a clean tech idea, apply now for Europe’s largest business idea competitionCleanLaunchpad Competition (www. cleanlaunchpad.eu/) • Contact one of the organisations in the local startup community: -Cyprus Business Angels Networks (http:// cyban.com.cy/) -Cypriot Enterprise Link (http://www.projectcel.com/) -Chrysalis LEAP (http://chrysalisleap.com/) -Repower Cyprus (http://www.repowercyprus.com/) For further information on Covve visit www.covve.com

TECHNOLOGY

FINGER ON

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

THE PULSE A leading global tech company will soon be celebrating 60 years in Cyprus.

By Chloe Panayides | Photo by Jo Michaelides

e owe NCR more than we realise. Whilst generations the world over have often wondered what the world would have been like should the television, the telephone and the Internet never have been invented, much less thought is given to where we would be devoid of the cash register, receipts and automated credit systems. With a long history dating back to 1884, NCR pioneered the above and more, also being responsible for having perfected liquid crystal display (LCD) screens, and introducing the industry’s first mixed media deposit ATM (SDM). In an exclusive interview with Gold, Kyriakos Kyriakou, General Manager of NCR Cyprus reveals just how far this international corporation has steadfastly invested in Cyprus, and how, straight from our shores, solutions – born courtesy of vital research and development taking place under NCR’s care – have traversed the globe and ameliorated industry standards. Gold: Let’s start with the basics. What exactly is NCR? Kyriakos Kyriakou: The NCR Corporation was founded in 1884 by John H. Patterson, who founded the National Cash Register company, maker of the first mechanical cash registers. NCR has evolved through the years and today it provides mainly vertical solutions and services to the Government, financial, retail, hospitality, telecoms, and travel industries. In a nutshell, NCR is a global tech company: we run the everyday transactions that make your life easier! With our software, hardware and portfolio of services, we make more than 485 million transactions possible every day. We help our customers respond to the demand for fast, easy and convenient transactions with intuitive self-service and assisted-service options. But what we do goes beyond niche

technologies or markets; our solutions help businesses around the world increase revenue, build loyalty, reach new customers and lower their costs of operations. By continually learning about – and thereafter pioneering means – of how the world interacts and transacts, we are helping companies not only reach their goals but we are also changing the way all of us shop, eat, travel, bank and connect. Gold: What are the key solutions that NCR provides? K.K.: The NCR solution portfolio is very wide and each solution is vertical to the industry it is intended for. For example, in the financial sector the whole world knows NCR through its interactions with our ATMs, or in retail through our point of sale (POS) machines that we have in retail stores. NCR has always been very well-known for its selfservice and assisted-service solutions across the industries mentioned earlier. However, the

THE ISSUE OF THE ISLAND’S POLITICAL

NEUTRALITY SHOULDN’T BE

UNDERESTIMATED company has expanded and is continuously expanding its portfolio to address a wider space of the needs of our customers. NCR is expanding in the areas of cash management,

mobile solutions for banking and other industries, self-checkout in retail stores, outsourcing and managed services, cloud-based solutions, payments, and other solution portfolios with new innovations either through R&D or acquisitions. Gold: You mentioned customer needs. How in touch are you with your clients in enhancing your products? K.K.: Client feedback is garnered via analyses undertaken by NCR. We utilise these to map a strategy of where to invest and how to develop accordingly. Gold: How far back does NCR’s relationship with Cyprus stretch? K.K.: NCR (Cyprus) Ltd was established on April 1, 1955, as a subsidiary of the parent company, NCR Corporation. We’re therefore approaching 60 years of business in Cyprus! NCR Cyprus provides industry-specific solutions and consulting services, to Government and semi-government organisations, banking institutions, businesses in the retail, communications and other selected industries. NCR’s office in Cyprus (based in Nicosia) is also the NCR headquarters for the Asia, Middle East, and Africa Region (AMEA), managing the business of NCR in more than 70 countries around the globe out of the 150 in total in which NCR executes its business. In Cyprus NCR employs more than 150 highly trained professionals. It is truly a large, multi-cultural region, with diverse living standards and technological infrastructure in each and every country and is manned with qualified and highly-trained professionals. Over the past decades, NCR Asia, Middle East and Africa has managed to play a leading role in developing the infrastructure in these countries, based primarily on the everlasting virtues of determination and innovation. NCR AMEA’s region constitutes a significant contributor to the NCR Corporation financial results. Gold: What motivated NCR Corporation to establish a regional office in Cyprus? K.K.: The political neutrality of Cyprus with the Arab and African world, the favourable business climate, well-educated and skilled human resources, favourable tax rates, an excellent telecommunications infrastructure and the island’s geographical proximity to the Asian, Middle East and African markets were among the key factors behind NCR’s decision to establish its regional offices in Cyprus. The issue of the island’s political neutrality shouldn’t be underestimated. Save for Turkey, people from Cyprus can travel to every country to conduct business devoid of any underlying political grievance between the two states. However, in

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 95

TECHNOLOGY

my opinion, the most important factor was the thought leadership of the top management (SVPs of ME, MEA, AMEA) throughout the years, who have played a pivotal role in the success of the office in Cyprus. Evidence of this success is the progression of NCR in Cyprus through the years: In1955: NCR Cyprus Ltd was responsible for the Cyprus market only; in1986 an ME area office was set up, responsible for the Middle Eastern (including Cyprus) markets; in1990, the MEA area office responsible for the Middle Eastern and African (including Cyprus) markets was established and, in 2012, Asian markets were added to make it the AMEA area office. Gold: What precisely do you mean by the term ‘thought leadership’? How pivotal it is to a company’s success? K.K.: Nothing can be achieved without the right people in the right positions to convey the right messages to the right people. It’s a vital chain reaction. Cyprus has many benefits to offer multinational companies like NCR, but if we didn’t have the right people to convey the right messages to NCR Corporation, then the success of NCR in Cyprus wouldn’t have been possible. Thankfully, NCR’s management in Cyprus has been faithful to this chain and it has inspired the wider team to be both committed to, and passionate about, our work. NCR has become our second home. Gold: How far was NCR Cyprus affected by the events and decisions of March 2013? K.K.: I took over my new responsibilities at the beginning of 2013 at a very difficult time for the Cyprus economy. However, due to the responsibilities of the office in Cyprus for the AMEA region, we have done very well in terms of our financial results and the business that we undertake locally. Unfortunately I cannot disclose any financial information of our results in Cyprus. However, we are very optimistic about the results we will deliver in 2014. This is evident from our positive results of Q1 and Q2 and also from our expectations for Q3 and Q4. Gold: Did the crisis encourage any change of strategy? K.K.: We’re more focused than ever on engendering major upgrades of the existing systems we have with customers and we’re trying to show banks, for example, that investing in IT can reduce overall operational costs. Finally, we’re spearheading our own innovative activities, channeling time and energy into R&D. During the last couple of years, NCR has actually hired more than 50 new employees, mainly university graduates, to this end.

MORE ATTENTION

AND MORE

INCENTIVES SHOULD BE GIVEN TO THE EXISTING INVESTORS ON THE ISLAND

Gold: Could you elaborate as to the R&D activities? K.K.: Due to the seniority and the exposure that of our local office has at a corporate level, we were able to convince NCR Corporation to create a new section of the Global R&D team here in Cyprus to develop products that will be sold in the countries where NCR executes its business around the globe. The project started two years ago, with the hiring of five developers, and, today, this team comprises 50, generating with remarkable results. This team has created the so-called NCR Development Framework, which enables faster development of software and applications. This tool has been used in the development of NCR products that are now sold around the globe, and in complex development projects that NCR has in Cyprus and other parts of the world. The results of this project are truly remarkable, and we expect that this team will continue to grow in the future. This project is a perfect example of how companies can turn the crisis into an opportunity. Gold: Do you feel, overall, that Cyprus is committed enough to R&D? If not, how might we invigorate this practice? K.K.: We’re doing the bare minimum, though we have great potential. I believe that it’s a matter of finding the right balance between the requirements of our customers and the investments that IT companies make to address those requirements. On the one hand, we need to convince our customers to trust

our own locally-developed software as opposed to adopting off-the-shelf solutions and, on the other hand, we need our IT companies to start investing in their own R&D. This is definitely not an easy task, and in order to become a reality we need the cooperation of the Cyprus Information Technology Enterprises Association, the Government, and the rest of the ‘Big Spenders’ in IT in Cyprus. Gold: What changes need to be implemented imminently to allow the regeneration of the Cyprus economy? K.K.: In my opinion, I believe that the attention paid by the new Government to attract new investments in Cyprus is on the right track. CIPA and the Ministry of Energy, Commerce, Industry & Tourism are doing a very good job in that direction. The only area where I see room for improvement is that of ensuring the exploitation of current investors in the island. Cyprus has a lot to offer to multinational companies like NCR. However, we need to be looking more into taking care of the existing ‘NCRs’ of Cyprus, rather than those based elsewhere. In my opinion, it is easier and more feasible for us to be upselling and cross-selling to the companies who have already invested in Cyprus and already receive the benefits from their current investments. It’s far more difficult to convince an executive and his family already established in another country to uproot themselves than to create incentives for an existing investor. Both tracks are important but I believe more attention and more incentives should be given to the existing investors on the island. Gold: And, finally, what is the market share of NCR in Cyprus? K.K.: As mentioned earlier, NCR is more focused on, and interested in, providing vertical solutions to its customers. This means that we are not interested in every IT project available in the market, the horizontal type of IT business. We are very selective in terms of the projects we get involved in, and it has to coincide with the corporate strategy of NCR. However, in the targeted market we are interested in as a company, we usually have a dominant role with high market shares. If we take the total ATM network from all the banks in Cyprus, for example, NCR holds more than the 95% of the market share for this specific sector of the market.

NOTHING CAN BE ACHIEVED WITHOUT THE RIGHT PEOPLE IN THE RIGHT POSITIONS TO CONVEY THE RIGHT MESSAGES TO THE RIGHT PEOPLE

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

{August 14 – September 13, 2014}

ISSUE

110

+ BOOK REVIEWS MONEY: Excess Returns: A Comparative Study of the World’s Greatest Investors By Frederik Vanhaverbeke

101

BUSINESS: The Alliance By Reid Hoffman, Ben Casnocha & Chris Yeh 105

ECONOMY: Wildcat Currency: How the Virtual Money Revolution Is Transforming the Economy By Edward Castronova

100

{money}

100 Sukuk Goes Global The growing popularity of Islamic bonds may even persuade Cyprus to issue one. 101 European Council Adopts New Rules on Investment Funds

TTAX & LEGAL: The European Union and Global FFinancial Regulation

104 Welcome to Cyprus! viron nm n meen nt Cyprus offers a steady and secure environment to move to or to set up your own business. sineess.. 105 Capital Project and Infrastructure Spending to Grow to more than $9 Trillion on by 2025

106

107

BBy Lucia Quaglia

109

LLIFESTYLE: Mr Mercedes BBy Stephen King

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100 The New Alternative 109 Investment Funds Law In nv

{economy} my y}} y

106 European Commission approves restructuring aid for more Greek banks 107 Investment Opportunities in Europe and Cyprus Next month’s Investment Expert Conference presented by Emergo Wealth.

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108

102 Sustainability Sells Green Business is going mainstream, says Anthony Day.

108 International Tax Reinvented? The Base Erosion Profit Shifting (BEPS) action plan takes shape.

{business}

{tax&legal}

110

{lifestyle}

110 Dress to Impress! Investing in vintage clothing. 114 A Day In The Life George Mountis

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES OF CYPRUS

Gold 99

islamic bonds

{MONEY}

Sukuk

Goes Global THE GROWING POPULARITY OF ISLAMIC BONDS MAY EVEN PERSUADE CYPRUS TO ISSUE ONE By John Vickers

hose present at the inaugural event of the Cyprus Investment Funds Association (CIFA) at the Presidential Palace in Nicosia last month may have been surprised when CIFA President Angelos Gregoriades urged the Government to continue its successful programme of bond issues by following the lead of the UK and issuing a sukuk or Islamic bond. “Due to our proximity to the Middle East, both geographically and in friendly relations, Cyprus could easily enter this market, just as Britain, Ireland and Malta are to do by promoting themselves as Islamic financial centres,” Gregoriades told the audience, which included President Anastasiades. Part of the surprise, obviously, was due to the fact that anything with an Islamic connection is viewed here with a considerable amount of mistrust but also because the concept of sukuk is virtually unknown to those outside the Middle East and Asia. A sukuk is an Islamic financial certificate, similar to a bond in Western finance, which complies with Islamic religious (sharia) law. Because the traditional Western interest-paying bond structure is not permissible, the issuer of a sukuk sells an investor group the certificate, who then rents it back to the issuer for a predetermined rental fee. The issuer also makes a contractual promise to buy back the bonds at a future date at par value.

While this religiously inspired noninterest loan system may appear quite mystifying to outsiders, Islamic finance is a major and growing subset of the global market, and there is nothing to prevent conventional investors from participating in the Islamic market. In June 2014, Britain became the first western country to issue an Islamic bond and the £200 million sale was heavily oversubscribed by investors in the UK, Middle East and Asia, attracting orders of £2.3 billion for its sale of shariacompliant debt – ten times higher than the amount sold. With Luxembourg expected to issue a sukuk later this year and Hong Kong and South Africa planning to do so in 2015, its popularity is going global. Total issuances have exceeded $100 billion annually since 2011 and, as a result, issuers from non-Islamic jurisdictions are being drawn to the sukuk market. These deals will be among the first to be executed by countries outside the Organisation of Islamic Cooperation, with the potential to increase the global appeal of sukuk as a mainstream debt instrument. An article in a recent issue of The Banker quotes Ahsan Ali of Standard Chartered who said: “These jurisdictions are looking to establish their leadership status within the Islamic financial industry and in a sense they are all aiming for a share of this growing market.” The jurisdictions in question are hoping to improve cross-border trade and investment flows with capital surplus regions, particularly in the Middle East. Attracting

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

THERE IS NOTHING TO PREVENT CONVENTIONAL INVESTORS FROM PARTICIPATING IN THE ISLAMIC MARKET Islamic financial products and services is seen as an effective way of achieving this. Yet the limited size of these expected transactions means that much of the impact is likely to be indirect, coming from greater market awareness of sharia-compliant financing options, as well as the prospect of followup corporate transactions. “Each new issue improves the depth of the Islamic finance market and transactions from highly rated sovereigns increase general market awareness and sentiment of Islamic finance,” Richard Williams, chief financial officer at the Bank of London and the Middle East, Europe’s largest Islamic bank, told The Banker. The prospect of follow-up issuances in these jurisdictions will be subject to broader market conditions over the short term. But the decision to execute these sovereign transactions points to a new phase in the growth of the global sukuk market. In turn, greater acceptance by these sovereigns has the potential to further integrate trade and investment flows between capital surplus regions, particularly the Middle East, and non-Islamic jurisdictions. With total Islamic finance volumes set to reach $2 trillion by 2016, for Cyprus, a relative newcomer to such markets but close to them in geographical terms, the prize may prove too great to ignore.

funds

{MONEY}

European Council

ADOPTS NEW RULES on Investment Funds

ast month the European Council adopted a directive amending EU rules on investment funds as concerns depository functions, remuneration policies and sanctions. The text amends directive 2009/65/EC on undertakings for collective investment in transferable securities (UCITS), introducing specific provisions on the depository’s safekeeping and oversight duties, and defining the conditions in which safekeeping duties can be delegated to a subcustodian. Rules on depositories have remained unchanged in substance since the original UCITS directive was adopted in 1985. Under the current rules, all assets of a UCITS fund must be entrusted to a depository. The depository is liable for losses suffered as a result of a failure to perform its duties, though the precise contours of those duties are currently defined by the laws of the member states. As a result, different approaches have developed across the EU, the consequence of which came to the fore following the Lehman bankruptcy and the Madoff fraud case. The new directive therefore sets out a list of entities that are eligible to act as UCITS depositories, and clarifies the depository’s liability in the event of the loss of a financial instrument held in custody. It also includes provisions on redress. On sanctions, the text lists the main breaches that have been encountered in implementing directive 2009/65/EC and lays down the

ADMINISTRATIVE SANCTIONS FOR

LEGAL

AND NATURAL PERSONS ARE UP TO AT LEAST €5 MILLION administrative sanctions and measures that the authorities should be empowered do apply. Sanctions will generally be published, but can either be published anonymously or not at all depending on a case-by-case assessment that will take into account proportionality and the effect on financial stability. Administrative sanctions for legal persons are set to 10% of total annual turnover or up to at least €5 million, for natural persons up to at least €5 million, or in both cases up to at least twice the amount of the benefit derived from the infringement, if this benefit can be determined. As concerns remuneration, the directive introduces a requirement for the UCITS management company to implement policy that is consistent with sound risk management and complies with minimum principles.

Adoption of the directive follows an agreement with the European Parliament on 25 February. The Parliament adopted its position at first reading on 15 April, in accordance with the agreement reached. Member states will have 18 months to transpose the directive into national law, and depositories will be given an additional 24-month transition period after the transposition deadline.

BBOOK RREVIEW EXCESS RETURNS: A COMPARATIVE STUDY OF THE WORLD’S GREATEST INVESTORS BY FREDERIK VANHAVERBEKE (HARRIMAN HOUSE PUBLISHING, 2014) R.R.P. £25 (£25 FROM AMAZON.CO.UK)

aking as its starting point that it is possible to beat the market, the book sets out to explore exactly how the most famous investors in the world have done it, year after year, sometimes by huge margins. The author has not merely looked at what investors have said about what they do but applied forensic analysis to hundreds of books, articles, letters and speeches made by dozens of top investors over the last century HUK Z`U[OLZPZLK OPZ ÄUKPUNZ PU[V H KLÄUP[P]L IS\LWYPU[ VM OV^ L_HJ[S` [OLZL investment legends have gone about their work. They include Warren Buffett, Benjamin Graham, Anthony Bolton, Peter Lynch, David Einhorn, Daniel Loeb, Lou Simpson and many more. Among the revealing insights, you will learn of the striking similarities in the craft of great investors, the crucial subtleties in their methods that are ignored by many, and the unconscious errors investors commonly make. The book is full of timeless and practical insights to help investors focus on the most promising opportunities and lead the way to beating the market.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 101

green business

{BUSINESS}

A N I A SUST S L L E S Green Business is going mainstream By Anthony Day

f you’re not part of Team Green you may not be on your clients’ preferred list for much longer. Green? Isn’t that about people in sandals and beards saving the polar bears? Maybe, but today we’re talking about green business, and how it’s affecting you, your clients and your sales. Sixty-five of the world’s largest corporations, from Abbot Laboratories through BSkyB, Ford, Microsoft, Philips and CocaCola to Wal-Mart wrote to all their suppliers last year and asked them to disclose how they were going to cope with climate change. And green business is not just about climate change, it’s about sustainable forests and sustainable fisheries, it’s about renewable energy, water, waste, carbon

footprints and scarce resources. Open any FTSE 100 Annual Report and the Corporate Sustainability Report drops out, showing how they are making the world a better place. In a word, Green Business is going mainstream, and your clients will soon be knocking on your door to ask what you’re doing about it, if they aren’t already. In practical real-world terms, what does all this mean for you and your sales team? It’s about understanding the client’s needs – something you do all the time – but recognising that those needs are constantly changing. They can’t be truly green without your help. For your client, there are three main drivers towards sustainability: Reputation, Revenue and Regulations. Help yourself by helping your clients with these.

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But hang on! Before you start, do you know how your own organisation measures up? Have you seen the corporate environmental statement? Does your company work to ISO 14001 or any of the other sustainability standards? Make sure that you and your team can give the client the full picture. Make sure the people in back office and boardroom are giving you the full picture! Reputation is the Number One driver which puts suppliers in the spotlight. Since British supermarkets found horsemeat in

SUSTAINABLE BUSINESS IS ALL ABOUT EFFICIENCY AND DOING MORE WITH LESS

IT’S NOT ENOUGH TO BE LEAN AND MEAN. YOU’VE GOT TO BE LEAN, MEAN AND GREEN AS WELL

Y T I L I AB their beefburgers and the press revealed the sort of conditions that Apple iPads were made in, these organisations have been desperate to claw back their credibility. Everyone else has been desperately looking at suppliers to make sure that nothing like that will ever affect them. If you do the minimum, their reputation is safe. If your company is doing more than it needs to, you’ll be more attractive as a supplier. On the other hand, in the face of the consumer your clients need to put their hands on their hearts and tell the world that they’re doing their greenest best – and if you’re not green and you supply them you’re making liars of them. Number Two, Revenue, or profitability, is a key part of sustainability. Sustainability is about doing more with less. If we can build the same product with less material we’re saving material cost. We may be saving production time, using less energy and making less waste as well – all driving more profits to the bottom line. How can you help your customer do more with less? Can you offer a product, a process or a system which will make your own clients more efficient and save them money? Makes it easy for them to make the business case! Can you do it before your competitors do? Number Three: Regulations – everyone’s

favourite! Quite simply, if you’re not complying with the increasing number of regulations it’s a deal-breaker, at the very least. Of course it’s not just the regulations that your own organisation has to obey; you have to think about it from the customer’s point of view. ISO 14001 – Environmental Management and ISO 26000 – Social Responsibility are desirable but not legally binding. On the other hand, REACH (Registration, Evaluation, Authorisation and restriction of Chemicals) is just one of the many regulations which must be observed to avoid penalties. You don’t always need to be an expert in these things, but you do at least need to be aware of the jargon and know whether these are issues you can help with. Things are changing all the time, so if you keep up to date on the regulations affecting your particular market, part of your added value could be helping your clients keep up to date as well. Objections? There are always objections, and there are very strong opinions on both sides of the question. You don’t need me to tell you not to get into an argument! “You’re not doing nearly enough!” To answer that you need to be clear on exactly what your organisation is doing and you need to know that what you are offering will comply with the standards that your

client must meet. Ideally you’ll also know what’s being planned to make your organisation even greener. At the other extreme: “This green rubbish? It’s all a waste of time and money!” Actually, sustainable business is all about efficiency and doing more with less. Companies adopting a sustainable strategy are finding that it generally saves money. Savings you can share with your clients, even if they don’t believe that sustainability is a good thing. Should you walk the sustainable talk? Certainly there will be some people who will be really upset if you turn up in a gas-guzzling 4x4. How about rewarding your top salesman with a hybrid? There’s a Lexus hybrid available now. There’s even a plug-in hybrid from Porsche! There are green cars right across the range. The BMW i3 electric is certainly worth a look. With 0-62mph in 7.2 seconds and a range of over 150 miles it’s not at all what you used to expect from an all-electric car! “It’s just a fad, isn’t it?” No, sustainability is here to stay. It’s the new way of doing business and the new way of staying in business, in the face of expanding world population, rising energy prices and declining resources. If sustainability were just a fad, would Tesco have set up its Knowledge Hub – the world’s largest sustainable supply chain resource? Would 722 institutional investors holding US$ 87 trillion in assets be supporting CDP to monitor the climate risk in their portfolios? Would Dow Jones have been publishing a sustainability index for the last 15 years? Would we have ever heard of the Global Reporting Initiative, Environmental Impact Statements or Carbon Footprints? So sustainability is firmly here to stay. And as always, to succeed in this competitive world we all have to keep that one jump ahead. It’s not enough to be lean and mean. This time, you’ve got to be lean, mean and green as well.

info: Anthony Day is a sustainability professional who helps businesses recognise and address the challenges, risks and opportunities of sustainable business. www.anthony-day.com (+44 7803 616877) THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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investment

{BUSINESS}

CYPRUS! CYPRUS OFFERS A STEADY AND SECURE ENVIRONMENT TO MOVE TO OR TO SET UP YOUR OWN BUSINESS. By Marina Ioannou

yprus’ ideal location – a short distance from both the Middle East and other European Union countries – also provides individuals and businesses in Asia with a route to Europe. Moreover, given the unsteady political situation in the Middle East, Cyprus has long been a safe and secure destination for many of its Arab neighbours. It is a hospitable country that welcomes all nationalities and gives them an opportunity to make a fresh start. Cyprus is politically stable, the economy is recovering slowly but steadily and it is predicted that, within a couple of years, the country will have put behind it the financial crisis that it suffered at the beginning of 2013. At the moment, there are many opportunities for investing in Cyprus – particularly in the real estate sector, tourism, professional services and Research & Development. Cyprus also has an excellent climate, a good education system, low tax rates, a stress-free lifestyle, as well as unique natural that combines mountains, forests and beaches. Distances between cities

CYPRUS

IS A HOSPITABLE COUNTRY THAT WELCOMES ALL NATIONALITIES

are very small and the Cypriots are very friendly and hospitable. Russians and Asians, Russian and Arabic speakers are especially attracted to Cyprus. There is already a large Russian-speaking community in Limassol which acts as a beacon to others. Moreover, because of its close proximity to and ties with Lebanon and other Middle Eastern countries, Cyprus is a favourable destination either as a holiday destination or a permanent residence for people from neighbouring countries. The Cyprus government has always welcomed new immigrants to Cyprus, whether investors, financiers or just families wishing to relocate to a new country. Recently, due to the financial crisis, the Government has provided special incentives to foreigners who invest in the country and, in exchange, are granted citizenship or long-term residence. In order for a person to be eligible for long-term residence, he/she needs to buy a home worth at least €300,000 plus VAT and to have an income from abroad of at least €30,000 per annum. People in this category are given the opportunity to live in Cyprus for life, without being employed, and they have the ability to come and go without any visa restrictions. A spouse and children under 18 may also be included in this permit. There are two types of application: a standard one, to which the applicant receives a reply within 6-8 months from

the date off submission, and h d b i i d a ffast- track one which guarantees a response within 2 months. However, fast-track applicants are required to deposit an additional €30,000 as a long-term fixed deposit for 3 years in a Cyprus bank account in their name. By acquiring residency, a person has the right to own property and live in the country for an unspecified period of time, meaning for life. Citizenship entitles a person to a Cypriot passport and access to government healthcare and social security as well as the right to own property without restrictions, to invest in the country and, most importantly, to travel, live and do business throughout the European Union. Naturally, the provisions for obtaining citizenship are considerably stricter than those for permanent residence, though they were amended earlier this year. In brief, the amount necessary for foreign investors to secure a Cypriot passport has effectively been reduced from €5 million to €2.5 million for persons participating in a collective investment worth at least €12.5 million, or reduced to €2 million for those participating in a collective investment worth more than €12.5 million. In addition, investors must also purchase residential real estate worth a minimum of €500,000, plus VAT. The application submission fee is €2.000, plus €5,000 for the certification issuance fee.

info: Marina Ioannou is an expert on immigration issues at OlieServe, the brand name for a group of businesses specializing in providing consulting services in the areas of Business Administration, Tax Planning, Immigration and Investment (olieserve.com) 104 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

spending

CAPITAL PROJECT AND INFRASTRUCTURE E

{BUSINESS}

SPENDING TO GROW W

TO MORE THAN $9

TRILLION BY 2025

lobal capital project and infrastructure spending is expected to grow to more than $9 trillion annually by 2025, up from $4 trillion in 2012, according to a new report from PwC, Capital project and infrastructure spending: Outlook to 2025. The report, for which Oxford Economics provided research support, analyses infrastructure spending across 49 of the world’s largest economies which account for 90% of global economic output. It estimates the scale of current infrastructure investment and assesses the prospects for future investment from now to 2025. Overall, close to $78 trillion is expected to be spent globally between now and 2025 on capital projects and infrastructure. According to the report, during 2011-12 the global infrastructure market rebounded from the global financial crisis and will continue to grow between 6-7% yearly to 2025. The recovery will be geographically uneven, led overwhelmingly by Asia, as spending overall shifts from West to East. The report shows that the Asia-Pacific market will represent nearly 60% of all global infrastructure spending by 2025, driven mainly by China’s growth. Long-term underlying trends in demographics, technology, natural resources, urbanisation and shifting economic power will continue to have an enormous impact on which areas of spending will grow. In contrast to Asia-Pacific’s success, investment in western economies has been more constrained by the legacy of banking crises, fiscal austerity and a shallow economic recovery. Western Europe’s share will shrink to less than 10% from twice as much just a few years ago. While the rate of growth will be slower for mature economies, North America is expected to fare better than Western Europe, where total infrastructure spending in nominal dollar terms is unlikely to reach pre-crisis levels until at least 2020. The PwC report identifies four drivers of

ure spending over the comfuture infrastructure ing decade, including: AVAILABILITY OF FUNDING AND GOVERNMENT FINANCES: In emerging countries less burdened by debt, government investment can help provide the transportation, health and education facilities a growing middle class demands. DEMOGRAPHIC FACTORS: Aging populations, particularly in Western Europe and Japan, will mean an increased share of available social investment for health facilities. CONTINUING PROCESS OF URBANISATION: The continuing process of urbanisation generates demand for investment in utility supply. NATURAL RESOURCES: Natural resources and policy frameworks exploiting them will play a key role in determining the pattern of infrastructure spending leading to increased extractive spending. The Capital project and infrastructure spending: Outlook to 2025 report provides the first consistent data analyzing projected capital project and infrastructure spending across the globe. For investors, public officials, and companies planning capital investments, it highlights the sectors and countries expected to benefit from this investment resurgence. And it provides insight on the factors driving the expected investment growth. According to the report, the composition of infrastructure spending by sector globally has changed less radically than the geographical split. Extraction has increased its share from 14% to 17%, while transportation fell from 34% to 31%. The manufacturing sector remained broadly stable, while social infrastructure edged down from 16% of the total to 15%, mostly due to slower growth in education investment. Western Europe does not appear to return to pre-crisis levels of infrastructure spending until 2020 according to the forecast. Western Europe’s highest spend was $63bn in 2008, and spending is forecast to be $62bn in 2020. On the issue of urbanization, in China, Indonesia, the Philippines, Ghana and Nigeria, it is expected that 10% or more of the total population will shift to cities between

INVESTMEN IN WESTERN INVESTMENT ECONOMIES HAS BEEN MORE CONSTRAINED BY THE LEGACY OF BANKING CRISES, FISCAL AUSTERITY AND A SHALLOW ECONOMIC RECOVERY now and 2025. For a copy of Capital project and infrastructure spending: Outlook to 2025, visit www. pwc.com/cpi-outlook2025.

BOOK REVIEW THE ALLIANCE

BY REID HOFFMAN, BEN CASNOCHA & CHRIS YEH (HARVARD BUSINESS REVIEW PRESS, 2014) R.R.P. £16.99 (£14.44 FROM AMAZON.CO.UK)

o-authored by Hoffman, the founder of LinkedIn, this bold but practical guide for managers and executives provides the tools needed to recruit, manage, and retain the kind of employees who will make a company thrive in today’s world of constant innovation and change. Managers want their employees to help transform the company for the future while employees want the company to help transform their careers for the long term. This win-win scenario will happen only if both sides trust each other enough to commit to mutual investment and mutual ILULÄ[ HUK [OL H\[OVYZ JSHPT [OH[ [OPZ JHU be achieved by recognising the realities of the modern economy. So, paradoxically, the alliance of the book’s title begins with managers acknowledging that great employees might leave the company, and with employees being honest about their own career aspirations. By putting this new alliance at the heart of a company’s talent management strategy, it will be able to recruit and retain the entrepreneurial individuals needed to adapt to a fastchanging world.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 105

banking

{ECONOMY}

European Commission approves restructuring aid for more Greek banks NBG AND PIRAEUS BANK PLANS IN LINE WITH EU STATE AID RULES

n July the European Commission announced that it had found the restructuring plans of the National Bank of Greece (NBG) and Piraeus Bank to be in line with EU state aid rules. On NBG, the Commission Vice President in charge of competition policy Joaquín Almunia said: “Through the restructuring plan, NBG will focus its activities on the strong Greek and Turkish banking operations and improve their efficiency. This will ensure that the bank can continue financing the Greek economy on a sustainable basis.” Referring to Piraeus Bank, Almunia said: “The successful integration of several Greek banking activities has strengthened Piraeus’ liquidity position. The enlarged group now needs to complete the significant rationalisation process started two years ago in order to restore its long term viability, allowing it to finance the Greek economy in a sustainable way.” NBG has already started to implement significant rationalisation measures such as a voluntary staff retirement scheme, salary cuts, branch closures and further cost cutting initiatives in Greece and South Eastern Europe. The restructuring plan continues this effort. It provides for a further restructuring of international operations and Greek non-core activities and a reinforcement of Greek banking operations, mainly through a

rationalisation of operating expenses, a reinforcement of the net interest income and prudent risk management. NBG will decrease its shareholding in its Turkish subsidiary Finansbank, which

STATE FUNDING THAT MERELY SERVES TO KEEP UNSUSTAINABLE BANKS ARTIFICIALLY ALIVE WITHOUT RESTRUCTURING THEM IS NOT ALLOWED will strengthen the capital position of NBG, but it will retain a majority shareholding. Finansbank has been steadily profitable over the last years. The implementation of these commitments will be monitored by an independent trustee. Since July 2012, Piraeus Bank has acquired several Greek banking activities, which had been resolved (Agricultural Bank of Greece (ATE)) or put to sale by foreign banks (Millennium Bank Greece (MBG), Geniki and the branches of Cypriot banks in Greece). It has integrated these banks within a very short time, has started to rationalise their operations and has already achieved significant synergies. The restructuring plan continues this effort through a reduction of operating expenses, an increasing net interest

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income and a prudent risk management. The plan also provides for a significant downsizing of Piraeus’ international operations, which are loss making. The implementation of these commitments will be monitored by an independent trustee. Piraeus has received more aid than other large Greek banks, compared to its risk-weighted assets at 31 March 2012. However, Piraeus reduced the amount of aid needed through capital enhancing acquisitions, buy-backs of subordinated debt at significant discounts to par, and capital increases. Indeed, Piraeus regained access to capital markets and raised significant amounts of private money in 2013 and 2014, which allowed it to repay part of the aid received. On 29 April and 9 July, the European Commission approved the restructuring plans of Eurobank and Alpha Bank. The common EU rules on state support for the restructuring of banks during the crisis aim at ensuring that aided banks become viable in the long term. That is to say, state funding that merely serves to keep unsustainable banks artificially alive without restructuring them is not allowed. Moreover, the rules ensure that the aid is limited to the minimum necessary to achieve this result without a waste of taxpayers’ money and that the distortions of competition brought about by the subsidies, which give aided banks an advantage over their competitors, are mitigated.

conference

Investment Opportunities in Europe and Cyprus INVESTMENT EXPERT CONFERENCE LOOKS AT PRESENT AND FUTURE CHALLENGES

he investment landscape in Cyprus and much of Europe now provides ground for optimism, as economies and markets recover from the European financial crisis. Private and institutional investors alike are searching for opportunities for growth and portfolio diversification at a time when yields are low and under pressure. Following the March 2013 decisions by the Eurogroup, including the haircut of uninsured deposits, retirement and provident funds in Cyprus have been hit particularly hard, given a distinct lack of asset diversification in their portfolios. Securing a comfortable retirement requires long-term planning and a rigorous and disciplined investment strategy that avoids behavioural biases and rush decisionmaking. Several key questions need to be addressed: Are there attractive investment opportunities in Cyprus and abroad? Can Cypriots trust the investment market and find alternative investment strategies? How can investors diversify their portfolio to reduce the risks involved? The Investment Expert Conference presented by Emergo Wealth on 19 September (09.0013.00) at the Hilton Park Hotel in Nicosia analyses the global market outlook, provides alternative investment solutions that can enrich the portfolio of an investor, as well as informing investors about investment opportunities in Cyprus and abroad such as pension fund schemes, the future of alternative investments, etc. The conference, in English, is aimed at management committees of provident and pension funds, managers and consultants of

provident and pension funds, accountants, lawyers, legal advisors, financial advisors, internal and external auditors, CEOs, CFOs and Human Resource executives of Cypriot enterprises, fund managers, investment departments of banking institutions and the competent state authorities. Among the topics to be presented/discussed are the following: “The Global Market Outlook 2015 – The quest for yields”, “Asset Allocation Strategies – Diversification made simple”, “Cyprus Retirement & Provident Funds – The calm after the storm”, “Global Equities – Outlook 2015”, “Fixed Income investments”, “Alternative Products investments”, and “Investment Opportunities in Cyprus” Speakers include Dr. George Theocharides, Associate Professor, CIIM , Member of the Board, CySEC; Dr Constantinos Neophytou Director, Investment Strategy, Emergo Wealth; Yannis Matsis, CEO, Point9 Financial Ltd;, Olivier Kintgen, CIO, Europanel Research and Alternative Asset Management; Gautam Chadda, Director, Investment Counsellor, Royal Bank of Canada Investment Management; Dr George Mountis, Director, Business Development, Emergo Wealth; Dr. Mike F. Balm, Managing Director, Emergo Wealth; and Alfred H. Balm, Chairman, Emergo Group. The organiser of the conference, Emergo Wealth Ltd., is a fully-fledged financial services and investment advisory company, built on world-class professional expertise, integrity and transparency. It provides investment advisory, asset and portfolio management, brokerage and administrative services that enable clients to rely on turnkey, total solutions to manage

{ECONOMY}

their business and grow their wealth. It offers corporate finance advisory and management consulting services, including advice on debt restructuring and on M&A transactions. The company’s research desk offers a range of proprietary reports on a number of sectors of the Cyprus economy as well as ad hoc analysis reports upon request. For more information about the conference, contact IMH: Tel: 22505555 | e-mail: events@imhbusiness.com Website: www.imhbusiness.com

B BOOK RREVIEW WILLDCAT CURR WILDCAT CURRENCY: RENCY HOW THE VIRTUAL MONEY REVOLUTION IS TRANSFORMING THE ECONOMY BY EDWARD CASTRONOVA (YALE UNIVERSITY PRESS, 2014) R.R.P. £17.99 (£16.55 FROM AMAZON.CO.UK)

rivate currencies have always existed and today’s economy has seen an explosion of new forms of monetary exchange not created by governments. Credit card companies offer points that can be traded in for a variety of goods and services, from airline miles to online store credit. Online game creators have devised new mediums of electronic exchange that turn virtual money into real money. Meanwhile, real money is increasingly going digital, where it competes with private currencies like Bitcoin. The virtual and the real economic worlds are interacting more than ever before, raising the possibility that this new money might eventually replace dollars, euros and yen. In this dynamic and essential work, Castronova, the leadPUN YLZLHYJOLY PU [OPZ ÄLSK L_WSVYLZ [OL current phenomenon of virtual currencies and what it will mean legally, politically and economically in the future. In doing so, he provides a fascinating, often surprising discourse on the meaning of money itself – what it is, what we think it is and how we relate to it on an emotional level.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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action plan

{TAX&LEGAL}

INTERNATIONAL TAX REINVENTED?

THE BASE EROSION PROFIT SHIFTING (BEPS) ACTION PLAN TAKES SHAPE By Costas Markides,

he new, harsh economic realities which the majority of countries around the globe are currently undergoing as a result of the scarcity of available financial resources, have prompted governments to relentlessly explore all possible ways of recouping lost revenues. As a result, large multinational entities and corporations have been placed under the tax microscope at the request of political groups (G8, G20) and governments feeling the wrath of civil society, due to a deeply rooted belief that the global financial crisis was, to a large extent, caused by affluent multinational corporations and “too big to fail” banks. As a result, a clear mandate was given to the OECD to develop and deliver an action plan (the “BEPS action plan” as it is widely known) that would alleviate current tax “injustices” and level the playing field for local and global corporations. Admittedly, empirical data made public through investigative journalism in the years since the financial crisis of 2008, suggests that the tax rules that were adopted some decades ago to foster and develop the global economy of another century may not have kept pace with today’s highly mobile and heavily digitalised business environment. The BEPS action plan considers possible measures that can be adopted by countries unilaterally but, most importantly, multilaterally in an effort to tackle the perceived shortcomings and apparent abuses in the existing international tax system, eliminating instances of harmful tax competition, curbing tax avoidance and limiting tax evasion to the fullest

THE OECD HAS ADOPTED A VERY OPTIMISTIC TIMETABLE FOR IMPLEMENTING ITS ACTION PLAN possible extent. The BEPS action plan comprises 15 recommendations or action points, the most important of which are the following: Address the tax challenges presented by the digital economy (especially the ability of a corporation to have a significant digital presence in a country without paying the corresponding taxes that would arise as a result of its physical presence); Neutralise the effects of hybrid arrangements (the plan will make recommendations in order to avoid incidents of double non-taxation in cases where differences in domestic law classification are observed and which produce a double benefit) Strengthen Controlled Foreign Company rules (recommendations for tackling cases where the sole purpose of establishing a subsidiary is purely taxrelated and conferring a corresponding taxing right in the country of the parent company). Limit taxable base erosion caused by interest and royalty deductions (develop recommendations to prevent the relocation of financial resources from high to low tax jurisdictions and prevent earnings stripping). Counter harmful tax practices and promote substance and transparency in corporate affairs and governance (propose ways to facilitate and enhance the spontaneous and automatic exchange

info: Costas Markides is a Board Member, International Tax, KPMG Ltd. 108 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

of information and, at the same time, match real activity with physical presence); Deter Tax Treaty abuses (commonly known as Treaty shopping, by developing model treaty provisions such as “limitation of benefits” clauses and “main purpose” tests that aim to confer treaty benefits only to those entitled). Prevent the artificial avoidance of a Permanent Establishment (summarily, the fragmentation of operations into smaller segments in order to alter the overall tax treatment of a sector of activity or operation from what it would be if viewed as a cohesive unit, and also the shifting of profits between jurisdictions where it is evident that there is no real differentiation in the activities performed in these jurisdictions and no other value added services are offered). Align Transfer Pricing rules with value creation (prevent transactions that occur between related parties and which confer a benefit which would not occur or be available between unrelated parties). Require taxpayers to disclose aggressive tax planning arrangements to the respective Tax Authorities. Finding itself under enormous pressure, the OECD has adopted a very optimistic timetable for implementing its action plan. A deadline of September, 2014 has been set for addressing the challenges presented by the digital economy, proposing measures to prevent the artificial creation of a Permanent Establishment, addressing tax avoidance through hybrid arrangements and limiting treaty abuse, with the rest of the action points having to be addressed by December 2015 at the latest.

legislation

{TAX&LEGAL}

THE NEW ALTERNATIVE INVESTMENT FUNDS LAW

The enactment of the new AIF Law marks a long-awaited modernisation of Cyprusâ&#x20AC;&#x2122;s investment funds regime.

he Alternative Investment Funds Law of 2014 (the â&#x20AC;&#x153;AIF Lawâ&#x20AC;?), which was enacted by the House of Representatives on 10 July 2014, replaces and repeals the International Collective Investment Schemes Law (the â&#x20AC;&#x153;ICIS Lawâ&#x20AC;?), which has been in place since 1999. Under the ICIS Law, International Collective Investment Schemes (â&#x20AC;&#x153;ICISâ&#x20AC;?) were regulated and supervised by the Central Bank of Cyprus. The AIF Law gives the Cyprus Securities and Exchange Commission (CySEC) responsibility regulation and supervision of alternative investment funds (AIFs), bringing all investment products, asset managers and investment firms under a single regulatory body. The AIF Law updates the funds regime in Cyprus and aligns it with the latest EU directives on asset management, with a focus on transparency and investor protection. It sets out rules for the authorisation, ongoing operations, transparency requirements and supervision of AIFs in Cyprus and regulates the role and responsibilities of their directors, custodians and external managers. The AIF Law defines an AIF as a collective investment undertaking that raises external capital from a number of investors with a view to investing it in accordance with a defined investment policy for the benefit of those investors, and that has not been authorised as a UCITS. Holding companies, schemes covered by the Social Insurance Law or the law regulating Insurance Business, occupational benefit and retirement schemes, employee participation schemes or employee savings schemes, securitisation special purpose entities and approved investment companies listed on the Cyprus Stock Exchange are outside the scope of the AIF Law. The AIF Law provides for two classes of AIF,

BBOOK O RREVIEW THE HE EUROPEA EUROPEAN UNION AND GLOBAL FINANCIAL REGULATION BY LUCIA QUAGLIA (OUP OXFORD, 2014)

namely AIFs available to an unlimited number of investors (â&#x20AC;&#x153;unlimitedâ&#x20AC;?) and those available to 75 investors or fewer (â&#x20AC;&#x153;restrictedâ&#x20AC;?). The former may be marketed to all investors, including retail investors. The latter may be marketed only to well-informed or professional investors. The definition of a professional investor follows the Markets in Financial Instruments Directive 2004/39/EC. A well-informed investor is an investor not considered to be a professional investor who confirms in writing that he is a well-informed investor and has been notified of the risks associated with investing in the AIF in question, and invests at least â&#x201A;Ź125,000 in the AIF or has been evaluated by a bank or regulated investment business as a well-informed investor possessing the appropriate expertise and knowledge to assess the suitability of the investment. AIFs may be structured as variable or fixed capital companies or as limited partnerships, In addition, unlimited AIFs may be structured as a mutual fund. The unit trust structure provided for by the ICIS Law is no longer available. The AIF Law introduces new structuring options which were not available under the previous legislative framework, such as umbrella

THE AIF LAW INTRODUCES NEW STRUCTURING OPTIONS WHICH WERE NOT AVAILABLE UNDER THE PREVIOUS LEGISLATIVE FRAMEWORK structures with multiple investment compartments, which allow the management of different pools of assets with distinct investment policies, with the each such pool of assets being ring-fenced, and common contractual funds, which are commonly used in other jurisdictions, where investors participate as

R.R.P. ÂŁ50 (ÂŁ50 FROM AMAZON.CO.UK)

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co-owners of the assets of the AIF. The AIF Law also enables public offerings of shares of AIFs to take place, in contrast to the position under the ICIS Law, where only private placements were allowed. Securities issued by AIFs may also be listed, which increases liquidity, marketability and transparency and widens the potential investor base. Under the AIF Law the role of depositary is no longer reserved to credit or banking institutions and may, subject to specified conditions be undertaken by other entities. This may be more convenient for AIFs not investing in financial and money market instruments, such as private equity and real estate funds.

info: Courtesy of Andreas Neocleous & Co LLC THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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{LIFESTYLE}

DRESS

to impress! By Chloe Panayides

investing in vintage clothing

A gown worn by Audrey Hepburn to collect an Oscar for her role in the 1954 JSHZZPJ ÄST 9VTHU Holiday sold for $131,000

AS ECONOMIC TIDES TURN, CONSUMERS’ CREATIVITY IS BEING CHALLENGED, WITH MANY CHANNELING THEIR VENERATION FOR SKILLED DESIGN, BOUNDLESS BEAUTY AND EXPRESSIVE EPOCHAL STATEMENTS INTO CLOTHING CHOICES. EXPENSIVE CLOTHING IS NOTHING NEW BUT A NEW TREND IS EMERGING IN WHICH SHOPPERS ARE INVESTING IN OLD CLOTHES THAT ARE PROVING PLEASINGLY PROFITABLE.

xpensive clothes are nothing new. At some stage we have all hungrily coveted an item of clothing that is even just a fraction out of our price range, or have perhaps

strolled with longing eyes past shops emblazoned with royal names belonging to the fashion industry: Chanel, Dior, Balenciaga… And as the traditional high street appears to be coming to an end, shoppers are increasingly finding themselves at an impasse: do they invest in mass-produced items, cheaply made, ubiquitous, and expendable, or should they turn down ‘Vintage Avenue’ in search of quality, singularity,, and exclusivity? That is what more and more people are doing. Take, for example, the woman who chose to abhor the high street, preferring to pay £150 for a 1920s Chanel lace dress. She later sold it for £25,000.

WHILST TOP-END VINTAGE AND ANTIQUE CLOTHING IS TYPICALLY SOLD AT SPECIALIST AUCTIONEERS AND SHOPS, UNIQUE ITEMS ARE TO BE FOUND EVERYWHERE. Another instance saw a buyer purchase an Yves St. Laurent dress from the Sixties – based on the linear art of Piet Mondrian – in 1993 for £2,000. Holding on to it for nearly 20 years, the savvy investor sold the dress in 2011 for £28,000. Without taking the buyer’s premium into account, that equates to a return of 1,300%. Whilst it is an unregulated market, with the danger of fake items being rampant, investing in vintage clothing is a lifestyle commitment that has the prospect of engendering monetary returns. Kerry Taylor Auctions is one of Britain’s top vintage and antique clothing auctioneers. Its founder, Kerry Taylor, explains that whilst top-end vintage and antique clothing is typically sold at specialist auctioneers and shops, unique items are to be found everywhere.

She explains: Sh l i “A man brought b ht in a crepe dress with the very desirable label of Lanvin. It was in a bit of a state. He had paid £60 for it at a market; we sold it for £7,000 after we researched and found images of it from 1946.” And herein lies the electrifying allure of the vintage clothing market. In a true ‘treasures in the attic’ – or in this case, the wardrobe – twist, a fortune may already be collecting dust in someone’s possession, unbeknownst to the owner. The first step, when venturing into the vintage clothes market, is to know what constitutes vintage, which brands have longevity, what to avoid when purchasing an item, and what trends are currently soaring. Carmen Haid of vintage clothing specialists, Atelier Mayer, explains that the description “vintage” for clothing usually means that an item is at least 25 years old, while “antique” may be used to distinguish items that are 100 years old or more. Sharing his tips as to where to begin in the world of classic couture, William Banks-Blaney, owner of William Vintage in London, confides: “If I was going to start investing in fashion, the key things I would start with would be works by the great masters, such as Ossie Clark and Norman Hartnell for British design, and Dior for French design. These are pieces by iconic designers that have a worldwide appeal and audience.” Continuing, he explains: “Most pieces appreciate quite substantially. We are finding that there is between a 10% and 20% year-on-year uplift in good pieces of vintage.” So what exactly, at present, is making

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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investing in vintage clothing

BLACK TIE NOT OPTIONAL P

DRESSES Nightingale of Kuala

LYOHWZ HU PTWVY[HU[ business event is in [OL VMĂ&#x201E;UN VY YH[OLY a personal gathering celebrating a rite of passage: how T\JO ^V\SK `V\ WH` [V LUZ\YL you are dressed for the occasion? :VTL[OPUN MVY [OL SHKPLZ HUK ZVTL[OPUN MVY [OL NLU[SLTLU ILSV^ HYL [OL [VW Ă&#x201E;]L TVZ[ expensive dresses and suits.

Lumpur $30 MILLION Taffeta, satin, chiffon, and d silk, encrusted with a 70-carat pear ear ZOHWLK KPHTVUK HUK :^HYV]ZRP JY`Z[HSZ JVTIPULZ LZ [V JYLH[L [OL ^VYSKÂťZ TVZ[ expensive dress. The $30 TPSSPVU KYLZZ ^HZ KLZPNULK K by Faiyzali Abdullah and Ă&#x201E;YZ[ KPZWSH`LK H[ [OL festival, Stylo Fashion n Grand Prix KL, 2009.

Debbie Winghamâ&#x20AC;&#x2122;s â&#x20AC;&#x153;Abayaâ&#x20AC;? Dress $17.6 MILLION ;OPZ PZ [OL TVZ[ L_WLUZP]L HIH`H Âś H YVIL SPRL KYLZZ ^VYU I` ZVTL ^VTLU PU WHY[Z VM [OL 4\ZSPT world â&#x20AC;&#x201C; created by British designer +LIIPL >PUNOHT ;OL KYLZZ is adorned with 2,000 diaTVUKZ Âś PUJS\KPUN ISHJR HUK ^OP[L KPHTVUKZ Âś HUK H YHYL YLK KPHTVUK ;OL dress also features RHYH[ NVSK LTILSSPZOTLU[Z IPN JVTTHUK -L^ OH[Z less you have a un , es t, in pric li â&#x20AC;&#x2DC;shoeâ&#x20AC;&#x2122; ha Schiaparel the sky could se ca ch whi P[ IL [OL SPT

Diamond Dress by Scott Henshall $9 MILLION Adorned with TVYL [OHU KPHTVUKZ [OPZ web-shaped dress was originally worn by ZPUNLY :HTHU[OH 4\TIH K\YPUN [OL WYLTPLYL VM [OL Ă&#x201E;ST :WPKLY 4HU

Black Diamond Dress by Debbie Wingham $5.5 MILLION MILLI Another cr creation courtesy VM +LIIPL VM +LIIPL >PUNOHT [OPZ KYLZZ [OPZ KYLZZ ^HZ Ă&#x201E;YZ[ WYLsented a Kiev-based fashion show. fas It is encrusted with 1,000 black HUK HUK ^OP[L KPHTVUKZ ^OP[L and took half a year [V JVTWSL[L )LZPKLZ [V JVTW JVZ[PUN TPSSPVU JVZ[P also weighs it a an extraordinary 13.2kg. 13

Maria Grachvogelâ&#x20AC;&#x2122;s Precious Dress $1.8 MILLION Featuring a silk corset accented with TVYL [OHU KPHTVUKZ [OL 4HYPH Grachvogel creation Ă&#x201E;YZ[ WYLTPLYLK H[ [OL designerâ&#x20AC;&#x2122;s fashion show.

money in the vintage clothing world? Evening dresses endure as being the most valuable items, followed by smart day dresses. When it comes to accessories, Haid explains: â&#x20AC;&#x153;For handbags, look for Hermes or Chanel,â&#x20AC;? with Taylor adding,

SUITS Stuart Hughes

$892,250 The price of this suit equates to over $1,000 for every hour spent on creating it: 850 hours; $892,250. A unique blend of silk, JHZOTLYL and wool was used, and only 3 such suits were created by Stuart Hughes. The suit has H [V[HS VM KPHTVUKZ VM OHSM a carat each, as well as having been decorated with additional NLTZ

Alexander Amosu $101,860 *VTIPUL 7HZOTPUH ^P[O qiviuk â&#x20AC;&#x201C; the worldâ&#x20AC;&#x2122;s TVZ[ costly wool accrued by shearing arc[PJ 4\ZR 6_ Âś HUK what do you get? A suit that costs $101,860. The Alexander (TVZ\ JYLH[LK Z\P[ YLX\PYLK 16,000 stitches by hand to bring to fruition, along with being resplendent with 18 carat diaTVUKZ PUZ[LHK VM I\[[VUZ

â&#x20AC;&#x153;Few hats command big prices, unless you have a Schiaparelli â&#x20AC;&#x2DC;shoeâ&#x20AC;&#x2122; hat, in which case the sky could be the limit!â&#x20AC;? To untrained ears, Schiaparelli may not be a commonly known name in the fashion world. And, yet, Taylor reveals, Elsa Schiaparelli is one of the most desired designers among collectors. She worked from the â&#x20AC;&#x2DC;20s until the â&#x20AC;&#x2DC;50s and is revered, in particular, for her collaborations with surrealist artist, Salvador Dali. â&#x20AC;&#x153;Schiaparelli was a genius,â&#x20AC;?

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

Dormeuil $95,319 Another 7HZOTPUH XP]Puck creation, +VLTL\PS ZLSSZ OPZ Z\P[Z MVY ZVTL $95,319. Only 300 suits per year HYL THKL H]HPSHISL MVY ZHSL

William Westmancott $75,000 >PSSPHT >LZ[THUJV[[ PZ H tailor at Londonâ&#x20AC;&#x2122;s MHTLK :H]PSSL 9V^ /PZ Âş<S[PTH[L Bespokeâ&#x20AC;&#x2122; suit required over 200 hours of work to create using tradi[PVUHS ,UNSPZO TPSS frabric, and has been designed as light yet resilient, stylish yet durable. The price tag? $75,000.

Kiton K-50 $60,000 Enzo Dâ&#x20AC;&#x2122;Orsi â&#x20AC;&#x201C; a faTV\Z TLUÂťZ Z\P[ designer â&#x20AC;&#x201C; is the creator of this expensive suit, weighing in at $60,000. It is known as the K-50 because it took Dâ&#x20AC;&#x2122;Orsi 50 OV\YZ [V THRL ;OL SPNO[ Z\P[ OHZ JVTIPULK (\Z[YHSPHU TLYPUV ^VVS with other expensive fabrics.

Taylor notes. â&#x20AC;&#x153;A gown she created with Jean Cocteau [a stage designer and dramatist] could sell for ÂŁ100,000.â&#x20AC;? Additional lesser-known prized names include Paul Poiret and Madeleine Vionnet. The epicentre of Poiretâ&#x20AC;&#x2122;s activities is credited as being the years surrounding World War I. He is distinguished for having created a new, sensuous silhouette after the corseted Victorian era, drawing

Paul Poiret is distinguished for having created a new, sensuous silhouette

on the Orient for inspiration. Where once an item of his creativity would have cost 30 guineas, it could now command £20,000. Vionnet, meanwhile, has endured as being known as the first designer to cut on the bias; a method that creates attractive silhouettes with minimal material. Find one of her embroidered gowns, Taylor explains, and buyers could be faced with a £60,000-plus price tag. For more commercially popular designers, items produced by Yves Saint Laurent are, likewise, highly coveted. Taylor recalls a dress that came up for auction from the fashion house’s 1976 Russian collection: it sold for £35,000. For Chanel, the clothing expert advises, seek out early pieces under the Gabrielle Chanel label (before she changed the label to just Chanel), as these can sell for more than £10,000, whilst a gown from the 1947 Christian Dior New Look collection could cost upward of £20,000 at auction. Christie’s 20th century fashion specialist Pat Frost explains of the New Look collection: “A full, gathered skirt and a boned, curvy feminine silhouette were pure luxury after the military styles of the 40s.” As for newer designs, Haid suggests that this is not an area to be ignored: “Quality will always hold its value,” she explains. Designs by, for example, Alexander McQueen – who quickly rose to fame, becoming a favourite designer amongst celebrities, and who took his own life in 2010 – are credited by industry insiders as harbouring great potential to be valuable one day. Whilst there are designers and eras aplenty to choose from, Frost warns that

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prospective buyers must heed certain caveats to ensure a successful engagement with the vintage world. He explains: “Cheap and tacky fabrics should be avoided. Research your Pucci silks from your Primark polyesters. Know your labels too. Your ‘30s couture Schiaparelli from your ‘50s mass-produced Schiaparelli with its telltale pink labels.” Moreover, attention must be paid to sizing and alterations: “Collectors and museums like tiny sizes. A size 16 40s Balenciaga suit makes considerably less than a size 10 at auction. And alterations damage shapes. It’s like having a crack in a plate.

WE ARE FINDING THAT THERE IS BETWEEN A 10% AND 20% YEAR-ONYEAR UPLIFT IN GOOD PIECES OF VINTAGE.

According to legend, Monroe had to be sewn into the dress and wore nothing underneath it due to it being so tight, and so sheer. This unique dress originally cost $12,000, later selling to Manhattan-based collectible company, Gotta Have It! for $1,267,500. When asked by reporters why he would spend a fortune on what is, in essence, a piece of fabric, company President Robert Schargen proclaimed that he would have paid twice the hammer price for it. He boasted: “We stole it.”

BOOK REVIEW MR MERCEDES MR MERCEDES

BY STEPHEN KING (HODDER & STOUGHTON, 2014) R.R.P. £20 (£9.00 FROM AMAZON.CO.UK)

Vintage clothing, besides being revered for bearing innovative designs that have become hallmarks of society’s collective conscious, is also scarce, as Taylor explains: “There aren’t huge supplies of these things any more – they are running out.” Consider, then, a garment whose history is also intertwined with that of a well-loved celebrity. Taylor relates: “If it has been owned by someone like Audrey Hepburn the Duchess of Windsor or Daphne Guinness, that adds a lovely little cachet too and makes it even more desirable and collectible in the future.” A gown worn by Hepburn to collect an Oscar for her role in the 1954 classic film Roman Holiday sold for $131,000 at Kerry Taylor’s in November 2011, whilst a few years later, in 2013, the very same auction house sold 10 of Princess Diana’s most recognisable dresses for around £800,000. However, the dress that endures as being both one of the most expensive items of clothing and one of the most iconic is the fleshcovered, curve-hugging, jewel-encrusted dress that Marilyn Monroe wore when she delivered a sultry ‘Happy Birthday’ serenade to President John F. Kennedy on May 19, 1962.

S[OV\NO TVZ[ WLVWSL HZZVJPH[L Stephen King’s writing with horror and supernatural LSLTLU[Z OL OHZ ZOV^U VU THU` VJJHZPVUZ [OH[ OL PZ T\JO TVYL ]LYZH[PSL ;OLYL PZ UV[OPUN WHYHUVYTHS in this, his 57th novel, which is a suspense thriller featuring retired detective Bill Hodges who’s haunted by the few cases he left open, and by one in particular: a lone driver ploughed [OYV\NO [OL JYV^K PU H Z[VSLU 4LYJLKLZ killing eight people. The plot is kicked into gear when Hodges receives a SL[[LY MYVT H THU JSHPTPUN [V IL [OL WLYWL[YH[VY Z[PSS RUV^U HZ 4Y 4LYJLKLZ [OL UPJRUHTL OL ^HZ NP]LU I` [OL WYLZZ H[ [OL [PTL /L [H\U[Z /VKNLZ with the notion that he will strike again HUK [OL UV]LS ILJVTLZ H IH[[SL VM ^P[Z between Hodges and 28-year-old Brady /HY[ÄLSK Z[PSS H[ SHYNL H `LHY HM[LY OPZ deadly joyride, as each tries to lure the other into his trap. Stephen King once HNHPU WYV]LZ [OH[ OL PZ VUL VM (TLYPJH»Z greatest natural storytellers and one of P[Z ÄULZ[ ^YP[LYZ

Yves Saint Laurent’s 1976 Russian collection is highly JV]L[LK HTVUNZ[ JVSSLJ[VYZ

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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$ 'D\ LQ WKH /LIH

George Mountis 'LUHFWRU %XVLQHVV 'HYHORSPHQW DW (PHUJR :HDOWK RQ WKH DWWUDFWLRQV RI &\SUXV WKH LPSRUWDQFH RI Ă&#x20AC;QGLQJ D ZRUN OLIH EDODQFH DQG KLV GUHDP RI VDLOLQJ DURXQG WKH ZRUOG ZLWK KLV ZLIH DQG WKHLU HYHQWXDOO\ IRXU FKLOGUHQ â&#x20AC;&#x153;I normally need beWZHHQ Ă&#x20AC;YH DQG VL[ KRXUV VOHHS D QLJKW and Iâ&#x20AC;&#x2122;m an early starter so I get up at 6am every day. Iâ&#x20AC;&#x2122;m not one of those who exercises first thing â&#x20AC;&#x201C; I leave that for the afternoon. Instead I usually watch the international news and then, around 7am, I wake up my baby son (heâ&#x20AC;&#x2122;s 18 months old) as itâ&#x20AC;&#x2122;s the only time I get to play with him. Then I have breakfast with my wife Stephania and, by 8.30am, Iâ&#x20AC;&#x2122;ll be at the office. From the time I arrive at work until lunchtime I am usually in meetings, though I always make a point of checking the main finance-related websites. When I was a kid I wanted to become a doctor, and specifically a cardiologist â&#x20AC;&#x201C; donâ&#x20AC;&#x2122;t ask me why! In the end I went to the UK to study Business Administration & Information Management, and I ended up doing a Masters in Management and Marketing, Real Estate Finance and my PhD in banking. My Dad, who was a businessman, was always telling me that I ought to do a business-related degree and that it was â&#x20AC;&#x153;the futureâ&#x20AC;?, whereas qualifying in medicine was a very long process. He was right, of course, though in the end I was working and studying for

almost 12 years! When I came back to Cyprus I was offered a job with Hellenic Bank (Strategy department) and I later joined Bank of Cyprus (M&A and Strategy) before deciding to do my own thing. I have no regrets about my choice of career and I enjoy what I do. I like the variety, all the different aspects of finance and banking, which means that Iâ&#x20AC;&#x2122;m doing something different every day. I enjoy interacting and liaising with people and I think this is one of my strong points. If I have a weak point it is probably that I tend to be very direct person and say things exactly as I see them. I am also a bit of a perfectionist and, of course, in real life, having everything in order and in place doesnâ&#x20AC;&#x2122;t happen by itself so I can get stressed and anxious at times. But Iâ&#x20AC;&#x2122;m working on it! I have made a rule not to work later than 7pm so I try to be at home after 6pm to see the family and then go to the gym for 45 minutes. I try to do this four times a week. Iâ&#x20AC;&#x2122;ve always been keen on

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sport and I still play a lot of tennis. After dinner I always do an hour or more of work before watching National Geographic or Animal Planet on TV, which usually sends me to sleep on the sofa! I read a lot, including novels, and I especially like books on alternative medicine. I recently read one by a Greek friend of mine, Efstathios Avraamides, and I can recommend How Our Thoughts Regulate Our Health to all professionals. I like movies, especially sci-fi and fantasy such as The Lord of the Rings, The Hobbit, etc.

I also enjoyed The Wolf of Wall Street and, most recently, Noah. Music is also a big thing for me, especially classical, though I can listen to all kinds, from Mozart to Sinatra, from Theodorakis and Hadjidakis to Pink Martini. My all-time favourite pop/ rock band is The Beatles but I probably listen to Mozart more than anything. The most important thing for me is the family and I try to maintain a good work-life balance. Cyprus is the ideal place for a professional to work and, at the same time, have a good time with his/her family. There are lots of great things about this place that we take for granted, starting with the weather. At the weekend I usually devote a few hours to work but most of our weekends are spent away from Nicosia (where we live) and by the sea as we have family all over the island. I grew up in Paphos and, having lived my teenage years by the sea, I am still very attracted to it. My real passion these days is sailing and, hopefully, by the end of next year I will have qualified as a yachtmaster. I would like to travel for pleasure but now that the family is growing (weâ&#x20AC;&#x2122;re expecting a girl) itâ&#x20AC;&#x2122;s not really possible. I like big families and I want to have four children. Eventually I also want to do more sailing so maybe we can all sail around the world one day.â&#x20AC;?

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