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ISSUE 50 may 14 - JUNE 13, 2015 PRICE â‚Ź4.95

Gold ISSUE 50 | MAY 14 - JUNE 13, 2015 | THE POLITICS ISSUE

the politics

issue

Time to bank with RCB

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www.forextime.com, info@forextime.com, Tel: +357 25 558777 Forextime is regulated by CySEC under license number 185/12 and registered with the UK FCA under reference number 600475 Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. It is the responsibility of the Client to ensure that the Client can accept the Services and/or enter into the Transactions in the country in which the Client is resident. If the risks involved seem unclear to you, please seek independent advice. Š 2015 ForexTime Ltd.

© 2015 KPMG Limited, a Cyprus limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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ISSUE 50 MAY 14- JUNE 13, 2015

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CONTENTS 08 | EDITORIAL 10 | BUSINESS BRIEFING

Economic & Business Highlights of the past month

14 | MY WAY

Wes Porter’s management style

16 | THEY SAID WHAT?

A selection of memorable recent quotes

COVER

STORY

18 | FIVE MINUTES WITH… Enam Ahmed, Fitch Ratings, UK

20 | The Politics Issue

28 | Where They Stand

The positions of the four main political parties on 10 key issues

24 | From Divided Island to Mediterranean Paradise Interview with President Nicos Anastasiades

36 | Destined for Great Things The A. Athanasiou Group

38 | The Mother Art

Christos Christodoulou, President of the Cyprus Architects Association

42 | Bigger than Rigs

OPITO comes to Cyprus

98

44 | Sailing Towards New Horizons Lavar Shipping

SPECIAL ADVERTISING SUPPLEMENT 47 | Services to the Investment

94

Funds Sector

48 | Looking for a Slice of the Pie

CIFA hopes to make Cyprus an Investment funds jurisdiction of choice

90 | Ahead in the Cloud Oracle Cloud Day 2015

100

93 | BOOKSHELF

Five of the best new business titles

18 SPECIAL OFFER Subscribe today for just €90

OFFER INCLUDES

FREE ACCESS TO DIGITAL EDITIONS

and get an annual subscription to both Gold & IN Business

Call us on (+357) 22505555

4 | GOLD | The Business Magazine of Cyprus

94 | IN GOOD COMPANY

Auditing the life of employees at KPMG

98 | MY COLLECTION

Michael Zampelas on his art collecton, now housed in the Loukia and Michael Zampelas Art Museum

100 | LUNCH WITH GOLD Tony Christodoulou, Founder and Managing Director of Action Global Communications

103 | BUSINESS CLASS Christodoulos Angastiniotis, Chairman of the Cyprus Investment Promotion Agency, on his corporate travel experiences 104 | WHAT’S ON Gold’s guide to the best cultural events 106 | A DAY IN THE LIFE Eloiza Savvidou

SPECIAL PROMOTIONAL FEATURE

ALL THE ELEMENTS FOR YOUR

INVESTMENT SUCCESS

W

e live in a world that is crying out for financial solutions.

We have witnessed a crisis in the eurozone, one that we have experienced more profoundly on the periphery of the European Union. South East Europe, which until 2008 had remained robustly resilient, has also suffered a critical waning in foreign investor confidence since the advent of the crisis.

The crisis brought about financial difficulty for many firms, as well as a lack of liquidity in the market because of the inability and the unwillingness of banks to lend. At the same time, it served to highlight further the interdependence of markets worldwide. However, faith in these markets has taken a severe blow. The need for a broadening of foreign investment is now of paramount importance but, equally, investors themselves need to regain a sense of security that can only be achieved through reliable partnerships.

This is where Elements Capital Partners comes in. Unique to Cyprus, Elements is a boutique investment firm offering alternative investments

It specialises in distressed assets and private equity opportunities throughout South East Europe.

Formed in 2010 by Cypriots with one eye on the outside world, Elements has established itself as a diversified financial services firm which, together with its consolidated subsidiaries, focuses on uncovering unique opportunities, offering innovative value-added advice, as well as integrated solutions that help its clients achieve their business goals.

One of the company’s core guiding principles is that it operates with a sense of responsibility both towards its clients as well as the markets in which it invests. The company targets management buyouts, distressed credit, recapitalisations and turnarounds, and aims at being actively engaged in the strategy and growth of its portfolio companies. Typically, it seeks a majority stake but also considers significant minority investments in opportunities that otherwise meet its investment objectives, with a 5-year investment horizon, and usually pursues transactions in which it can make investments of at least €15 million.

Elements also provides expert advice in debt restructuring for companies that find themselves in challenging economic circumstances, aiming at achieving greater financial flexibility.

Elements’ truly global reach is evidenced by the backing of US and Swiss-based hedge funds, as well as US investment banks that assist in the execution of transactions. Elements Capital Partners accepts only institutional clients with a minimum investment size of 50 million Euro.

The Funds Alpen Invest d.d. – the leading asset management company in South East Europe

A region of 150 million people, South East Europe boasts favourable demographic trends and numerous potential economic growth prospects.

A number of countries in the region have become full members of the EU or are candidates for accession.

These factors have created an environment that is supportive of substantial returns on opportunistic investments. Indicators show that the regional capital market has a tremendous potential for growth in the future due to the increasing pace of privatisation, proposed structural reforms, as well as convergence with the EU. Having recognised this potential, as well as the interdependence across capital markets, Alpen Invest d.d. with a history that stretches back over 20 years, has established itself as the leading investor in the region.

With 27.000 active clients and 11 worldwide investment professionals, Alpen Invest is ahead of the game, and can boast investments upwards of €100 million in South East Europe.

The People with the Answers

Savvas A. Liasis – Partner & Member of the Board of Directors

With more than 15 years institutional investment experience behind him, globetrotter Savvas is in a great position to offer investment solutions. Having founded Easybroker International Ltd in London, as its CEO he led one of the largest independent institutional electronic equity brokerages in Europe, with 400 Institutional clients from over 30 countries. Savvas founded Elements with 2 other partners in 2010 and has worked there in his capacity as Managing Partner.

Since Elements’ recent expansion, Savvas has also taken on the role of Chairman of the Board at Alpen Invest, and sits on the Board of Directors of DDM Holdings AG.

Andreas Georgallis – Chief Operations Officer & Member of the Board of Directors

Well-versed in the local financial environment, sports enthusiast Andreas has over 8 years’ worth of experience working as a Corporate Finance Associate for Egnatia Securities, a subsidiary of Marfin Egnatia Bank. He has also been with GE Capital in London as a Financial Analyst, while he has also served as General Manager for 7 years at an industrial firm in Cyprus. Among his multiple responsibilities, Andreas can also count his membership of the Board of Directors in Qwest Investments Plc, as well as Proinvestments A.D. He holds the Chartered Alternative Investment Analyst (CAIA) designation.

Elements’ proactive outlook and recognition of the potential of Alpen Invest led to an original investment of 40.84% in Alpen Invest in 2013, with the company doubling that investment – through an affiliate – in April 2014, increasing the stake it controls to 81.68%.

It was not long before this investment was vindicated. In February, Alpen Invest’s outstanding performance was recognised as it was named the Best Asset Management firm for 2014 in Slovenia where it is based. Two of its funds – Alpen.

Emerging and Alpen.Developed – also received top ratings, while the managers of the two funds were named in the Top Five Slovenian Fund Managers of the Year.

Another of its funds, Alpen SI, performed exceedingly well last year through its privatisation strategy, producing an annual performance in excess of 40%.

With the prospect of growing its portfolio of investments in Cyprus in 2015, Alpen Invest’s goal is to remain the leading asset management company in South East Europe.

DDM Holding AG – Taking the stress out of distressed assets We are all familiar with non-performing loans (NPLs): those loans which people or businesses for one reason or another – be it bankruptcy, excessive debt or regulatory constraints – are not able to repay. The assets behind these NPLs are distressed.

The owners may be forced to sell them in order to clear these debts, and they are put up for sale, usually at a cheaper price. The debt itself can also be sold on to a new owner at below face value.

Due to its specialisation in distressed assets and its proactive outreach, in 2014 Elements acquired a stake in DDM Holdings AG, a Swiss firm involved in the acquisition and management of distressed asset portfolios in a number of markets, including Romania, Russia, the Czech Republic, Slovakia and the Former Yugoslav Republic of Macedonia.

Since its creation, DDM has invested over €100 million with an historical gross recovery of 1 year, while its relationships through outsourcing collections with all top-tier collection agencies and banks has allowed it to aggregate and tightly control its collections while providing a steady stream of deal flow.

On 5 August 2014, DDM listed its shares on Nasdaq OMX First North in Stockholm with a market cap on the day of listing at approximately €38.5 million.

Asset value: > €1.7bn More than 2.2m claims under management

www.elements-capital.com

| EDITORIAL |

Re-make, Re-model

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ISSUE 50 MAY 14 - JUNE 13, 2015 PRICE €4.95

T H E

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THE POLITICS

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ISSUE PUBLISHED BY IMH ISSN 1986 - 3543

elcome l to Gold’s G ld’ 50thh issue! i ! The Th journey j that h we began together in April 2011 continues and, as you will see, we have decided to mark this publishing milestone by giving its pages a gentle facelift, adding several new features and extending the range of subjects we cover. This is reflected in our new strapline on the cover – The Business Magazine of Cyprus – and essentially it means that, in addition to our continuing focus on professional and financial services, we shall also be taking a look at other sectors of the economy and what it means to be living and working in Cyprus.

Hence our latest cover story. If there is one topic that cannot be avoided in Cyprus (regular readers will know that we have studiously avoided it), it is politics and so, having decided to grasp this particular nettle, we present a brand new interview with President Anastasiades as he approaches the mid-point of his five-year term, together with the official positions of the island’s four main political parties on ten key issues. Compare and contrast with interest!

Successful magazines listen to their readers and Gold is no exception. We have learnt from you that features such as “A Day in the Life”, which lend a more personal air to each issue, are every bit as popular as our cover stories and so we have introduced a number of new regular pages that reflect your wish to gain a slightly more intimate picture of the people whose public utterances are usually restricted to work matters. We therefore offer you “My Collection” (this month devoted to former Nicosia Mayor Michael Zampelas’ extensive collection of modern Cypriot art – page 98), “Lunch with Gold” (this time with Tony Christodoulou, Founder of Action Global Communications, as a dining companion – page 100) and “Business Class” (travel tales, with CIPA Chairman Christodoulos Agastiniotis inaugurating the series – page 103). Additionally, there is “In Good Company”, where we investigate a firm from the employees’ standpoint and look at what it does to increase their job satisfaction (KPMG – page 94), “My Way”, in which a leading manager shares his work secrets with us (read what Wes Porter has to say – page 14), plus “They Said What?” (a compilation of the often extraordinary things said over the past month by people in the news – page 16) and “What’s On” in which we recommend the best of the upcoming cultural events around the island (page 104).

The range of subjects covered in our many interviews this month has also expanded, including ‘regular’ Gold sectors such as finance, real estate and shipping but extending to architecture and technology.

I am loath to describe this issue as ‘new and improved’ (that is perhaps John Vickers, more suitable for soap powder), but I sincerely hope that you enjoy it Chief Editor and, as always, I look forward to receiving your feedback. Thank you for helping us reach Issue 50. Here’s to the next half-century! john@imhbusiness.com

8 | GOLD | The Business Magazine of Cyprus

MANAGING DIRECTOR

George Michail

GENERAL MANAGER

Daphne Roditou Tang MEDIA MANAGER

Elena Leontiou EDITOR-IN-CHIEF

John Vickers 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

BUSINESS BRIEFING IN THE NEWS

MILESTONES

CARREFOUR CYPRUS CELEBRATES 10TH ANNIVERSARY

Carrefour Cyprus, one of the most prominent retailers on the island, celebrated 10 years of successful presence on the island last month.

It marked the anniversary with the launch of a new communication campaign, entitled 10 Years by Your Side, Sharing, Caring, Evolving.

Pretty Flamingo

Cyprus was in the international news this month for a variety of reasons, including the election of a new Turkish Cypriot community leader, the long-delayed approval of foreclosure and insolvency legislation, the country’s new bond issue and the latest upgrades to two local banks. However, the biggest story was all HIV\[ H \UPX\L ]PZP[VY [V PZSHUK! H YHYL ISHJR NYLH[LY ÅHTPUNV ^OPJO ^HZ ZWV[[LK HTVUN H ÅVJR VM ^OP[L HUK pink birds at the Akrotiri Environmental Centre in April. Its unusual plumage comes from a genetic condition JHSSLK TLSHUPZT ^OPJO JH\ZLZ L_JLZZP]L WPNTLU[ [V KHYRLU MLH[OLYZ 0[ OHZ VUS` ILLU VIZLY]LK PU H NYLH[LY ÅHTPUNV VUJL ILMVYL PU H IPYK ÄSTLK PU 0ZYHLS PU 0[ PZ ILSPL]LK [V IL [OL ZHTL VUL ^OPJO TLHUZ [OH[ [OLYL PZ WYVIHIS` H ZPUNSL \UPX\L L_HTWSL PU [OL ^VYSK

TION EDUCA

Cabinet Approves University Budget The Council of Ministers has approved the University of Cyprus’ ₏115 million budget for 2015, which the House of Representatives is expected to discuss this month. The balanced budget provides for both income and expenses of ₏114,797,870, an increase of ₏5,130,360 on last year’s. Of the total, some ₏47,500,000 will be covered

by State Funds, â‚Ź17,800,000

by State Scholarship Programmes, â‚Ź16,046,670 by State Funding for Infrastructure Work from the European Investment Bank (EIB) loan, â‚Ź2,183,157 by Income for the Funding of Cohesion Programmes, while â‚Ź31,268,043 will come from various other sources.

Moldova First for Action Global Communications

A

J[PVU .SVIHS Communications has announced the launch of its new VɉJL PU 4VSKV]H THRPUN P[ [OL ÄYZ[ PU[LYUH[PVUHS 79 agency to establish operations in the country.

(J[PVU .SVIHS 4VSKV]H SVcated in Chisinau, is part of [OL (J[PVU .SVIHS *VTT\UPJH[PVUZ .YV\W ;OL JVTWHU` provides a full range of both 79 HUK 4HYRL[PUN ZLY]PJLZ with a special focus on CorWVYH[L 4HYRL[PUN *VTT\UPJH[PVUZ ,]LU[ 4HUHNLTLU[ :[YH[LNPJ 4LKPH 9LSH[PVUZ 7\ISPJ (ɈHPYZ *YPZPZ 4HU-

10 | GOLD | The Business Magazine of Cyprus

PUBLIC RELATIONS

agement, Communications *VUZ\S[PUN +PNP[HS 79 4LKPH 4VUP[VYPUN HUK 4HYRL[ 0U[LSSPNLUJL -VY [OL WHZ[ ZP_ `LHYZ Action has handled the EU Neighbourhood Info Centre’s communications activities in [OL JV\U[Y` ;OL SVJHS VɉJL is led by Country Director (UUH 4VNOPSKH WOV[V H 79 veteran with over a decade of L_WLYPLUJL ^VYRPUN ^P[O SVcal and international clientele across the public and private ZLJ[VYZ ¸;OL 4VSKV]HU THYket is actively developing and 0 HT Z\YL [OH[ (J[PVU .SVIHS *VTT\UPJH[PVUZ L_WLYPLUJL HUK HUHS`ZPZ ^PSS IYPUN 79 ZLY]PJLZ PU [OL 9LW\ISPJ [V HU international level,� she said.

60 YEARS IN CYPRUS FOR METLIFE ALICO PZ H ZPNUPĂ„JHU[ `LHY MVY 4L[3PML Alico, one of the best-known and most successful insurance companies in Cyprus, which is marking its 60th anniversary in *`WY\Z (SPJV OHZ ILLU VɈLYPUN Ă…L_PISL PUKP]PK\HS HUK NYV\W insurance programmes in the life, personal accident, health and pension plans sectors, since 1955. In November 2010 Alico merged with 4L[3PML [V MVYT 4L[3PML (SPJV

70TH ANNIVERSARY CELEBRATIONS FOR CYBARCO *`IHYJV /VSKPUNZ 3[K VUL VM Cyprus’ leading contracting and property development companies, with an international property portfolio and sales network, celebrates its 70th anniversary this year. Established in 1945, Cybarco /VSKPUNZ 3[K OHZ HS^H`Z ILLU HZsociated with quality, reliability and creativity. During its long history, it has earned this reputation by consistently delivering projects of the highest standards to all its clients – on time and on budget. Cytbarco PZ H TLTILY VM [OL 3HUP[PZ .YV\W VM Companies.

Top Tier Status for Michael Kyprianou & Co. LLC

500 The Legal

Michael Kyprianou & Co. LLC has earned top tier status in the area of Banking and Finance in the 2015 edition of the reputable international The Legal 500 directory.

The firm’s Banking and Finance practice area is headed by partner Tonia Antoniou. The firm has also maintained high rankings in all the other legal fields in which it practices (Dispute Resolution, Corporate and M&A, Maritime and Admiralty, Intellectual Property, Tax, EU and Competition).

The firm is praised by the directory for providing advice that is “practical and of a high standard� and for being “responsive� with

an “in-depth business understanding.� It has been described as the “go-to firm for matters requiring Cyprus law expertise�.

According to The Legal 500 “the value for money is impressive�. In the litigation field partner Menelaos Kyprianou is described as “an outstanding lawyer.�

Andreas Neocleous & Co LLC achieves 100% Top Tier Ranking For the fifth successive year, Andreas Neocleous & Co has achieved a 100% record of top tier Legal 500 rankings.

The firm is ranked in the

LEGAL

Olga Rybalkinaa

top grade in every area of activity that The Legal 500 assesses, from banking and finance through corporate and commercial, dispute resolution shipping and taxation, putting it far ahead of its rivals.

Andreas Neocleous & Co LLC is one of only a handful of firms around the world to achieve the distinction of a top-grade ranking in every area of activity, demonstrating consistent high quality across the board. The Legal 500 describes the firm as the “dominant force� in Cyprus, producing work of “an exceptionally high standard�. The firm’s “excellent team of lawyers� are described as “very client-oriented and professional�, providing “good value for money�.

Commenting on the firm’s latest success, Andreas Neocleous said, “It is gratify-

“I have been very proud to be part of the Bank of Cyprus family during this period and to have led this chapter in the Bank’s rehabilitation,�

FINANCIAL SERVICEES

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BANKING

Bank of Cyprus CEO Resigns

1VOU /V\YPJHU *OPLM ,_LJ\[P]L 6ɉJLY VM [OL PZSHUKZ SHYNLZ[ lender, Bank of Cyprus, surprised everyone last month when he submitted his resignation to the Board. He will remain in his post \U[PS TPKZ\TTLY ;OL )HUR HUUV\UJLK [OH[ [OL *,6Z KLJPZPVU [V quit was for personal reasons and that he wishes to relocate to his home country of Ireland and spend more time with his family. /V\YPJHU ^HZ HWWVPU[LK *,6 VM )HUR VM *`WY\Z PU 6J[VILY ^OLU OL Z[H[LK [OH[ OPZ HPT ^HZ [V YLZJ\L [OL IHUR PU [OYLL [V Ä]L `LHYZ

Hellenic Bank named Best Bank Hellenic Bank was named “The Best Bank in Cyprus for 2015� by Global Finance Magazine in New York during the 22nd Annual Awards Assessment for the Best Banks in the world. The Best Bank Awards were given to 53 banks in their respective countries. The awards are based on criteria such as growth in assets, strategic relationships, new business development and innovation in products as well as on the opinions of equity analysts, credit rating analysts and banking consultants.

www.goldnews.com.cy | GOLD | 11

BUSINESS BRIEFING

2

PROPE RTY RETAIL

New

REAL ESTATE

Stores

Limassol Marina Graff Graff has finally arrived in Cyprus, launching its new store at Limassol Marina. Founded in 1960 and with over 50 stores worldwide, Graff is involved in every stage of the jewellery making process, from the sourcing of a rough stone, through to the final setting of each jewel.

Commenting on its boutique opening at the waterfront development, the company announced that it is “delighted to announce the launch of its new flagship store in Cyprus, continuing a progressive expansion of its European portfolio�.

Nautimar Marine Store The latest addition to Limassol Marina’s retail and services offering is the new Nautimar Marine store. Operating out of Cyprus since 1995, Nautimar Marine offers owners worldwide a broad range of leading brands, including Wim van Der Valk yachts, Chris-Craft, Chaparral and Robalo boats. Its particular services include sales, brokerage and chartering, yacht management schemes, new build and refit management, and owners’ representative services. Nautimar Marine also offers worldwide chartering/sailing holidays and yacht ownership programmes.

My Mall Cyprus’ biggest shopping mall, Limassol’s My Mall, recently saw the launch of a brand new Guess store and a Sunglass Hut outlet. Guess originally became known for its jeans before becoming firmly established in the fashion world with its own unique style. It Guess now operates some 1,700 locations all over the world, offering clothes, shoes and accessories for both men and women.

Sunglass Hut originated as a small outlet in Miami and is now one of the top retail chains for sunglasses internationally, with stores all over the world, from North America, Europe and the Middle East to Australia, South Africa, Hong Kong and now Cyprus.

With over 200 stores offering a vast range of well-known brands in clothes, shoes and accessories, home and entertainment goods, My Mall has become one of Cyprus’ main shopping destinations

12 | GOLD | The Business Magazine of Cyprus

House Passes Insolvency Law

Panikos Livadhiotis Appointment

Leptos Estates and BoC Reach NPL Deal

After weeks of heated debate, the House of 9LWYLZLU[H[P]LZ ÄUHSS` approved the insolvency framework last month, paving the way for resumption of the island’s economic adjustment programme.

The legislation was WHZZLK I` ]V[LZ [V ;OL HWWYV]HS JHTL after intense backstage trading between [OL WHY[PLZ 47Z OHK voted on some of the legislative package last year but delayed enforcement until they could approve other IPSSZ KLZPNULK [V VɈLY protection to certain vulnerable categories of debtors. Approval of this package of debt-related bills means that Cyprus can now participate in the European Central Bank’s bond-buying â‚Ź1.1 trillion stimulus programme. The Central Bank of Cyprus had earlier warned that the country must abide by the terms of its rescue programme.

Following the election of the new Board of Directors of the *`WY\Z 3HUK HUK Building Developers Association, wellknown businessman, 7HUPRVZ 3 3P]HKOPV[PZ has been appointed :LJYL[HY` .LULYHS VM [OL )VHYK 6UL VM [OL V^ULYZ VM [OL 3LM[LYPZ 3P]HKOPV[PZ :VUZ .YV\W 3P]HKOPV[PZ has been a member of the Association for the past ten years and has sat on of the Board of Directors since 2009. A Florida International University graduate with a degree in Hospitality 9LHS ,Z[H[L HUK ,U[YLWYLUL\YZOPW 3P]HKhiotis, has held an L_LJ\[P]L WVZP[PVU PU [OL 0U[LYUH[PVUHS 9LHS Estate Federation -0()*0 MVY TVYL [OHU 6 years, and a real estate broker license in Florida since 2004.

In 2010, he became a TLTILY VM 90*: 9V`al Institute of Charter :\Y]L`VYZ

0U (WYPS 3LW[VZ Estates, one of the island’s biggest developers, reached an agreement with )HUR VM *`WY\Z )V* to restructure a loan worth several hundred million euros. “Following many months of consultations with the customer and an in-depth analysis of [OL NYV\WÂťZ Ă„UHUJPHS situation and prospects, Bank of Cyprus reached a restructuring agreement in principle, subject to approval by the board of directors,â€? .V]LYUVY *OY`Z[HSSH .LVYNOHKQP YL]LHSLK PU H SL[[LY [V .YLLU 47 .PVYNVZ 7LYKPRPZ :OL described the restructuring deal as “satisfactory and justâ€?.

0U H SL[[LY [V [OL .V]LYUVY 7LYKPRPZ OHK questioned why nothing had been done about a â‚Ź580 million SVHU ^P[O ^OPJO 3LW[VZ OHK Ă„UHUJLK [OL construction of the Neapolis project in @LYVZRPWV\ 7HWOVZ

â‚Ź1,100,000,000

European Central Bank’s bond-buying stimulus programme

ICT

Technology

Stephanis chain of electronics stores.

Buyers cover a broad age range (15-55) while prices of the phones, when not part of a mobile telephony contract, range from â‚Ź639 to â‚Ź1099.

MTN buys out IBS MTN recently finalized its buy-out of IBS, offering cloud computing, business systems, and corporate technology solutions services. The merger is expected to strengthen MTN’s business offering. With the buyout of IBS, MTN becomes a one-stop-shop for ICT solutions for business clients, strengthening its identity in relation to its services, which now extend to beyond telecommunications.

Cyta Becomes an Authorised iPhone Dealer

Cyta has reached a deal with Apple and its official distributor in Cyprus, iSquare AE, by which the organization is recognized as an authorized dealer for iPhones throughout the island. The latest iPhone 6 and iPhone 6 Plus models are available at all Cytashops, together with the iPhone 5c, the iPhone 5s and a range of accessories.

iPhone 6 is Stephanis’ Most Wanted W The iPhone 6, the iPhone 6 plus, the Samsung S6 and the Samsung S6 edge are the “most wanted� smartphones in Cyprus, according to the

Minister Rejects Poor Natural Gas Assessment

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ULYN` 4PUPZ[LY @PVYNVZ 3HRkotrypis was forced to deny a 4PKKSL ,HZ[ ,JVUVTPJ :\Y]L` 4,,: report [OH[ VPS HUK NHZ L_WSVration in Cyprus is over and companies are on their way out of Cyprus after

Cyprus secures funding for NGA networks Cyprus has secured funding from the European Bank for the Reconstruction and Development (EBRD) for a study that will finally lead to the launch of Next Generation Access (NGA) networks on the island. The study will open the doors for the creation of an â‚Ź200 million NGA network in Cyprus, which will help attract huge investment.

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1#" ', '!-1' A 5# -j#0 bespoke BVI and Seychelles 1#04'!#1A ',!*3"',% 1&#*$ companies.

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their test drilling came up dry.

The 4,,: report had stated that two back-to-back failures I` ,50 26.(: [V KL[LJ[ YLZLY]LZ PU VɈZOVYL )SVJR HWpeared “to mark the end of the YVHK MVY L_WSVYH[PVU VɈZOVYL Cyprus – possibly for several years.â€? It noted that the conZVY[P\TÂťZ L_WSVYH[PVU JVU[YHJ[ L_WPYLZ PU -LIY\HY` HUK said until then they would not be undertaking further drilling operations – an indication that they have concluded their ZLHYJO -YLUJO NPHU[ ;6;(3 had also failed to detect any YLZLY]LZ PU P[Z L_WSVYH[PVU

and signed an ENERG L_[LUZPVU VM P[Z Y agreement with the government allowing it to shift P[Z ZLHYJO [V H KPɈLYLU[ VɈshore block. In line with this, [OL .V]LYUTLU[ JV\SK HSZV HNYLL [V L_[LUK HUK YL]PZL [OL HNYLLTLU[ ^P[O ,50 26.(: ;OV\NO 3HRRV[Y`WPZ was evidently responding to a synopsis of the 4,,: item as carried by the Cyprus News Agency a day earlier, he dismissed the notion that Cyprus’ natural gas plans had reached the end of the line.

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www.jordanstrustcompany.com www.goldnews.com.cy | GOLD | 13

MY WAY

Wes Porter

CEO, Hermes Airports

THE PLETHORA OF FREQUENT ANSWERS TO THE QUESTION “WHAT MAKES A GOOD MANAGER?” RANGES FROM PARTICULAR DELEGATION METHODS TO VARIOUS ‘COMMAND AND CONTROL’ TECHNIQUES. ACCORDING TO WES PORTER, CEO, HERMES AIRPORTS, HOWEVER, THE KEY TO EFFECTIVELY MANAGING ANY FIRM IS INVESTING IN MOST VALUABLE ASSET: ITS PEOPLE. HERE, HE SHARES HIS UNIQUE PROFESSIONAL – AND PERSONAL – INSIGHTS INTO THE INSTRUMENTAL ROLE THAT CORPORATE LEADERS PLAY, DESCRIBING HIS OWN MANAGEMENT STYLE ALONG THE WAY.

“T

here are several key elements around my management style.

The first is that I am respectful; I treat people the way that I like to be treated. I think that is important.

Secondly, I am honest. Despite the repercussions or implications, I will always tell the truth and won’t go off on a tangent and tell a tale.’’

“I

think that I am a caring person, and so I really value the people in the organisation. Indeed, I think that they are the most important and valuable asset that we have.

I’m clear about the expectations I have of them and I want them to take responsibility.

Another key component to my leadership style is my strong belief in a one-team approach. I truly feel that the efforts of the many far outweigh any individual result.’’

“A

frequent mistake that managers make is failing to understand that a big part of their job is encouraging the development of others: helping them to learn, teaching them and catching them when they fail, providing them with the opportunities that they need to fulfil their efforts to be a great employee. I also think that managers typically forget that they need to take time to reflect, think and deep-think, as well as take time for themselves and self-develop.’’

y achievements thus far in “M Cyprus are really about setting up a framework, a structure and a roadmap for the company, and seeing that those within Hermes Airports work hard to achieve these goals.’’

“M “H

y career has been influenced by many experiences.

I spent ten years in Canada’s north – in the Arctic – and as you can imagine, it’s cold! Especially in the winter; hot in the summer. It toughens you up and teaches you a lot about yourself. Moreover, I spent fifteen years at Vancouver Airport and – unbeknownst to me – was part of an identified management development scheme. I was encouraged to take risks and take on accountabilities that many may not have had the opportunity to. In my case, it certainly developed me and gave me a lot of confidence in myself and my capabilities.’’

14 | GOLD | The Business Magazine of Cyprus

ow do I strike a balance between work and home life?

I’m pretty sure that if I ask my wife that question, she will say that I don’t!

However, I will say that when I’m at work, I’m at work. When I’m not, I try not to be working. So when I’m at home I try to spend my time, my efforts and my focus on things that are not work-related. As you can imagine, I’m not that successful at that, but I do try!’’

“R

elaxing moments for me include exploring the country that I’m in, whether it be my home country or Cyprus and its traditional villages and beautiful cities. I really enjoy that.

In the past I played ice hockey, for about forty years in total. It was a competitive environment which is teamoriented, social, and great fun. For solitude, I like to fish alone.

Finally, although my PR guy will not want me to say this, I like to play video games.

I find that it just takes you to another place, and you can become immersed in another world. I just find it extraordinarily relaxing.”

Wes Porter was born in 1962 in New Westminster, British Columbia, Canada.

He worked in the Oil & Gas Industry in Northern Canada, before joining Vancouver Airport Authority. He later worked for Vantage Airports UK. In 2013 he was appointed CEO of Hermes Airports in Cyprus.

www.pwc.com.cy

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QUOTES OF THE MONTH

They Said What?

Silence may be golden but people are still going to say things that they may later regret.

Here are some of the more contentious remarks made by well-known Cypriots over of the past month.

“A CESSPOOL OF INACCURACIES AND ABUSIVE STATEMENTS AGAINST OUR FIRM AND ME PERSONALLY”.

PRESIDENT NICOS ANASTASIADES

“I THINK A LITTLE MORE SERIOUSNESS IS REQUIRED

BY EVERYONE.” 3UHVLGHQW 1LFRV $QDVWDVLDGHV RQ WKH VXJJHVWLRQ WKDW KH ZDV GHOLEHUDWHO\ OHDYLQJ WKH FRXQWU\ RQ $SULO LQ RUGHU WR SDVV GHOD\HG IRUHFORVXUH DQG LQVROYHQF\ OHJLVODWLRQ :LWK 03V IRU DQG DJDLQVW WKRVH LQ IDYRXU ZRXOG ZLQ VLQFH +RXVH 6SHDNHU <LDQQDNLV 2PLURX DV $FWLQJ 3UHVLGHQW ZRXOG QRW EH DOORZHG D YRWH

“IF I GO IN THE MIDDLE OF THE NIGHT, EVEN IF I BREAK THE DOOR TO GET IN, AND TAKE ANYTHING, I AM NOT A THIEF – I AM THE ADMINISTRATOR OF THE CHURCH’S HOLDINGS.” $UFKELVKRS &KU\VRVWRPRV ,, RQ FRPSODLQWV IURP WKH (FFOHVLDVWLFDO &RPPLWWHH RI 3DQD\LD 7UDFKRQDV SDULVK DIWHU KH GHFLGHG WR WDNH ½ HDUPDUNHG IRU WKH EXLOGLQJ RI D QHZ FKXUFK DQG XVH LW WR FRYHU &KXUFK RI &\SUXV OLTXLGLW\ SUREOHPV ARCHBISHOP CHRYSOSTOMOS II

16 | GOLD | The Business Magazine of Cyprus

3DPERV ,RDQQLGHV 0DQDJLQJ 'LUHFWRU RI ,RDQQLGHV 'HPHWULRX //& RQ ZKDW 'HSXW\ $WWRUQH\ *HQHUDO 5LNNRV (URWRNULWRX KDG WR VD\ DERXW WKH FRQFOXVLRQV RI DQ LQYHVWLJDWLRQ LQWR KLV EHKDYLRXU PAMBOS IOANNIDES

“I SEE EVEN THE LAST EXPECTATIONS THAT I HAD FOR A BETTER FUTURE FOR THIS COUNTRY BEING DASHED.” Attorney-General Costas Clerides on the 3UHVLGHQW·V GHFLVLRQ WR LQYHVWLJDWH FODLPV DJDLQVW KLP E\ KLV 'HSXW\ DIWHU WKH ODWWHU ZDV GHHPHG JXLOW\ RI EULEHU\ DQG FRUUXSWLRQ E\ DQ LQGHSHQGHQW FULPLQDO LQYHVWLJDWLRQ COSTAS CLERIDES

“I UNDERSTAND THEIR MALICE AND NASTINESS BUT I WILL FACE THEM, NOT BECAUSE I AM INVINCIBLE, BUT BECAUSE I HAVE GOD ON MY SIDE.” 'HSXW\ $WWRUQH\ *HQHUDO 5LNNRV (URWRNULWRX RQ KLV GHIHQFH WHDP

“THIS COUNTRY HAS TO FIND A SOLUTION AFTER 41 YEARS. IT’S POSSIBLE... THERE IS NOTHING – I REPEAT NOTHING – IN ALL THE CHAPTERS THAT I KNOW NOW QUITE WELL WHICH I DEEM AS UNRESOLVABLE. EVERY SINGLE ISSUE CAN BE SOLVED.” (VSHQ %DUWK (LGH 6SHFLDO $GYLVHU RI WKH 81 6HFUHWDU\ General on &\SUXV

RIKKOS EROTOKRITOU

ANDREAS MICHAELIDES

“OK, BLOWING UP CARS – WE DO IT OFTEN, UNFORTUNATELY. IT IS ONE OF OUR SPORTS IN CYPRUS, ALMOST.” $QGUHDV 0LFKDHOLGHV 03 RQ UHFHQW YLROHQW UHDFWLRQV DJDLQVW IRRWEDOO UHIHUHHV

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FIVE

MINUTES WITH

How

did you come to be working for two of the world’s best-known credit rating agencies (Moody’s and now Fitch)?

I love economics in the context of policymaking and decisions. I am very fortunate to have worked in organisations that analyze both.

ENAM AHMED

figures provided to you, do you also look at other issues? For example, would the recent wrangling in parliament over foreclosures and insolvency legislation affect your decision to upgrade/downgrade the island?

Fitch’s sovereign ratings incorporate both quantitative and qualitative judgments. The foreclosure and insolvency legislation are important tools in dealing with the high NPL’s in the banking sector. The recent delay in enacting such legislation raised the

How would you summarise the value of the agencies’ services?

Credit ratings help the market to effectively ely and efficiently evaluate and assess credit risk, isk, price debt securities, benchmark issues and nd create a robust secondary market for thosee issues.

After a long succession of downgrades, Cyprus’ sovereign rating began slowly moving back up in 2014.

Do the financial statistics that you now see make you optimistic about the country’s economic future?

At the last sovereign ratings review in Oc-tober 2014 we revised the Outlook from Stable to Positive. This implies that we expect there is a greater than 50% probability that the ratings will be upgraded.

This would typically occur within a two-year period. The change in the Outlook reflects, in particular, public finances materially exceeding Fitch expectations and the economy performing better than our forecasts.

Have you been surprised by the progress made during the past 12 months?

Both the economy and public finances have been performing better than expected. Nevertheless, the environment for the banks still remains challenging, public debt is elevated and there are continued risks to the adjustment programme going forward.

Although you obviously draw your conclusions through your analysis of the 18 | GOLD | The Business Magazine of Cyprus

Director, Western European team of the Sovereign Group, Fitch Ratings, UK

implementation risks of the programme and created doubts about medium-term economic prospects.

How successful, in your view, have the recent recapitalisations of the island’s main banks been?

The sector recently passed the European Central Bank’s stress test without recourse to additional capital or asset sale. The restructuring of the banking sector is also progressing. The recent lifting of remaining capital

controls has not been destabilizing. However, the environment remains challenging, in particular with regard to poor asset quality as reflected by the very high level of nonperforming loans.

Were you surprised by the decision two years ago to ‘bail-in’ depositors of the two banks and to close down one of them?

Cyprus and its European partners did not have a strategy in place to deal with the pr problems in the Cypriot banking sector wh when they emerged. Policy measures were ttaken on an ad-hoc basis, reducing their p predictability. This is the reason why Fitch, along with most other analysts, was surp surprised by the decision. As you now kn know, the Cyprus solution formed the fo foundations for Europe’s strategy in d dealing with troubled banking sectors through the implementation of the Bank Recovery and Resolution Directive.

H Having seen how several countries ha have implemented economic adjustme ment programmes and successfully exite exited them, do you believe that the Troik Troika’s philosophy of imposing austerity m measures on countries that need to sort o out their economies is painful but li ultimately effective?

Fitch does not make policy prescriptions to countries. We do, however, expect Cyprus to remain on the fiscal consolidation path.

Nevertheless, while the risks to programme implementation have eased on recent performance, they remain elevated.

How long do you think Cyprus will need before it can come close to receiving an AAA rating from Fitch Ratings and its main competitors?

Fitch does not pre-commit to rating changes. All I can say is that the fundamentals both in a qualitative and quantitative sense are considerably far from the benchmarks for the AAA category.

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tel: +30 210 4294 404 | piraeus@register-iri.com

www.register-iri.com

| COVER STORY |

NICHOLAS PAPADOPOULOS

TH POLI ISS NICOS ANASTASIADES

MARINOS SIZOPOULOS

20 | GOLD | The Business Magazine of Cyprus

E TICS UE

GEORGE ORWELL DESCRIBED POLITICS AS “A MASS OF LIES, EVASIONS, FOLLY, HATRED AND SCHIZOPHRENIA”, TO WHICH MANY PEOPLE ARE TEMPTED TO ADD, “AND WHO ARE WE TO DISAGREE?” HOWEVER, SINCE POLITICS AND POLITICIANS ARE CLEARLY A NECESSARY EVIL THAT WE CANNOT LIVE WITHOUT, WE CAN AT LEAST TRY TO UNDERSTAND WHAT THEY STAND FOR AND, EVERY FIVE YEARS IN CYPRUS, ALL CITIZENS OVER THE AGE OF 18 CAN REGISTER THEIR APPROVAL (OR DISAPPROVAL) AT THE BALLOT BOX. IN ORDER TO GAIN SOME CLARITY, WE ASKED FOR THE OFFICIAL STANCE OF THE FOUR MAIN POLITICAL PARTIES ON 10 ISSUES. WE ALSO INTERVIEWED THE PRESIDENT OF THE REPUBLIC, WHO REQUIRES PARLIAMENTARY SUPPORT FOR ALL HIS GOVERNMENT’S POLICIES AND PROGRAMMES, ON MANY OF THE ISSUES THAT ARE OF CONCERN TO PEOPLE BOTH INSIDE AND OUTSIDE CYPRUS.

Photography by Jo Michaelides

AVEROF NEOPHYTOU

ANDROS KYPRIANOU

www.goldnews.com.cy | GOLD | 21

| COVER STORY |

The Party’s

OVER

T

By John Vickers

The rise and fall of the Cypriot Politician

hey may appear on the TV news bulletins with alarming frequency, ready with a soundbite for every breaking story, but Members of the Cyprus House of Representatives are currently having to deal with an unprecedented image problem.

Last year, a Eurobarometer report revealed that 91% of Cypriots have no trust in political parties, 77% do not trust the House of Representatives, 68% don’t trust the Government and 58% have no trust in local authorities.

Furthermore, the EU’s most recent report on corruption says that 87%

22 | GOLD | The Business Magazine of Cyprus

of Cypriots believe that the only way to succeed in business is through political connections, and that this phenomenon leads to corruption. The report explains that one of the core reasons for the unhealthy relationship between business and politics is that members of parliament are not obliged to disclose their assets and conflicts of interest. There is no code of conduct or disciplinary procedure for MPs. Political parties are similarly ‘immune’ because, although there is a standard for auditing party accounts, it does not cover individual candidates or separate provisions to monitor election campaign finances or individual donations.

In 2014, the Financial Times published an article entitled Cyprus scores well on economy but poorly on politics. The rationale behind the title was that the economy is on the mend but the members of the House of Representatives and even

the President are failing the electorate. The latter concerned the “unrelenting pressure” placed by Nicos Anastasiades on Panicos Demetriades to resign, something which the FT described as “sending a terrible signal about the disrespect of the island’s politicians for the bank’s legally enshrined independence”. The fact that a similar campaign is under way to remove Demetriades’ successor, Chrystalla Georghadji, speaks volumes. The Democratic Party is blasted for leaving the government over the President’s attempts to restart talks on a settlement of the country’s 40-year division, while they all come in for criticism for supporting close ties with Russia, “at a time when President Vladimir Putin has just dismembered Ukraine”.

Add to this the weeks of delays in passing the foreclosure legislation, which not only led to a halt in the disbursement of much-needed bailout funds but meant that Cyprus could not benefit from the European Central Bank’s quantitative easing programme, providing up to €500 million over the next 12 months, and it’s easy to conclude that the political parties in Cyprus are less than serious in their approach to the island’s major issues. Conflicts of interest (more than half of the island’s MPs have non-performing loans, party officials have been implicated in various scandals and several have been imprisoned, and the two main parties are under investigation for allegedly accepting large sums in return for political favours) have begun to test the electorate’s patience with the legislature, indicated by unprecedented levels of abstentions in the last parliamentary elections (21.3%) and European parliamentary elections (57.6%).

Assuming that there is no settlement of the Cyprus issue during the next 12 months, parliamentary elections will be held in May 2016.

C

1.

Presidential Succession

yprus is unique within the European Union as the only EU state with a presidential system of government. This was the system chosen when the island gained independence from the United King-

dom in 1960. The President, elected by popular vote for a five-year term, is both the Head of State and Head of Government; the post of Vice-President is currently vacant since, under the constitution, it is reserved for a Turkish Cypriot. The 11-member Council of Ministers is appointed jointly by the President (and

Vice-President).

Candidates for the Presidency must be citizens of the Republic of Cyprus and over 35 years of age.

To be elected, a candidate needs more than 50% of the valid votes. If none of the candidates attains the required majority, the election is repeated the following week between the two can-

4.

2.

3.

5.

6.

7.

THE PRESIDENTS

didates receiving the greater number of votes. The candidate who receives the greatest number of votes in this second round is deemed elected.

In the event of a temporary absence or incapacity of the President to perform his duties, the President of the House of Representatives assumes the role of Acting President.

OF CYPRUS 1. Archbishop Makarios III (1913–1977) 16 August 1960-3 August 1977 2. Spyros Kyprianou (1932–2002) 3 September 1977-28 February 1988 3. George Vassiliou (1931–) 28 February 1988-28 February 1993 4. Glafcos Clerides (1919–2013) 28 February 1993-28 February 2003 5. Tassos Papadopoulos (1934–2008) 28 February 2003-28 February 2008 6. +LTL[YPZ *OYPZ[VÄHZ (1946–) 28 February 2008-28 February 2013 7. Nicos Anastasiades (1946–) 28 February 2013-present

Composition of the House of Representatives Democratic Rally (DISY) 20 Progressive Party of the Working People (AKEL) 19 Democratic Party (DIKO) 8 Movement for Social Democracy (EDEK) 5 Citizens’ Alliance (1) European Party (EVROKO) 1 Green Party 1 Independent 1

T

Order in the House

he House of Representatives has 59 members elected for a five-year

term: 56 Greek Cypriot members, chosen by proportional representation and three observer members representing the Maronite, Latin and Armenian minorities.

According to the 1960 constitution, the number of representatives should be 50, of

56

whom 35 are elected by the Greek Cypriot community and 15 by the Turkish Cypriot community. The Turkish Cypriot seats have remained vacant since 1964 when the Turkish Cypriot representatives withdrew from the House.

However, to facilitate

the smooth running of the House and its Committees, a law was passed in July 1985 which increased the seats to 80. Of these 56 (70%) representatives are elected by the Greek Cypriot community and 24 (30%) by the Turkish Cypriot community, as provided for in article

62(2) of the Constitution. Since 1960, no single party has ever won an outright majority in the elections, which is why every President has headed a coalition of two or more parties, usually appointing ministers affiliated to the parties supporting him.

www.goldnews.com.cy | GOLD | 23

| COVER STORY |

FROM DIVIDED ISLAND TO

MEDITERRANEAN

PARADISE

24 | GOLD | The Business Magazine of Cyprus

President Anastasiades remains optimistic about the possibility of a real transformation

W

HEN NICOS ANASTASIADES WON THE 2013 ELECTION TO BECOME CYPRUS’ SEVENTH PRESIDENT, FEW PEOPLE ENVIED HIM, GIVEN THE RESPONSIBILITY AND THE SHEER SIZE OF THE TASK THAT CONFRONTED HIS NEW GOVERNMENT. NOW, ALMOST HALFWAY THROUGH HIS TERM OF OFFICE, HE IS NOT ONLY CONFIDENT THAT THE ISLAND’S ECONOMY IS ON THE ROAD TO RECOVERY BUT HE BELIEVES THAT ALL THE OMENS ARE RIGHT FOR A SETTLEMENT OF THE LONGSTANDING CYPRUS PROBLEM. IN AN EXCLUSIVE INTERVIEW WITH GOLD, HE LOOKS BACK ON HIS FIRST TWO YEARS AS PRESIDENT AND REVEALS WHAT HE HOPES TO ACHIEVE IN THE TIME REMAINING.

By John Vickers

Gold: You were elected 27 months ago at a time which many have described as the most difficult in Cyprus’ history. Today, as you approach the mid-point of your five-year term, how would you assess the overall situation in the country?

Nicos Anastasiades: To make such an assessment, we should have in mind the circumstances under which I formed a government. The country was essentially on the verge of collapse, excluded from the international markets, with a banking system in which one of the two main banks was burdened with €9.5 billion of Emergency Liquidity Assistance (ELA) and the other with around €2 billion. As I have said in the past, my first contact with the Eurogroup was a very unpleasant experience, given that decisions had already been taken due to the delay in concluding the Memorandum of Understanding. I found myself having to take decisions to save the country – and the banking system to a certain extent – and prevent a disorderly bankruptcy. I took my decisions and I have no regrets. There was no other choice and I believe that they were the right decisions, as we can see from the situation just 27 months after taking office: there have been five positive reports from the Troika

and upgrades of both Cyprus and its banks by the rating agencies; we have successfully returned to the markets on two occasions now; confidence in the state has essentially been re-established and our banks have been recapitalized.

We are now at a stage where, since the main drivers of investment have been restored and following the measures and incentives that we announced, a whole series of investments has taken place – around €1 billion into the banks and €2 billion worth of real estate purchases – and I believe that we are now on course for recovery.

Consequently, I consider that our policy of consistently implementing the terms of the Memorandum – in conjunction with our social partners, the unions, the political parties and the sacrifices made by the people – has led us to today where the picture is completely different from how it was when I became President.

Gold: Many outside observers have been surprised by the progress made.

Did it come as a surprise to you, too, or were you confident from the start that the Government’s measures would work?

N.A.: The moment you take a decision to accept a loan facility agreement, you have to implement the terms of that

agreement if it is to succeed. It was our decision from the outset to meet our obligations and we were convinced that we would succeed if we were persistent.

I was determined that we would honour our signature and the terms of the agreement, we would work to reverse the negative climate and we would create positive developments without having to impose new taxes or cutting salaries, pensions and benefits. There was, of course, a need to rationalize certain social policies and criteria in order to create a genuine welfare state which provides for those who are in real need.

Gold: Another part of the Government’s strategy is its restructuring of ministries and the bigger issue of civil service reform.

How important is this? The Minister of Transport told Gold last month that, until you were elected, little had changed in the way the Government operates since 1960.

N.A.: A structured dialogue is taking place with the trade unions on the basis of a plan that has been drawn up with the help of experts from the National School of Government in the UK, to resolve issues concerning the civil service, including transfers from one department to another, promotions, the imposition www.goldnews.com.cy | GOLD | 25

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of meritocracy – at last! – and a different evaluation process for civil servants. The plan will be ready in 5-6 months’ time and it will contain our proposals for the modernisation of the state, getting rid of bureaucracy, creating a service that will focus on growth policies so that we can truly talk about a one-stop-shop, at least as far as large-scale infrastructure projects and large investments are concerned.

success of the programmes they have implemented and the goals they have set. We are talking about extremely capable people who are in their 40s and I must say that I feel proud that they have succeeded in changing mentalities and being accepted. I agree that it was something of an innovation, even if some – older – people seem to doubt its wisdom!

Gold: It is clear that you lead a probusiness, pro-investment government and so you are aware of the need for a change of mentality in certain departments. Are you satisfied with the speed at which you have been able to bring about change?

N.A.: Things could have changed faster but one needs to bear in mind how many problems we have had to deal with, what our initial priorities were and, at the same time, the difficult environment into which the message about the imperative need for change had to be sent. I believe that we have managed to instil it in those immediately affected, as well as in the broader public, and so we are moving forward. After 60 years, during which a certain mentality has developed, it is not something that can be changed from one day to the next. And, of course, if you are going to implement change, it needs to be effective and productive so studies have to be carried out to ensure the best result.

Gold: However much we may talk about upgrades from the rating agencies and positive reports from the Troika, these things don’t mean a lot to ordinary people. You have seen the demonstrations, heard the protests, and been told about the people who are still using food banks and you are aware of the hardship that thousands of Cypriots are still suffering. How do you personally deal with this ‘human face’ of the present situation?

N.A.: It is a fact that, despite the progress that we have made in terms of restoring confidence in the country and in the banking system, and although the serious problems caused by the financial crisis may have started to reveal a downward or stabilising trend (and that includes the unemployment figures), those who belong to the more vulnerable groups of society are still suffering because money and investment still needs to be injected into the real economy. We are particularly sensitive to this and one radical measure that we have introduced is the guaranteed minimum income.

There have been some implementation problems with it but that is to be expected. Such new measures invariably require time and possibly modifications.

We are currently working on finalising our broader social policy in all areas, based on social and financial criteria so that savings can be made from those who should not be receiving benefits, thereby enabling us to review the benefits that

Gold: Another way in which your Government stands out compared to its predecessors has been through your appointment of relatively young people to key posts. How did you manage to take what was clearly a conscious decision after half a century of governments of – let’s say – rather elderly representatives?

N.A.: I have great confidence in younger people and I am delighted with the

are being provided and to overcome the problems that you have correctly noted. I hope that by the end of 2015, the picture will be totally different from today’s, with significant improvements that people will be able to see in their daily lives, in the same way that improvements to the economy and the banking system are already evident.

Gold: One of most notable aspects of your presidency to date has been the number of scandals that have been uncovered and, indeed, brought to justice. I am sure that most people consider that it is to your credit that you have insisted that past wrongdoings are being dealt with but it has also cast a shadow over the whole political system. People have lost their faith in those who are supposed to represent them. How dangerous is this and how do you believe you can restore confidence in the institutions of Government, Parliament, etc.?

N.A.: I believe it is a matter of time before we can persuade people, through specific policies and actions, such as zero tolerance of anyone involved or implicated in financial scandals or criminal offences – which was and remains a key policy of this Government – that things are changing for the better.

At the same time, a number of legislative proposals, which are now with the House of Representatives or with the AttorneyGeneral, will significantly improve the rules governing the system in such a way as to gradually restore the faith of citizens in it. As you rightly say, it has unfortunately been lost, due to mistakes by politicians right across the board.

Gold: Are you confident that, by the end of your five-year term, Cyprus will be well on the road to economic recovery?

N.A.: I would like to believe that

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this will happen much earlier but our objective is to realise significant goals and implement my pre-election promises, such as modernising the civil service, cutting out bureaucracy, rooting out corruption, establishing a national health system, educational reform and a host of other issues so that people will see that this Government has managed to implement radical changes in important areas which were previously disabling the state and, consequently, preventing it from giving people what they were due.

Gold: There is, of course, one issue that could change everything for the country: a solution to the ongoing division.

You have made it clear that you want a solution, despite the opposition expressed by a growing number of Greek and Turkish Cypriots, and the obstacles placed in the way by mainland Turkey. Do you believe that a solution is achievable, particularly following the election of Mustafa Akinci as Turkish Cypriot leader?

N.A.: The election of Mr. Akinci not only changes the climate significantly, it brings hope. Mr. Akinci’s frequently repeated positions, and his whole political career, reveal a leader who is determined to negotiate sincerely. At the same time, my position has been and remains that the longer the process of reaching a solution is delayed, the harder it will be to ensure that such a solution is less painful than previous proposals. The unacceptable status quo simply consolidates the situation and, in many instances, it affects key areas of a solution to a degree that is irreversible.

I believe that the time has come and all the prerequisites are being created for us to work hard in order to achieve a settlement within the agreed parameters, in particular in accordance with the joint declaration of 11 February 2014 which essentially sets out the framework of a

solution, the structure and form of the state, guarantees the three aspects of a unitary state, recognizes political equality but, at the same time, ensures that there can be no solution that overlooks the EU acquis communautaire or denies human rights and basic freedoms. Given that Europe does not accept permanent derogations from these, I am certain that an environment is being created which, with hard work and mutual respect on our part and good will on the part of Turkey too, will allow us to achieve a viable and functional solution which will guarantee the country’s future.

Gold: Perhaps more importantly, do you think that you will be able to ‘sell’ a solution to a majority of the Greek Cypriot population?

N.A.: I wouldn’t use the word ‘sell’ in this context. If there is mutual understanding between the leaders and those who will be responsible for reaching a solution, and if actions are taken which will restore people’s faith and confidence that everything that is agreed will be implemented and that nothing favours one community over another, I believe that the time is ripe for optimism that a solution, which takes into account the concerns of the Greek Cypriots and does not ignore those of the Turkish Cypriots, can be accepted by the people. I repeat that it requires an understanding of the problems that concern one or the other community. The solution must not create winners and losers.

FAITH

in the system has been lost, due to mistakes by politicians right across the board

Gold: It is a fact that no-one under, say, the age of 50 has any real memories of how things were in Cyprus before 1974. So while the older generation may be willing to accept a federal solution, isn’t there a danger that younger people may be much more sceptical or afraid of a solution?

N.A.: While the lack of progress has led

some people to become pessimistic and convinced them that since we have a country which is ours, there is no reason to share authority over it, etc., what I have found is that this attitude is changing and educated people under 50 understand the benefits of reunification. If there is progress in the talks and we implement confidence building measures that show the determination of both sides to act in such a way as to create good prospects, the circumstances will be significantly better than they were in 2004 to persuade everyone of the need for a solution, and once it is agreed, of the need to accept it.

One of the most important things to remember is that a solution will bring such growth and development that our young people will not be thinking of emigrating or about where they will find a job. Our geostrategic location, our identity as an EU member state and, in particular, the stability that a solution will bring will all help in such a way that extensive investments either from Cyprus itself or from abroad will transform our small island into a real paradise.

Gold: So you don’t fear that it may be too late after all this time?

N.A.: It’s never too late as long as we realize that things will only get worse the longer the uncertainty continues and the unacceptable situation that exists today carries on.

Gold: Finally – and I think I can guess the answer to this question – how do you want to be remembered?

N.A.: Of course I would like leave my mark by solving the Cyprus Problem but I also aspire to the creation of a modern state that is the equal of any other European country.

These are the two big wagers and I hope that, by the end of my term of office, especially if the Turkish Cypriot side has the same will as I have regarding the Cyprus problem, they will both be won.

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DISY

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HE DEMOCRATIC RALLY (DISY) WAS FOUNDED IN 1976 BY GLAFCOS CLERIDES, WHO LATER BECAME CYPRUS’ 4TH PRESIDENT. THE PARTY SUPPORTED THE ANNAN PLAN FOR THE REUNIFICATION OF ISLAND IN 2004, BELIEVING THAT FURTHER ADJUSTMENTS COULD BE MADE AFTERWARDS. IT CURRENTLY HAS 20 MEMBERS OF THE HOUSE OF REPRESENTATIVES AND TWO MEMBERS OF THE EUROPEAN PARLIAMENT. THE CHAIRMAN OF THE PARTY IS AVEROF NEPHYTOU (PICTURED), WHO SUCCEEDED NICOS ANASTASIADES WHEN HE WAS ELECTED PRESIDENT OF THE REPUBLIC.

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REVIVING THE ECONOMY From the “perfect storm” we faced two years ago, the country’s economy has secured successive rating upgrades enabling it to return to the markets. The economy is being steadily driven out of recession and with realism and proper policies – not populist declarations – it will progress to achieve its goals. Economic recovery is encouraged by conditions of trust and confidence, by fiscal stability and the establishment of viable and prudent public finances that lead to economic growth. We must continue in that direction and enable the utilisation of European structural funds. Our policies must encourage enterprises to innovate in order to become competitive and facilitate job creation.

CORRUPTION/LACK OF TRANSPARENCY Tackling corruption and introducing transparency has been a main focus of our party’s policies and those of the Government. For the first time, we are seeing scandals being revealed and cases of corruption being taken to court. Of course, a lot more has to be done to safeguard the system from future malpractices and abuses of power and to increase transparency. We are working on proposals concerning the links between elected and appointed officials with various professions, as a further step in safeguarding the system and increasing transparency and accountability.

JOBS/UNEMPLOYMENT Although it has stabilized and it is showing signs of de-escalation, the unemployment rate in Cyprus remains much too high. The Government has introduced a number of schemes offering incentives to businesses to hire unemployed persons but, as good as they are, such schemes can alleviate the problem but not solve it. Jobs are created by increased business activity and our aim is to create and enhance an environment that attracts investment, especially foreign direct investment. To this end, we need to proceed with privatisation in a transparent and prudent manner to attract investment and enhance competitiveness. The proposed casino project will help in that direction too.

CIVIL SERVICE REFORM We fully support the Government’s efforts to reform the public sector. Procedures need to be simplified so that citizens enjoy much

better service in their dealings with the state and businesses minimise their costs. Reform of the civil service is something we should have implemented long time ago. The Government has already introduced a groundbreaking reform of the welfare system with the introduction of the Guaranteed Minimum Income. We want to continue with further reform, deregulation and cutting out red tape, which will reduce the administrative burden on the private sector, offer a much better service to the public and play an important role in our economic recovery.

FOREIGN DIRECT INVESTMENT Cyprus has a strategic location, a very capable and skilled workforce and a favourable tax system. Moreover, it is a popular tourist destination and it has robust shipping and professional services sectors that have proven resilient. All these sectors provide good opportunities for attracting foreign investment.

Also, the privatisation of the ports and Cyta presents attractive investment opportunities, as does the government’s intention to developing casinos. Furthermore, the recent discovery of hydrocarbons is another facilitating factor for attracting investment.

NATIONAL HEALTH SCHEME The introduction of a National Health Scheme is a fundamental necessity. It will be structured around four principles: universal coverage to all permanent residents, financial viability, solidarity and freedom of choice of medical provider. A study is currently being carried out by the WHO to evaluate whether the system should be single- or multi-payer but what matters most is to offer better quality health services to the public.

Additionally, updating current legislation is vital in order to effectively address the management of the Health Insurance Fund, the role and responsibilities of the Health Insurance Organisation and the functionality of the system so that patients are the first priority.

PRIVATISATION We view privatisation not so much as a cashraising exercise but primarily as a reform that will boost competitiveness and attract much-needed foreign investment, without affecting employees adversely, while benefiting consumers without risking national security. Our aim for Cyta is to attract a strategic investor with expertise in the sector to strengthen the organisation and improve services to consumers. As regards the ports,

the successful BOT model will be used, enabling their most effective use while ensuring that security is not compromised. In the case of the Electricity Authority, a study will examine the options and evaluate whether the involvement of strategic investors would be beneficial for the EAC and the state.

PROPERTY/REAL ESTATE The property/real estate sector has faced challenges in recent years but it is a sector with the capacity to attract investment.

The citizenship incentives offered to investors from third countries are contributing towards this goal. Further to this, there is a need for additional incentives to attract companies to relocate or set up in Cyprus, in particular in the sectors of shipping and services. This will create additional demand for properties. Additionally, we need to reform the process of issuing title deeds and make the sector more attractive to investors.

ELECTORAL REFORM The Democratic Rally is very clear in its support of cross-party voting and has publicly said so on numerous occasions. We are currently part of a working group aiming to draft a bill on this which will be submitted to parliament. We also believe that democracy will be better served if the minimum percentage of the vote needed to secure a seat in parliament is raised. If the House is split into numerous one-seat parties, we run the risk that populism will take over and this could prove disastrous. A higher threshold would ensure that parties have enough public support and that there are enough MPs to deal with the various bills in the House.

CYPRUS REUNIFICATION The Democratic Rally supports the efforts to reach a viable solution based on a bi-zonal bicommunal federation, as expressed in UN Security Council Resolutions. Cyprus has to be reunified in a way that will create conditions of security and prosperity for all its legal citizens. Our national problem affects the stability of the entire region and Europe’s energy security. Historic opportunities are arising and Cyprus must leverage the continuously evolving interests and synergies of the region. The Democratic Rally will never accept partition or Turkish borders within Cyprus. There is only one way for us and that is the way of peace, cooperation, stability and synergies; it is the win-win way to a solution ensuring viability and functionality. www.goldnews.com.cy | GOLD | 29

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AKEL

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HE PROGRESSIVE PARTY OF WORKING PEOPLE (AKEL) WAS FOUNDED IN 1926 AS THE COMMUNIST PARTY OF CYPRUS (CPC).

IT WAS DECLARED ILLEGAL

BY THE BRITISH COLONIAL GOVERNMENT IN 1931 AND, 10 YEARS LATER, LEADING MEMBERS OF THE UNDERGROUND COMMUNIST PARTY AND OTHERS FOUNDED AKEL. IT CURRENTLY HAS 19 MEMBERS OF THE HOUSE OF REPRESENTATIVES AND TWO MEMBERS OF THE EUROPEAN PARLIAMENT. ANDROS KYPRIANOU (PICTURED) IS THE PARTY’S 5TH GENERAL SECRETARY, HAVING SUCCEEDED DEMETRIS CHRISTOFIAS WHEN HE WAS ELECTED PRESIDENT OF THE REPUBLIC.

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REVIVING THE ECONOMY A basic precondition for growth is the consolidation of the banking sector through stricter surveillance, the enforcement of good governance and structural reform so as to restore its support of the real economy.

We propose a fundamental reform of the tax system and the adoption of incentives for growth and to combat of tax evasion; a special fund investing in development projects, financed by public and EU funds; a rationalist restructuring of public finances, channelling savings to the development and strengthening of the social state; focusing on SMEs which face problems regarding access to finance and modernisation; a new strategy to support and develop industrial production; the radical reform of our tourism policy through a new Strategic Development Plan; and the introduction of e-Government.

CORRUPTION/LACK OF TRANSPARENCY Addressing corruption concerns everybody and, as a party, we will continue to take initiatives to raise awareness and cultivate a culture of rejection of such behaviour. We have formulated specific proposals, including the publication of AKEL’s audited accounts, the modernisation and effective implementation of legislation on conflict of interest by state officials, interchangeability in key positions in the Public Service, the complete separation of the State from the Church, modernisation of the legislative framework governing bids and purchases of armament programmes, control over all public tenders awarded in the public and semi-public sector, legislative regulation of the economic activities of NGOs, the confiscation of property of state officials and public servants convicted of financial crimes. stricter penalties for offences against the State, and greater public access to public documents.

JOBS/UNEMPLOYMENT The current recession and reduction of income cannot be an alibi in the attempt to tackle unemployment and strengthened support for the unemployed. It is necessary to form a strategy based on five action areas: Policies and measures to create new jobs; investing in knowledge, qualifications and training of the workforce; protection of work; reducing unemployment and the inclusion of vulnerable groups of the population in the labour market; and social protection of the unemployed.

CIVIL SERVICE REFORM Civil service reform is a high priority for economic growth, so we should be very cautious regarding the measures proposed in the framework of such reform. We strongly support the improvement of public services for both enterprises and citizens. A wellfunctioning civil service not only advances competiveness but releases growth prospects.

We would like to discuss the Government’s proposals but it is fair to say that such reform is a marathon, not a sprint. Fundamental rights, working conditions and equal treatment of employees should be respected at all times.

FOREIGN DIRECT INVESTMENT Cyprus should be looking to attract productive foreign investment in research, innovation and digital technology. An office should be opened, operating on the one-stop-shop principle for the immediate licensing of developments exceeding $1 million. Thanks to its excellent technical infrastructure, key geographical location, good climate and highly skilled workforce, which form our competitive advantage, the country can grow, through coordinated policies, in the financial, shipping, legal, consulting and other services sectors.

NATIONAL HEALTH SCHEME AKEL’s main principles on health concern the universality and equality of access to health care services, the high level of quality of healthcare services for all, decent treatment of patients, social solidarity and fairness in financing and the central role of the public sector in providing healthcare services. Cyprus is the only European Union country without a National Health Scheme but the Government has cut €106 million from the health budget in two years and is attempting to end NHS planning, promoting changes that endanger the viability and prospects of state hospitals. AKEL believes that, in order to address the multiple problems of the health sector, we must implement and operate the National Health Scheme, as proposed in 2001.

PRIVATISATION AKEL disagrees with the privatisation of public utilities. Semi-government organisations can and must be upgraded in their efforts to adequately perform their public mission with integrity. Boards of Directors must be appointed on merit alone. As AKEL, we support the modernisation of Cyta, the

Cyprus Ports Authority (CPA) and the Electricity Authority of Cyprus (EAC) regarding their institutional framework, greater autonomy and flexibility, internal structural and organisational changes, ways of improving productivity, service quality and customer service, targeting social cohesion, combating climate change, reducing dependence on imported energy resources, and the transition to a new sustainable and equitable economic model, as well as the provision of new high value added services to the community.

PROPERTY/REAL ESTATE CIPA should undertake a campaign in countries such as Russia, Ukraine, the UK and China, promoting Cyprus as a country where one can purchase a holiday home, especially now that prices have fallen significantly. Title deeds must be issued immediately; a building plan for government-owned buildings should be drawn up and implemented, gradually abandoning the present rental policy; late payments by the State for work performed on government projects must be dealt with.

ELECTORAL REFORM AKEL disagrees with the concept of horizontal voting, which will not solve problems but will complicate things. The behaviour of voters should be determined by the political positions of parties and not by the eloquence or external appearance of the candidates.

Self-centeredness in politics has never solved problems; on the contrary, it may lead to a further decline in citizens’ interest. At the same time, there is a risk of altering the voters’ wishes, especially regarding the smaller parties. AKEL is currently not considering any proposals to change the threshold required to gain a seat in the House.

CYPRUS REUNIFICATION AKEL strongly supports a bi-zonal, bicommunal federation, the only solution that can currently reunite and free our homeland and our people. We believe that this can not only be achieved, but it is more necessary today than ever. Partition is not an option for Cyprus and its people. It would be a disaster in which all Cypriots would forever lose half of their country, huge risks would remain and we would not make use of economic and other opportunities. We firmly believe that the great majority of Cypriots is ready to support a viable and functional settlement and the reunification of our country and people.

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DIKO

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HE DEMOCRATIC PARTY (DIKO) WAS FOUNDED IN 1976

BY SPYROS KYPRIANOU, WHO BECAME THE ISLAND’S SECOND PRESIDENT, FOLLOWING THE DEATH OF ARCHBISHOP MAKARIOS III IN 1977. FROM 2000 UNTIL 2006, THE PARTY WAS LED BY TASSOS PAPADOPOULOS, WHO WAS PRESIDENT OF CYPRUS FROM 2003 TO 2008. THE PARTY CURRENTLY HAS 8 MEMBERS OF THE HOUSE OF REPRESENTATIVES AND ONE MEMBER OF THE EUROPEAN PARLIAMENT. THE CHAIRMAN IS THE SON OF THE LATE TASSOS PAPADOPOULOS, NICHOLAS PAPADOPOULOS (PICTURED).

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REVIVING THE ECONOMY If we don’t deal with the very high level of business and household debt, we will not see any growth, no matter what measures we pass. We have suggested the creation of an Asset Management Company to deal with problematic loans. We are also demanding the return of €8 billion worth of deposits stolen from us in 2013. We have suggested the implementation by the Banks of voluntary loan “haircut” programmes, tax exemptions and incentives to help attract foreign investment, e.g. regarding non-domiciles as per the UK model. We have also suggested the lowering of the immovable property tax, payment in instalments of accrued VAT and social security payments, and an upfront lump sum payment in all public lease agreements, so that the government collects significant capital that it can then re-direct towards the economy and growth.

CORRUPTION/LACK OF TRANSPARENCY All state organisations should be under continuous internal and external audits by independent bodies with penalty-imposing powers, whose reports should be published.

Proper risk assessment procedures will identify the areas most vulnerable to corruption.

All government employees should be provided with anti-corruption training, and rules, regulations and mechanisms should be put in place requiring government actors to justify their decisions and actions and accept responsibility for them. Furthermore, we fully accept the GRECO guidelines on checks and balances for the functioning of political parties and government bodies

the President keeps reassuring civil servants that nothing will change in the civil service!

We all know what the main problems are: there is no real assessment of employees who are all deemed “excellent” and this leads to lower productivity. A modern assessment system should be put in place and all civil servants should be assessed and promoted according to their productivity. Also, the structure of the civil service is inflexible and cumbersome and this needs to change.

FOREIGN DIRECT INVESTMENT Attracting Foreign Direct Investment is at the forefront of DIKO’s policies. In order to attract FDI in the present competitive global corporate environment, Cyprus should abolish cumbersome rules, regulations and authorities in order to invite and facilitate foreign investment. In addition to introducing tax incentives, we believe that bodies such CySEC, the Stock Exchange and the Registrar of Companies should be unified as a single supervisory and financial services authority, in order to fight bureaucracy and to adopt simple and quick procedures for the acquisition and disposal of assets. At the same time, our highly educated population and our proximity to the Asian markets can help further upgrade Cyprus as an attractive investment destination.

NATIONAL HEALTH SCHEME We wholeheartedly support NHS reform.

However, this is another issue that has seen considerable delays, which are the fault of previous governments and the present one.

We are willing to discuss improved safeguards regarding the administration of the NHS fund as the Health Minister proposes but we do not agree that control of the NHS JOBS/UNEMPLOYMENT should be in the hands of the Government.

There is no magic bullet that can revitalize Those paying the bill should have a say in the jobs market; only growth and the creation of new jobs can do that. Unfortunately, how their money is administered, in order to the Government doesn’t seem to be worried avoid a disastrous administration that will be similar to that of the social security fund by that we are seeing a continued recession (as the State. we predicted) and not growth (as they predicted), and even thought it was wrong in its PRIVATISATION predictions, the Government seems unwillIt has always been the core position of DIKO ing to promote specific growth measures. that the semi-government organisations Our economy right now is on auto-pilot. should be reformed to increase productivity and efficiency. We certainly do not support CIVIL SERVICE REFORM the quick sale at a bargain price of these asThe only significant measures regarding the civil service to be passed by Parliament came sets, maximizing the profit of any private investor at the expense of the state. This is during the previous administration. In fact

why we have suggested that any sale be postponed until we exit the support programme in order to avoid the loss of profit that will occur from an immediate sale. The Cyprus Ports Authority case is different, in that it is not a sale but a lease, which will retain state ownership.

PROPERTY/REAL ESTATE We have suggested the implementation of tax incentives and other planning measures in order to help the property/real estate sector. For instance we have recently passed a bill that forgoes capital gains tax and transfer fees in the case of loan re-structuring. We have also suggested that the Government should allow companies starting work on undeveloped properties in cities within the next 5 years to pay a significantly reduced rate of corporate tax.

ELECTORAL REFORM No rounded proposal on cross-party voting has been placed before the political parties.

We are ready to engage in dialogue with any other political party, civic platform and the public regarding improvements to the electoral law, which will advance democracy and democratic representation. This can be done on the basis of a detailed analysis and overview of the electoral law but certainly not on the basis of wooing the public with improvised suggestions. The current electoral threshold of 1.8% which is the simple division of the electorate by the number of parliamentary seats is fair and democratic in its philosophy.

CYPRUS REUNIFICATION We have always supported a federal solution, one which must secure the evolution of the Republic into a Federal State, unify the country, the people and all the institutions, and free Cyprus once and for all from the direct and indirect control of Turkey. The problem isn’t whether the Greek and Turkish Cypriots want a solution; it is the fact that Turkey does not want a federal solution but a confederation, which is partition in all but name.

Such a two-state system would be the vehicle by which Turkey holds Cyprus and its people hostage once and for all. This we will never accept. DIKO believes that the Republic of Cyprus should evolve as a federation and continue without the system of guarantees and intervention that Turkey seeks.

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EDEK

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HE MOVEMENT FOR SOCIAL DEMOCRACY (EDEK) WAS FOUNDED BY VASSOS LYSSARIDES IN 1969 AS THE UNITED DEMOCRATIC UNION OF THE CENTRE. SINCE THE EARLY 1980S, IT HAS GRADUALLY EVOLVED INTO A EUROPEANSTYLE SOCIAL-DEMOCRATIC PARTY. THE PARTY CHANGED ITS NAME TO THE MOVEMENT FOR SOCIAL DEMOCRACY IN 2000. IT CURRENTLY HAS FIVE MEMBERS OF THE HOUSE OF REPRESENTATIVES AND ONE MEMBER OF THE EUROPEAN PARLIAMENT. THE CHAIRMAN OF THE PARTY IS MARINOS SIZOPOULOS (PICTURED).

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REVIVING THE ECONOMY In order to revitalize the jobs market, with the real economy in deep depression, we should think and act “out of the box” which, in this particular case, is the Memorandum of Understanding signed with the Troika. The result of the programme that the Government is implementing is a vicious circle of unemployment, poverty and depression. The only way to create more jobs, stabilize growth and start the total recovery of both the economy and society is not only to create a friendly environment for foreign investors (with measures as described elsewhere) but also to increase the budget for public projects, to deal effectively with tax evasion and make the appropriate use of European funding for projects.

CORRUPTION/LACK OF TRANSPARENCY EDEK has proposed a series of measures to deal with political and public corruption.

These include the prohibition of all anonymous donations to political parties, the exclusion from public projects of any company or person involved in cases of corruption, the imposition of strict sanctions on public officials who fail to monitor the projects that fall under their responsibility, the return by politicians and political parties of all donations obtained by immoral or questionable means, the regulation of the conflict of interest between politicians and public officials with law offices, etc.

JOBS/UNEMPLOYMENT We must focus on new areas such as research and technology, the green economy, energy and health. At the same time, we must support plans for youth and women’s entrepreneurship, subsidise the creation of new jobs for university graduates, leverage funding from the EU, strengthen government departments that deal with unemployment and enforce stricter regulations for unregistered workers. Above all, we must implement a longterm strategic plan with the assistance of experts from the private sector in order to deal with the unemployment problem in depth and more effectively.

CIVIL SERVICE REFORM We support reform of the Civil Service which will regulate, in a transparent way

and according to specific criteria, career advancement, meritocracy, redundancy and the retrofit of the public sector, and at the same time ensure all employee rights.

We also strongly suggest that effective reform cannot be imposed from above but must be a result of a social and political dialogue between government officials, trade unions and political parties.

FOREIGN DIRECT INVESTMENT Despite the effects of the financial crisis, Cyprus has retained its advantages in the areas of tourism, shipping and professional services. Furthermore, the exploitation of natural gas and the recent trilateral agreement with Egypt and Greece create a stable and promising environment for FDI. We need to prepare, perhaps with the assistance of the private sector, longterm business plans to attract more interest in these fields and to deal effectively with the problem of bureaucracy. The main key for the revival of the Cyprus Economy will be the creation of a Natural Gas Terminal in the Vasilikos area.

NATIONAL HEALTH SCHEME Over various periods of time, EDEK has strongly supported the introduction of the NHS in order to ensure that every citizen has universal access to high-level healthcare and medical treatment. We strongly support the implementation of the NHS as mutually agreed in 2001 with the Health Insurance Organisation (HIO) playing the central role in the supervision, enforcement and financing of the new system, and not in the format that the Government and especially the Ministry of Health is trying to impose. There is no room, at this stage at least, for the direct participation of private insurance companies or for political manipulation of the HIO. PRIVATISATION EDEK opposes privatisation of the biggest semi-public organisations for both political and economic reasons. Firstly, there are strong national security issues that must be taken into consideration.

Secondly, Cyta, the Electricity Authority of Cyprus (EAC) and the Cyprus Ports Authority (CPA) have offered more than €0.5 billion to the public budget in

the last five years alone – income which would be entirely lost after privatisation.

Thirdly, by selling these organisations (especially the EAC and the CPA) we would automatically create a private monopoly market. That said, it should be noted that EDEK favours cooperation with the private sector in specific areas but with the State retaining the control and supervision of these organisations.

PROPERTY/REAL ESTATE EDEK suggests tax incentives and a simplification of the procedures for EU citizens who invest in this sector, the encouragement of specific developments (such as hospitals, universities etc.) by excluding or reducing the cost of public land, tax discounts up to €50,000 for investors (as in 1979-1980), a simplification of the processes for transferring property ownership and the reformation of the Property Tax, which has been imposed on all land and property owners in the last two years.

ELECTORAL REFORM We have strong concerns about whether this reform will lead to a lack of democracy. We wonder if it would lead to a repetition of what happened in 1976 and the exclusion of people or parties from the public arena, or to a lesser degree of politicization if people vote simultaneously for candidates supporting opposing positions. Will the vote be divided and split and will the biggest parties manipulate the democratic procedure as they did in the past? EDEK does not approve of changes to the election law, especially in the context of the upcoming elections.

CYPRUS REUNIFICATION We support a just and sustainable solution to the Cyprus problem which will allow all the citizens of the Republic to maintain and implement their human and political rights as every European citizen does in his/her country. In this regard, we suggest deepening the talks with the Turkish Cypriots on bi-communal issues and, at the same time, holding an International Summit regarding those aspects of the Cyprus problem that are a result of the Turkish invasion and occupation.

www.goldnews.com.cy | GOLD | 35

THINGS Gold: How important are issues such as environmental and energy conservation in todayâ&#x20AC;&#x2122;s world for a Group such as yours?

T.A.: We have always been conscious of our environmental responsibilities, and strive to minimize the environmental impact of our activities at all times. As a finishing touch, we integrate indigenous flora into the completed development. As for energy conservation, all our projects exceed regulatory requirements. However, we go further; integrating the most energy-efficient solutions early in the project cycle, ensuring low-energy homes from the outset.

Gold: In the very competitive local construction sector, your Group has earned a reputation for quality and attention to detail.

Are these two aspects the key to your success or is there much more to it than building excellence?

Thanasis Athanasiou: It is true that, while we have a clear focus on build quality and attention to detail, our success is also due to emphasis on style and design. We try to create a uniqueness that elevates every project to a higher level. Of course, the prompt handover of title deeds and superb customer service also play a significant part.

36 | GOLD | The Business Magazine of Cyprus

Gold: The sector has experienced something of a rollercoaster decade. When you look back at the â&#x20AC;&#x2DC;boomâ&#x20AC;&#x2122; times, do you think that greater regulation could have prevented the subsequent â&#x20AC;&#x2DC;bustâ&#x20AC;&#x2122; period?

T.A.: It is very difficult to regulate consumer demand, and Cyprusâ&#x20AC;&#x2122; building boom was fuelled by consumer demand.More prudent lending by financial intuitions would have probably limited the tragic outcome. It would also have been wise if some developers had been more realistic by not building countless speculative properties in locations that, to me, were positively unsaleable, or at best, difficult to sell.

Gold: How has your Group dealt with the slowdown in the real estate and construction sector?

T.A.: By following a carefully-planned strategy to maximize our strengths. We focus on implementing projects which we know we will realise the highest possible financial return. Our construction company has tendered for, and been awarded, third-party contracts in the wider private sector.

DESTINED

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FOR GREAT

| REAL ESTATE |

THE DOWNTURN GAVE US ALL A TASTE OF WHAT CAN HAPPEN IF WE TAKE THE FUTURE FOR GRANTED Gold: Are you optimistic that the worst is now over?

T.A.: All the indicators point in the right direction. But we must be alert to the risks of over-enthusiasm and rash decision making. The downturn gave us all a taste of what can happen if we take the future for granted. Financial responsibility and careful planning are keys to a sustained recovery. The property market is cyclical so prices will return and even exceed those of a few years ago.

Gold: What are your short- and longterm plans as a Group?

T.A.: We have in place a very detailed and structured strategic 5-year plan that will see the group evolve and diversify in many areas. Importantly, we have diversified into the leisure sector with the Duat Lifestyle Group, focusing initially on the Splash Man & Woman Boutique and our Do Wine & Dine establishments, with more up-market retail, entertainment and hospitality ventures in the pipeline. The A. Athanasiou Group is destined for great things over the coming years.

Alpha Bank Cyprus Ltd presents the

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The State and Prospects of the Cyprus Economy :pgi`fk f]ÓZ`Xcj Xe[ [`jk`e^l`j_\[ jg\Xb\ij ]ifd dXafi ] `eXeZ`Xc `ejk`klk`fej from abroad elaborate further on the state of the economy and present strategies to overcome the crisis.

Congress Chairman:

Dr. Constantinos Neophytou, Director, Investment Strategy, Emergo Wealth

Featuring speakers:

Grégory Claeys, Research Fellow, Bruegel, Belgium

Harris Georgiades, Minister of Finance

Constantinos Petrides, Deputy Minister to the President

Constantinos Herodotou, Commissioner of Privatisations

Peter Sanfey, Deputy Director of Country Strategy and Policy, EBRD, UK

Vincenzo Guzzo, IMF Resident Representative in Cyprus

Enam Ahmed, Director, Western European Team of the Sovereign Group, Fitch Ratings, UK

Cfl`j :_i`jkfÓ[\j# Professor Emeritus, Universities of Cyprus and Guelph, Canada

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Thursday 21 May 2015 | Hilton Park Hotel | 1icosia For further information contact: IMH, 5 Aigaleo Str., 2057 Strovolos, P.O.Box 21185, 1503, 1icosia, Cyprus Tel. +357 22505555 Fax. +357 22679820, E-mail: events@imhbusiness.com, website: www.imhbusiness.com

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| ARCHITECTURE |

THE MOTHER

OF ART

It

was the great Frank Lloyd Wright who called his craft “the mother art”, explaining that “Without an architecture of our own we have no soul of our own civilization”. He also said memorably that “Every great architect is – necessarily – a great poet. He must be a great original interpreter of his time, his day, his age” and, placing a huge burden of responsibility on those practising the profession, stated that “The architect must be a prophet… a prophet in the true sense of the term… if he can’t see at least ten years ahead, don’t call him an architect.” Was he correct? Gold spoke to Christos Christodoulou, President of the Cyprus Architects Association, on the state of the profession and attitudes to architecture here. By John Vickers

38 | GOLD | The Business Magazine of Cyprus

Gold: What are the main objectives of the Cyprus Architects Association?

Christos Christodoulou: The CAA’s main objectives are the promotion and development of architecture and architectural culture, public awareness and understanding of the architectural profession, the encouragement and promotion of the role of the architect at all levels, the protection and encouragement of a sustainable future, and the continuous profes-

sional development of our members.

Gold: Is the profession of architect in Cyprus attracting enough new people in the 21st century?

C.C.: The profession is attracting many young people, especially with the establishment of four new university architectural schools in the last few years, three in Nicosia and one in Paphos. Actually, the number of Cypriot architectural students has approximately doubled during the same

period as architecture is a fascinating subject with the possibility of diversification at a later stage.

Gold: There are many professions in Cyprus of which one has the impression that the members view one another as competitors rather than colleagues. Is this case among architects too?

C.C.: Unfortunately, in general terms, yes, the profession is of a competitive nature, as most times several offices/ individuals are

competing for the same job. But there is also a lot of ethos and respect amongst architects in Cyprus. A main objective of the CAA is to establish competition regarding the quality of work and not the price. Architecture is a professional service with intellectual property involved and appointments should not be decided only on price. There are many other parameters related to quality of service that should be the main deciding factor for a prospective client. Our aim as CAA is to encourage the architectural community to act proactively on the environmental and planning issues that we face nowadays.

resources to work alongside the industry to develop or apply new technologies.

Buildings nowadays are complicated structures and require strong teams with experience to be able to stand on the international stage. But we have to admit that a lack of means and limited budgets can sometimes help architects become even more innovative and work miracles.

Gold: Many cities around the world have an iconic building which, in some way, symbolizes what they represent in today’s world. It is hard, if not impossible, to think of such an example in Cyprus. Why do you think this is?

C.C.: It is a sad fact that, as a country, we have never had vision. We are always following trends. When the Eiffel Tower, the Parthenon, the Empire State Building, Sydney Opera House and many other iconic buildings were designed and constructed, they were ahead of their time. To have iconic buildings you need to have vision. You need to think ahead of your time. There are some new projects under construction now, mostly results of architectural competitions, which may become iconic buildings or structures when completed.

Gold: Would you say that the public authorities in Cyprus truly appreciate architecture?

C.C.: This is a big NO! Public authorities in Cyprus are just blind.

They consider everything related to architecture – the city, the built environment – as an accounting exercise. When they go to Paris or Barcelona or London, city officials love to pose in front of iconic buildings but when it comes to Cyprus they don’t see architecture as intellectual property and the result of a visionary dialogue.

They encourage things to be done in the cheapest way possible and behind closed doors, which ends up as a long-term loss for the island’s built environment.

Gold: The Association has nominated a number of buildings in Cyprus for the annual Mies van der Rohe Award.

Do you believe that the island has enough impressive structures to be able to compete in Europe?

C.C.: Cyprus has a good blend of talented architects, educated at the best architectural schools all over the world.

What we lack are ‘good’ clients with reasonable budgets who allow our architects to explore themselves. In addition, we lack the close relationship with the building materials and technology industries.

Architects in Cyprus do not have the

Gold: While Cyprus belongs to Europe and the West, its climate differs considerably from that of many of its neighbours. Shouldn’t this fact have an effect on how and what we build?

Do we actually take such things into consideration?

C.C.: We should design and build according to our climate. We have to use the advantages of Cyprus’ climate and this Mediterranean climate should affect how we build. But again, we have to do it wisely. Remember the Mediterranean traditional architecture with a critical mass of thick walls, night cooling and

low embodied energy. For some years those principles were forgotten by architects, not just in Cyprus but everywhere. But now, a new generation of architects takes those things into consideration.

It is worth bearing

TO HAVE ICONIC BUILDINGS

YOU NEED TO HAVE VISION. YOU NEED TO THINK AHEAD OF YOUR TIME

in mind that that, through its membership of relevant committees, the CAA has made a significant, dare I say, and crucial contribution to the formulation of relevant legislation and of EU directives embodied in Cyprus law.

Gold: How much attention do individuals and companies in Cyprus pay to environmental issues when planning to build these days?

C.C.: Environmental issues are a

priority nowadays for most individuals and companies planning to build.

It is a global issue that has gained public awareness over the last few years and forced people to realize that nature is not endless in providing for humanity.

We all have an obligation to future generations to respect nature. We might not have the sensitivity of the Scandinavians yet but we have made big steps forward as a country on a general and on an individual basis as well. Of course, as in all countries, the payback period, initial cost, etc are always taken into consideration.

Gold: Is energy efficiency given the significance it deserves?

C.C.: Energy efficiency is a parameter that has been in our vocabulary over the last few years as we have globally realized that sustainability in design and in how we build our cities is a one-way street. Through legislation and continuous training, it has become a major factor affecting architects.

Energy-efficient

www.goldnews.com.cy | GOLD | 39

| ARCHITECTURE |

WE ALL HAVE AN OBLIGATION TO FUTURE GENERATIONS TO RESPECT NATURE

buildings have been around for hundreds of years and we could all see them in vernacular architecture. Our ancestors used to build energy-efficient buildings and it was the natural thing to do. Nowadays, we should explore the methods used in the past and apply them in a more contemporary way to new buildings.

Gold: How did you personally decide to become an architect?

C.C.: When I was at high school I did technical drawing and really enjoyed it. I also used to work on building sites during the summer holidays and was fascinated by the industry. So just before graduating I decided to apply for architectural courses in the UK. Gold: Has your career developed in the way that you expected?

C.C.: I have always set targets in my life and my career, thankfully, has developed even better than expected.

My targets are related to job satisfaction and my career path, not financial rewards.

My career plan was always to work and gain experience abroad after graduation in the UK, and then to come back to Cyprus and establish my own practice. I have followed this path and currently I am a partner at Simpraxis Architects, established by Marios Christodoulides and myself in

2003. We have set our minds on quality rather than quantity and so far we have achieved most of our goals.

Gold: How have you and your colleagues been affected over the past two years?

C.C.: Everybody in the building industry, like almost everybody living on the island, has been affected by the financial crisis. Architects and other construction professionals have probably been affected worse.

Many have moved abroad to work, many have closed their offices or just working parttime.

Gold: Have the more difficult financial circumstances prevailing since 2013 meant that people are having to amend their plans so as to build more cheaply?

C.C.: I would say yes, but to put it the right way, we have to design and build more wisely. I don’t like to use the word ‘cheap’ because people link it to less quality. We have to be more open-minded, forget the stereotypes of the past and explore technologies and materials that are cheaper but as good as the ones we are used to. We have to invest in the quality of the substructure and in building services, we have to design spaces that can be utilized and modified 100%, to design and build with energy efficiency in mind, to design and build for less maintenance and longer building life cycle.

40 | GOLD | The Business Magazine of Cyprus

Gold: Won’t life be difficult for the architectural profession until the large number of existing unsold properties is dealt with?

C.C.: Life for everybody involved in the construction industry will be difficult until the building stock we

have is reduced.

But the Government could generate work from this unsold building stock for everybody by offering incentives to improve their energy efficiency or quality. Unsold properties, in my opinion, are unsold for other reasons not only related to financial conditions. Poor design, wrong orientation, a lack of amenities and bad construction are also aspects that could be worked on and improved.

Gold: Overall, do you foresee an optimistic future for your profession?

C.C.: The profession itself is exciting, interesting and creative

and it gives the architect excellent skills related to the environment, to everyday life and an overall problem-solving approach. But we have to diversify as a profession.

We are maybe the only profession that can combine vision, financial control, technical knowledge, environmental awareness, problem solving, execution and social skills on an everyday basis. Architects can be effectively used in other lines of employment as well. So yes, am optimistic, especially if we fully understand, explore and capitalize on the potential provided by our architectural education.

PUBLIC AUTHORITIES IN

CYPRUS CONSIDER EVERYTHING RELATED TO ARCHITECTURE AS AN ACCOUNTING EXERCISE

GOLD

Celebrating

FOREIGN INVESTMENT IN CYPRUS 2015 July 2015 | Presidential Palace, Nicosia Admission to the awards ceremony is strictly by invitation

ORGANISERS

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

SILVER SPONSOR

GOLD SPONSOR

PLATINUM SPONSOR

| OIL & GAS |

Bigger Than Rigs Education in oil and gas is key to national wealth By Kyriakos Demetriou

O

PITO, the oil and gas industry’s focal point for skills, training and workforce development, launched its operations in Cyprus last month. OPITO already has a presence in Aberdeen, Dubai, Kuala Lumpur and Houston, and its arrival in Cyprus reinforces the good relations and cooperation between the UK and Cyprus on matters of mutual interest. Gold had the opportunity to discuss OPITO’s

engagement in Cyprus with Group CEO David Doig.

Explaining the role and activities of OPITO (the UK’s Offshore Petroleum Industry Training Organisation) as well as its goals for Cyprus, Doig stressed the unique nature of OPITO. “We serve only the oil and gas industry,” he said, adding that OPITO “sets standards that everyone agrees are the best and are adopted globally by operators. We share our knowledge with governments, bringing a wealth

MOST PEOPLE ARE UNAWARE THAT JUST 10% OF THE INDUSTRYWORKFORCE IS OFFSHORE 42 | GOLD | The Business Magazine of Cyprus

of knowledge and expertise while advising and connecting the industry. We formulate, design and revise standards owned by OPITO and the oil industry,” Doig told Gold.

Although OPITO has been in contact with the Government since a meeting with President Anastasiades and Energy Minister Yiorgos Lakkotrypis in London more than a year ago, no contact has yet been made with any schools. “We have had some contacts with people in universities on my three trips to Cyprus so far, and we have a starting point. The Universities keep talking about a skills development strategy, but we need to see what that strategy is and how we can contribute,” he said.

“There is an appetite to get that strategy developed and we can help with that – that will then form part of the spectrum where you start and influence schools and educate.”

Not surprisingly, few people in Cyprus know much about the oil & gas industry and, said Doig, the key concepts need to be introduced. “Most people are unaware that just 10% of the industry workforce is

offshore,” he told us. “There are different jobs and a range of career opportunities. You don’t just need the platform people; you also need the HR people, the IT people, those dealing with logistics since the industry is all about moving things around, people that deal with planning.

This is something that we have learned in the UK – that oil and gas has a spectrum much bigger than just rigs,” he said.

Noting that Cyprus has very high educational standards, he stressed the need to align education in order to match skills to needs. “Our strategy is educating the workforce and investing in the development of skills,” Doig continued. “You get jobs, which lead to personal prosperity, and in turn to business prosperity, and finally to national prosperity.

And we want to offer this and the passport to a really global market to Cypriots.”

David Doig and OPITO are optimistic about Cyprus’ prospects in the sector.

“We think that Cyprus can become a global hub and a world class centre of excellence in the oil and gas industry,” he said. “Geographically it is a good place to be because it is in the middle of everywhere, it is a great and beautiful country, very friendly and an easy place to do business.”

A great cup of coffee.

1. Engomi 2. Strovolos (Aretaieio) 3. Strovolos (Athinon) 4. The Mall of Cyprus 5. Pallouriotissa (Kantaras) 6. Larnaca (Finikoudes) 7. Limassol (Makariou Aven.)

8. Ayia Napa (Makariou Aven.)

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| SHIPPING |

SAILING TOWARDS

NEW HORIZONS

AS THE FLAGSHIP COMPANY OF THE RPT GROUP, ONE OF CYPRUS’ LARGEST AND MOST REPUTABLE PRIVATELY-OWNED SHIPPING GROUPS, LAVAR SHIPPING IS A PIONEERING ENTERPRISE THAT HAS GROWN TO ACQUIRE AN INTERNATIONAL REPUTATION FOR SERVICE EXCELLENCE. ESTABLISHED IN 1965 AS ONE OF THE VERY FIRST SHIPPING COMPANIES IN CYPRUS, IT HAS PLAYED A LEADING ROLE IN THE EVOLUTION OF THE INDUSTRY AND THE ESTABLISHMENT OF CYPRUS AS A SHIPPING HUB. GOLD SPOKE TO THE CEO OF LAVAR SHIPPING ON THE OCCASION OF ITS 50TH ANNIVERSARY. By John Vickers

44 | GOLD | The Business Magazine of Cyprus

T

purpose of chartering and meeting the trade shipping requirements of the time. The company also succeeded in representing a significant number of prominent and prestigious ship owners in Cyprus. In 1970, through his personal contacts with leading European ship owners, and in close collaboration with his legal and financial advisors, he participated in Hanseatic, one of the first ship management companies in Cyprus. Pantelis Tsanos remained as a non-executive director of the company until 2005.

Gold: What made your father decide to set up a shipping company at least five years before the arrival of the foreign companies that are traditionally viewed as being the founders of the local industry here?

R.T.: My father, Pantelis Tsanos, was one of the pioneers of ship management in Cyprus. His career evolved from his trading activities as a merchant in the late 1950s, and the chartering of vessels for the export of tobacco, citrus fruits, potatoes, carobs, grapes and other Cypriot products. This gradually led him to embrace shipping in its totality. After the first shipping law concerning Cyprus-owned vessels was passed in 1963, he proceeded along with other partners to incorporate Lavar Shipping. The company acquired the Curium – its first cargo vessel of dwt 2250 tons – registered under the Cyprus flag for the

Gold: How has the sector evolved over the company’s lifetime? And how has the company evolved in tandem with developments in the sector?

R.T.: In 1963, Cyprus started to establish itself as a maritime centre with a solid infrastructure and services able to meet the growing demands of a globalized shipping business. Today, the Cypriot maritime registry is one of the largest in the EU and worldwide. Moreover, Cyprus is the biggest third-party ship management centre in the EU. Drawing its strength from the RPT Group, Lavar Shipping has expanded its services specializing in the onshore and offshore logistics of oil and gas, and has engaged in diverse areas of customized business solutions, continuously refining its core shipping activities to take full advantage of Cyprus’ strategic location. Over the years, the company has evolved into a multi-faceted shipping and ship management services organisation offering a wide range of specialised traditional and modern-technology services to the local and international marine industry. This evolution was the result of a concentrated effort that involved years of hard work and experience, together with innovative and forward-thinking management, as well as significant financial and human-resource investment.

his year is a very significant one for Lavar Shipping, given that it celebrates the 50th anniversary of its establishment in 1965. How do you plan to mark this important milestone?

Reginos Tsanos: 2015 is indeed an important milestone for our company and I am very proud and honoured to be at the helm of Lavar Shipping as it enters its 6th decade in business. We are currently in the process of finalising the schedule of events and activities we will be organising until the end of the year, and we will be announcing them very soon.

Gold: Given that shipping is a global industry, companies like Lavar are subject to both global and local problems. So let’s start with how things have been globally over the past 5 years. Has it been a tough time? And how were you affected by the Cyprus crisis in 2013?

R.T.: The global economy is going through an anaemic recovery, the eurozone continues to struggle, and certain emerging economies, like India and China, are showing signs of a slowdown. The shipping industry is experiencing a very large supply of tonnage in most market segments, and this has put both freight rates and vessel values under severe pressure. All this, coupled with the impact of the sovereign debt crisis on financial institutions that were traditionally financing shipping companies, has led many shipping companies to adjust their strategies and business models. In 2013, Cyprus also took a big hit, and shipping companies were affected due to the scarcity of liquidity and the shock to Cyprus’ international credibility. Commerce was affected, as traditional foreign suppliers were requesting heavy guarantees and securities as a condition to continue supplying their respective importers in Cyprus. Admittedly, the Economic Adjustment Programme for Cyprus brought an end to the immediate financial uncertainty that surrounded the Cyprus banking system during that period. Recently, however, Lavar Shipping has seen an increase in its core activity – the agency of vessels calling at Cyprus’ ports and terminals – with the number of calls expected to exceed 300 vessels on an annual basis. Likewise, our Forwarding and Logistics departments have expanded to provide complete cargo solutions to/from Cyprus as well as crosstrade services through our extended network of agents worldwide. Leading traders are also entrusting us with

www.goldnews.com.cy | GOLD | 45

| SHIPPING | prompt delivery of their orders, and perishable traders are counting on us for the safe import/ export of sensitive refrigerated cargo.

Gold: Were your overseas operations able to compensate for any losses here?

R.T.: As I mentioned before, Lavar Shipping benefits from the strength of the RPT Group, which has a diversified range of activities both locally and internationally. Our overseas projects and activities that targeted foreign investment to Cyprus have, to some extent, compensated for the loss of business in Cyprus and helped balance our accounts. The pioneering mindset of the group led, in 2006, to the licensing of the largest private oil terminal in Cyprus, and the first of its kind in the Eastern Mediterranean region, at Vasilikos, a project bought in June 2010 by VTTI, which invested over €200 million for the development of the VTTV Terminal. Moreover, in 2006 the Group acquired the Greek ship-owning company Agioritic Lines (Agioreitikes Grammes) with exclusive rights of the movement of 250,000 pilgrims, as well as all commercial activity to and from Mount Athos in the Halkidiki area of Greece. Moreover, in 2015 our subsidiary Logistico Park Ltd signed an agreement with the leading oil and gas support service provider Halliburton for the development of modern warehousing and office facilities in Cyprus.

Gold: Do you feel that the Cyprus Shipping industry has been given the importance it deserves by successive governments? Is there a danger that, because we take it for granted, not enough is done to keep it competitive?

R.T.: We need to become more aggressive in promoting our flag and intensify efforts to attract

additional investment to the island. Despite the adverse international economic conditions and financial difficulties we have faced in recent years, and as a result of combined efforts from the public and private sectors, the Cyprus shipping sector has evolved into one of the leading lights of our economy and has the potential to “navigate” Cyprus on the road to recovery.

However, the sector has stagnated in recent years and action is required, in part due to the increasing competition that Cyprus faces from other maritime centres. Moreover, the Turkish ban on Cypriot-flagged vessels remains an important issue.

This illegal trade restriction, imposed unilaterally by Turkey, is a ‘lose-lose-lose’ situation for Cyprus, Turkey and the EU. Should this ban be lifted, it would lead to the complete use of all Mediterranean hubs and ports,

the industry. A restructuring of government policies regarding the shipping industry is a must.

In addition to the creation of the much-discussed position of an Under-Secretary for Shipping, I believe the time has come for Cyprus to establish and market a clear National Shipping Policy to fit within the EU’s Integrated Maritime Policy as well as the spirit of the Limassol Declaration, successfully concluded during Cyprus’ EU Presidency. My wish list would also include the modernisation of the maritime administration in Cyprus, and the enhancement of its cooperation with other professional organisations, institutions and entities; a renewed focus on education, training, and research and development; an initiative to attract investment from large firms and groups in the fields of energy, shipping and transshipments; and a decrease in Limassol port fees.

Reginos Tsanos

WE NEED TO BECOME MORE AGGRESSIVE IN PROMOTING OUR FLAG AND INTENSIFY EFFORTS TO ATTRACT ADDITIONAL INVESTMENT TO THE ISLAND and all parties would stand to benefit.

Gold: Are there any specific measures that you would like to see?

R.T.: The Shipping industry operates in a continuously evolving, highly competitive global environment, which in turn requires stability. The fusion of these essential ingredients for long-term planning and investment in new methodology will safeguard the continuation and growth of

46 | GOLD | The Business Magazine of Cyprus

Gold: What are your views on the proposed privatisation of the Cyprus Ports Authority and the planned development of Limassol and Larnaca Ports?

R.T.: Cyprus’ strategic location makes it an invaluable trade and logistics hub. In the recent past, several attempts by the private sector were made to attract major shipping lines to utilise the Limassol and Larnaca ports as transit hubs. However, the lack of planning and investment in infrastructure by the Cyprus

Ports Authority has left Cyprus facing increasing competition from other countries. Moreover, the Cyprus Ports Authority has been hesitant to deal with stringent labour issues and the unions’ inflexible position on liberalising the costs of handling goods at Cyprus’ ports.

In light of this, the upgrading of all its key infrastructural facilities would give the island the impetus it needs to take the sector a step further.

The shipping industry can become the flagship of Cyprus’ economic growth, and privatisation can help bring about an increase in the economic and commercial activity of the ports. The Government must rapidly proceed with the necessary reforms in order establish to Cyprus’ ports as competitive and attractive to major carriers and operators.

Gold: Are you optimistic about the future of the sector and of Lavar?

R.T.: I will never stop being optimistic! Here at Lavar, we derive strength from the solid partnerships and relationships with our clients and associates worldwide, and we look forward to the new challenges and achievements that lie ahead. We will continue to take careful steps, especially on paths less travelled, with the aim of broadening horizons as we have done for the past 50 years. I also see a bright future for Cyprus, based on its most important, yet controversial advantage – its geographical location. Cyprus has everything it takes to become the most important port and energy hub in the Eastern Mediterranean and, once concluded, Cyprus’ energy plans will contribute tremendously to the shipping industry. Strategic partnerships and careful management can lead to new and vibrant projects with great financial benefits for the Cypriot economy.

SPECIAL PROMOTIONAL FEATURE

SERVICES TO THE INVESTMENT

FUNDS

SECTOR )($785(' &203$1,(6 ALTER DOMUS BANK OF CYPRUS PUBLIC COMPANY LTD BDO LTD CPF EUROBANK CYPRUS EY CYPRUS FORTICAP LTD GEORGE Z. GEORGIOU & ASSOCIATES LLC GMM GLOBAL MONEY MANAGERS LTD HELLENIC BANK PUBLIC COMPANY LTD HORWATH DSP LIMITED KMG CAPITAL MARKETS KPMG MAP S.PLATIS NEXIA POYIADJIS CHARTERED ACCOUNTANTS ONE PLUS CAPITAL LTD ORANGEFIELD CYPRUS LTD PWC SMC MED TRUSTEES (CY) LTD TREPPIDES FUND SERVICES LTD

50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88

T

he global funds industry is a fast-growing sector that has demonstrated resilience K\YPUN [OL ÄUHUJPHS crisis. Investment fund assets worldwide stood at a new all-time high of €28.29 trillion at the end of 2014. If Cyprus succeeds in attracting even a small portion of this huge market, it ^PSS OH]L H ZPNUPÄcant impact on the economy. Following the modernisation of the country’s regulatory and legal framework, it is widely believed that Cyprus now has excellent prospects for positioning itself as an investment funds jurisdiction of choice.

On the following WHNLZ ÄYTZ present in detail the services they provide to the funds industry in Cyprus and elsewhere. www.goldnews.com.cy | GOLD | 47

SPECIAL PROMOTIONAL FEATURE

LOOKING Angelos Gregoriades

CIFA HOPES TO MAKE CYPRUS AN INVESTMENT FUNDS JURISDICTION OF CHOICE By John Vickers he Cyprus Investment Funds Association (CIFA) was established in February 2013 on the initiative of the Cyprus Investment Promotion Agency (CIPA) as a natural development of the progress made in promoting Cyprus as a competitive investment funds jurisdiction. The Board of CIFA comprises reputable and experienced industry professionals spanning all aspects of the industry, including fund management, administration, investment advisory, banking, audit and legal.

CIFA President Angelos Gregoriades tells Gold about how things have developed over the first two years of the Associationâ&#x20AC;&#x2122;s life.

Gold: What are the latest international trends in the fund sector? Are there any new developments?

Angelos Gregoriades: The funds industry is a fast-growing sector that demonstrated resilience during the financial crisis. In particular, according to the European Fund and Asset Management Association (EFAMA), investment fund assets worldwide stood at a new all-time high of

FOR A SLICE

OF THE PIE

â&#x201A;Ź28.29 trillion at the end of 2014, reflecting growth of 3.9% during the fourth quarter and 18.9% since the end of 2013. This is a huge market and if we manage to attract only a small portion, it will have a significant impact on the Cyprus economy.

On the issue of new developments, at both a European and an international level there is a focus on the importance of investor protection, especially in the aftermath of the recession, which is also achieved through effective investor education. This is an objective that CIFA aims to promote, since informed investors are better equipped to evaluate potential investment decisions. It is also of interest that at EU level, a legislative proposal is currently under discussion that aims to amend EU rules on shareholder engagement, which may also have an impact on certain private equity firms.

If we manage to attract

Gold: Has CIFA managed to meet its objectives since its establishment in February 2013?

A.G.: In the past two years, CIFA has grown substantially and has also progressed with important actions in order to achieve its objectives. Firstly, in June 2014, it accomplished its goal to be

granted observer status at the European Fund and Asset Management Association. Secondly, our membership has grown significantly and I am happy to note that today we have about 200 members, both legal and physical entities.

To better fulfil its mandate and to best utilize the valuable expertise of its members, nine Technical Committees have been established, which follow relevant developments, analyse and discuss implications, challenges and opportunities and recommend best policy options and course of action.

Moreover, CIFA has undertaken actions to achieve its ongoing key objectives to promote Cyprus as an international centre for the management of investment funds, at both a local and international level, as well as to create an institutional framework that would be conducive to enhancing the development of Cyprus as a reputable investment fund centre.

These will be further achieved by a project currently undertaken by CIFA in collaboration with King & Wood Mallesons.

Gold: Could you elaborate on this?

A.G.: The ultimate goal of CIFA is

A project will initially focus on the international

48 | GOLD | The Business Magazine of Cyprus

to ensure that Cyprus remains at the forefront of related issues and is able to position itself as a jurisdiction of choice. For this reason, the board of Directors of CIFA recently announced

Gold: What is the ultimate goal behind this project?

A.G.: CIFA was set up with the main objective to develop the investment funds sector. The procedures for the preparation and implementation of the action

that, with the completion of the relevant action plan, Cyprus will be given the means to attract significant investments and to increase the demand for professionals in this sector, thus creating new

only a small portion of the market, it will have a significant its cooperation with the renowned law firm King & Wood Mallesons (KWM) for the preparation and implementation of an action plan for the promotion of Cyprus as a financial services and investment funds centre. The enhancement of the sector will strengthen Cyprus as a financial services centre and provide the framework for the provision of new financial products to investors, satisfying their changing needs.

Gold: Why was this particular firm chosen?

A.G.: CIFA requested offers from four law firms and, after a thorough discussion and evaluation, KWM was selected. It is the only global law firm to be headquartered in Asia and which also has a strong presence in London. We believe that this combination will contribute to promoting Cyprus in emerging economies such as China as well as in developed financial centres such as London. Moreover, KWM is one of the top 10 global firms by lawyer numbers, with a presence in Australia, Europe, the Middle East and North America and this network will help CIFA in its promotional activities.

impact on the Cyprus economy plan commenced at the end of April and are expected to last 6 months. These will address the development of a strategy for the promotion of the investment funds sector, as well the thorough study of the current legislation and relevant regulatory and legal framework with a view to introducing improvements, where necessary, which are in line with best practices.

Subsequently, specific recommendations will be submitted, based on the strategy to be determined and the preparation of new legislation, covering the legislation on investment funds and fund managers, as well as the relevant tax and corporate law provisions. Moreover, financial institutions will be updated on the Cyprus investment funds sector and its prospects, and global events will be organised in selected financial centres.

It is anticipated that with the modernisation of the regulatory and legal framework of Cyprus, the implementation of the completed action plan will further contribute to the rapid development and positioning of Cyprus as an investment funds jurisdiction of choice. This will contribute significantly to the development and growth of the Cyprus economy. It is our aspiration

markets of London and China

job positions and giving the opportunity to high-calibre people, especially young professionals, to live and work here.

Finally, it is expected to upgrade Cyprus in the rankings of international financial markets and destinations.

Gold: How do you intend to further promote Cyprus?

A.G.: In addition to the constant efforts to promote Cyprus abroad and the project that is underway in cooperation with KWM, which will initially focus on the international markets of London and China, CIFA will be organising the first Cyprus Investment Funds Summit towards the end of 2015 or the beginning of 2016. The main objectives of the summit are to inform delegates about the latest regulatory EU framework, identify the latest global trends and opportunities and, of course, highlight the advantages of Cyprus as an investment funds jurisdiction of choice.

Some of the issues to be addressed involve the global trends and opportunities in international distribution for EU Asset Managers and the future of the investment management industry, as well as discussion on specific investment products, including UCITS and AIF.

www.goldnews.com.cy | GOLD | 49

SPECIAL PROMOTIONAL PROMOTI FEATURE

A

ALTER DOMUS

lter Domus is a leading European provider of Fund and Corporate Services, dedicated to international private equity & infrastructure houses, real estate firms, multinationals, private clients and private debt managers. Our vertically integrated approach offers tailor-made administration solutions across the entire value chain of investment structures, from fund level down to local Special Purpose Vehicles.

Founded in Luxembourg in 2003, Alter Domus has continually expanded its global service offer and today counts 28 offices and desks across four continents. This international network enables clients to benefit globally from the expertise of more than 800 experienced professionals active in fund administration, corporate secretarial, accounting, consolidation, tax and legal compliance and debt administration services.

Key factors to our success include a central point of contact who expertly manages our client relationship across jurisdictions, experienced local operational teams and a cutting-edge globally integrated IT system. A substantial amount of our revenue is derived from the alternative fund industry and our dedicated Fund Services Teams have an in-depth knowledge of the global, technical and operational issues that are necessary to support expectations from both general and limited partners.

SERVICES Alter Domus has traditionally had strong accounting, financial reporting and audit liaison skills. The scope of our fully-integrated Corporate Services includes company formation and liquidation, corporate secretarial services, daily administration and management, accounting and tax compliance. We also provide independent directors for the companies we administer.

Alter Domus has dedicated teams focusing on private equity, infrastructure, real estate and hedge fund clients. With over 70% of our

50 | GOLD | The Business Magazine of Cyprus

revenues derived from the alternative investment fund industry, we have gained an in-depth knowledge of the global technical and operational issues that are necessary to support expectations from both general and limited partners.

Alter Domus has over $56 billion of assets under administration (AUA) and more than 6000 structures for Fund Administration clients globally. We are proud to serve 8 of the 10 largest private equity houses, 6 of the 10 largest real estate firms and 3 of the largest 10 private debt managers in the world.

Alter Domus is the only global fund administrator with an active and highly experienced execution team based in Cyprus, capable of servicing and adding value to all of the Investment Manager’s needs. The Cyprus funds team is part of the global Alter Domus Funds team, sharing knowledge, best practices and our highly efficient and capable IT platforms to cater for our client’s needs.

ALTER DOMUS’ FUND SERVICES • Outsourcing Solutions • Coordination of Fund Launches • Investment Processing • Fund Accounting & Administration

George Rologis Group Head, Strategy and Development, Country Executive Cyprus, Member of the Group Executive Committee

• Investor Relations • INREV/EVCA/AIFMD Reporting • Depositary Services • Debt Administration Services • Client Portal 24/7 access • Corporate Services • Compliance Support • Financial Reporting • Consolidation • Liquidation CONTACT INFORMATION:

ALTER DOMUS

Headquarters Address: 5, rue Guillaume Kroll, L-1882 Luxembourg Tel: (+352) 4818281 Fax: (+352) 481863 Website: www.alterdomus.com Cyprus Address: 11 Limassol Avenue, Galatariotis Building, 2112 Nicosia, Cyprus Tel: (+357) 22465151 Fax: (+357) 22379379 Website: www.alterdomus.

JVT J`WY\Z VɉJL Country Executive Cyprus George Rologis George.Rologis@alterdomus. com

RESPONSIBILITY EXCELLENCE INTELLIGENCE COLLABORATION

EUROPEAN SPECIALIST ADMINISTRATOR WINNER FUNDS EUROPE AWARDS &

FUND & CORPORATE SERVICES

www.alterDomus.com

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SPECIAL PROMOTI PROMOTIONAL FEATURE

BANK OF CYPRUS

E

stablished in 1899 and headquartered in Nicosia, Bank of Cyprus is the leading banking and financial services group in Cyprus, with a significant market share across all businesses.

The Bank and its subsidiaries operate through a total of 255 branches, of which 130 are in Cyprus, 123 in Russia, and one each in the United Kingdom and Romania.

In addition, the Bank has a subsidiary in the Channel Islands. The Group also has representative offices in Russia, Ukraine and China.

Bank of Cyprus Group employs 6,700 staff worldwide, and as at 31st December 2014, the Group’s Total Assets amounted to €26.8 billion with a Total Equity of €3.4 billion.

WEALTH, BROKERAGE & ASSET MANAGEMENT DIVISION Bank of Cyprus, through its Wealth, Brokerage & Asset Management Division, offers a wide range of products and services that cater to the investment industry. These services are delivered via specialist teams from Private Banking (PB), Institutional Wealth Management

(IWM), Global Brokerage (GB), Investment Banking (IB), Asset Management (AM) and Global Custody Services (GCS).

GLOBAL CUSTODY SERVICES Bank of Cyprus provides Global Custody Services through its Custody and Trust Unit, for financial instruments locally and internationally. GCS cater to the needs of the institutional and private clients of the Wealth, Brokerage & Asset Management Division of the Bank, and to clients requiring solely custody services such as insurance companies, provident funds, Cyprus Investment Firms (CIFs), and investment funds.

Bank of Cyprus has more than 15 years of experience in the provision of custody services and strives to offer a high quality of service and protection to its clients by cooperating with high quality international sub-custodians, where the safekeeping of clients’ assets takes place in separate accounts, clearly segregated from the assets of the Bank. The Bank continuously invests in its systems so that it preserves its quality of service, efficient processes and timely production of reporting to its clients.

The Global Custody Services offered by Bank of Cyprus include the safekeeping of

52 | GOLD | The Business Magazine of Cyprus

financial instruments and physical titles, clearing and settlement of transactions, reporting on clients’ assets, corporate actions monitoring and processing, proxy voting services, and tax processing at source.

In recognition of its level of service, Bank of Cyprus received the prestigious “Best Sub-Custodian Bank in Cyprus” award for 2012 and 2014 from the international publication Global Finance.

GLOBAL CUSTODY SERVICES FOR INVESTMENT FUNDS The Cyprus investment fund industry dates back to 1999 with the International Collective Investment Schemes (ICIS) law and the majority of funds served were private schemes. The Alternative Investment Funds law that was passed in 2014 has replaced the ICIS law, aligning the Cyprus framework with current EU directives.

Bank of Cyprus is in a position to offer depositary services to Undertakings for Collective Investments in Transferable Securities (UCITS) and non-UCITS products, widely known as Alternative Investment Funds (AIF). The Bank is already acting as depositary for a number of AIFs and is in the process of acting as custodian for a number of new UCITS. According to the Alternative Investment Funds Managers Directive (AIFMD) the functions of the depositary are very specific and criti-

cal for investor protection.

Depositaries are held to a high standard of liability, and are responsible for overseeing the fund’s activities and ensuring that the fund’s cash and assets are appropriately protected.

Bank of Cyprus, in its capacity as depositary, offers global custody services to AIFs and UCITS and may undertake any of the following functions: (a) Safekeeping of the assets of the AIF. (b) Cash flow monitoring. (c) Oversight duties – ensuring the Fund’s compliance with the relevant laws and Fund’s rules.

Bank of Cyprus is committed to playing a key role and strongly supports the development of the Cyprus fund industry. Through our international network of partners our intention is to provide quality depositary services to funds in Cyprus and properly safeguard the investors’ interests and assets.

CONTACT INFORMATION:

Bank of Cyprus Public Company Ltd

Address: 51 Stassinos Street, Strovolos, Nicosia Postal Address: P.O. Box 21472, 1599 Nicosia, Cyprus Wealth, Brokerage and Asset 4HUHNLTLU[ VɉJLZ! 154, Limassol Avenue, 2025 Strovolos, Nicosia, Cyprus Tel: (+357) 22121881 Fax: (+357) 22378970 e-mail: wealth@bankofcyprus.com Website: www.bankofcyprus.com

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SPECIAL PROMOTIONAL PROMOTI FEATURE

B

BDO LTD

DO Ltd is amongst the largest professional services firms in Cyprus, employing over 100 professionals providing audit, tax, accounting, global compliance and advisory services, predominantly to International clients in all areas of business activity.

We have been a member of BDO International Ltd since 2006. BDO's global network provides advisory services in 144 countries, with over 56,000 people working out of more than 1,200 offices worldwide. We have demanding client service standards that all our firms must meet and we trust and empower our people to use their skills and experience to deliver the exceptional service that global clients expect.

Our distinctive reputation for building close personal relationships with our clients is based on our commitment to all our stakeholders that what matters to them matters to us. We work with our clients to define what exceptional client service means to them and we aim always to

bring insight and up-to-date thinking to help them meet their objectives.

BDO network firms combine their in-depth technical knowledge and expertise of the local market with the specific expertise and technical resources of a worldwide network to provide effective and relevant advice to the highest standards.

Our Fund services department specializes in providing fund advisory services, administration and support services enabling our clients to set up and manage regulated funds anywhere in the EU. INCORPORATION SERVICES â&#x20AC;˘ Establishment of regulated Alternative and UCITS funds anywhere in the EU â&#x20AC;˘ Establishment of regulated fund management companies and alternative investment fund management companies and advising throughout the licensing procedure â&#x20AC;˘ Assisting in the drafting of the necessary procedures manuals to comply with the relevant laws and regulations â&#x20AC;˘ Advising to ensure compliance with the applicable UCITS management company and AIFM Laws â&#x20AC;˘ Coordination of Securities Services Providers and other outsourcing solutions â&#x20AC;˘ Drafting of the prospectus â&#x20AC;˘ Preparation of business plans ADMINISTRATIVE AGENT â&#x20AC;˘ Accounting for all transactions and movements â&#x20AC;˘ Portfolio valuations

54 | GOLD | The Business Magazine of Cyprus

â&#x20AC;˘ Reconciling portfolios and accounting records with the service providers involved â&#x20AC;˘ Checking investment restrictions â&#x20AC;˘ Maintaining, storing and archiving accounting data â&#x20AC;˘ Calculating taxes and levies â&#x20AC;˘ Calculating and publishing net asset values â&#x20AC;˘ Liaising with external auditors â&#x20AC;˘ Preparing consolidated financial statements in accordance with the accounting standards required â&#x20AC;˘ Preparing and sending out financial and legal reports REGISTRAR AGENT â&#x20AC;˘ Maintaining shareholder registers â&#x20AC;˘ Registering and performing transactions (subscriptions, redemptions, conversions, transfers and distributions) â&#x20AC;˘ Settling and monitoring transactions â&#x20AC;˘ Convening shareholders to annual general meetings and issuing other communications â&#x20AC;˘ Applying the anti-money laundering and counter-terrorism financing (AML) rules and control procedures â&#x20AC;˘ Identifying clients (KYC / risk management) DOMICILIATION AND CLIENT COMMUNICATIONS AGENT â&#x20AC;˘ Registered offices â&#x20AC;˘ General secretariat and administrative management â&#x20AC;˘ Correspondence management â&#x20AC;˘ Organizing board and shareholder meetings â&#x20AC;˘ Managing notifications, notices, and legal announcements â&#x20AC;˘ Managing invoices

â&#x20AC;˘ Maintaining, storing and archiving documents â&#x20AC;˘ Managing the secure access to confidential data â&#x20AC;˘ Assisting you to identify corporate officers with the relevant experience BDO Fund Services Ltd, a Cyprus limited liability company, is a subsidiary of BDO Ltd and a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.

CONTACT INFORMATION:

BDO LTD

Nicosia Address: 236 Strovolos Avenue, 2048 Strovolos, Nicosia, Cyprus Postal Address: P.O. Box 25277, 1308 Nicosia, Cyprus Tel: (+357) 22495707 Fax: (+357) 22495717 e-mail: nicosia@bdo.com.cy Website: www.bdo.com.cy Contact: Karlos Zangoulos Limassol Address: Alpha Tower, 4th Ă&#x2026;VVY (YJOIPZOVW Makarios III Avenue, Limassol, Cyprus Postal Address: P.O. Box 51681, 3507 Limassol, Cyprus Tel: (+357) 25735450 Fax: (+357) 25735455 e-mail: limassol@bdo.com.cy Website: www.bdo.com.cy Contact: Rois Potamitis

www.goldnews.com.cy | GOLD | 55

C

yproFund Administration Services Ltd (CPF), a member of the CPM Group, has been dedicated to providing comprehensive fund administration, accounting and transfer agency services as well as assistance with compliance and other operational issues to private investment funds, IV[O VUZOVYL HUK VÉ&#x2C6;ZOVYL MVY TVYL [OHU `LHYZ CPF is the leading Fund Administrator in the Cyprus market, providing fund administration services to a sigUPĂ&#x201E;JHU[ U\TILY VM (S[LYUH[P]L 0U]LZ[TLU[ -\UKZ (0-Z and Undertakings of Collective Investmentsin Transferable Securities (UCITS) recognized by the Cyprus Securities and Exchange Commission as well as to other VÉ&#x2C6;ZOVYL 7YP]H[L ,X\P[` HUK -P_LK 0UJVTL M\UKZ ;OL value of funds under CPFâ&#x20AC;&#x2122;s administration was approximately â&#x201A;Ź1.5 billion as at 31/12/2014.

Cyprus is an ideal fund domicile. The last few years have marked great progress in the shaping and the development of the Cyprus Funds Industry, and the country is becoming one of the top emerging fund centres PU ,\YVWL 5L^ YLN\SH[PVU OHZ ILLU LUHJ[LK YLĂ&#x2026;LJ[PUN harmonization with EU directives.

The strategic geographical location of Cyprus, in the middle of three continents â&#x20AC;&#x201C; Asia, Europe and Africa â&#x20AC;&#x201C; provides easy access to new markets. Cyprus is a nat\YHS NH[L^H` [V [OL 4PKKSL ,HZ[ HUK OHZ NHPULK ZPNUPĂ&#x201E;cant experience with the Russian and Central and Eastern European markets. The country is a European jurisdiction with its legal framework completely EU-aligned, which means more transparency towards regulators, better investor protection and an EU passport for Fund Managers; it has a rich network of Double Tax Treaties and an advantageous tax system, which render it very attractive as a tax residence, and it has an unparalleled JVZ[ LÉ&#x2030;JPLUJ` [OH[ PZ OHYK [V V]LYSVVR *`WY\Z OHZ Z[PSS a long way to go with respect to improving its macroeconomic considerations but the banking system is on its way to recovery and has already been upgraded by Moodyâ&#x20AC;&#x2122;s, Fitch Ratings and Standard & Poorâ&#x20AC;&#x2122;s. The Cyprus Securities and Exchange Commission has already

shown good signs that it will be early adopting new laws. All of these, together with the high quality of life enjoyed on the island, make Cyprus as close to an ideal fund domicile location as you can possibly get.

CPF FUND ADMINISTRATION SERVICES

*7- VÉ&#x2C6;LYZ H JVTWSL[L M\UK HKTPUPZ[YH[PVU ZVS\[PVU including fund accounting and reporting, corporate and trustee services, as well as shareholder and investor services to a broad range of investment products, including mutual funds, private equity, partnerships and property funds with investments in the former CIS, African and European markets.

We ensure the accurate and timely release of the fundâ&#x20AC;&#x2122;s NAV with the required frequency (monthly, quarterly, half-yearly and /or yearly). Our extensive reporting capabilities meet a wide range of needs and can be ZWLJPĂ&#x201E;JHSS` [HPSVYLK [V Z\P[ [OL YLX\PYLTLU[Z VM LHJO client. *7-ÂťZ [LHT VM OPNOS` X\HSPĂ&#x201E;LK WYVMLZZPVUHSZ WYV]PKLZ comprehensive Compliance and Anti Money Laundering Services to Investment Firms and other professional legal entities such as AIFs and UCITS. Our experienced *VTWSPHUJL 6É&#x2030;JLYZ WYV]PKL WYVMLZZPVUHS JVTWSPHUJL and AML best practices advice, aligned with the latest regulatory requirements.

WHY CPF?

1. >L HYL HU 0UKLWLUKLU[ L_WLYPLUJLK HUK LÉ&#x2030;JPLU[ third- party administrator.

2. >L WYV]PKL J\Z[VTPaLK M\SS ZLY]PJL IHJR VÉ&#x2030;JL Z\WWVY[ YLZ\S[PUN PU NYLH[LY VWLYH[PVUHS LÉ&#x2030;JPLUJ` HUK MYLLing the investment manager to focus on core priorities.

3. We allow for greater alignment with the new changes and requirements taking place in the funds industry.

4. We possess in-depth knowledge of the relevant legislation.

5. Through strategic alliances, we are able to provide international expertise in multiple jurisdictions.

6. We are better positioned to support the new, demanding environment and the investment manager.

KEY CONTACTS: &RVWDV &KULVWRIRURX &3$ 7(3 *HQHUDO 0DQDJHU_ _ FRVWDV FKULVWRIRURX#FSP FRP F\ $QGUHDV /RL]RX %6F HFRQ 0%$ )&&$ 6HQLRU 0DQDJHU _ _ DQGUHDV ORL]RX#FSI FRP F\ 5RGRXOD 'HPHWULDGHV 06 &3$ 6HQLRU 0DQDJHU _ _ URGRXOD GHPHWULDGHV#FSP FRP F\ 56 | GOLD | The Business Magazine of Cyprus

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SPECIAL PROMOTIONAL PROMOTI FEATURE

EUROBANK CYPRUS

E

urobank Cyprus was established in 2007 with the opening of the first banking centre in Nicosia and is currently operating a network of eight banking centres in all major cities of the island.

The Bank focuses on International Business Banking, Corporate and Investment Banking, Private Banking and Asset Management offering a wide range of products and services to both retail and institutional clients.

Within these eight years of operation, the Bank has grown at an impressive pace, demonstrating at the same time a very healthy profitability, a solid capital base and strong liquidity.

The cornerstone of

Eurobank Cyprus’ success is the firm commitment to relationship management, offering high quality services, innovative products and a culture of professionalism, trustworthiness and discretion.

Eurobank Cyprus provides custody services to local and international clients including institutional investors, large corporations and investment funds.

This success is achieved through the Bank’s broad network of global top-rated custodians.

OUR GLOBAL NETWORK OF CUSTODIANS INCLUDES Clearstream BNY Mellon Santander Credit Suisse

Asset Safekeeping Oversight of Management Company

9HPɈLPZLU )HUR HSBC Transaction Matching and Settlement

Asset Monitoring and Reconciliation

Corporate Actions and Tax Services Reporting

58 | GOLD | The Business Magazine of Cyprus

that cater to the fund industry including banking, brokerage and distribution as well as fund administration services through our affiliated group companies.

Cyprus is a financial services jurisdiction aiming to become a global fund services centre. Recent changes in the legislative and regulatory framework aim to place Cyprus on the global map of fund-friendly jurisdictions and enhance its strong network of financial and professional service providers. The island now offers a European passport to the fund management industry providing exceptional possibilities for cross-border and global fund distribution.

Our Bank is committed to working with all the stakeholders in a joint effort to improve the framework within which the fund market in Cyprus can flourish.

Intesa Sanpaolo Danske Bank ABN Amro

The Bank is distinguished for its leading position in the funds industry, acting as the depositary of choice for all the UCITS funds currently operating in Cyprus.

Apart from depositary services, the Bank can also provide investment funds with a wide range of services

CONTACT INFORMATION:

EUROBANK CYPRUS

Address: 41, Archbishop Makarios III Avenue, 1065 Nicosia, Cyprus Postal Address: P.O. Box 27236, 1643 Nicosia, Cyprus Tel: (+357) 22208000 Fax: (+357) 22875456 e-mail: WealthManagementOperations@ eurobank.com.cy Website: www.eurobank.com.cy

7KH FHQWUH RI RXU XQLYHUVH (XUREDQN &\SUXV /WG <RXU H[FOXVLYH SDUWQHU LQ WKH IXQG LQGXVWU\ (XUREDQN &\SUXV LV FRPPLWWHG WR SURYLGLQJ WKH PRVW IOH[LEOH DQG FXVWRPLVHG VROXWLRQV WR LWV FOLHQWV $ SHUVRQDOLVHG DSSURDFK ZLGH UDQJH RI VHUYLFHV DQG VXSHULRU PDUNHW NQRZOHGJH UHQGHUV XV \RXU WUXVWHG SDUWQHU ZZZ HXUREDQN FRP F\ _

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SPECIAL PROMOTIONAL PROMOTI FEATURE

E

EY CYPRUS

Y Cyprus, a firm with a history of over 75 years in the local market, is a leading professional services firm, providing services to clients in a wide spectrum of industries. Our clients are among the most important local and international companies, and their operations inevitably impact peoples’ everyday lives. At EY, we are committed to building a better working world – our comparative advantage begins with our global network; our vast knowledge pool provides a constant surplus of leading practices and fresh thinking that we tailor to meet the ambitions of each individual client.

In July 2014, Cyprus established a fully harmonized regulatory framework which has transposed the provisions of the EU Directives on UCITS (Undertakings for Collective

Investment in Transferable Securities) Funds, UCITS Management Companies, Alternative Investment Fund Managers (AIFM) and Alternative Investment Funds (AIF). The AIF Law was enacted to upgrade the scope of investment products offered by the Cyprusfund industry to ensure that they correspond to the needs of international fund managers and fund promoters. The AIF Law provides, inter alia, for the authorization, operating conditions, transparency requirements and management of AIFs. The benefits of the AIF include umbrella fund structures, common fund structure, public offerings, listing opportunities and depositaries other than credit institutions.

WHY CYPRUS? Cyprus, an EU and eurozone member, not only provides a strategic geographic location which serves as a meeting point for wealthy investors, but is an attractive tax environment due to conducive processes that facilitate a tax efficient environment. In addition to having the lowest corporate income tax rate in the EU that exempts any gains

60 | GOLD | The Business Magazine of Cyprus

from trading in securities and fund units, operating in Cyprus provides access to their extensive network of double tax treaties, a developed, robust and rigorous regulatory framework with anti-money laundering provisions complying with the applicable EU Directives, a transparent and protective legal system based on Common Law and competitive professional fees resulting in cost-effective and highly quality services performed bysubject matter experts in the funds industry.

OUR SERVICES Our services include Regulatory Support, Legal Support, Tax Services, Fund Administration Services, Assurance, M&A and Due Diligence for acquisitions and Divestitures.

We understand that our clients are on a unique journey.

To help them seize new opportunities our fund professionals tailor strategies to aid them achieve meaningful results by providing guidance on key industry issues to navigate through the changing regulatory environment, manage risks and optimize performance.

Locally, we have successfully assisted our multinational clients in understanding the tax and other considerations involved with expanding operations into Cyprus, in establishing local

Stelios Demetriou Transaction and Advisory Services Leader, EY Cyprus

entities/branches and in setting up their Alternative Investment Funds.

OUR TEAM We provide exceptional client service by applying our network of experienced professionals with in-depth knowledge of the relevant legislation and procedures coupled with our European and EY global capability to deliver a full range of tailored services to meet our clients’ business needs and concerns. EY Cyprus’ leverages its well-established relationships with local government bodies to ensure close collaboration with relevant authorities to guaranty all regulatory requirements are met so the process is punctual and stress free.

CONTACT INFORMATION:

EY CYPRUS

Address: Jean Nouvel Tower, 6, Stasinou Avenue, P.O.Box 21656, 1511, Nicosia, Cyprus Tel: (+357) 22209999 Fax: (+357) 22209997 e-mail: ey.cyprus@cy.ey.com Website: www.ey.com

Š 2015 Ernst & Young Cyprus Limited. All Rights Reserved.

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Explore how small steps can lead to success.

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SPECIAL PROMOTI PROMOTIONAL FEATURE

F

FORTICAP LTD

orticap is a licensed AIFM and UCITS Management Company. In addition to our discretionary funds, we operate AIF and UCITS open structures, enabling third parties to launch/manage their own AIFs and UCITS funds.

Fund initiators, Wealth Managers, Family Offices, Financial Advisors/Planners and Entrepreneurs gain market access for funds in all asset classes from listed equities to hedge funds, private equity and real asset funds.

Fund developers benefit from cost-effectiveness through economies of scale, back office support, administration and distribution services for the establishment, operation and growth of regulated funds.

INCORPORATION We don’t just write your prospectus. We identify the fund type and jurisdiction that is appropriate for your objectives. We review your investment strategy, policy

and management to establish a fund that will not require corrective measures after launch. We ensure that your regulatory setup supports your distribution plans Operations are optimized through efficient flows with the custodian bank, the administrator and the registrar.

REGULATED INVESTMENT MANAGEMENT SERVICES For funds that operate under our structures, we offer day-to-day management, regulatory compliance, and risk management services allowing you to focus on the investment process of your fund. As long as the fund operates within the applicable rules, our role is to monitor, measure and support, not interfere.

CUSTODY The custodians with whom we cooperate are selected on their ability to answer complex requirements of safekeeping, controls and reporting. We can accommodate any custodian or sub-custodian of your choice as long as they operate within adequate regulatory and quality parameters.

ADMINISTRATION, REGISTRAR AND TRANSFER AGENCY SERVICES We cooperate with top quality fund service providers

62 | GOLD | The Business Magazine of Cyprus

using state-of-the-art systems for fund administration, registrar and transfer agent services. We are also able to accommodate your own selection of fund administrator based on regulatory and quality criteria.

platforms, advisors, insurance companies, private banks and institutional investors. We cover elements of corporate branding and promotion including presentations, fund sheets, brochures and web marketing.

SECURITIES LENDING Having access to solutions that allow you to borrow or lend securities can optimize your fund’s liquidity and performance. With our banking partners, we bring you solutions in liquidity management and securities lending/ borrowing.

DOMICILIATION AND CORPORATE SERVICES We arrange for the provision of quality domiciliation and corporate services including: • Registered offices • Secretary and administrative management • Correspondence management • Organisation of board/ shareholder meetings • Management of notifications/notices/legal announcements • Management of expenses • Maintenance, storage, archiving and destruction of documents • Management of secure access to confidential data • Identification of corporate officers with relevant experience

ISSUER SERVICES & LISTING/IPO In the context of your fund or as a standalone requirement, we facilitate complete debt structuring solutions through international banks.

For price listing only or public trading, we arrange for your fund or debt instrument listing on a stock exchange relevant to your objectives.

We assist you in all steps of an IPO, covering eligibility analysis, investment bank contracting and market entry.

PROMOTION AND DISTRIBUTION SUPPORT By appointing us as your external authorised AIFM, your investment vehicles become AIFMD compliant and can be marketed in the EU under our EU distribution passport. We assist in the promotion of your fund with cooperating investment

CONTACT INFORMATION:

FORTICAP LTD

Address: 236, Strovolos Avenue, 2048 Nicosia, Cyprus Postal Address: P.O.Box 25277, 1308 Nicosia, Cyprus Tel: (+357) 22495707 / Mobile: (+357) 99220190 Fax: (+357) 22495717 e-mail: info@forticap.eu Website: www.forticap.eu

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SPECIAL PROMOTI PROMOTIONAL FEATURE

GEORGE Z. GEORGIOU & ASSOCIATES LLC

G

eorge Z. Georgiou & Associates LLC is a dynamic, award-winning, full-service civil law firm, consisting of experienced lawyers, arbitrators and legal consultants. Our local and international clients include companies, municipalities, banks, multinationals and equally valued high-net worth individuals.

The firm is internationally recognized in the fields of investment fund services; employment, pensions and corporate immigration; litigation and international commercial litigation; dispute resolution; corporate and commercial

matters and in real estate and construction.

Further, the firm is the sole Cypriot member of Ius Laboris, the leading global alliance of labour, pensions and corporate immigration law practitioners.

There are approximately 2,500 Ius Laboris lawyers located in 42 countries, specializing in all areas of law relating to Human Resources. In addition, Ius Laboris is an excellent network through which the firm can rapidly seek recommendations for the best lawyers in other jurisdictions specializing in other areas of law. Through its membership of Ius Laboris, the firm is able to provide all clients with fully coordinated yet locally-specific global advice.

Moreover, George Z. Georgiou & Associates LLC is listed in The Legal 500, Chambers & Partners and Who’s Who Legal and the firm has won numerous awards for its services.

George Z. Georgiou frequently provides seminars and other

64 | GOLD | The Business Magazine of Cyprus

training on various legal issues and also provides in-house training to clients.

The firm has contributed chapters to several international legal books and also articles to international legal journals and magazines. Members of the firm also contribute regularly to online newsletters and local newspapers on a variety of legal topics.

George Z. Georgiou & Associates LLC and its individual lawyers are members of numerous local and international associations and professional bodies, including the European Employment Lawyers Association (EELA), in which George Z. Georgiou is the Board Member for Cyprus; the Cyprus Human Resource Management Association (CYHRMA); the Chartered Institute of Arbitrators (CIArb); the Royal Institute of Chartered Surveyors (RICS); Mediator at the Cyprus Arbitration and Mediation Centre; International Bar Association (IBA); American Immigration Lawyers Association (AILA); the Honourable Society of the Inner Temple; the Law Society of England & Wales; Nicosia

Bar Association; Cyprus Bar Association; Nicosia Chamber of Commerce and the Cyprus Chamber of Commerce.

PRACTICE AREAS George Z. Georgiou & Associates LLC offer a wide variety of legal services, both contentious and non-contentious in the following practice areas: • Administration of Estates/ Probate/Wills and disputes • Administrative Actions against Governmental and non-Governmental bodies • Arbitration • Banking and Insurance Law • Bankruptcy and Insolvency proceedings • Litigation & International Commercial Litigation • Corporate & Commercial matters • Dispute Resolution & Alternative Dispute Resolution • Employment, Pensions and Corporate Immigration • Immigration (including work and residence permits) • Real Estate & Construction In relation to employment, pensions and corporate immigration, the firm undertakes all work in these fields from reviewing employee handbooks, to registering and ad-

vising on provident funds and advising on the restructuring/ closure of international companies. The firm has recently advised on one of the largest employment discrimination claims ever brought before a Cypriot court.

Regarding corporate and commercial matters, the firm regularly advises on and drafts a wide range of commercial contracts including agency and distribution agreements, franchise agreements and license, rent and sale agreements and carries out reviews of clients’ commercial contracts and standard terms of business. Furthermore, the corporate and commercial team of the firm regularly advises on all types of corporate transactions including mergers, disposals, and corporate re-organizations while it provides full legal support to all clients from registering and managing Cypriot companies through to advising on and drafting of shareholders agreements and other corporate documentation.

The real estate and construction team deals regularly with landlord and tenant disputes, the sale/purchase of real estate and advises on development

and construction issues. Additionally, it deals with construction disputes, complicated compulsory acquisitions matters and disputes relating to the issue of planning and building permits. George Z. Georgiou & Associates LLC has very close links with the land consultancy firm of A.Z. Georgiou & Associates, allowing the firm to provide all clients with onestop-shop advice for real estate and construction legal advice and, advice on development projects of any size and complexity. George Z. Georgiou is also a RICS member.

The firm’s litigation and alternative dispute resolution team advices on all forms of dispute resolution and promotes alternative dispute resolution e.g. mediation and arbitration. George Z. Georgiou sits as an arbitrator.

The firm appears regularly before all courts in all cities in Cyprus, including the special courts – Rent Control Court and Employment Court. Also members of the team are used to participating in governmental and non-governmental proceedings.

George Z. Georgiou & Associates LLC has unrivalled experience in complex, mult-

ijurisdictional litigation and arbitration matters. The firm has been involved in seminal cases which have examined the interaction of civil proceedings in aid of international commercial arbitration in the LCIA and has been successful in obtaining urgent interim relief to protect assets or issues disclosure orders for these purposes.

INVESTMENT FUNDS SERVICES George Z. Georgiou & Associates LLC provide a wide range of services to Investment Funds. The financial services group of lawyers is considered one of the leading advisers to Investment Funds on the island. The firm mainly focuses on fund management and financial services regulation, covering the full spectrum of services, including: • Advising on the establishment of an Investment Fund • Preparation and submission of all documentation regarding the establishment of an Investment Fund • Drafting shareholders agreements, joint ventures, investment management agreements • Advising on risk, potential liabilities and necessary insurances

George Z. Georgiou, Managing Partner

• Advising on the regulation of Funds • Daily legal support during the on-going activities of Investment Funds • Advising on Tax law issues • Advising on regulatory and compliance matters • Advising on commercial and company law matters • Offering administrative services to Investment Funds Some of the firm’s clients include investment managers, life insurers, custodians and depositors, mortgage lenders and pension providers.

CONTACT INFORMATION:

GEORGE Z. GEORGIOU & ASSOCIATES LLC

Address: 1st Floor, 1 Eras Street, 1060 Nicosia , Cyprus Tel: (+357) 22763340 Fax: (+357) 22763343 e-mail: admin@gzg.com.cy Website: www.gzg.com.cy

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SPECIAL PROMOTI PROMOTIONAL FEATURE

GMM GLOBAL MONEY MANAGERS LTD

G

MM Global Money Managers Ltd is a fund management company operating in compliance with Law 78(I)/2012, holding UCITS and AIF Manager licence No.2/13. It operates in the financial sector, setting up, running and managing mutual funds in line with the most recent UCITS IV Directive, fully implemented by Cypriot legislation.

The company is an innovative fund management firm based in Cyprus, seeking to provide effective geographical coverage of the local market, Greece, the Balkan states and the wider SE Mediterranean region. GMM’s objective is to preserve the capital it manages and achieve optimal yields.

GMM’s management team and associates are well reputed with many years of experience, specialized knowledge and the focus, determination and zeal needed to monitor market developments. Their primary aim is to protect invested capital and generate

optimal returns. Moreover, the members of the company’s Investment Committee have extensive experience (over 20 years), directly as fund managers and as members of the investment committees in organisations of the fund management industry (Mutual Funds, Closed-end Funds, Insurance companies, etc.).

GMM is a member of the Cyprus International Business Association (CIBA) and the Cyprus Investment Funds Association (CIFA), as well as of the International Capital Markets Association (ICMA), an influential voice for the global capital market that represents a broad range of capital market interests, including global investment banks and smaller regional banks, as well as asset managers, exchanges, central banks, law firms and other professional advisers.

financial experts, with the know-how to determine investment opportunities both in Cyprus and in international markets • A robust legislative framework that protects and promotes investor interests • Investments are fully transparent and easy to monitor through daily publication of Net Asset Value (NAV)

KEY BENEFITS OF INVESTING IN MUTUAL FUNDS (UCITS) Mutual Funds are internationally considered as one of the most effective asset management tools available, thanks to their low investment risk and high levels of investor protection. The main benefits of Mutual Funds are: • Continuous professional management by a team of

• Daily liquidity of the Fund’s units (investors are entitled to redeem their investments in units of mutual funds on a daily basis) • Supervised and monitored by the local regulatory authority, the Cyprus Securities and Exchange Commission (CySEC)

66 | GOLD | The Business Magazine of Cyprus

“GMM MARATHON CYPRUS ASSETS BOND FUND” GMM MANAGES THE ONLY MUTUAL FUND THAT INVESTS SOLELY IN CYPRIOT ASSETS GIVING THE OPPORTUNITY FOR INVESTORS TO PARTICIPATE IN THE RECOVERY OF THE CYPRIOT ECONOMY

GMM’S PRODUCTS & SERVICES GMM is firmly focused on

achieving a wide diversification of investment risk in international money and capital markets via the mutual funds and other related products it offers (ETFs, SIFs, AIFs, etc.). It offers an extensive range of potential investment options (money market, fixed income, balanced, equities and special purpose funds, among others) for the small, medium and large portfolios of both private individuals and institutional investors. Currently the company manages 16 mutual funds, primarily focused on fixed income and balanced portfolios. Among them, GMM offers 2 unique mutual funds that are suitable for investments in the Cypriot market: • The GMM Marathon Cyprus Assets Bond Fund* • The Hellas-Cyprus Recovery Fund* * For further information about the above UCITS characteristics and risk profiles, please refer to the Prospectus and the KIIDs, available at www.global-mm.com

CONTACT INFORMATION:

GMM GLOBAL MONEY MANAGERS LTD

Address: 36, Stasinou Str., Strovolos, 2003 Nicosia, Cyprus Tel: (+357) 22205858 Fax: (+357) 22378194 e-mail: info@global-mm.com Website: www.global-mm.com

GMM UCITS RETURNS

The performance for the past 12 months (Annual Return) for 'DD ,Ĺ?Ĺ?Ĺ&#x161; ZÄ&#x201A;Ć&#x;ĹśĹ?

Bond Fund was 8,92% and for GMM Developed Markets Equity Fund was 8,31%. dĹ&#x161;Ä&#x17E;Ć?Ä&#x17E; Ć&#x152;Ä&#x17E;Ć&#x161;ĆľĆ&#x152;ĹśĆ? Ä&#x201A;Ć&#x152;Ä&#x17E; Ä?ŽŜĆ?Ĺ?Ä&#x161;Ä&#x17E;Ć&#x152;Ä&#x17E;Ä&#x161; Ć&#x2039;ĆľĹ?Ć&#x161;Ä&#x17E; Ć?Ä&#x201A;Ć&#x;Ć?ĨÄ&#x201A;Ä?Ć&#x161;Ĺ˝Ć&#x152;Ç&#x2021;Í&#x2DC; Annual Returns

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'DD ,Ĺ?Ĺ?Ĺ&#x161; ZÄ&#x201A;Ć&#x;ĹśĹ?

Bond Fund

GMM Developed Markets Equity Fund

dKd > Z dhZE

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3,81%

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Bond Fund

GMM Developed Markets Equity Fund

Absolute return is calculated based on the net asset value (NAV) of the UCITS. Total return is calculated Ä?Ä&#x201A;Ć?Ä&#x17E;Ä&#x161; ŽŜ Ć&#x161;Ĺ&#x161;Ä&#x17E; ĹśÄ&#x17E;Ć&#x161; Ä&#x201A;Ć?Ć?Ä&#x17E;Ć&#x161; Ç&#x20AC;Ä&#x201A;ĹŻĆľÄ&#x17E; ÍžE sÍż ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; h /d^Í&#x2022; Ć&#x2030;ĹŻĆľĆ? Ĺ?Ć&#x161;Ć? Ĺ?ĹśÄ?ŽžÄ&#x17E; Ä&#x201A;ĹśÄ&#x161; Ä?Ä&#x201A;Ć&#x2030;Ĺ?Ć&#x161;Ä&#x201A;ĹŻ Ĺ?Ä&#x201A;Ĺ?ĹśĆ? Ä&#x161;Ĺ?Ć?Ć&#x161;Ć&#x152;Ĺ?Ä?ĆľĆ&#x;ŽŜ ÍžÄ&#x161;Ĺ?Ç&#x20AC;Ĺ?Ä&#x161;Ä&#x17E;ĹśÄ&#x161; Ç&#x2021;Ĺ?Ä&#x17E;ĹŻÄ&#x161;ÍżÍ&#x2DC; 'DD ,Ĺ?Ĺ?Ĺ&#x161; ZÄ&#x201A;Ć&#x;ĹśĹ? ŽŜÄ&#x161; &ƾŜÄ&#x161; Ͳ KĆ&#x2030;Ä&#x17E;Ć&#x152;Ä&#x201A;Ć&#x;ĹśĹ? >Ĺ?Ä?Ä&#x17E;ĹśĆ?Ä&#x17E;Í&#x2014; h /d^ Ϗώ͏ϳϴ Ͳ /ĹśÄ?Ä&#x17E;Ć&#x2030;Ć&#x;ŽŜ Ä&#x201A;Ć&#x161;Ä&#x17E;Í&#x2014; ĎŹĎ°ÍŹĎ­ĎŹÍŹĎŽĎŹĎ­ĎŻ 'DD Ä&#x17E;Ç&#x20AC;Ä&#x17E;ĹŻĹ˝Ć&#x2030;Ä&#x17E;Ä&#x161; DÄ&#x201A;Ć&#x152;ĹŹÄ&#x17E;Ć&#x161;Ć? Ć&#x2039;ĆľĹ?Ć&#x161;Ç&#x2021; &ƾŜÄ&#x161; Ͳ KĆ&#x2030;Ä&#x17E;Ć&#x152;Ä&#x201A;Ć&#x;ĹśĹ? >Ĺ?Ä?Ä&#x17E;ĹśĆ?Ä&#x17E;Í&#x2014; h /d^ Ϗώ͏ϳϴ Ͳ /ĹśÄ?Ä&#x17E;Ć&#x2030;Ć&#x;ŽŜ Ä&#x201A;Ć&#x161;Ä&#x17E;Í&#x2014; ϭϾ͏ϭϭ͏ώϏϭϯ

dĹ&#x161;Ä&#x17E; Ä&#x201A;Ä?Ĺ˝Ç&#x20AC;Ä&#x17E; ĹľÄ&#x17E;ĹśĆ&#x;ŽŜÄ&#x17E;Ä&#x161; h /d^ Ä&#x201A;Ć&#x152;Ä&#x17E; Ć?ĆľÄ?ĹŠÄ&#x17E;Ä?Ć&#x161; Ć&#x161;Ĺ˝ Ĺ?Ć&#x152;Ä&#x17E;Ä?Ć&#x;Ç&#x20AC;Ä&#x17E; ώϏϏϾ͏ϲϹ͏ dĹ&#x161;Ä&#x17E; Ĺ?ĹśÇ&#x20AC;Ä&#x17E;Ć?Ć&#x161;Ä&#x17E;Ä&#x161; Ç&#x20AC;Ä&#x201A;ĹŻĆľÄ&#x17E; Ĺ?Ĺś h /d^ Ĺ?Ć? Ć?ĆľÄ?ĹŠÄ&#x17E;Ä?Ć&#x161; Ć&#x161;Ĺ˝ Ĺ&#x2021;ĆľÄ?Ć&#x161;ĆľÄ&#x201A;Ć&#x;ŽŜĆ? Ä&#x201A;ĹśÄ&#x161; Ĺ?ĹśÇ&#x20AC;Ä&#x17E;Ć?Ć&#x161;Ĺ˝Ć&#x152;Ć? ĹľÄ&#x201A;Ç&#x2021; ŜŽĆ&#x161; Ć&#x152;Ä&#x17E;Ä?Ĺ˝Ç&#x20AC;Ä&#x17E;Ć&#x152; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ĺ?ĹśĹ?Ć&#x;Ä&#x201A;ĹŻĹŻÇ&#x2021; Ĺ?ĹśÇ&#x20AC;Ä&#x17E;Ć?Ć&#x161;Ä&#x17E;Ä&#x161; Ä&#x201A;žŽƾŜĆ&#x161; The numerical data in this document refer to the past and past performance does not guarantee future returns dĹ&#x161;Ä&#x17E; Í&#x17E;WĆ&#x152;Ĺ˝Ć?Ć&#x2030;Ä&#x17E;Ä?Ć&#x161;ĆľĆ?Í&#x; Ä&#x201A;ĹśÄ&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; Í&#x17E;<Ä&#x17E;Ç&#x2021; /ĹśÇ&#x20AC;Ä&#x17E;Ć?Ć&#x161;Ĺ˝Ć&#x152; /ŜĨŽĆ&#x152;ĹľÄ&#x201A;Ć&#x;ŽŜ Ĺ˝Ä?ƾžÄ&#x17E;ĹśĆ&#x161;Í&#x; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; žƾĆ&#x161;ĆľÄ&#x201A;ĹŻ ĨƾŜÄ&#x161;Ć? Ä&#x201A;Ć&#x152;Ä&#x17E; Ä&#x201A;Ç&#x20AC;Ä&#x201A;Ĺ?ĹŻÄ&#x201A;Ä?ĹŻÄ&#x17E; Ĺ?Ĺś 'Ć&#x152;Ä&#x17E;Ä&#x17E;ĹŹÍ&#x2022; ĨĆ&#x152;Ä&#x17E;Ä&#x17E; ŽĨ Ä?Ĺ&#x161;Ä&#x201A;Ć&#x152;Ĺ?Ä&#x17E; Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; ƾŜĹ?Ć&#x161;Ć?Í&#x203A; Ä&#x161;Ĺ?Ć?Ć&#x161;Ć&#x152;Ĺ?Ä?ĆľĆ&#x;ŽŜ ĹśÄ&#x17E;Ć&#x161;Ç Ĺ˝Ć&#x152;ĹŹ Ć&#x2030;Ĺ˝Ĺ?ĹśĆ&#x161;Ć? Ä&#x201A;ĹśÄ&#x161; Ĺ?Ĺś Ć&#x161;Ĺ&#x161;Ä&#x17E; Ç Ä&#x17E;Ä?Ć?Ĺ?Ć&#x161;Ä&#x17E; ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E; DÄ&#x201A;ĹśÄ&#x201A;Ĺ?Ä&#x17E;ĹľÄ&#x17E;ĹśĆ&#x161; ŽžĆ&#x2030;Ä&#x201A;ĹśÇ&#x2021; ÍžÇ Ç Ç Í&#x2DC;Ĺ?ĹŻĹ˝Ä?Ä&#x201A;ůͲžžÍ&#x2DC;Ä?ŽžͿ Ä&#x17E; Ä&#x201A;Ç Ä&#x201A;Ć&#x152;Ä&#x17E; Ć&#x161;Ĺ&#x161;Ä&#x201A;Ć&#x161; Ć&#x161;Ĺ&#x161;Ä&#x17E; DĆľĆ&#x161;ĆľÄ&#x201A;ĹŻ &ƾŜÄ&#x161;Ć? Ä&#x201A;Ć&#x152;Ä&#x17E; Ä&#x201A;ĹŻĹŻĹ˝Ç Ä&#x17E;Ä&#x161; Ć&#x161;Ĺ˝ Ĺ?ĹśÇ&#x20AC;Ä&#x17E;Ć?Ć&#x161; ĆľĆ&#x2030; Ć&#x161;Ĺ˝ Ď­ĎŹĎŹĐš ŽĨ Ć&#x161;Ĺ&#x161;Ä&#x17E;Ĺ?Ć&#x152; Ä&#x201A;Ć?Ć?Ä&#x17E;Ć&#x161;Ć? Ĺ?Ĺś Ć&#x161;Ć&#x152;Ä&#x201A;ĹśĆ?ĨÄ&#x17E;Ć&#x152;Ä&#x201A;Ä?ĹŻÄ&#x17E; Ć?Ä&#x17E;Ä?ĆľĆ&#x152;Ĺ?Ć&#x;Ä&#x17E;Ć? Ĺ˝Ć&#x152; žŽŜÄ&#x17E;Ç&#x2021; ĹľÄ&#x201A;Ć&#x152;ĹŹÄ&#x17E;Ć&#x161; Ĺ?ĹśĆ?Ć&#x161;Ć&#x152;ƾͲ ĹľÄ&#x17E;ĹśĆ&#x161; Ĺ?Ć?Ć?ĆľÄ&#x17E;Ć?Í&#x2022; Ĺ?Ć?Ć?ĆľÄ&#x17E;Ä&#x161; Ĺ˝Ć&#x152; Ĺ?ĆľÄ&#x201A;Ć&#x152;Ä&#x201A;ĹśĆ&#x161;Ä&#x17E;Ä&#x17E;Ä&#x161; Ä?Ç&#x2021; Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?Ä&#x17E;ĹŻĹ˝Ç ĹľÄ&#x17E;ĹśĆ&#x;ŽŜÄ&#x17E;Ä&#x161; DÄ&#x17E;ĹľÄ?Ä&#x17E;Ć&#x152; ^Ć&#x161;Ä&#x201A;Ć&#x161;Ä&#x17E;Ć?Í&#x2022; ĹŻĹ˝Ä?Ä&#x201A;ĹŻ Ĺ?Ĺ˝Ç&#x20AC;Ä&#x17E;Ć&#x152;ŜžÄ&#x17E;ĹśĆ&#x161; Ä&#x201A;ĆľĆ&#x161;Ĺ&#x161;Ĺ˝Ć&#x152;Ĺ?Ć&#x;Ä&#x17E;Ć? Ä&#x201A;ĹśÄ&#x161; Ć&#x2030;ĆľÄ?ĹŻĹ?Ä? Ĺ?ĹśĆ&#x161;Ä&#x17E;Ć&#x152;ĹśÄ&#x201A;Ć&#x;ŽŜÄ&#x201A;ĹŻ Ĺ˝Ć&#x152;Ĺ?Ä&#x201A;ĹśĹ?Ç&#x152;Ä&#x201A;Ć&#x;ŽŜĆ?Í&#x2014; / Z Í&#x2022; Z Í&#x2022; ^/ E s >KWD Ed E<Í&#x2022; /Ed Z D Z/ E s >KWD Ed E<Í&#x2022; <&tÍ&#x2022; EKZ / /Es ^dD Ed E<Í&#x2022; <KDDhE > E< E EKZt z Íž< EÍżÍ&#x2022; hZK&/D Í&#x2022; KhE /> K& hZKW Í&#x2022; &^&Í&#x2022; / Í&#x2022; ^DÍ&#x2022; tKZ> E<Í&#x2022; /Ed ZE d/KE > &/E E KZWKZ d/KEÍ&#x2022; h^ 'Ks ZED EdÍ&#x2022; ' ZD E 'Ks ZED EdÍ&#x2022; EKZt '/ E 'Ks ZED EdÍ&#x2022; ^t/^^ 'Ks ZED EdÍ&#x2022; E / E 'KsͲ ZED EdÍ&#x2022; h^dZ >/ E 'Ks ZED Ed dĹ&#x161;Ä&#x17E; ĹśÄ&#x17E;Ć&#x161; Ä&#x201A;Ć?Ć?Ä&#x17E;Ć&#x161; Ç&#x20AC;Ä&#x201A;ĹŻĆľÄ&#x17E; ŽĨ Í&#x17E;'DD Ä&#x17E;Ç&#x20AC;Ä&#x17E;ĹŻĹ˝Ć&#x2030;Ä&#x17E;Ä&#x161; DÄ&#x201A;Ć&#x152;ĹŹÄ&#x17E;Ć&#x161;Ć? Ć&#x2039;ĆľĹ?Ć&#x161;Ç&#x2021; &ƾŜÄ&#x161;Í&#x; ĹľÄ&#x201A;Ç&#x2021; Ĺ&#x161;Ä&#x201A;Ç&#x20AC;Ä&#x17E; Ć?ĆľÄ?Ć?Ć&#x161;Ä&#x201A;ĹśĆ&#x;Ä&#x201A;ĹŻ Ĺ&#x2021;ĆľÄ?Ć&#x161;ĆľÄ&#x201A;Ć&#x;ŽŜĆ? Ä&#x161;ĆľÄ&#x17E; Ć&#x161;Ĺ˝ Ć&#x161;Ĺ&#x161;Ä&#x17E; Ä?ŽžĆ&#x2030;Ĺ˝Ć?Ĺ?Ć&#x;ŽŜ ŽĨ Ĺ?Ć&#x161;Í&#x203A;Ć? Ć&#x2030;Ĺ˝Ć&#x152;Ć&#x17E;ŽůĹ?Ĺ˝ Ĺ˝Ć&#x152; Ć&#x161;Ĺ&#x161;Ä&#x17E; ĆľĆ?Ä&#x17E;Ä&#x161; Ĺ?ĹśÇ&#x20AC;Ä&#x17E;Ć?Ć&#x161;ĹľÄ&#x17E;ĹśĆ&#x161; Ć&#x161;Ä&#x17E;Ä?Ĺ&#x161;ĹśĹ?Ć&#x2039;ĆľÄ&#x17E;Í&#x2DC;

36 Stasinou street, Strovolos, 2003 Nicosia, Cyprus ¨ ) : ZZZ JOREDO PP FRP ( LQIR#JOREDO PP FRP GMM is a UCITS IV Directive management company also licensed to create and manage AIFs. The company is a member of ICMA, CIFA, CIBA. Units of the mutual funds managed by GMM are distributed in Cyprus and Greece. GMM is authorized and regulated by Cyprus Securities and Exchange Commission.

INVESTMENT IN UNITS OF THE UCITS HAS NO GUARANTEED RETURN AND PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RETURNS| GOLD | 67 www.goldnews.com.cy

SPECIAL PROMOTI PROMOTIONAL FEATURE

HELLENIC BANK PUBLIC COMPANY LTD

T

he Hellenic Bank Group commenced operations in 1976. In a relatively short period of time, it managed to establish itself as one of the largest banking and financial institutions in Cyprus. The Helllenic Bank Group enjoys a network of over 60 branches in Cyprus, employing 1,400 people.

Hellenic Bank also operates four Representative Offices: one in Moscow and one in St Petersburg in the Russian Federation; one in Kiev, Ukraine and one in Johannesburg, Republic of South Africa. The success of the Hellenic Bank Group is based on exemplary customer service, the wide range of products and services on offer and the use of the latest technology in its information and control systems.

Alongside traditional banking products, the Hellenic Bank Group also provides a wide range of financial services that include factoring, brokerage services, insurance, portfolio management, investment banking, mutual

funds, private banking and custodian services.

HELLENIC BANK CUSTODIAN SERVICES Hellenic Bank created a separate unit offering custodian services in 2001. Since then, the management and the staff of the Custodian Services unit managed to establish Hellenic Bank as the leading Custodian in the local market.

Hellenic Bank’s role in the establishment of the custody concept in the local market was very important. The Custody unit of Hellenic Bank contributed to the effort of upgrading procedures in the clearing and settlement systems of the Cyprus Stock Exchange and the adoption of the common platform (trading, settlement and safekeeping) between the Cyprus Stock Exchange and the Athens Stock Exchange.

Furthermore, the role of Hellenic Bank’s Custodian Services unit in promoting the Funds industry in Cyprus was also decisive. Hellenic Bank was the first Bank in Cyprus to assume the role of custodian of International Collective Investment Schemes (ICIS) authorised by the Central Bank of Cyprus under the “International Collective Investments Schemes” law of 1999.

The Custodian Services unit of Hellenic Bank employs dedicated powerful software systems to accommodate the

68 | GOLD | The Business Magazine of Cyprus

provision of high service quality to its customers. The core custody system is connected through SWIFT with the Bank’s sub-custodians and uses straight through automatic settlement processes in order to secure high level of security and reliability.

Through the creation of a carefully selected network of partners in most markets around the globe, along with its participation as a general clearer and custodian in the clearing and settlement systems of the Cyprus and Athens Stock Exchanges Hellenic Bank’s Custody unit offers a full range of custodian services addressed to both local and international markets at the standards of the leading Global Custodians.

Services offered include core custody services, such as safekeeping, trade settlement, corporate actions, reporting, tax reclamation and cash management, as well as dedicated services to collective investment managers and administrators, and escrow agency services. Hellenic Bank can assist its customers (local, international, institutional and others) in securing the safe administration of their investments, taking advantage of the Bank’s extensive know-how and expertise on the subject. Hellenic Bank’s pricing may be very favourably compared with its international peers.The adoption of the new legislation for the Alternative Investment Funds (AIFs) in

July 2014, which incorporates the respective EU Directive into the Cyprus legislation, is expected to boost the opportunities for custodian services in Cyprus. Hellenic Bank actively participates (through CIFA) in the general market efforts to promote the Collective Investment Sector in or through Cyprus.

The customer’s level of confidence in the Bank has been kept at a high level for many years, thus allowing the continual expansion of the Custodian Services unit’s client base. Assets under custody have reached nearly €3 billion.

Local institutional investors and the collective investments sector were the main forces behind these achievements. The vast majority of assets held by local investment funds, pension and provident funds are safely kept

by Hellenic Bank.

As a mark of its great achievements, the Custodian Services unit of the Bank was awarded for four consecutive years (2007-2010) by the esteemed Global Custodian magazine. During the annual evaluation of Custodians world-wide, Hellenic Bank was awarded the highest possible distinction of “Top Rated” Custodian.

CONTACT INFORMATION:

Hellenic Bank Public Company Ltd

Trust & Custodian Services Address: Corner of 200, Athalassa Avenue & Limassol Avenue, 2025 Strovolos, Nicosia, Cyprus Postal Address: P.O.Box 24747, 1394 Nicosia, Cyprus Tel: (+357) 22500823 Fax: (+357) 22500084 e-mail: custodianservices@hellenicbank.com Website: www.hellenicbank.com

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SPECIAL PROMOTI PROMOTIONAL FEATURE

E

HORWATH DSP LIMITED

stablished in 1987, Horwath DSP Limited is an accountancy firm with offices in Nicosia and Limassol, offering audit, tax, risk and advisory solutions to a diverse clientele in the local market and abroad.

Horwath DSP Limited is a member of Crowe Horwath International, one of the top 10 global accounting networks. The Crowe Horwath network consists of more than 200 independent accounting and advisory ser-

vices firms in over 120 countries around the world.

With 5 partners, 87 professionals and over 2.500 clients, Horwath DSP is one of the leading accountancy firms in Cyprus.

The firm employs some of the most highly-trained, educated and experienced individuals in Cyprus who are able to provide the highest level of client service. All key members of the team are either qualified ACA or ACCA who fully appreciate the need of adding value to the service offered to the client as well as the importance of delivering on time.

SERVICES Horwath DSP Fund Services offer a full range of fund administration services to funds registered in Cyprus and other jurisdictions.

Our aim is to provide to our

70 | GOLD | The Business Magazine of Cyprus

clients a timely, comprehensive service of the highest standard.

WE OFFER THE FOLLOWING SERVICES: • Set-up and administration of Cyprus and offshore funds and redomiciliation of funds.

• Assistance in the selection of independent directors.

• Bookkeeping and maintenance of accounting records.

• Regulatory and shareholder reporting, including filings to regulatory bodies, NAV calculations and other bespoke reports.

• International tax services to handle global tax requirements.

• Secretarial and registered office services.

• Drafting or reviewing of the risk management policy.

• On-going due diligence procedures including KYC.

• General consulting and consulting in exceptional cases: Q Valuations Q Side-pockets Q Restructurings • Complete range of legal services from our associate legal team.

"HIGHLY EXPERIENCED IN THE SET UP AND ADMINISTRATION OF CYPRUS AND OFFSHORE FUNDS" CONTACT INFORMATION:

HORWATH DSP LIMITED

Address: 8, Stasinos Avenue, 1st Floor, Photiades Business Center, 1060 Nicosia, Cyprus Postal Address: P.O.Box 22545, 1522 Nicosia, Cyprus Tel: (+357) 22755656 Fax: (+357) 22452055 e-mail: YiannisD@crowehorwath.com.cy Website: www.crowehorwath.com.cy

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SPECIAL PROMOTI PROMOTIONAL FEATURE

Socratis Socratous Director

Kevin Mudd C.E.O.

KMG CAPITAL MARKETS

K

MG Capital Markets is a fully licensed AIF and UCITS management company, enabling entrepreneurs to establish their own funds and investment managers to convert their fund structures into fully compliant AIFMD and UCITS funds. KMG offers high-end management services and outsourced turnkey solutions to meet the ever-increasing EU regulatory requirements.

With KMG appointed as AIFM, investment vehicles become AIFMD-compliant and can be marketed into the EU under a EU distribution

passport. KMG becomes responsible for the overall regulatory requirements of the said investment vehicles, leaving clients to focus on the portfolio management of their fund.

KMG WORKS WITH CLIENTS TO: • ensure their operating procedures and fund documents are fully compliant • offer customised services that provide the required level of assistance in portfolio management or risk management, ensuring that structures are compliant with the latest EU regulations • qualify clients’ funds for the all-important EU distribution passport.

• save time, money, improve efficiency and be compliant with all regulations.

KMG Capital Markets transforms any regulatory burden into a competitive advantage.

72 | GOLD | The Business Magazine of Cyprus

Andreas Aloneftis Director

SETTING UP FUNDS Having a fund need not be a complex endeavour. We have all the tools required, whether it be a standalone fund, a segregated sub-fund on one of our existing ‘white-label’ fund structures, or even an exclusive fund platform.

Whatever the fund set-up may be, KMG Capital Markets can offer 20 years of experience in fund structuring in Europe and Offshore. Our dedicated team of qualified financial professionals have hands-on experience with a wide range of fund types and investment strategies from which to benefit.

In addition to our own experience and knowledge, we have partnered with prime depositories, central administrators and leading auditors that bring their own expertise. Together, our network of professionals provides an efficient working structure and guarantees the smooth launch and running of even the most complex fund projects.

KMG Capital Markets offers services in: • Migrating a Non-EU fund to an EU domicile

Paul Pavli Operations Director

• Opting-in under-threshold funds to AIFMD • Establishing a new fund • Setting up an EU-based fund that mirrors an offshore fund • Establishing an EU segregated sub-fund on the KMG platform in Luxembourg, Cyprus or Malta ALTERNATIVE INVESTMENT FUND MANAGER Regulated by CySEC under license no. AIFM01/56/2013

CONTACT INFORMATION:

KMG CAPITAL MARKETS

Address: Harmony House, 1st Floor, 4, Theklas Lyssioti Street, 3030 Limassol, Cyprus Postal Address: P.O. Box 53817, Limassol 3312, Cyprus Tel: (+357) 25818412 Fax: (+357) 25749755 e-mail: info@kmgcapitalmarkets.com Website: www.kmgcapitalmarkets.com

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SPECIAL PROMOTI PROMOTIONAL FEATURE

Angelos Gregoriades Chairman and Head of Tax

KPMG

Christos Vasiliou Head of Funds, Board Member

K

PMG in Cyprus has been actively involved in the funds industry, serving local and international clients for more than 16 years. We operate through fully integrated teams that include professionals across our Audit, Tax and Advisory practices, combining a wide range of skills and experience tailored to meet the individual requirements of our clients.

In our commitment to better meet the increasing industry demands, we continue to invest in our people and expand on our services.

FUND SERVICES PRACTICE Our Fund Services practice is a market leader in Cyprus: • Holding the largest local investment fund audit market share; • Having expertise in the set-up and authorization of invest-

Costas Kalias Board Member

ment funds – both alternative investment funds and Undertakings for Collective Investment in Transferable Securities (UCITS); • Having extensive experience in the authorization of Cyprus Investment Firms (CIFs), and more recently becoming involved in the asset management sector with UCITS Management Companies and Alternative Investment Fund Managers (AIFMs); • Acting as auditors of a number of Cyprus based investment fund administrators and custodians, utilizing, among others, computer-based automated audit tools.

KPMG professionals are deeply experienced in the issues, trends, and risks related to funds and assist clients in ensuring effective compliance with the increasingly varied and complex requirements.

KPMG professionals also regularly participate in discussions with the regulatory authorities to improve the end product which Cyprus has to offer.

In addition, a number of our team members are actively involved with the Cyprus Investment Funds Association (CIFA) and actively participate on related technical committees.

Our firm in Cyprus is further supported by the KPMG inter-

74 | GOLD | The Business Magazine of Cyprus

Zakis Hadjizacharias Board Member

Costas Markides Board Member

national network of specialists which spreads across 155 countries, using a consistently high quality methodology for their work.

At KPMG, we can guide our clients through the challenges and opportunities posed by the evolving regulatory developments, and assist in identifying optimal and pragmatic solutions for the mutual benefit of the fund manager and the investors.

‘ONE-STOP’ SERVICE OFFERING KPMG offers a wide range of services with the aim of providing our clients with a ‘one-stop’ service in order to facilitate and simplify the process of setting up and managing fund vehicles.

OUR SERVICES INCLUDE: Regulatory Services • Assistance in set-up and structuring; • Acting as promoter of the client’s entire application and liaising with the regulatory authorities, as necessary; • Assistance with drafting of constitutional documents and private offering memorandum/ prospectus; • Design of corporate governance framework and preparation of internal operations manual;

George Prodromou Board Member

• Assistance with re-domiciliation of funds.

Audit Services • Audit of the statutory annual financial statements based on IFRS; • Compliant and regulatory reporting for clients; • Consultation on audit and accounting matters.

Tax Services • Fund structuring and transaction analysis; • International tax planning and implementation of cross-border investments and transactions; • Preparation and submission of corporate tax returns; • VAT services in relation to fund providers and VAT compliance.

Advisory Services • Internal audit, risk and compliance services; • Financial risk management; • Transactions and restructuring; • IT advisory; • Business performance services.

CONTACT INFORMATION:

KPMG

Address: 14, Esperidon Street, 1087 Nicosia, Cyprus Postal Address: P.O. Box: 21121, 1502 Nicosia, Cyprus Tel: (+357) 22209000 Fax: (+357) 22678200 e-mail: nicosia@kpmg.com.cy Website: www.kpmg.com.cy

©2015 KPMG Limited, a Cyprus limited liability company and member of the KPMG network of independent member firms affiliated with KPMG International Cooperative (”KPMG International”), a Swiss entity. All rights reserved.

Global experience, local approach in the Funds Industry KPMG provides comprehensive audit, risk advisory, tax and regulatory services to fund managers in setting up and operating through Cyprus. Our clients look to us for leadership and guidance in areas such as: fund set-up and structuring; regulatory interpretation and support; proactive tax advice; investment acquisitions and due diligence; fund liquidation, re-domiciliation and/or restructuring.

Our local practice is at the forefront of industry issues, working closely with the industry and its representatives and actively participating in the firm’s global product development programmes.

The combination of a strong local practice, with significant professional and industry experience, along with the global reach of KPMG International fund services network places us in an optimal position to provide added value service to our clients as they address the industry challenges, and guide them in grasping opportunities.

For more information please contact: Christos Vasiliou Board Member Primary Contact T: +357 22 209 113 E: cvasiliou@kpmg.com Marie-Helene Angelides Senior Associate Regulatory & Compliance T: + 357 22 209 227 E: mangelides@kpmg.com

kpmg.com.cy

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SPECIAL PROMOTI PROMOTIONAL FEATURE

A

MAP S.PLATIS

s the leading and most specialised consultancy firm for the financial services sector in the region, MAP S.Platis provides unique and tailored solutions in global licensing, compliance and risk management, internal audit, legal/corporate support, accounting, taxation, financial audit, banking and payment solutions.

The award-winning teams of MAP S.Platis consist of over 70 high-calibre experts and professionals, supported by one of the strongest research teams in the EU in financial services regulation. Our teams proudly display a substantial and documented success record in registering and supporting EU Investment Firms regulated by CySEC (Cyprus), MFSA (Malta), FCA (UK) and BaFin (Germany) under MiFID, with full passporting ability to all member-states of the European Economic Area.

FIRST AIFLNP IN CYPRUS Soon after the new regulatory framework was in place, MAP S.Platis proceeded with submitting an application for an Alternative Investment Fund with Limited Number of Persons (‘AIFLNP’)with the Cyprus Securities and Exchange Commission (CySEC), registering the first AIFLNP in the country.

SERVICES MAP S.Platis has established dedicated teams of seasoned professionals, possessing unprecedented experience in the provision of support to regulated entities, ready to assist with any matter towards setting up and obtaining a Fund or Fund Manager licence as well as assisting with ongoing operational maintenance. In this respect, MAP S.Platis is a one-stop-shop for clients wishing to set up and operate a Fund Manager (UCITS Management Company or AIFM) and/or a Fund (UCITS or AIF).

Our services in relation to Funds and Fund Managers include among others: • Preparation and Promotion of the Licence Application • Assistance with preliminary Operational Requirements • Provision of ongoing Administration Services • External Audit Services • Internal Audit Services • Ongoing Compliance and Regulatory Reporting Support • Full Legal Support and Advice • Regulatory Training FUND AND FUND MANAGER AUTHORISATION

MAP S.Platis has a dedicated regulatory applications team that will manage the completion of any Fund or Fund Manager with a regulator. Advice at the preliminary stages of the process in order to optimise any structure and select the most appropriate vehicles and solutions is critical, leading to added value and the efficient allocation of resources for clients.

More comprehensive attention is required for certain areas of the application – for example investment strategies, depositaries,

76 | GOLD | The Business Magazine of Cyprus

delegation arrangements, risk and liquidity management and disclosures to investors.

FUND MANAGER COMPLIANCE HEALTHCHECK

A team of experts may conduct a compliance healthcheck for any Fund Manager prior or following licence activation, covering the changes required to compliance and risk management infrastructures, as well as providing Senior Management with an action list to ensure full compliance with the regulatory framework. Any weaknesses or gaps are identified and improvements are recommended.

ONGOING COMPLIANCE CONSULTING

We continually review our compliance methodologies to ensure that we are able to provide an efficient and effective compliance function, while keeping our clients informed well in advance of compliance developments. This allows us to assess the impact of new rules and regulations on our clients’ businesses and their ongoing compliance and regulatory obligations.

Our teams have built significant experience with documenting regulatory policies and customising these to each client’s unique business requirements.

We regularly consult with our clients and carry out regulatory and compliance risk assessments, allowing us to develop a riskbased compliance monitoring programme relevant to each client which can be implemented on a quarterly, semi-annual and/ or annual basis.

We also assist clients in identifying their regulatory training requirements for specific staff within their firm. We can then deliver focused training sessions as well as general regulatory compli-

ance training to approved persons and other support staff.

INTERNAL AUDIT Our Internal Audit team is uniquely positioned to provide internal audit services as prescribed by the regulatory framework, adding value through a series of recommendations and improvements stemming from a risk-based approach. Internal audit plans are tailored to specific Fund Managers capturing their unique circumstances aiming at assisting in identifying any issues and resolving them early on. An internal audit plan would typically take into account a series of factors such as different types of Funds managed, types of investors, various asset classes and different types of financial instruments.

FUND ADMINISTRATION Specialised Fund Administration services are provided as part of an integrated solution for regulated Funds. NAV calculations, issuance and redemption of units, payment monitoring, corporate actions and other related services complete the range of services needed to ensure full regulatory compliance.

CONTACT INFORMATION:

MAP S.PLATIS

Limassol Address: 74, Archbishop Makarios III Avenue, Amaranton Court, 3rd Floor, Mesa Geitonia, 4003 Limassol, Cyprus Postal Address: P.O. Box 59521, CY-4010, Limassol, Cyprus Tel: (+357) 25351335 Fax: (+357) 25351330 e-mail: funds@mapsplatis.com Website: www.mapsplatis.com Nicosia 25, Demosthenis Severis Avenue, Metropolis Tower, 4th Floor, 1080 Nicosia, Cyprus and 16, John Kennedy Avenue, 3rd Floor, 1087 Nicosia, Cyprus

3PECIALISED AND TAILORED SOLUTIONS FOR THE FINANCIAL SERVICES SECTOR ON International Licensing, Compliance, Risk Management, Internal Audit, Fund Administration, Anti-Money Laundering, EMIR Reporting, IT Audit, Executive Training AND MORE BASED ON AN UNPARALLELED KNOWLEDGE AND EXPERIENCE OF FINANCIAL REGULATION IN %UROPE AND BEYOND

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SPECIAL PROMOTI PROMOTIONAL FEATURE

NEXIA POYIADJIS CHARTERED ACCOUNTANTS

T

he foundations of the firm were laid in 1969 when the late Joseph Pavlou Poyiadjis, a UK Chartered Accountant, started his own accountancy practice as a sole practitioner, operating from Nicosia under the name of “J. Pavlou”.

In 1976 he was joined by his younger brother and now Senior Partner of the Firm, John Pavlou Poyiadjis, also a UK Chartered Accountant, and the firm was renamed Pavlou, Poyiadjis & Co. In 1980 the firm was renamed Nexia Poyiadjis Chartered Accountants, being the exclusive member of Nexia International in Cyprus, one of the largest and longest established international networks of independent high-quality accounting and consulting firms. With over

23,000 professionals and 570 offices in 105 countries, Nexia International gives us strong links in major cities around the world and helps organisations and individuals with an international outlook to maximize and sustain their potential.

We provide Audit and Assurance services, Business Services, Debt, Restructuring & Advisory, Financial Services and Taxation to publicly listed companies, regulated financial entities, small and large owner-managed businesses, professional practices and private individuals.

One of the strongest areas of specialist knowledge and expertise, where our firm has a clear competitive advantage, is our services to the financial services industry. These include Audit and Assurance, Tax, Compliance, Advisory, and Fund services to Cyprus regulated investment firms and funds. We currently service some of the most known and prestigious clients in the industry.

Our financial services and funds team is divided into five areas:

78 | GOLD | The Business Magazine of Cyprus

CLIENT RELATIONSHIP: We provide an efficient and professional client service, tailored to the specific needs of individual clients.

DEALING AND REGISTRATION: We maintain the register and process investment transactions.

PRICING AND VALUATION: We maintain records and calculate valuation of shares or units.

STATUTORY REPORTING AND TAX ACCOUNTANTS: We prepare periodic reports to share and unit holders including tax provisions, submission of tax computation to IRD and calculation of income and distribution payments.

RISK MANAGEMENT: We undertake due diligence, oversight of and liaison with investment managers.

Our teams consist of people from different backgrounds with a wide range of interests

and areas of specialization, thus enabling them to apply the highest level of expertise to every deliverable and to add value to the services offered to our clients.

At Nexia Poyiadjis we believe that you should expect something special from your business advisors. Vibrant and constantly growing as a firm, we continue to improve our knowledge and skills for the benefit of our clients.

Clear thinking, in-depth understanding and a vision for success are primary objectives at Nexia Poyiadjis. All the above and more are delivered with superior service, integrity and commitment.

CONTACT INFORMATION:

Nexia Poyiadjis

HEAD OFFICE Address: 2, Sophouli Street, Chanteclair House, 8th Floor, 1096, Nicosia, Cyprus Tel: (+357) 22456111 Fax: (+357) 22666276 e-mail: np@nexia.com.cy Website: www.nexia.com.cy LIMASSOL OFFICE Address: Lophitis Business Center, 249, 28th October AvLU\L 4LaaHUPUL ÅVVY Limassol, Cyprus Tel: (+357) 25371414 Fax: (+357) 25371415 e-mail: np@nexia.com.cy Website: www.nexia.com.cy KAKOPETRIA OFFICE Address: 14, Photiadou Street, Kakopetria, Cyprus Tel: (+357) 22924024 Fax: (+357) 22922429 e-mail: np@nexia.com.cy Website: www.nexia.com.cy

www.goldnews.com.cy | GOLD | 79

At OPC, our objective is to provide boutique investment and financial services to high net worth individuals and corporate clients. We always aim to forge long-term relationships with our clients based on integrity and trust and to provide them with tailored-to-fit solutions for their individual needs. Our highly qualified professionals work alongside our clients to design and craft dynamic strategies that will be implemented for the successful management of their investment portfolios and corporate finance needs.

We have made it our priority to secure our clientsâ&#x20AC;&#x2122; assets and to ensure discreet top class personalized service.

At OPC we can:

financial markets, and warn them of the potential risk they may be undertaking.

Brokerage One Plus Capital provides offline (call-in) brokerage services for all major Stock Markets and virtually every financial instrument on the board of these markets. Online brokerage services are available through the Cyprus Stock Exchange and Athens Stock Exchange of which OPC is a trading member.

0VS 3FDFQUJPO BOE 5SBOTNJTTJPO EFTL XJMM FOTVSF TXJGU BOE accurate order placement according to clientâ&#x20AC;&#x2122; s instructions.

Our professionals are also ready to provide clients with information pertaining to their instructions, prices of financial instruments, information on market depth, transaction fees, and corporate actions.

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Our corporate finance team has the experience to offer strategic advice to executive members of your corporation and to assist you in developing articulate plans for financing operations. Moreover, we can design hedging strategies against foreign exchange exposure; we can assist you in better utilization of your assets by restructuring your business and setting up funds.

We do all the above with professionalism, confidentiality, and integrity Asset or Portfolio management is more an art than a science. Over the recent past, much of human interaction with the markets has shifted to automated systems run on algorithms designed to capture market inefficiencies.

Science was taking over the human intellect and instinct. The last couple of years we have seen a small shift in preference for human rather than computerized performance.

We treat each client individually, and design strategies that are tailored to fit their investment needs, rather than one size fits all.

Investment Advisory If you are not ready to relinquish portfolio decision making to our skilful arms and leverage on our experience, our highly qualified and appropriately licensed Investment Advisory professionals can advise and assist you in making educated investment decisions.

Our certified professionals have the experience to advise clients on virtually any type of financial instrument, mutual fund and structured products accessible to the global

OPC can advise, assist or undertake to develop a comprehensive plan on how to achieve your companyâ&#x20AC;&#x2122;s financing goals which may include solutions involving securitization of assets and collateralization of debt instruments, bridge financing tools, debt restructuring, and more.

You can contact us at 75 Prodromou Avenue Oneworld House 3rd floor PO Box 25207 Nicosia 1307 Cyprus T +357 22873760 F +357 22873754 info@onepluscapital.net www.onepluscapital.net

OPC Trader™

YOUR GATEWAY TO GLOBAL FINANCIAL INVESTING

OPC is a pure STP broker, which offers great execution services through its nicely engineered platforms.

With more than 120 currency pairs and nearly 3000 CFDs in equities it is enough to design and implement virtually any strategy you wish on the OPC Trader™ platform.

Competitive pricing Award winning platform Best Execution Excellent Analysis Tools for the trader With OPC Trader™ you can trade CFDs on Bonds, Commodities, Equities, Indices, Interest Rates, Currencies and Options.

OPC

Risk Warning: Trading currencies, CFDs, and options is risky and not suitable for all investors.

TRADER

Charging Ahead

OPC Trader™ is a trademark of One Plus Capital Ltd licensed by the Cyprus Securities and Exchange Commission (CySEC) to operate as a Cyprus Investment Firm (License No 111/10).

SPECIAL PROMOTI PROMOTIONAL FEATURE

ORANGEFIELD CYPRUS LTD

O

rangefield is an independent global service provider with a wide range of management, administrative and trust services to private and corporate clients as well as private equity, hedge and real estate funds all over the world. At present, we have offices in 29 financial centres including London, New York, Luxembourg, Amsterdam, Hong Kong, Shanghai and Singapore.

Orangefield acts as a valued partner, with more than 40 years of experience in providing global solutions and professional services to a diverse client base. The members of our team are anxious to familiarize themselves with the challenges clients face.

FUND SERVICES Orangefield Group is specialised in fund administration services and currently administers international funds of around US$55 billion with one of the most

advanced software packages in the market. The Group has passed on to Orangefield Cyprus its advanced knowhow by installing up-to-date software and training our workforce in innovating procedures. Orangefield Cyprus is a member of the Cyprus Investment Funds Association (CIFA). Throughout the entire fund life cycle, we position ourselves as a longterm and trusted partner that fully supports clientâ&#x20AC;&#x2122;s needs in fund administration and depositary services. Over the years, Orangefield has established strong working partnerships with leading financial firms, including investment banks, private equity firms, management companies and custodians.

We specialise in the sectors of: hedge funds, private equity funds and real estate funds.

CORPORATE SERVICES Orangefield provides a wide range of corporate services around the globe. We operate in an entrepreneurial environment so our clients always come first. Our personal approach in the dayto-day business of our clients is guaranteed by providing

82 | GOLD | The Business Magazine of Cyprus

them with a single contact person for all their activities worldwide.

PRIVATE WEALTH SERVICES The Orangefield International Private Client Services team is focused on handling the unique needs of High Net Worth clients and their families, through comprehensive asset and wealth administration, fiduciary and trust services. The depth and breadth of our experience, our presence in strategic international jurisdictions and our dedication allow us to serve our clients efficiently and effectively.

ORANGEFIELD CYPRUS LTD Orangefield Group established its Cyprus office in 2012 as a result of the merger with a local service provider, Fidelico Limited. Fidelicoâ&#x20AC;&#x2122;s entrepreneurial spirit was successfully combined with Orangefieldâ&#x20AC;&#x2122;s professional ethics. Orangefield Cyprus was established with a view to provide quality corporate services in Cyprus with unmatched efficiency to international groups and financial institutions globally. Our team consists of professionals

who serve clients at a multinational level. We have built our skills in law firms, (tax) advisory firms and other selected industries, allowing us to offer quick and tailor-made services. We are diligent and up-to-date when it comes to the latest legal matters and accounting standards. Typical activities include Due Diligence procedures and administration of funds and public listed companies which abide by the Cyprus Securities and Exchange Commission rules and regulations. Our clients include groups listed on stock exchanges internationally, leaders in the banking sector and financial institutions. We aim to provide personalised and high-quality services, giving our clientâ&#x20AC;&#x2122;s a â&#x20AC;&#x2DC;one-stopâ&#x20AC;&#x2122; service for any business activities they wish to perform in or out of Cyprus.

CONTACT INFORMATION:

ORANGEFIELD CYPRUS LTD

Address: 20)* [O Ă&#x2026;VVY 7YVĂ&#x201E;[P 0SPH :[YLL[ .LYTHZVNLPH 4046 Limassol, Cyprus Tel: (+357) 25272727 Fax: (+357) 25272728 e-mail: PUMV J`'VYHUNLĂ&#x201E;LSK JVT Website: ^^^ VYHUNLĂ&#x201E;LSK JVT

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SPECIAL PROMOTIONAL PROMOTI FEATURE

Chris Odysseos Partner, In charge of Funds

George Lambrou Partner, Consulting

w

PwC

e have the experts, with extensive experience in the fund industry, to provide valueadding propositions to clients.

MULTI-DISCIPLINARY FUNDS TEAM PwC has a local multi-disciplinary team of specialists who can assist you with all aspects of setting up a fund or fund manager, the authorization process and the ongoing requirements.

A funds-dedicated team is commissioned to deal with the whole spectrum of funds-related matters, thus providing solutions and responses leveraging on our expertise.

STRONG INTERNATIONAL NETWORK Asset managers face major challenges with their operating and business models due to the requirements of the regulating authorities and the increased challenges regarding their investors’ appetite for low-margin products and transparency.

Marios Andreou Partner, Tax Advisory

Anna Loizou Partner, Assurance

As the largest professional services firm serving the asset management industry globally, we have the expertise to help you prepare successfully for these changes.

Our local experts are backed by the PwC international network. Our specialists use webbased solutions to exchange information and to monitor the status of the different processes.

By working with us, you benefit from unique regulatory and best practices knowledge as well as a high level of quality controls.

INFLUENTIAL PLAYER IN THE INDUSTRY We have extensive interactions with Fund Industry bodies and the Regulator. PwC partners and staff participate on the Board and Specialist Committees of the Cyprus Investment Funds Association (CIFA) and contribute to the Association, focusing on the industry’s key developments in Cyprus.

SERVICES OFFERED PwC, with a proven track record of successful setups of AIFs, AIFMs, UCITS and CIFs, stands ready to provide a whole spectrum of services.

Our team is dedicated to providing high quality services which include the following:

84 | GOLD | The Business Magazine of Cyprus

Panayiotis Panayides Advocate , Director S.A. Evangelou & Co LLC, Advocates

Ioanna Idalia Stylianidou Director, Indirect Tax

Licensing application to the Regulator We examine the alternative forms that the fund can take so that it meets your requirements.

We can prepare the full application package that needs to be submitted to the Regulator.

During this process, our experienced team will advise you on how best to structure your operations and will assist with the preparation of all the necessary documents to be included in the application package.

Direct and Indirect Tax services We provide a comprehensive set of Direct and Indirect Tax compliance and advisory services.

This ensures that the fund is set up in a tax-efficient manner and is compliant with all tax requirements in Cyprus and abroad throughout its extensive network. Our services cover both corporate and individual taxes.

Legal support We provide assistance and support with the incorporation of the entity to be licensed as a Fund, including the drafting of the constitutional documents.

We provide legal support both during the fund’s application process and operation.

Administration services We have developed systems and procedures to ensure that our fund administration is executed

Maria Athienitou Senior Manager, Consulting

in an efficient and cost-effective manner. Our services include fund accounting, management reporting and Net Asset Valuations, subscriptions and redemptions, compliance and regulatory reporting, statutory and secretarial services.

Assurance services We provide ongoing services with respect to the annual statutory audit of IFRS financial statements as well as interim review, should you wish to prepare interim financial statements on a quarterly and half-yearly basis.

Audit Trail Verification We perform a review of the audit trail capabilities of the CIF’s and AIFM’s electronic systems and procedures in accordance with CySEC requirements.

Internal Audit Outsourcing We provide tailor-made internal audit services to CIFs and AIFMs. CONTACT INFORMATION:

PwC

Chris Odysseos Partner, In charge of Funds chris.odysseos@cy.pwc.com Address: Julia House, 3 Themistocles Dervis Street, CY-1066 Nicosia, Cyprus, P.O. Box 21612, CY-1591 Nicosia, Cyprus Tel: +357 - 22 555 000 Fax:+357 - 22 555 001 www.pwc.com.cy

www.pwc.com.cy

We do more than just consult We deliver Funds Industry

We support you to create the value you are looking for in the funds industry by providing specialised solutions based on quality. Together we build relationships based on trust and we say things as they are, to assist you to deal with issues that tomorrow will prove important.

We adapt our expertise and the power of our global network to your specific needs helping you make the difference.

Š 2015 PricewaterhouseCoopers Ltd. All rights reserved

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SPECIAL PROMOTI PROMOTIONAL FEATURE

SMC MED TRUSTEES (CY) LTD

S

MC is a family office tracing its origins from the Business Law Department of Tettamanti & Spiess, a historic law firm established in Lugano, Switzerland in 1959.

SMC Group, with its team of over 60 people, has operational offices in Cyprus, Switzerland, Italy, the Grand Duchy of Luxembourg, the Principality of Monaco, Estonia, the United Arab Emirates, Sweden, Russia, and the United Kingdom.

As a proud member of the Joint Chambers of Commerce (JCC) SwitzerlandRussia /CIS Countries and the Swiss-Asian Chamber of Commerce (SACC), SMC was appointed in 2011 as the executive representative of the JCC’s and the SACC’s Ticino Chapters.

In 2013, SMC Group opened its offices in Cyprus through its subsidiary SMC Med Trustees (CY) Ltd, which is an Administrative Service Provider licensed by the Cyprus Securities and Exchange Commission.

SMC Cyprus’ staff has more than 20 years’ experience in wealth management services.

Our management team is made up of seasoned wealth management professionals and includes disciplines in asset management, legal both corporate and litigation, and banking and finance.

SMC Med Trustees (CY) Ltd takes care of the personal needs of all its customers’ relatives, offering highly personalized and discreet services. Upon request, we act as fiduciary negotiators to obtain the best economic conditions in services such as: • Private equity (PE) fund licensing and management • International tax planning and legal services • Incorporation and management of holding structures • Incorporation of Cyprus, European, and offshore PE funds

86 | GOLD | The Business Magazine of Cyprus

• Asset protection and inheritance planning • Trusts, family foundation, and protector services • Intellectual property and brand protection • Relocation services • Family administration services • Managing family education programmes • Developing strategies for family business SERVICES PROVIDED Through its network of professionals in Cyprus and abroad, SMC can provide highly personalised tax and corporate consulting to PE funds as well as all day-today operational requirements required by a PE fund, including but not limited to: • Preparation and submission of an Alternative Investment Fund licence application • Tax and legal advice in order to effectively utilize Cyprus benefits • Formation of the Cyprus company which will apply for the AIF fund licence • Identify and appoint key service providers such Risk Managers, Anti Money laundering, Fund Administration • Domiciliation services such as directors, secretary and registered office • PE fund administrator

services, ensuring that all requirements by the supervisory authority are met • Bank and custody administration, including opening of accounts and ongoing maintenance SMC Med Trustees (CY) Ltd and its management have been actively involved in numerous private equity funds in Cyprus. We have assisted our clients through the transition from ICIS (International Collective Investment Schemes) previously regulated by the Central Bank and now, following the enactment of the Alternative Investment Fund Law, regulated by the Cyprus Securities and Exchange Commission.

In addition, we are involved in PE fund works in Luxembourg, Mauritius, and Ireland.

CONTACT INFORMATION:

SMC MED TRUSTEES (CY) LTD Address: 12-14, Kennedy (]LU\L 6ɉJL Nicosia, Cyprus Tel: (+357) 22272700 Fax: (+357) 22270203 e-mail: scharalambous@ smctrust.ch Website: www.smctrust.ch

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www.goldnews.com.cy | GOLD | 87

SPECIAL PROMOTI PROMOTIONAL FEATURE

TREPPIDES FUND SERVICES LTD

T

reppides Fund Services Ltd was established in 2012 with a mandate to provide the highest level of professional services, including fund formation, licensing, accounting, administration and advisory.

The firm has the ability to support complex investment structures and meet the strict operational and reporting needs of fund managers.

Having established a worldwide network of associates, Treppides Fund Services Ltd is able to cover various fund structures such as UCITS funds, hedge funds, private equity funds, real estate funds and others.

Treppides Funds Services Ltd considers its biggest asset to be its multi-discipline team which consists of a blend of experienced lawyers, qualified accountants,

MBA holders and other professionally qualified administrative staff. Having the experience, as well as access to the state of art software, the team was quickly able to establish the firm as a leading service provider, both in the number of Funds and assets under administration in Cyprus.

Treppides Fund Services Ltd supports. among others, the following services: • Investor subscription and redemption management, and maintenance of the Shareholder Register • Investor reporting and communication • Portfolio position and cash reconciliations • Calculation of Net Asset Valuation Maintenance of the Fund Accounting Ledger • Preparation of financial statements • Investment restriction compliance monitoring • Ongoing monitoring of investors (KYC & AML) • Assistance with Regulatory reporting where applicable • FATCA Compliance; Since its inception, Treppides Fund Services Ltd has made significant investments in technology infrastructure and in partnerships with

88 | GOLD | www.goldnews.com.cy The Business Magazine of Cyprus

global players of the financial services industry. The Company is using Prospero Fund Management, a superior solution that can support various fund structures and offer complete fund administration. Prospero has introduced full transaction automation to the firm’s operations, so as to enable professionals to fully address all risks and checks pertaining to each Fund. The Company has also acquired the Bloomberg Terminal and Data License, an integrated platform that streams together, among others, price data, financials, news and trading data.

To further enhance the range of services provided to its clients, Treppides Fund Services Ltd has also signed a groundbreaking agreement with Deutsche Bank AG (London Branch).

The agreement provides for the Bank to act as a subcustodian for Funds administered by the firm and to offer a number of services ranging from asset custody to opening and maintenance of cash accounts.

A leading fund service provider and a founding member of the Cyprus Investment Funds Association (CIFA), Treppides Fund Services Ltd is playing an active role in the development of the funds industry in Cyprus. Over the last three years, it has secured participation in work groups which streamline developments in the legislation.

Andreas Yiasemides, Director, Treppides Fund Services Ltd says: “Further to the market developments regarding the Alternative Investment Funds, UCITS and the Alternative Investment Funds Managers, Cyprus has become one of the top emerging investment fund centres in Europe. In order to accommodate this rapid expansion of the market, Treppides Fund Services, as a leading service provider, has invested in technology, created strategic alliances with associates around the globe and keeps investing in human capital. As a company, we remain committed to delivering high-quality services and to keep our upward trend as a leading Fund Administrator.”

CONTACT INFORMATION:

TREPPIDES FUND SERVICES LTD

Address: Treppides Tower, 2nd Floor, 9, Kafkasou Street, Aglandjia, 2112 Nicosia, Cyprus Postal Address: P.O. Box 27142, 1642 Nicosia, Cyprus Tel: (+357) 22678944 Fax: (+357) 22681887 e-mail: info@treppidesfs.com Website: www.treppidesfs.com

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| TECHNOLOGY |

Ahead

I

in the CLOUD

n todayâ&#x20AC;&#x2122;s fast moving world, increasingly impacted by disruptive technologies and business models, enterprises must be able to move quickly and adapt to change. On April 24, the Hilton Park Hotel in Nicosia was the venue for Oracle Cloud Day 2015, where entrepreneurs and other interested WHY[PLZ ^LYL VÉ&#x2C6;LYLK [OL VWWVY[\UP[` [V SLHYU TVYL HIV\[ digital transformation and, in particular, how Cloud services are changing business around the world. Antonis Skoullos, Cyprus Country Leader, spoke to Gold about how Oracle is spearheading the transformation of organisations, large and small.

By John Vickers

90 | GOLD | The Business Magazine of Cyprus

Gold What was the thinking behind Gold: the o organisation of Oracle Cloud Day in Ni Nicosia?

Antonis Skoullos: Cloud is the indisAnton putable IT trend which will enable the putab digital economy and the digital transdigita formation of any organisation. Oracle, forma with the t most complete Cloud portfolio of pro products and services for the enterprise, is delivering a series of events all over tthe world, informing our customers and p partners about our Cloud solutions, helping them to design their IT strategy helpin for th their new market challenges, goals and oobjectives. Oracle’s subsidiary in Cyprus Cy ypru provides services to all industry sectors sect c or of the country. Within my team’s efforts ef ffo f rt to remain next to our customers and partners, falls the organisation of an nd p such c eevents. We want to share our vision and d oour strategy, as well as inform the local loca cal market of our offering. The aim of tthe he Oracle Cyprus Cloud Day was our esteemed clientele about to iinform nf convergence of cloud, mobile, social the co and d bbig data, how digital disruption is transforming business models, how organisations are thriving in the new digital economy, and to give them unique opportunities to network with peers who are facing the same challenges as them.

Gold: How significant a development has Cloud computing proved to be in the past few years?

A.S.: Cloud computing has been a significant advancement in the delivery of information technology and services. By providing on-demand access to a shared pool of computing resources in a self-service, dynamically scaled and metered manner, cloud computing offers compelling advantages in speed, agility, efficiency and simplicity. It is the evolution and convergence of several trends that have been driving enterprise data centres and service providers over the last several years. The adoption of Cloud computing represents a dramatic shift in the way organisations buy IT – a shift from periodic capital expenditure to lower cost and predictable operating expenditure, all with much improved flexibility and accessibility enabling even small businesses to globalize their workforce.

Gold: How would you summarise the change that it has brought to both business and people’s private lives?

A.S.: The adoption of Cloud computing has had a transformative effect on both small and large businesses. It has generated a series of disruptions in the way we access, store, analyze and share information. At the same time, it has brought a several-fold increase in flexibility and reliability and a significant reduction in infrastructure costs resulting in improved quality of service and more tolerance for innovation and experimentation. All these changes in the IT and business world have brought – and will continue to bring – profound changes to individual people’s lives. For example, country and language barriers are rapidly fading.

Consumers gain power and choice and are capable of making smarter decisions.

And for sure, this is just the tip of the iceberg!

Gold: Are businesses in Cyprus embracing the Cloud concept as fast as you would like?

A.S.: We are all experiencing the unprecedented financial situation in which our country finds itself. It is well understood by the Cyprus business community members that IT is the means to transforming their business model and quickly adapting to the new international economy. However, the small market, limited resources and, to an extent, the prioritization of business decisions, means that the introduction of modern IT concepts, such as the Cloud, may be seen as a secondary phase of change. This is slowing down Cloud IT business development on the island. An encouraging note, though, is the general acceptance that the Cloud is the only way forward for enterprise

modernization strategies. Very soon, we all shall become important stakeholders in the rapid, incremental development of the Cloud business in Cyprus.

Gold: How familiar are companies and organisations here with the idea of the digital economy?

A.S.: They are all familiar with the general understanding and meaning of the Digital Economy and the endless opportunities it spreads before them, offering borderless operations, global presence and international exposure. It is, however, totally in the hands of an open-minded modern management to see these challenges and invest in digital transformation. As mentioned earlier, we do see steady but promising developments in the adoption of modern IT solutions to meet Cyprus’ digital economy requirements, which further encourage multinational IT vendors like Oracle to continue informing, updating, educating and supporting their customers while they strive towards the digital economy.

Gold: What about the public sector? Is it still a long way behind?

A.S.: It is generally accepted that, due to long and demanding public sector processes, any new and modern propositions such as digital transformation and Cloud will take longer to adopt and implement. Any Public Sector IT strategy will thoroughly examine all aspects of such IT introductions, including security, accessibility, manageability, business continuity, etc. Oracle is a strategic IT supplier of the Cyprus Government, offering products and services to support the most mission-critical national systems. It is with great pleasure and satisfaction that we note a general ggovernovern-

The adoption of cloud computing represents a dramatic shift in the way organisations buy IT

www.goldnews.com.cy | GOLD | 91

| TECHNOLOGY |

Antonis Skoullos

C

92 | GOLD | The Business Magazine of Cyprus

ations h c i l d app u o l to re-im a s r g e m to e cus their bus inesses

Gold: IIf there is a reluctance to ado adopt Cloud technology, it has presumably to do with people’s security w cconcerns – putting ttheir data somewhere that they may feel that th they do not fully conthe trol and perhaps more open to hacking, etc? Can you give such people solid guarantees of the safety and security of their information?

A.S.: Oracle has always been concerned about information protection and privacy, and this is no different when it comes to the Oracle Public Cloud. Oracle Cloud Services offer market-leading security features – including encryption, virus scan and whitelist support. Oracle Cloud data centres offer embassy-grade physical and logical security. The services employ management controls, operational controls, and technical controls and are aligned with the security framework of ISO (International Organization for Standardization) and IEC (International Electrotechnical Commission), specifically ISO/IEC 27002:2005, Code of Practice for Information Security Management and ISO/IEC 27001:2005 standards.

r ou n i

Gold: I was surprised to learn that Oracle has been offering Cloud solutions for more than 12 years – this really does make Cyprus appear to be rather late in joining the revolution.

How much has this offering evolved over the past decade?

A.S.: Indeed, for more than twelve years, millions of end users have used Oracle Managed Cloud Services to increase their productivity and gain a competitive advantage. Oracle Managed Cloud Services is a critical and proven part of Oracle’s broader Cloud offering, which enables organisations to leverage their Oracle investments to extend into the Cloud with greater value, choice and confidence over the years. Oracle has operated these services under different branding such as Oracle Outsourcing and Oracle On Demand. Oracle Managed Cloud Services spans the entire portfolio of Oracle applications and technology, and solutions are optimized and engineered for performance and efficiency.

Building on Oracle’s Managed Cloud Services track record and operational expertise, in 2011 the company announced the Oracle Public Cloud Software as a Service (SaaS) Services, a broad set of SaaS integrated services that provide customers with subscription-based, self-service access to Oracle Fusion Applications, Oracle Fusion Middleware and Oracle Database. The best-of-breed SaaS applications in Oracle Cloud are integrated with social, mobile, and analytic capabilities delivering the ex-

accessible from eeverywhere, hosted by state-of-the- art data d centres designed and maintained by b Oracle’s specialized and highly trained t personnel.

e lp

ment commitment to seriously eriously consider the adoption and implementation mentation of modern digital platforms ms that will enable faster services for citizens izens and secure accessibility to national data. We also note the Government´s measures aimed at educating, encouragouraging and supporting national onal campaigns such as the eSkills, Skills, ICT promotions, IT start-ups art-ups etc., within the general eeffort ffort to spread the message that market hat marke kett growth will be achieved via via IT. IT.

periences customers expect, the talent to succeed, and the performance the market demands. Modern Oracle Cloud applications help our customers to re-imagine their businesses.

In 2014 Oracle announced its Platform as a Service (PaaS) Cloud Services. Oracle Cloud PaaS helps enterprise IT and independent software vendor developers rapidly build and deploy rich applications – or extend Oracle Cloud SaaS applications – using an enterprise-grade cloud platform based on the industry’s No. 1 database and application server.

Oracle is on its way to becoming the No.1 Cloud Services Provider!

Gold: Surely there is more to Cloud solutions than saving money by not having to buy one’s own infrastructure and being able to leave a lot of technological management issues to Oracle rather than to an in-house IT department?

A.S.: Modern Cloud solutions are all about innovation, agility, faster time to value and simplicity. The markets are dynamic, the customers are changing, we have to keep up with the world that is changing around us, we need to modernize in order to survive! Oracle Cloud solutions offer speed to innovation with less disruption. IT is becoming, apart from cost effective, simple, reliable and secure.

Oracle Cloud Services and Cloud applications are easy to use and they are

Gold: Have you been able to judge the results of previous Oracle Cloud Days and, if so, what have they been?

A.S.: Due to the importance of Cloud computing both for Oracle’s customers and partners and for the market, Oracle decided to launch a dedicated series of Cloud events, and the one in Nicosia was of the first that have taken place, so there hasn’t been anything similar in the past to compare it with.

But one thing is for sure, the market is getting more and more interested in adopting Cloud!

BOOK SHELF

BOOKS of the month

1.

RETURN ON CHARACTER

By Fred Kiel (Harvard Business Review Press, 2015) R.R.P. ÂŁ20.00 (ÂŁ19.98 FROM AMAZON.CO.UK)

Countless business authors have assured us that great leadership demands great character and at last Fred Kiel provides solid data that demonstrates the connection between character, leadership excellence and organisational results. This groundbreaking book shows that leaders of strong character achieve up to five times more ROA (Return on Assets) for their organisations and that being a strong, confident, considerate leader has its benefits, especially on the bottom line.

1

2

RETURN ON CHARACTER The importance of character in a CEO

BECOMING STEVE JOBS A new look at the Apple genius

2.

BECOMING STEVE JOBS: HOW A RECKLESS UPSTART BECAME A VISIONARY LEADER

By Brent Schelnder & Rick Tetzeli (Sceptre, 2015) R.R.P. ÂŁ25.00 (ÂŁ17.00 FROM AMAZON.CO.UK)

The authors provide a fresh perspective on Jobsâ&#x20AC;&#x2122; journey from inspiring but immature entrepreneur to the inspired, mature visionary who turned Apple into a company that made breathtaking products while becoming the dominant technology firm of our time. Deeplyresearched and insightful, it paints what many of those who knew him have described as a definitive, honest portrait of this remarkable man.

3

THRIVE 5HGHĂ&#x20AC;QLQJ success in WRGD\¡V world

4

STRESS TEST How the US saved its economy

5

THIS CHANGES EVERYTHING Highly praised look at climate change

3.

4.

5.

In her book, Huffington tries to redefine what it means to be successful in todayâ&#x20AC;&#x2122;s world. In addition to our drive for money and power, she argues that we need a â&#x20AC;&#x2DC;Third Metricâ&#x20AC;&#x2122; in order to live a healthy, productive and meaningful life.

We cannot work 24/7 and looking after our bodies and minds is just as important. She advises Social Media/ Technology-free periods!

In this strikingly candid and historically illuminating memoir, the former President of the Federal Reserve Bank and Secretary of the Treasury, discusses the most controversial moments of his time at the Fed and the Treasury, including the harrowing weekend Lehman Brothers went bankrupt, the AIG bonuses controversy and more. As an insiderâ&#x20AC;&#x2122;s account of how the Obama administration eventually saved the US economy, this is absolutely riveting.

Forget everything you think you know about global warming. Itâ&#x20AC;&#x2122;s not about carbon but capitalism, says Klein who has already written two books that redefine their era (No Logo and The Shock Doctrine). Here she argues that we can still transform our economic system and build something radically better.

This book has been described as â&#x20AC;&#x153;one of the most important of the decadeâ&#x20AC;?. Kleinâ&#x20AC;&#x2122;s voice is not one to be ignored.

THRIVE: THE THIRD METRIC TO REDEFINING SUCCESS AND CREATING A HAPPIER LIFE %\ $ULDQQD +XIĂ&#x20AC;QJWRQ (WH Allen, 2015) R.R.P. ÂŁ8.99 (ÂŁ6.29 FROM AMAZON.CO.UK)

STRESS TEST: REFLECTIONS ON FINANCIAL CRISES %\ 7LPRWK\ *HLWKQHU 5DQGRP +RXVH %XVLQHVV

R.R.P. ÂŁ9.99 (ÂŁ7.99 FROM AMAZON.CO.UK)

THIS CHANGES EVERYTHING: CAPITALISM VS. THE CLIMATE %\ 1DRPL .OHLQ 3HQJXLQ

R.R.P. ÂŁ8.99 (ÂŁ6.29 FROM AMAZON.CO.UK)

www.goldnews.com.cy | GOLD | 93

IN GOOD COMPANY

INVESTING IN PEOPLE $8',7,1* 7+( /,)( 2) (03/2<((6 $7 .30*

By Kyriakos Demetriou

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94 | GOLD | The Business Magazine of Cyprus

W

e all know about good companies in terms of services offered to their customers. We also know of good companies in terms of turnover, profits and market dominance. It is not often, however, that companies are viewed and analysed from the perspective of their personnel. What makes a company good for its employees, and how does an exceptional company ensure their productivity and retention and, in essence, continuance and efficiency?

Constantinos Kallis, Board Member and Head of Human Resources & Training at KPMG in Cyprus, spoke to Gold about what the firm does for its employees and how it stands out as an employer so that young minds seek to obtain – and retain – a position there.

According to Kallis, the level of job satisfaction among KPMG employees is very high, despite the challenges in the economic environment of Cyprus during the past two years. “We want to keep it that way,” he said, “and that is why listening, understanding and acting on feedback from our employees is of paramount importance to KPMG it its effort to empower change.”

Open and honest communication is one of the company’s core values and, to this end, KPMG utilises a variety of methods in addition to the more traditional evaluation forms, to encourage employees to voice their opinion and concerns, including a biannual Global People Survey whereby, Kallis explained, “input is requested on a number of issues such as employee engagement, learning and development, leadership, collaboration and sharing of knowledge, and the survey results are thoroughly analysed and compared against other metrics.”

Employees also attend focus group meetings during which they have the opportunity to express their views on matters related to employment conditions and their work environment. In addition to all these, exit interviews are conducted for the identification of areas for development, and, Kallis said, “a sophisticated performance appraisal

www.goldnews.com.cy | GOLD | 95

IN GOOD COMPANY

system, adopted by all member firms, also promotes communication, transparency and constant feedback.â&#x20AC;?

But that is not where employee engagement and satisfaction ends, Kallis told Gold. â&#x20AC;&#x153;Over the years we have developed a set of benefits of both a monetary and non-monetary nature, according to the company strategy, market conditions, and employee feedback.â&#x20AC;?

Most of the benefits are initiatives by the local office, aiming to reward high performance, Kallis explained. These include performance-related bonuses, the KPMG People Awards, an annual review of salaries and job levels, prize winning ceremonies, and financial rewards for the best performance in professional exams.

As a direct result of feedback from its employees, KPMG has also long adopted a flexible working hours scheme, a scheme for working mothers, allows special arrangements for central services staff, and permits the purchase of extra annual leave days. â&#x20AC;&#x153;We also subsidize professional qualification tuition fees and provide paid and unpaid study leave,â&#x20AC;? Kallis noted.

Additionally, the company provides additional financial rewards for trainers, overtime, overseas and inland travelling allowances, a provident fund, discounts on various products and services, private medical insurance schemes that employees can enroll in, additional paid vacation days, paternity leave for parents, staff cafeteria facilities, a global mobility programme, participation in externally organised seminars and conferences, frequent group and company outings. The company also encourages staff participation in corporate social responsibility events. â&#x20AC;&#x153;KPMG is a company that significantly values performance excellence and employee engagement,â&#x20AC;? said Constantinos Kallis. â&#x20AC;&#x153;Every decision taken is aligned with these two factors which, in turn, underlie its purpose, vision and values. KPMG provides its employees with a professional, supportive and contemporary environment, recognises and promotes talent and effort, and offers an unsurpassed level of professional training as well as the opportunity to work with Cyprusâ&#x20AC;&#x2122; best companies and participate in projects that are shaping the current economic environment of the country.â&#x20AC;?

Committed to providing an open and fair working environment, free from any

96 | GOLD | The Business Magazine of Cyprus

³:( %(/,(9( ,1 :(// 5281'(' (03/2<((6 $1' $ +($/7+< 62&,(7<´

kind of discrimination, KPMG, said Kallis, â&#x20AC;&#x153;invests in its people and, wants to offer everyone an equal opportunity for employment.â&#x20AC;?

But efforts do not stop at the company level. â&#x20AC;&#x153;Our Corporate Social Responsibility programme also enables employees to give back to society,â&#x20AC;? the company HR Head said. â&#x20AC;&#x153;We believe in well rounded employees, and a healthy society. And that is what we are striving for.â&#x20AC;?

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MY

COLLECTION

How the Zampelas Art Museum promotes a life of culture

By Kyriakos Demetriou | Photo by Jo Michaelides 98 | GOLD | The Business Magazine of Cyprus

A

As a young accountant, having just returned from the UK with his wife Loukia, Michael Zampelas bought his first painting in 1966 during a work visit to the Ledra Palace Hotel. “During my examination of the hotel’s books, I found that an artist had left a painting worth £100 as collateral for a £40 debt. I bought the painting, which still is in my house, in four £10 instalments.”

The purchase marked the unlikely and unconventional beginning of the Zampelas family’s art collection, which currently numbers close to 1,600 paintings – the majority of which are by Cypriot artists – and shows no sign of slowing down. The size of the collection, and a belief that the best Cypriot artists are not properly appreciated, led three years ago to the creation of the Loukia and Michael Zampelas Art Museum in Nicosia, which promotes modern Cypriot art through entirely private funding, which is in itself an impressive feat. When I met Zampelas, a former Mayor of Nicosia, he

was keen to emphasize that, despite its name, it is not just a museum but a centre for the arts. It incorporates a museum, a gallery offering young artists the chance to exhibit their work, a state-of-the-art framing shop accredited by the Fine Art Trade Guild of London, a shop selling

Greek artists. It is a shame for a country such as ours, which has so much culture, to relegate it so far down the scale of importance.”

The decision to create the centre in Kaimakli, just 500 metres from the buffer zone dividing the island since 1974, was a conscious one: “We wanted to send out the message that this is our place, this is where we will stay and this is where we will create.”

“It was no easy task,” Zampelas continued, “but thankfully both my wife and I were committed to the goal and, therefore, our success was guaranteed and we were able to create a space that had everything necessary for the promotion of art in Cyprus.”

year, an exhibition of photographs by Steve McCurry – best known for his National Geographic cover depicting an Afghan woman – was “a great success for our centre,” Zampelas said, as was an exhibition entitled The United States of Europe and another by seven Portuguese photographers.

The centre also owns sculptures, which it has not yet put on display. “No museum in the world has enough space in order to present all of its works, but we intend to schedule the sculptures too,” Zampelas told me.

Asked to list his favourite artwork, he described the question as “like asking me to choose between my grandchildren.

It is a shame for a country such as ours, which has so much culture, to relegate it so far down the scale of importance products inspired by the work on display, a small café, and educational programmes for children of all ages.

“We felt that the Cypriot artist was not properly appreciated, so my wife and I decided to create a space where modern art can be put on display,” Zampelas said at the start of our meeting.

“And that is why the works on display here are 95% by Cypriot artists and 5% by

ALL

He added, “Our effort and our vision is to put art in the homes of people, particularly young people, and in public places such as schools, but most importantly to help kids learn about culture. If we can win over young people, that means we can win over the society of both today and tomorrow.”

The centre holds the copyright to all the works in its permanent collection and is therefore able to “create and sell authentic prints and signed copies at reasonable prices, meaning people can easily put art in their homes.”

In addition to housing the work of Cypriot and Greek artists, the centre’s exhibition space also hosts temporary exhibitions by foreign artists, and not only paintings. Last

I cannot do that. There is no bad piece of art in our museum.” He did, however, admit that the painting he bought from the Ledra Palace Hotel, with which this impressive collection began, remains very special to him. While many people keep their personal collections for their eyes only, Michael Zampelas is delighted to be sharing his with Cyprus and the world. “What we now want to see is the area around the museum transformed into a destination that will nurture the arts and artists. We would love to see galleries and workshops springing up in the area in order to encourage culture.

I don’t care what others may say,” he said at the end of our visit. “A life without culture and art is not worth living.” www.goldnews.com.cy | GOLD | 99

Lunc Lunch with TONY CHRISTODOULOU

OVER TRADITIONAL CYPRIOT DISHES, THE FOUNDER AND MANAGING DIRECTOR OF ACTION GLOBAL COMMUNICATIONS TALKS ABOUT WORK, RETIREMENT, PETER SELLERS AND...

THE CYPRUS MULETEERS.

Gold

O 100 | GOLD | The Business Magazine of Cyprus

ver the course of a long and, many would say, exciting career, Tony Christodoulou has dined at some of the world’s most acclaimed and expensive restaurants but when it comes to choosing what he really likes to eat, his tastes are simple, traditional Cypriot. Which is why we are sitting indoors at Katsarolla tzie Foukou, which not only serves popular and extremely tasty local dishes but is conveniently located just one minute from his office in Nicosia. “Mind you, I would still come here

By John Vickers

LLA KATSARO OU K U O F TZIE icosia u Street, N 22, Alkaio

YOGURT ADA STRAPATS ALLOUMI GRILLED H KOUPEPIA I SOUVLAK CHICKEN 3) ZIVANIA (X TOTAL:

€2.50 €4.50 €5.50 €7.00 €7.00 €1.50 €33.00

if it was half a mile away,” he says. “It’s good stuff.”

Christodoulou himself is no stranger to the restaurant business. Before founding Action Public Relations in October 1971, he and his brother were partners in the Marabou Restaurant at Kyrenia Harbour.

Indeed, memories of his time in Kyrenia and Famagusta pepper our conversation over lunch, including several featuring Peter Sellers and Spike Milligan who stayed there during the filming of Peter Medak’s

1973 comedy “Ghost in the Noonday Sun”. Some of the tales are not repeatable here, particularly those concerning Sellers’ complicated love life!

A fascinating thing about Tony Christodoulou is that he has never been one to drop names to impress anyone; he merely seems to have met half the world since the 1960s when he was involved in the music world, eventually as part of Tom Jones’ and, later, Rod Stewart’s management.

Indeed, he had the unenviable task of telling the latter that he didn’t have the voice to make it in the pop world.

His connections with the music scene began early and, indeed, he would later name his own company after New Action Ltd, owned by Kit Lambert, manager of The Who in the mid-Sixties.

Before that, the young Tony played tea chest bass in a skiffle group with Bert Weedon (“He was my guitar teacher so we managed to get him involved”) and Chris Farlowe (“my sister-in-law’s first cousin”). Memories of this make him laugh out loud, something he does frequently. There follows a discussion about whether guitar legend Weedon is still alive and we conclude that he is probably not: “When I was 16 he was about 35,” says Christodoulou. I later confirm that the author of the famous ‘Play in a Day’ guitar method died in 2012 at the grand old age of 92.

I suggest that his connections with foreign dignitaries, film stars, musicians and others are so many that he ought to write his memoirs.

They would surely be entertaining. He dismisses the idea

with a wave of his hand. “I’ve got plenty of stories but I wouldn’t put most of them in print!” he exclaims.

We order a starter of grilled halloumi and my selection of strapatsada, a traditional dish of eggs and tomatoes topped with feta cheese.

He is hesitant to try it but he will later say, with some surprise: “Do

pany in Cyprus. Over the past 45 years, it has evolved into Action Global Communications which now runs a network of 40 offices in Central and Eastern Europe, the Balkans, the Baltics, Russia, the CIS countries, Central Asia, the Middle East, North Africa and the Eastern Mediterranean.

lowing his self-deprecating humour to come to the fore: “Of course, when we decided to open in places like Kazakhstan, a lot of people thought it was just a case of ‘Tony going mad and throwing his money away!’ but now they’ve either followed our example or they come to us to do work for them.”

This comment, like many others during our meal, is punctuated by his infectious laugh.

“We were the first to open in Libya and recently we were the last to close,” he says with a tinge of regret before regaining his upbeat style and noting that the central Cairo office is doing particularly well, so much so that it is now 100% owned

by Action, whose Russian branch is also thriving. The Cyprus head office is also in the process of expanding but, for now, the Founder and Managing Director is not willing to divulge precisely what those plans are until he’s ready.

Tony Christodoulou may be 72 and a grandfather,

CYPRUS OFFERS A VERY FRIENDLY ENVIRONMENT FOR INTERNATIONALLY-ORIENTED COMPANIES AND PROJECTS you know? I never liked this before but it’s very good!”

Action Public Relations was the first full-service PR Com-

“In many of the countries where we operate, we were the first PR firm there,” he says with pride, before al-

with his two children now running the company, but he still goes to work every day. “I don’t know what I’d

www.goldnews.com.cy | GOLD | 101

| LUNCH WITH GOLD |

do if I didn’t have it,” he muses. “I’d probably drop dead on Day Two of my retirement!”

He notes with interest that in Cyprus and elsewhere there is no lack of people who are considerably older than him and still involved in their businesses.

His conclusion is that “What they call micro-managing is fine, for as long as you feel like it and you can do it.”

So although the word ‘retirement’ is not part of his vocabulary where his company is concerned, he did recently step down from his post of Honorary Consul of New Zealand, though his links with the country – which go back more than 40 years – are unlikely to change a great deal since his son Chris has now been appointed, a development that clearly pleases him.

The main courses arrive. Tony has chosen koupepia (stuffed vine leaves) while I have opted for the chicken souvlaki with vegetables. I will stick to a small beer but my dining companion prefers to down several shots of zivania throughout the course of the meal. “I have introduced plenty of visiting VIPs to our national spirit!” he says and the restaurant echoes with his laughter once more. We later disagree over how many he drank – he insists that it was only three while I am convinced that he knocked back five small glasses – and he considers himself vindicated by the bill which indeed registers three. But knowing how Cypriot restaurateurs treat their regular customers, I remain suspicious about possible free glasses!

The conversation turns to the various scandals that have been making the headlines in Cyprus in recent weeks.

“They’re unbelievable,” he says, referring, I assume, to both the events and the protagonists. “It’s disgusting!

People are accused of things and they don’t even think they need to resign.

It’s terrible! We have represented the Financial Times and the Wall Street Journal for over 30 years and although it’s a commercial relationship, we’ve had journalists calling us up and asking us, ‘What the hell’s happening there? Is

102 | GOLD | The Business Magazine of Cyprus

it true what we’re hearing?’”

At least these things are finally coming to light, I say, which ultimately has to be a good thing. He agrees. “You’re right but it makes me wonder where we’re going and how much more we’re going to find out. The image that we are projecting right now is terrible.”

He thinks about this for a few seconds and then asks: “Who’s the best President this country has ever had?” I answer unhesitatingly: “George Vassiliou”. “That is the right answer!” he says, downing another shot of zivania, “and one reason is that he wasn’t tied down

1914-1918 which dealt with digitising WWI memorabilia in more than a dozen countries. “So it began as a company project but I found the story of the Cyprus muleteers so interesting that I wanted to discover more. I was really surprised by the numbers of the volunteers. Don’t forget that although Cyprus was annexed at the start of the war in 1914, it wasn’t a crown colony until 1925 and yet all those Cypriots – including Turkish Cypriots – volunteered. I thought that it was time to give them some long overdue recognition

CYPRUS OFFERS A VERY FRIENDLY ENVIRONMENT FOR INTERNATIONALLY-ORIENTED COMPANIES AND PROJECTS by political party obligations to the trade unions and he was never scared to take decisions.”

We agree not to spoil our lunch with thoughts of errant politicians and we turn to a more personal project he is working on – with great excitement – at the moment. Earlier, before we stepped out of his office and made our way to the restaurant, he had showed me preparatory drawings and models for a monument to the Cypriots who fought in World War One, serving with the Macedonian Mule Corps.

“I was amazed when I heard this story,” he says, suddenly filled with great enthusiasm. “In 1916, the British army decided to set up an army corps of muleteers to operate in the mountains of Macedonia. An astonishing 11% of the population signed up – 16,000 men, out of a total population of around 150,000 at the time. Imagine that!”

Cutting a long and fascinating story short, he tells me how Action Global Communications had won the contract for an EU project called Europeana

and next year will be the centenary of the formation of the Macedonian Mule Corps that they served in.”

He is now in the process of fundraising for the monument to the Cypriot muleteers and talking to sculptors who have shown an interest in creating it.

We decide against a dessert and/or coffee and Christodoulou offers one more plea to pay the bill. That’s not how it works, I tell him. “Well, at least it’s very reasonable here,” he says. As we leave the restaurant and make our way back to his office, he asks me who else I’ve been dining with for this feature.

“No-one. You’re the first,” I tell him.

“It will be just one person each month.”

He is somewhat taken aback by this but quickly recovers and says, “Well I hope you found something interesting among everything I told you and that it wasn’t too boring.”

I assure him that ‘boring’ is a word that no-one would ever use to describe Tony Christodoulou. “Good!” he exclaims. “I need to talk to someone about that muleteers project now. Bye!”

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

BUSINESS CLASS

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What is your favourite international destination?

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Christodoulos Angastiniotis

The Chairman of the Cyprus Investment Promotion Agency, on his corporate travel experiences, why Emirates is the worldâ&#x20AC;&#x2122;s best airline and more. By Effy Pafitis What is the most impressive hotel you have ever stayed at?

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

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www.goldnews.com.cy | GOLD | 103

WHAT’S T’S

ON

THINGS

to do

Amy Dickson

Russian Cultural Days

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Alessio Bax

he Russian Cultural Days festival which began on 2 May continues at the Trakasol Cultural Centre at Limassol Marina with a piano recital by Cypriot pianist Manolis Neophytou, who will perform works by Russian composers, including Rachmaninoff and Tchaikovsky on 15 May. WORLD-RENOWNED ARTISTS PERFor three nights (22-24 May), clowns, FORM IN NICOSIA AND PAPHOS jugglers, magicians and acrobats from St. Petersburg’s Stage Circus will perform. he International Pharos The 19th century Trakasol building at Chamber Music FestiLimassol Marina was once a carob wareval, long recognised as house. It now houses a marine training the most important anschool and a cultural centre with mulnual classical music event in Cyprus, celebrates its ti-purpose function rooms 15th anniversary this for exhibitions, Tel: year by welcoming conferences and 25372855 some of the most events.

Website: remarkable artists Trakasol www.limassolmari- Cultural on the internana.com/ tional music Centre, russian-culturscene for nine Limassol al-days.

Vadym Kholodenko concerts in the Marina.

15th International Pharos Chamber Music Festival

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104 | GOLD | The Business Magazine of Cyprus

NICOSIA WEDNESDAY 20 MAY: AMY DICKSON FRIDAY 22 MAY: ALESSIO BAX TUESDAY 2 JUNE: VADYM KHOLODENKO KOUKLIA MONDAY 25 MAYSATURDAY 30 MAY: VARIOUS ARTISTS

Royal Manor House at Kouklia and The Shoe Factory, in Nicosia.

The Festival opens with a recital by twice Grammy-nominated saxophonist Amy Dickson, followed two days later by a recital by the celebrated pianist Alessio Bax. From Monday 25 May, six concerts will be performed at Kouklia, Paphos. Along with the distinguished cellist Alexander Chaushian, Berlin Philharmonic Concertmaster Daishin Kashimoto, violinists Boris Brovtsyn and Levon Chilingirian, violist Diemut Poppen and pianist Ashley Wass, this year’s Festival also hosts pianist Vanessa Benelli Mosell, Grammy-nominated violist and conductor Maxim Rysanov, violinist/ violist Yura Lee, cellist Marc Coppey, double-bass player Hayk Khachatryan, flautist Massimo Mercelli, horn player Radovan Vlatkovic, and Cypriot soprano Margarita Elia.

The Festival ends in Nicosia with a piano recital by the sensational Vadym Kholodenko (photo).

All concerts start at 8.30pm. Tickets (€15 / €10 concessions) are available directly from the Pharos Arts Foundation website: www. pharosartsfoundation.org For more information, contact the Pharos Arts Foundation on 22663871.

Culture from Israel

A RIALTO THEATRE, LIMASSOL SATURDAY 16 MAY AT 7PM. TICKETS: €15 & €10

La Fille mal gardée

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allet lovers have a chance to see the Royal Ballet’s performance of La Fille mal gardée as part of the Royal Ballet Live series at the Rialto Theatre, Limassol, on Saturday 16 May at 7pm.

Frederick Ashton’s final full-length ballet La Fille mal gardée (The Wayward Daughter) is one of his most joyous creations, inspired by his love for the Suffolk countryside. It is based on an 1828 French ballet and the music was adapted by John Lanchbery from Ferdinand Hérold’s original score. La Fille mal gardée was a resounding success on its premiere in 1960 and has remained a firm favourite in The Royal Ballet’s repertory.

La Fille displays some of Ashton’s most virtuoso choreography – the youthful passion of Lise and her lover, Colas, is expressed in a series of energetic pas de deux. The ballet is laced with good humour and a whirl of dancing chickens, grouchy guardians and a halfwit suitor take to the stage. Ashton affectionately incorporated elements of national folk dance into his choreography, from a Lancashire clog dance to a maypole dance, making La Fille mal gardée (despite its title) The Royal Ballet’s most emphatically English work. Osbert Lancaster’s colourful designs reinforce the bucolic wit of the production.

s part of its 2015 Season of Culture, the Embassy of Israel in Cyprus is organizing an exhibition by the Jerusalem-born, London-based artist Amikam Toren. Since the late 1970s, Toren has worked and reworked the notion of representational/tautological paintings which propose a unity between form and content.

The exhibition opens on 26 May and continues until 27 June at Art Seen, (66B, Archbishop Makarios III Avenue, Nicosia).

Yossi Sassi is an Israeli rock music pioneer, co-founder of the progressive rock band Orphaned Land. His debut album Melting Clocks was released In March 2013. On 27 May, he will give a lecture/ presentation of his inspiration, passion and music. The following day he will give a master class/guitar music clinic.

LECTURE: 27 MAY, 9.00PM MASTERCLASS: 28 MAY, 11.00AM EGOMIO CULTURAL CENTRE, 8, NEAS ENGOMIS STREET, ENGOMI, NICOSIA TEL: 22781104

Yossi Sassi

OPENED 6 MAY, CONTINUES UNTIL 5 OCTOBER 2015.

A. G. LEVENTIS GALLERY, 5, A. G. LEVENTIS (EX-LEONIDOU) STREET, NICOSIA TEL: 22668838 OPEN: DAILY (EXCEPT TUESDAY) 10AM-5PM, WEDNESDAY 10AM-10PM.

Creative Visions: Anastasios G. Leventis & West Africa

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his exhibition traces A. G. Leventis’ path to success, a nation’s struggle for freedom and a group of artists’ transition to modernism. From Ghana to Nigeria, from colonialism to independence, it is a journey in the footsteps of Anastasios G. Leventis, through art, photography and much more.

At the age of 18, Anastasios G. Leventis (1902-1978) found employment in rural south-eastern Nigeria with an Anglo-Greek company. Two years later, he moved to Abeokuta in the south-west of the country to work for another British company as branch manager of their branch. By 1928 he was Deputy General Manager of the G.B. Ollivants company in Nigeria and, in 1929, was transferred to Accra, capital of the Gold Coast (now Ghana), to take over as general manager of the company’s business there, as well as in the Ivory Coast and Togo. In 1936 Anastasios G. Leventis formed his own company, which was soon to rival the large, long-established trading companies based in England, France and Switzerland that stood at the heart of the colonial West African economy. By the time of A.G Leventis’ death in 1978, it had become one of the largest enterprises – and one of the two largest employers – in Nigeria, and poised to expand into other parts of the world.

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A DAY IN THE LIFE

Eloiza Savvidou

“I am officially the CEO of Junior Achievement Cyprus and a co-founder of Chrysalis LEAP but I’m not a person who likes titles. Actually, I don’t like anything that, metaphorically speaking, puts me in a box. Unlike most people, I tend to work in places like cafés or wherever I feel more inspired. I try to impress upon everyone I work with that it’s not all about putting in a Nine-to-Five shift but it’s rather about performance, about instilling passion, drive and motivation in others so that they want to do a good job. In both organisations I feel I am helping other people pursue their dreams, by cultivating some basic skills in, for example,

entrepreneurship, which is also about creativity, confidence, thinking outside the box and taking initiatives. I was born to refugee parents who realized early on how important it is to have a good education and a university degree, so although I wasn’t told specifically that I should aim for a particular profession, I grew up with the idea that I needed to have ‘something solid’ at which I would be able to make a living. I decided to study law and after obtaining my degree at Bristol University, I applied to Ernst & Young to train as a chartered accountant.

Working for an international organisation in London and being exposed to a completely

The CEO of Junior Achievement Cyprus and co-founder of Chrysalis LEAP on her love of travel, XIIR ÁGXMSR ERH FIMRK LIVWIPJ

different mindset developed me as a person, as well as giving me new technical skills. Having qualified, I decided to follow my own course and I started my own law firm. Needless to say, everyone thought I was crazy and it was a bit of a struggle at first but it gave me great experience in running a company, as opposed to being an employee – it’s a totally different mindset.

One of the first things I decided to do was to provide pro bono work to entrepreneurs once a week and that small decision put me on the path that eventually led to Chrysalis LEAP and Junior Achievement. Here I finally found similar-minded people who don’t mind sacrificing time and money because what we are doing is so fulfilling. That’s what gives me all this energy and enthusiasm. I can be myself and it’s liberating. I also get a lot of fulfilment from seeing others doing something that satisfies them. I enjoy reading books like The Art of Possibility [by Rosamund Stone Zander and Benjamin Zander] and right now I’m reading The Celestine Prophecy [by James Redfield]. I still read teen fiction, too, and I love the Harry Potter books!

My great passion is travel. I remember having a big atlas as a child and I was always fascinated by other countries. Last year I went to Mongolia and Thailand

but my favourite country is Japan. I find it completely other-worldly. The My kind of people there reading are incredibly honest; they have remarkable values.

Since childhood, I have always liked trying new experiences My favourite and challenges, ÀFWLRQ VHULHV which is why three years ago I ran a half marathon, for example. I constantly want to learn more about myself. I Japan, don’t reject the my favourite FRXQWU\ ‘typical’ ambitions that most other women of my age have – marriage, children etc. – but I keep thinking that there must be something more! I think my biggest challenge is finding the right work/ life balance – my boyfriend certainly thinks so! – but I am very happy doing what I am doing, even though I feel that I am still searching for something.

Whatever happens in the future, I am sure that my life won’t be boring!”

IT’S NOT ALL ABOUT PUTTING IN A NINE-TO-FIVE SHIFT BUT IT’S RATHER ABOUT

PERFORMANCE

106 | GOLD | The Business Magazine of Cyprus

Time to bank with RCB The Bank you can trust

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