GOLD MAGAZINE ISSUE 44

Page 1

NE W

ISSUE 44 NOVember 14 - december 13, 2014 PRICE €4.95

5 29 129 5 00 057 7

00001 >

powered by:

the international investment, finance & professional services magazine of cyprus

Christos Mavrellis Managing Partner, Chrysses Demetriades & Co LLC

Christos Mouskis Chairman, Μuskita Hotels

PHIDIAS PILIDES

ANDREAS DEMETRIOU Country Managing Partner, EY (Main Sponsor)

President, Cyprus Chamber of Commerce & Industry (Organiser)

LEADERSHIP

excellence Brought to you by

The recipients of the 2014

KEBE Business Leader Awards

SHIPPING

INTERVIEWS

LIFESTYLE

The Tide Is High Fleet Management celebrations

George Papanastasiou Christos Theocharides Andrew Lumley-Holmes

Touch the Sky Minthis Hills Luxury Resort

MICHALIS (ALKIS) H. HADJIKYRIACOS Executive Chairman and Managing Director, Alkis H. Hadjikyriacos (Frou-Frou Biscuits) Public Ltd

ANDREAS ELEFTHERIADES President, European University Cyprus

12 PAGES ON THE AWARDS The Recipients

PARIS PAPAELLINAS Managing Director, Costas Papaellinas Organisation

The Event

PLUS MONEY / BUSINESS ECONOMY TAX & LEGAL LIFESTYLE / OPINION

CAPTAIN HEINRICH SCHOELLER Chairman, Columbia Shipmanagement

SUHVHQWV WKH

Friday 31 October, 2014 Evagoras Lanitis Centre (Carob Mill Complex), Limassol

The CCCI and IMH thank the sponsors of the KEBE Business Leader Awards Main Sponsor

Gold Sponsor

ƇƹƬƭƫƱ

Silver Sponsors

Organisers ΚΥΠΡΙΑΚΟ ΕΜΠΟΡΙΚΟ ΚΑΙ ΒΙΟΜΗΧΑΝΙΚΟ ΕΠΙΜΕΛΗΤΗΡΙΟ

CONGRATULATIONS TO THE RECIPIENTS OF THE KEBE BUSINESS

LEADER AWARDS CHRISTOS MOUSKIS Chairman Μuskita Hotels Business Leader in the Tourism, Hospitality and Leisure Sector CAPTAIN HEINRICH SCHOELLER Chairman Columbia Shipmanagement Business Leader in the Shipping Sector MICHALIS (ALKIS) H. HADJIKYRIACOS Executive Chairman and Managing Director Alkis H. Hadjikyriacos (Frou-Frou Biscuits) Public Ltd Business Leader in the Manufacturing Sector PARIS PAPAELLINAS Managing Director Costas Papaellinas Organisation Business Leader in the Commercial Sector CHRISTOS MAVRELLIS Managing Partner Chrysses Demetriades & Co LLC Business Leader in the Financial and Professional Services Sector ANDREAS ELEFTHERIADES President European University Cyprus Business Leader in the Services Sector GEORGE PARASKEVAIDES EY Honorary Award: Overall Contribution to Entrepreneurship

12 N G A P ES O ARDS THE AW s

nt ecipie The R

t The Even

8 EDITORIAL 10 UP FRONT 16 FIVE MINUTES WITH…

Issue 44 November 14- December 13, 2014

+ OPINION THE ECONOMIC POWER OF MIGRATION By Dr Savvas Savouri 78

18 74 80

32 FEATURES 30 | WORLD-CLASS SPEAKERS AT THE 5th LIMASSOL ECONOMIC FORUM This year’s gathering looks set to be the best Economic Forum so far, not least because of the presentation by Lord Dobbs of Wylye, better-known as Michael Dobbs, bestselling author of House of Cards.

32 | SIZE MATTERS! It may be a small country but, when it comes to technology, Cyprus has a great deal going for it, says Christos Theocharides of AMS.

36 | THE TIDE IS HIGH Fleet Management Limited has just celebrated its 20th anniversary.

SPECIAL

72 72 | CARREFOUR TO THE RESCUE! Michalis Panayides, Commercial Director of Carrefour Cyprus, explains how the island’s biggest retailer supports society through the bad times as well as the good.

74 | AN ENGLISHMAN ABROAD Andrew Lumley-Holmes, an international independent financial adviser, arrived in Cyprus in July, having spent the previous six and a half years living and working in Moscow and Hong Kong.

80 | TOUCH THE SKY Taking shape in Paphos, Minthis Hills resort is set to elevate Cyprus’ island living to stratospherically lavish proportions.

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

ADVERTISING SUPPLEMENT

39 | ADMINISTRATIVE SERVICE PROVIDERS

86 88 90 92 94

{money} {business} {economy} {tax & legal} {lifestyle}

EDITORIAL

Follow the Leader Leadership and learning are indispensable to each other. John F. Kennedy

Y

ou may have had a feeling of déjà vu on seeing this month’s cover photo. More awards? Well, yes, but these were somewhat different from other business awards that are handed out in Cyprus and elsewhere in that, for a change, they honour individuals rather than companies and organisations. The goal of the KEBE Business Leader Awards, organised on 31 October by the Cyprus Chamber of Commerce & Industry (KEBE being its Greek acronym) and IMH, is to recognise individual leadership excellence in key sectors of the Cyprus economy. Few would question the choice of leaders selected to receive one of the seven inaugural awards (see pages 24-29 for more details) and the truth is that there is already no shortage of good candidates for the Business Leader Awards in the years to come. The country’s private sector could not thrive without good leaders but what of those who take on the role of leader in other areas? The political leaders, the party leaders, the spiritual leaders? Anyone with a basic knowledge of modern Cypriot history can tell you that great leadership has been conspicuous by its absence and some would simply point to the island’s present circumstances as proof of the argument. This is to simplify things, of course, and is a disservice to the few exceptions to the rule – you will be hard pushed today to find anyone who does not recognise the success of President George Vassiliou’s term of office (1988-1993), even if he failed to secure a second five years – but our experience of the last decade is enough to convince us that our leaders have, to a greater or lesser extent, failed us. Would we be able to find seven nominees for the Political Leader Awards? It is very unlikely, even if we were honour someone posthumously. And for every President of the Republic, there are countless “wannabes”, many of them in the House of Representatives who have really been showing their true colours recently and letting everyone see that their populism and self-interest knows no bounds: populism in the way they were willing to jeopardise the disbursement of €350 million by passing bills which they knew were unacceptable to the Troika; self-interest in the way they raised a great fuss about the use of official cars by public officials and then passed legislation entitling “only” 29 officials to use an official car 24 hours a day and another 73 officials eligible to use one for official duties and, in any case, postponing the law’s enforcement until 2016. Among those entitled to a free car are all past Speakers of the House and MPs are not likely to remove such a privilege from their party colleagues... US media figure Walter Cronkite once said: “We are not educated well enough to perform the necessary act of intelligently selecting our leaders.” At least this suggests that Cyprus is not the only place where that happens. Fortunately, business leaders are more plentiful here and many of them will be gathering in Limassol for the 5th Limassol Economic Forum on 28 November. Among the speakers is Lord Dobbs of Wylye, better to known to most of us as Michael Dobbs, the author of House of Cards, which has twice been filmed for television. Those who have read the trilogy or seen the BBC adaptation will know that there is a fascinating Cyprus connection with the third book The Final Cut, where Francis Urquhart champions a treaty resolving the Cyprus Problem while secretly working to bring offshore oil deposits under the control of the Turkish Cypriots so that a Turkish-British consortium will have the drilling rights. This John Vickers, was written 20 years ago! Dobbs is clearly a man with the vision Chief Editor required of a great leader. Let’s give him citizenship at once! john@imhbusiness.com

and get an annual subscription to both Gold & IN Business

Call us on (+357) 22505555

ISSUE 35 FEBRUARY 14 - MARCH 13, 2014 PRICE €4.95 00001 >

POWERED BY:

5 291295 000577

Subscribe today for just €90

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

BANKING How Spain restructured its system

BITCOIN The Future of the Digital Currency

INTERVIEWS Peter Greenberg Matthew Kidd Alexis Tsielepis

;OL -\[\YL

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

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

OFFER INCLUDES

FREE

ACCESS TO DIGITAL EDITIONS

Cover Photography by Jo Michaelides

PUBLISHED BY IMH ISSN 1986 - 3543

MANAGING DIRECTOR

George Michail

GENERAL MANAGER

Daphne Roditou Tang MEDIA MANAGER

Elena Leontiou EDITOR-IN-CHIEF

John Vickers JOURNALISTS

Effy Pafitis, Chloe Panayides CONTRIBUTORS TO THIS ISSUE

Persella Ioannides, Dr. Savvas Savouri ART DIRECTION

Anna Theodosiou SENIOR DESIGNER

Alexia Petrou PHOTOGRAPHY

Jo Michaelides MARKETING EXECUTIVE

Kevi Chishios SALES & BUSINESS DEVELOPMENT EXECUTIVE

Phivos Karayiannis ADVERTISING EXECUTIVES

Irene Georgiou, Christopher Constantinou OPERATIONS MANAGER

Voulla Nicolaou SUBSCRIPTIONS

Myria Neophytou PRINTERS

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

UP FRONT

DHL Introduces the Parcelcopter

D

HL recently beat all the competition to become the first company to use a small drone to make deliveries. Medication and other urgently needed goods will be regularly delivered to the North Sea island of Juist, in Germany, by a flying delivery drone, nicknamed the Parcelcopter. If the pilot project proves successful, it will be used for the delivery of parcels to other remote or isolated areas. DHL’s yellow drone is powered by four identical fixed pitch propellers.

Its total weight is 5kg (including the delivery parcel), with the weight of the aircraft alone standing at a mere 3.8kg. According to the company, the parcelcopter takes a fully automated route and can be steered in any direction. The parcel will be placed below the aircraft in a yellow container. DHL has developed a special air-transport container that is extremely lightweight and constructed to protect against rain, snow and dust, in order to optimally secure the goods during transport.

CYPRUS BANKS EMERGE WELL FROM

STRESS TESTS

T Caramondani Group’s New Headquarters

T

he Caramondani Group inaugurated its new state-of-the-art headquarters last month, in the presence of state HUK NV]LYUTLU[ VɉJPHSZ I\ZPULZZ JVTmunity representatives, and associates of [OL JVTWHU` MYVT *`WY\Z HUK HIYVHK ;OL I\PSKPUNZ VɉJPHS VWLUPUN ^HZ JHYYPLK V\[ I` the Minister of Energy, Commerce, Industry HUK ;V\YPZT @PVYNVZ 3HRRV[Y`WPZ *,6 .LYHZPTVZ *HYHTVUKHUPZ KLZJYPILK [OL VWLUPUN VM [OL UL^ I\PSKPUN HZ H RL` investment in the growth of the Group and an enhancement of its presence and image PU *`WY\Z HUK HIYVHK *HYHTVUKHUPZ UL^ headquarters is located in the Industrial Zone at Pera Chorio Nisou and houses the managerial and administrative personnel of most of [OL .YV\WZ JVTWHUPLZ ;OL *HYHTVUKHUP .YV\W MV\UKLK PU -HTHN\Z[H PU VWLYH[LZ PU Ä]L JV\U[YPLZ HUK OHZ H ^VYRMVYJL VM TVYL [OHU LTWSV`LLZ

VIBER SEEKS PARTNERSHIPS FOR GAMING PLATFORM PROJECT

C

yprus-based instant messaging smartphone application Viber Inc. is reportedly exploring possible partnerships with social-gaming companies, in order to establish a gaming branch of services. The Israeli startup, which was acquired by Japanese e-commerce giant Rakuten Corp. in February of this year, is seeking partners to facilitate the integration of games into its instant messaging, voice and video calls service. Viber Chief Executive, Talmon Marco, previously revealed that the company would announce a gaming platform this year, a service Viber hopes will create new revenue. Viber offers a free instantmessaging service, as well as charged calls to landlines or phones that don’t have the Viber application installed. At the time of acquisition, Rakuten said Viber had roughly 300 million users. Following the completion of the deal, Rakuten Chief Exeutive, Hiroshi Mikitani, commented that the company has “tremendous potential as a gaming platform.�

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

hree Cyprus banks completed the European Central Bank’s panEuropean stress tests with a capital surplus, while one concluded the exercise with a manageable shortfall. Though capital shortfalls were revealed for Bank of Cyprus, the Cooperative Central Bank (CCB) and Hellenic Bank, the results of the baseline scenario were calculated after taking into account the recapitalisations already made or announced in 2014, showing that no Cypriot bank needs additional capital, as the measures taken more than cover the capital needs which were calculated through the exercise. According to the ECB results, Cyprus Cooperative Central Bank recorded a surplus of â‚Ź331 million, Bank of Cyprus a surplus of â‚Ź81 million, and RCB a surplus of â‚Ź112 million. Hellenic Bank, meanwhile, registered a capital shortfall of â‚Ź176 million but the bank announced further mitigating factors, amounting to â‚Ź71 million, therefore reducing the overall capital shortfall to â‚Ź105 million. It will proceed with a rights issue, to cover the capital shortfall that emerged from the exercise. In a press release, the Central Bank of Cyprus described the results as “very positive,â€? noting that they will be conducive to strengthening general confidence in the country’s credit institutions, which will, in turn, contribute to economic growth.

FXTM PARTNERS LAUNCHES

COMPETITION

THE MARSHALL ISLANDS Corporate Registry

FOR INTRODUCERS

T

hrough its latest competition, 3PTHZZVS IHZLK [YHKPUN Ă„YT -VYL_;PTLÂťZ HɉSPH[L WYVNYHTTL -?;4 7HY[ULYZ PZ VɈLYPUN HZWPYPUN 0U[YVducers an opportunity to showcase [OLPY UL[^VYRPUN ZRPSSZ >P[O H WYPaL WVVS ^VY[O PU [V[HS ^OPJO ^PSS IL ZOHYLK HTVUN [OL [VW Ă„]L ^PUULYZ [OL JVTWL[P[PVUÂťZ

\S[PTH[L NVHS PZ [V YLMLY JSPLU[Z [V -?;4 ¸>L have designed this competition to provide an ideal opportunity for Introducers to put their UL[^VYRPUN ZRPSSZ [V [OL [LZ[ HUK IL YL^HYKLK MVY [OLPY LɈVY[Z š JVTTLU[LK .LVYNL :[`SPHUV\ *OPLM 4HYRL[PUN 6ɉJLY VM -VYL_;PTL ;OL JVTWL[P[PVU ^PSS Y\U MVY TVU[OZ MYVT 5V]LTILY \U[PS 4H`

SUPREME COURT RULES

FORECLOSURES BILLS

UNCONSTITUTIONAL

25% of The Oval Sold T ess than six months since The Oval was presented to the public for the first time, Cybarco Development Ltd has already sold 25% of the building. Construction work is progressing as scheduled, according to Cybarco CEO Michalis Hadjipanayiotou. Situated in the heart of Limassol, just 100 metres from the sea, the landmark 16-floor structure scheduled to be completed by the end of 2016. Designed by world renowned architects Atkins, in collaboration with architects WKK and Armeftis & Partners, The Oval will be the tallest commercial building in Cyprus, reaching some 75 metres. Cybarco, a leading Cyprus luxury property developer, is part of the Lanitis Group. Other notable Cybarco projects include Akamas Bay Villas, Sea Gallery Villas and Limassol Marina, the country’s first residential marina project.

L

CORRECTION

he Supreme Court reached a unanimous verdict on October 31, ruling that four foreclosures bills approved by the House of Representatives were unconstitutional. The bills were referred to the Supreme Court by President Nicos Anastasiades. New foreclosures legislation was a precondition for the island’s next tranche of financial aid from its Troika of international lenders. The 6th programme tranche of â‚Ź433 million was not disbursed in September 2014 as planned, due to the fact that, in the Troika’s view, the four controversial bills essentially prevented banks from taking effective action on non-performing loans. Government officials described the court ruling as “a win-win situation,â€? as Cyprus will now be able to resume its economic adjustment programme. “This is the time for responsibility, consensus and cooperation between the government and political parties, to form a strong and effective framework on insolvency that will safeguard even more vulnerable groups of the population and the main residence of those who need the protection of the state,â€? said Deputy Government Spokesman Victor Papadopoulos.

Due to a mistaken entry in the Gold photo archive, last month’s interview with Wes Porter, CEO of Hermes Airports was accompanied by a photo of his predecessor in the post. We apologise for the error.

The leading jurisdiction for: ‡ $VVHW 0DQDJHPHQW ‡ 9HVVHO 2ZQHUVKLS ‡ 5HDO ,QWHOOHFWXDO Property Holdings ‡ ,QLWLDO 3XEOLF 2IIHULQJV 3XEOLFO\ 7UDGHG &RPSDQLHV

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

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

UP FRONT

CIPA International

Investment

Awards Lunch I MH and Gold magazine held a celebratory lunch at the Hilton Park Hotel Nicosia on Wednesday October 15 for the recipients of this year’s CIPA International Investment Awards and the sponsors of the event which took place at the Presidential Palace on 10 September.

Marios Kapiris, IBM and Marios ;HUV\ZZPZ *07(

3V\JHZ 4HYHUNVZ ;-0 4HYRL[Z (UKYLHZ 7L[ZHZ ,\YVIHUR *`WY\Z *OYPZ[VKV\SVZ (UNHZ[PUPV[PZ HUK *OHYPZ 7HWHJOHYHSHTIV\Z *07(

4HYPH ;OLVKVYV\ ;-0 4HYRL[Z *OHYPZ 7HWHJOHYHSHTIV\Z *07( 4HYPVZ 2HWPYPZ 0)4 HUK *OHYPZ *OHYPSHV\ ;-0 4HYRL[Z (UKYLHZ 7L[ZHZ ,\YVIHUR *`WY\Z 3PHRVZ ;OLVKVYV\ PwC, George Michail, IMH ;OVTHZ 2HaHRVZ *07( .LVYNL Michail, IMH and Charis Charilaou, ;-0 4HYRL[Z

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

(UKYLHZ 7L[ZHZ ,\YVIHUR *`WY\Z 3PHRVZ ;OLVKVYV\ 7^* .LVYNL 4PJOHPS 04/ *OYPZ[VKV\SVZ (UNHZ[PUPV[PZ HUK 3V\JHZ 4HYHUNVZ ;-0 4HYRL[Z

UP FRONT

WISTA Annual General Meeting and Conference 2014

T

he Women’s International Shipping & Trading Association (WISTA) held its 2014 in Limassol last month with delegates attending from 35 countries. The theme of the conference was “Shipping Connects”, chosen, as Despina Panayiotou Theodossiou,

President of WISTA Cyprus said during her opening address, “to encourage the exchange of ideas on some of the most current and interesting topics facing the maritime industry.” From the opening session, which challenged representatives from several shipping companies and

Delegates from WISTA USA

trade associations on their views of performance through and folSV^PUN [OL ÄUHUJPHS JYPZLZ [V [OL ÄUHS ZLZZPVU ^OPJO VɈLYLK [OL forward thinking idea of salvage companies participating in ship design, the audience enjoyed and was engaged throughout the event. WISTA Cyprus Executive Committee

Karin Orsel, President, WISTA International Despina Panayiotou Theodosiou, President of WISTA Cyprus, and Socrates Theodosiou

Alecos Michaelides, Permanent Secretary, Ministry of Communications & Works

Marianna Charalambous, John Tomich, Finn Amund Norbye

Marios Demetriades, Minister of Communications & Works

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

2014 KPMG Compensation and Benefits Survey Following the successful completion of KPMG’s Compensation and Benefits Survey in 2008, 2009 and 2011, KPMG’s People & Change Practice announces the launch of the 2014 KPMG Compensation and Benefits Survey. The KPMG Compensation and Benefits Survey is the only large scale compensation survey which provides representative data for the Cyprus labor market. The Survey’s participants are companies of all sizes operating within different sectors of the Cyprus market thus allowing our expert Advisors to tailor the positions analyzed and the information presented within the report to the specific needs of the Cyprus labor market. Aiming to provide our clients with valuable and significant information which will enable their companies to build a competitive advantage in the labor market, the main objectives of this year’s Survey are the following: •

• •

To present the common policies, practices and strategies of compensation and benefits implemented by a representative sample of companies operating within the Cyprus market; To present remuneration and benefits data of 180 generic and industry-specialized positions; and To present the impact of the economic crisis on remuneration and benefits data.

We would be honored to have your company participate in the Survey, by providing us with all the required information. All participants shall benefit by participant specific prices for the purchase of the final report and publicity upon the announcement of the Survey’s results. For more information, please contact us: George Tziortzis Board Member Head of Management Consulting T: 22 209292 E: gtziortzis@kpmg.com Marios Papalazarou Associate People & Change T: 22 209107 E: mpapalazarou@kpmg.com

www.kpmg.com

©2014 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.

Management Consulting People & Change Services

INTERVIEW

five minutes with...

George Papanastasiou Managing Director, VTT Vasiliko Ltd.

W

hat was the impetus behind establishing a presence in Cyprus? VTTI wanted to invest in an oil terminal in the Eastern Mediterranean, which is considered a region of great commercial activity for oil products yet does not have adequate facilities to store them. VTT Vasiliko Ltd was founded in 2010 as a subsidiary of VTTI B.V. and the company strategically chose Cyprus for this investment, with the project intended to connect Europe and the Black Sea with markets in the Middle East and Asia. Why is Cyprus considered to be ideally positioned to support such activities? Cyprus meets a specific set of criteria that makes it an ideal location for this terminal: it has a favourable geographical location, it is a member of the EU and therefore adopts the concept of bonded warehousing, which favours the activities of such terminals; it has deep sea waters close to shore that can accommodate large vessels; it has a modern economy, and offers a very good level of service with a highly qualified English-speaking workforce. VTTV is about to begin operations. What has been your strategy in bringing this project to fruition? The terminal is providing a new service to a country that has no experience of this specific industry. As a result, during the development of this project, we faced many challenges which we managed to overcome by developing knowledge, skills and expertise. Cyprus has always been mostly tourism-

oriented and there was a general belief that tourism cannot be combined with heavy industry. Therefore, our strategy focused on changing the mentality of the bureaucrats. In addition, current legislation does not always accommodate and benefit an oil terminal. Our goal was not just to overcome these challenges but to also disseminate knowledge, establish new conditions for similar future projects and lead the way for the development of a whole new industry. What are your plans for the future, once Phase 1 gets under way? Phase 1 will certainly begin operations this month with a storage capacity of 544Km³ of fuel (gasoline, diesel, jet fuel, kerosene, naphtha, MTBE and FAME). We plan to expand the terminal with a Phase 2 that will create 13 tanks of total capacity of 305Km³ for the storage of fuel oil and crude oil and it is expected to be fully operational by the end of 2016. What will be the benefits to Cyprus as a result of VTTV’s activities? The terminal’s activities will be highly beneficial to Cyprus. As this type of terminal is the first of its kind in the Eastern Mediterranean, Cyprus will become a hub for companies that trade oil products and require storage facilities. This will lead to very positive outcomes for the Cyprus economy. We are talking about the creation of a whole new trading market. New job positions are being created and the local workforce is being enhanced with technical knowledge that did not previously exist in the country. In addition, fuel costs will be reduced due to increased competition in the inland market.

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

Port duties will generate profits for the Cyprus Port Authority of approximately €18 million per year, while the State will receive additional revenue from customs duties and the taxation of companies that market their products through the terminal. The project will also generate opportunities for synergies, sharing the infrastructure with other potential developments in the area, such as the LNG terminal. It has also initiated the development of specialised laboratories, and providers of towage and pilotage services that could potentially be useful for future oil and gas projects. Finally, an investment of this size and the significance of the project in the industry around the region positions Cyprus on the map for future foreign investments and business activities. How involved is VTTV with Cyprus’ budding energy sector? We feel we have already been of immense service to the island because we have put in place the groundwork for future large-scale energy infrastructure projects, such as the proposed LNG terminal. In addition, our infrastructure – especially the jetty – can be shared with other projects in the area, thus developing economies of scale. VTTV is one of the largest foreign direct investors in Cyprus. What needs to be done to further enhance Cyprus as a jurisdiction, encouraging further investment? Cyprus is strategically located, it is an EU country, and it provides a good financial and tax environment. However, it needs to improve its administrative and regulatory processes so as to provide a faster return on investments to future investors.

COVER STORY

LEADERSHIP

excellence 12 P Pages on the h A Awards, d the Recipients, The Event

O

n Friday 31 October, the inaugural KEBE Business Leader Awards ceremony took place at the Evagoras Lanitis Centre in Limassol. The awards, presented by EY, were organised by the Cyprus Chamber of Commerce & Industry and IMH. The Business Leader Awards honour leadership excellence in Cyprus and those individuals who have contributed to the growth not only of their own ÄYTZ I\[ VM LU[YLWYLUL\YZOPW PU NLULYHS through the implementation of best practices and innovative strategies. A total of 7 Awards were presented in the following categories: Business Leader in the Tourism, Hospitality and Leisure Sector Business Leader in the Manufacturing Sector Business Leader in the Commercial Sector Business Leader in the Financial and Professional Services Sector Business Leader in the Shipping Sector Business Leader in the Services Sector EY Honorary Award for Overall Contribution to Entrepreneurship The Platinum Sponsor of the awards was EY, the Gold Sponsor was Carrefour Cyprus and the Silver Sponsors were Carob Mill Restaurants and Zivana Loel. The event was streamed live by Cytanet on the InBusinessNews and Gold News websites.

Phidias Pilides, Christos Mouskis, Elizabeth Filippouli

THE NTS PIE RECI

Michalis (Alkis) H. Hadjikyriacos, Executive Chairman and Managing Director, Alkis H. Hadjikyriacos (Frou-Frou Biscuits) Public Ltd

Efthyvoulos Paraskevaides, on behalf of the late George Paraskevaides

Captain Heinrich Schoeller, Chairman, Columbia Shipmanagement

George Michail, Michalis (Alkis) H. Hadjikyriacos, Elizabeth Filippouli

Paris Papaellinas, Managing Director, Costas Papaellinas Organisation

Paris Papaellinas, Harris Georgiades

Efthyvoulos Paraskevaides, President Nicos Anastasiades, Elizabeth Filippouli

Christos Mavrellis, Managing Partner, Chrysses Demetriades & Co LLC Andreas Demetriou, Christos Mavrellis, Elizabeth Filippouli

Andreas Eleftheriades, President, European University Cyprus

George Tsakkistos, Andreas Eleftheriades, Elizabeth Filippouli

Captain Heinrich Schoeller, Thierry Noyer, Elizabeth Filippouli

Christos Mouskis, Chairman, Muskita Hotels

KEBE BUSINESS LEADER AWARDS

IN PICTURES

Charalambos Pilakoutas, Pilakoutas Group and Efthyvoulos Paraskevaides, J&P Ltd

Christos S. Christodoulou, CSC Christodoulou Ltd and Michalis Avraam, Michalis Avraam & Partners

George Strouthos and Yiannos Valanides, Laiko Group Kyproula Papachristodoulou, EY

Akis Kelepeshis, Top Kinisis Travel

Charis Pouangare, Bank of Cyprus and Antonis Papas, Lanitis Group of Companies

Michalis Panayides, Thierry Noyer, Alexandra Kasastoyianni, Michalis Sinnos and Vicky Vasiliou, Carrefour Cyprus

Andreas Michaelides, Democratic Rally and Harris Georgiades, Minister of Finance

Liakos Theodorou, PwC and Thomas Kazakos, Cyprus Shipping Chamber

Phidias K. Pilides, CCCI, President of the Republic Nicos Anastasiades and Andreas Demetriou, EY

Frixos Savvides, Hive Management Services Ltd and Demetra Kalogirou, CySEC

IMH Team

Andreas Petsas, Eurobank EFG Cyprus and Nicos Kyriakides, Deloitte

Antonis Astanios, Muskita

Christos Christoudias, Christoudias Logistics and Panayiotis Papaphilippou, Papaphilippou & Patisserie Panayiotis Ice Cream

Victor Mantovani, Mantovani Plotin Travel

Renos Andreou, Family Restaurants Andreou Co Ltd McDonald’s Cyprus

Emilios Savvides, Remedica

Daniel Anastasis, FARMAKAS ASA and Thanasis Mavros, EY

Eleni Antoniou, Qatar Airways and Chrysemili Psilogeni Kenevezou, Association of Cyprus Tourist Enterprises

Marios Kasapis and Kikoula Kotsapas, KEAN Soft Drinks

Platon Lanitis, Lanitis Group of Companies Iacovos Hadjivarnavas, Famagusta Chamber of Commerce and Industry

Nicolas Tofarides,Tofarco Ltd and Constantinos Ioannou, IMH

Polys Georgiades, Aretaeio Hospital and Christos Petsides, CCCI Dinos Lefkaritis, Lefkaritis Group and Christodoulos Angastiniotis, CIPA

Elizabeth Filippouli, presenter of the evening, Chair of the London-based strategic counsellors Global Thinkers

KEBE BUSINESS LEADER AWARDS

IN PICTURES Marios Orphanos, :V]JVTĂ…V[ Cyprus Limited

President Nicos Anastasiades talks to InBusinessNews journalist Andreas Costouris

Stavros Pantzaris, EY George Mavroudis and Andreas Matsis, CCCI Dieter Rohdenburg, Intership Navigation Co Ltd

Andreas Charalambous, Chrysses Demetriades and Angelos Paphitis, A.G. Paphitis & Co LLC

Yiannis Misirlis, Imperio Properties

Frixos Savvides, Hive Management Services Ltd and Akis Agapiou, Chrysses Demetriades & Co LLC

Andrea Antoniou, Fileminders and Constantinos Kapodistrias, Chr. Kapodistrias Ltd

Christos and Anastasia Mavrellis Christos Patsalides, Christos Patsalides LLC and George Pamboridis, Pamboridis LLC

Mariela Pastidou, Carrefour and Alexis Nicolaou, Dias Group

Andri Zisimou, Ex Libris Advertising Ltd and Andreas Hadjilambrou, Laiko Cosmos Trading

Christis Hassapis and Charis Pouangare, Bank of Cyprus

Vassilis Petrides, Laiko Cosmos Trading and Thierry Noyer, Carrefour Cyprus

Nebojsa Petrides, Shiseido Hellas SA Cyprus Branch

RST SOVE N O P S HE E N OF T

Laiko Cosmos prepared on-the-spot innovative cocktails with Zivana Loel as the main alcoholic ingredient.

Guests were presented with multiple presents from the sponsors: EY offered a Nina Ricci pen, Carrefour offered a quartet of branded cakes, Carob Mill Restaurants offered a bottle of carob syrup, while Laiko Cosmos handed out a bag containing Zivana 3VLS HUK H ZPS]LY Ă…HZR

TH VENUE TH E:

EVAG E LANORAS CENTITIS LIMA RE S SOL

9VZL Ă…V^LY arrangements created by Larnaca-based Cosmea Gardens decorated all the tables.

The Greek all-woman instrumental group Fortissimo played popular music pieces, performing twice at the request of President Nicos Anastasiades.

COVER STORY

THE LEADERS MICHALIS (ALKIS) H. HADJIKYRIACOS

Executive Chairman and Managing Director,

Alkis H. Hadjikyriacos (Frou-Frou Biscuits) Public Ltd

B

in the manufor sect

Do you agree with the saying “Great leaders are born, not made”? No, this is not true anymore as leaders can nowadays be appropriately educated, trained and self-developed so as to improve and master their leadership traits abilities and qualities. Such a statement could only have been relevant many years ago… What 3 qualities would you describe as essential for someone wishing to be an excellent business leader? To be a visionary strategist, a motivational leader, and a hard, hard frontline worker. How difficult was it for you to reach the stage where you felt that you knew what good leadership is all about? It was not very hard in my case, as several leadership qualities started “sprouting” out of me during the time of my military service around the age of 19.

Did you make lots of mistakes on the way? Is this inevitable? Oh yes! Quite a number of mistakes… and they are indeed inevitable at the early stages of one’s career. But learning from them makes us wiser and mistakes become rarer with experience. Did you have a good role model on whom you based your own leadership style or did you react against a poor one? Indeed I did have a role model! My father has been and still is my ideal example of a successful business leader, and I am still working on certain high standards of character that he possesses which I still aspire to attain… Is it important for a good leader to be popular with his/her employees? It is important to be loved, admired and respected.

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

Not every good manager becomes a good leader. Why do you think this is? This is true for all those managers who do not lead by example. And there are many of such a breed amongst us… Is there an international business leader that you admire? Yes, there are several, amongst whom are Roberto Goizueta, Warren Buffett, Jack Welch and Lee Iacocca. Is there a specific leadership style that everyone should aspire to or do individual leaders create their own successful style? Leaders should develop leadership qualities that best suit their character. It is important to genuinely be yourself rather than trying to resemble somebody else. There is no “onesize-fits-all” recipe to leadership. How does it feel to have been selected as the winner of the KEBE Business Leader Award in your particular sector? It feels quite good and motivating in such turbulent times but… at the end of the day what really counts out there is performance. Your results speak for you and nothing else. So we should keep an eye on the ball…and that is the bottom line.

PHOTOGRAPHY BY JO MICHAELIDES

r e d a e L s s e Busin acturing

orn in Nicosia in 1957, Michalis (Alkis) H. Hadjikyriacos studied Economics at The London School of Economics and Political Science (University of London) from where he graduated with honours. He then did his postgraduate studies in Business Administration at The City University Business School, London, where his thesis examined alternative methods of sales force compensation and motivation and their practical application in industry. He graduated in 1982 with a Marketing MBA. Between 1984 and 2004 he obtained further extensive education, attending numerous educational and professional seminars in Cyprus and abroad on business-related subjects covering administration, NLULYHS THUHNLTLU[ ÄUHUJPHS HUHS`ZPZ HUK WVY[MVSPV investment management. In 1991 and 1992 he received specialised education in biscuit manufacturing technology in Cambridge, UK. Since 1983 he has been the Executive Chairman, Managing Director and major shareholder of Alkis H.Hadjikyriacos (Frou Frou Biscuits) Public Ltd and its subsidiary companies. In 1995 he founded the investment arm of the group (Frou Frou Investments Ltd), the investment portfolio of which he manages personally. He was a member of the Board of Athena Investment Fund Ltd in1996-97 and of Cosmos Trading Ltd from 2008-2010. 0U OL MV\UKLK HUK LZ[HISPZOLK [OL ÄYZ[ *`WYPV[ breakfast cereals manufacturing industry under the trade name “Golden Choice”. Today he is a member of the Food Safety Council of the Ministry of Health and Chairman of the CCCI’s Association of Biscuit, Chocolate, Snack and Sugar Confectionery Manufacturers. He is married with four children.

ANDREAS ELEFTHERIADES President,

European University Cyprus

A

ndreas Eleftheriades, President of the European University Cyprus, is known for his wide range of academic activities. For more than 30 years he has been active, from various platforms and positions, in drafting and implementing the legal framework of, and bringing improvements to, the Higher Education system in Cyprus. In 1981, upon the completion of his studies in the USA, he returned to Cyprus where he began his career in various senior marketing positions in large insurance companies. At the same time he started teaching at Cyprus College and, from 1983, he undertook its reorganisation and overall management. After a journey full of challenges and struggles, he had the good fortune to see his dream come true – the foundation of a private university. Today, following the transformation of Cyprus College into the European University Cyprus, it has V]LY Z[\KLU[Z Ä]L (JHKLTPJ ZJOVVSZ TVYL [OHU Z[HɈ HUK P[Z V^U TVKLYU WYLTPZLZ (Uother of Andreas Eleftheriades’ major achievements came in 2011 when the university became a full member of Laureate International Universities. He is married with one daughter.

Do you agree with the saying “Great leaders are born, not made”? Like every other man or woman, great leaders are born with certain traits and in the course of their life they develop or acquire qualities which form their overall personality and character. I believe successful leaders cannot become so unless their innate characteristics are nurtured in the environment they are raised in, unless they are given the opportunity to prove themselves and unless their skills are honed through education and experience.Therefore, in my view successful leaders are both born and bred. What 3 qualities would you describe as essential for someone wishing to be an excellent business leader? I would say that an excellent business leader must have vision, perceptiveness and common sense. Progress is possible because of visionaries who dare to dream beyond the limits and limitations of their contemporary world. You cannot accomplish anything that you haven’t first imagined. Being able to take in the world around you and assess and analyze circumstances accurately is invaluable in business. Finally, to be able to understand complex situations and provide realistic solutions using common sense, contributes enormously to overcoming difficulties and taking full advantage of opportunities. How difficult was it for you to reach the stage where you felt that you knew what good leadership is all about? Even though my educational background in Management helped me in my initial steps, I soon realized that, in reality, you cannot always

r e d a e L s s e n i Bus ces sector in the servi

go by the book. Because I dived into deep waters at the age of 25, I had to learn to swim quickly! Therefore, I learnt from day one that if one wants things to happen, one needs to be able to manage people successfully. It is important, however, to be fair and consistent with your associates so that people respect and support you; and as the circumstances around us constantly change, one needs to learn how to roll with the times and make changes wherever and whenever necessary. Did you make lots of mistakes on the way? Is this inevitable? Of course I did! To make mistakes is inevitable; to learn from your mistakes is a requirement. Even though it is disappointing to make mistakes, you need to understand that there is a productive side to making them. The path to success is paved with challenges and one needs to see these challenges and obstacles as opportunities rather than threats. Did you have a good role model on whom you based your own leadership style or did you react against a poor one? Neither. I believe that each person develops his/her own individual leadership style by capitalizing on the strengths of his/her personality. Is it important for a good leader to be popular with his/her employees? Popularity is an important aspect of success. To be pleasant, enthusiastic, to be liked and respected by your associates, means that it is more likely that they will be loyal to you and the organisation. They will also make that extra effort which makes all the difference to

the success of an organisation. Not every good manager becomes a good leader. Why do you think this is? Serving in an organisation from a lower level management post does not require great leadership skills. One can be a very good manager without necessarily being a good leader. The higher up you are on the management ladder, the greater the need for leadership skills. It is true that not all good managers have what it takes to become good leaders but then again, not all good leaders are good managers. Is there an international business leader that you admire? If I had to choose one I would say Bill Gates. His management style, among other things, has focused on the following three philosophies which fit in with my way of thinking: (1) Develop a clear vision and stick to it. (2) Create and nurture ‘the correct culture’ and (3) Successful innovation and success may be built on failure. Is there a specific leadership style that everyone should aspire to or do individual leaders create their own successful style? There isn’t a single formula that works for every leader and every organisation. Each one develops an individual style which is based on a person’s innate characteristics and nurture. How does it feel to have been selected as the winner of the KEBE Business Leader Award in your particular sector? It is an honour and a privilege. It feels good that others in your field recognize your achievements.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 25

COVER STORY

THE LEADERS PARIS PAPAELLINAS

Do you agree with the saying “Great leaders are born, not made”? I believe that the saying should have been the other way round. I believe that people are born gifted but that’s just 20%-30% of the recipe of success. Talent must be accompanied and combined with integrity, persistence, drive, alertness, determination, knowledge, discipline, and much more. These are not qualities that you are born with; they have to be cultivated, taught and practised. What 3 qualities would you describe as essential for someone wishing to be an excellent business leader? First and foremost an excellent business leader must be a very good listener. I lead a team of almost 400 people and if I am not a good listener then many good (or great) ideas will be lost. An excellent business leader must be knowledgeable because information – and the world – is moving at an unprecedented pace which requires the leader to be committed to following the trends if his team and his company are to have a good chance of staying competitive and prosperous. Last but not least, I would say that an excellent business leader must take calculated risks and trust his instinct. They say that “the higher the risk the higher the profit”. I say that the more calculated the risk, the better chances my organisation has to survive and thrive, both in times of economic meltdown as well as in times of prosperity. Finally, an excellent business leader must, above all, be a good human being.

How difficult was it for you to reach the stage where you felt that you knew what good leadership is all about? I have not yet reached that stage and I am happy about that. Once you feel that you have “arrived”, that is the time that you might need to stop or “depart”. Leadership is endless and no situation is ever exactly the same. I am always prepared to learn more. I recently participated in a 2-day leadership seminar in the mountains with my management team. Did you make lots of mistakes on the way? Is this inevitable? Yes, of course I made a lot of mistakes and I am happy I did. If you don’t try, you achieve nothing. If you don’t buy a ticket, you cannot win the lottery! The important thing to remember is: “When you lose, don’t lose the lesson.” I feel that I rarely lost the lesson from my mistakes. If you don’t lose the lesson you are a “winner” but if you do, then you’ve lost twice. Did you have a good role model on whom you based your own leadership style or did you react against a poor one? I don’t really have a role model. Being involved in sports all my life, I have followed the example of many great athletes, i.e. to work hard and never give up. I have also learned to stay modest and composed, despite ephemeral successes. The greatest athletes of all times are those who, in spite of their young age and stardom, have managed to remain humble and modest. The world loves talent but pays off on character.

Managing Director,

Costas Papaellinas Organisation

T

he Costas Papaellinas Organisation is a leader in the provision of high-quality sales, distribution and support services. It is a pure family business, employing over 300 people, with the ownership shared between Paris and Thanos Papaellinas and their children. Through successful strategic moves, such as gaining new agencies, buying out related companies, introducing new, innovative processes as well as forging business alliances, Managing Director Paris Papaellinas has succeeded in growing the family business twentyfold over the past 25 years. His interests are not restricted to the business world. Previously an international award-winning basketball player, he was appointed Fair Play Ambassador 2011-2013 and honoured by the International Olympic Committee (IOC) in 2012 with its Sport and Social Responsibility Award. He is married with three children.

Is it important for a good leader to be popular with his/her employees? A good leader needs to be popular with his employees but not all his decisions need to be popular with his employees. If you are honest and fair with people, they will accept even unpopular decisions. Not every good manager becomes a good leader. Why do you think this is? Napoleon Bonaparte said it best “A leader is a dealer in hope.” A leader has an innate quality of being committed to inspiring and directing his “troops” during good or bad times. Is there an international business leader that you admire? There are so many. A good example for Cyprus is Stelios Haji-Ioannou who, although he was lucky to be brought up in a wealthy family, still “made it” on his own. He still helps Cyprus in times of crisis and has a vision for a reunited island.

r e d a e L s s e n i Bus cial sector

in the commer 26 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

How does it feel to have been selected as the winner of the KEBE Business Leader Award in your particular sector? Being recognised is important and I feel greatly honoured for this. I thank the CCCI for this award. But success, or “winning” as you describe it, is not a one-man show. I have my entire team, all of my employees and my family to thank for it.

PHOTOGRAPHY BY JO MICHAELIDES

Is there a specific leadership style that everyone should aspire to or do individual leaders create their own successful style? There is no one specific leadership style and it would be wrong to stereotype leaders. It depends on the mentality of the team he/she is leading; it has to do with the country’s culture, the way of thinking and the way of acting and reacting. There is no single successful recipe.

CHRISTOS MOUSKIS Chairman,

C

Μuskita Hotels

Business L e a in the Tour ism, H der

and Leisur ospitality e Sector

Do you agree with the saying “Great leaders are born, not made”? I would say it’s a combination. You are born with the personality of a leader and the desire to be a leader but the vital skills and knowledge must then be acquired by observing, gaining experience, studying and learning continuously from your mistakes and the mistakes of others, in order to constantly improve your leadership skills. What 3 qualities would you describe as essential for someone wishing to be an excellent business leader? First, you must have the ability to see change coming – before others do. Second, you need the patience to understand and deal with the people around you – especially your employees and your clients. Third, you need the skills to be able to analyze a situation, to clearly identify the root of any given problem, to assess the options, and also recognize an opportunity when it arises. How difficult was it for you to reach the stage where you felt that you knew what good leadership is all about? I was fortunate to have grown up with a father who was a very good leader. I learned certain leadership skills intuitively from him. The rest I acquired gradually with experience and by analyzing past decisions and how they had affected my business. Leadership skills and qualities must be seen in context. What works in one generation will probably not be valid in the next generation. You have to constantly observe what works and what doesn’t, learn and adjust to the situation. It’s an ongoing process. Did you make lots of mistakes on the way? Is this inevitable? Of course I made mistakes; fortunately not

many, and not dramatic mistakes. That is because I recognize when I need to discuss an issue with my team, to make a collective decision in order to avoid mistakes. Are mistakes inevitable? You are more likely to make mistakes when decisions have to be made quickly and under pressure. But as a leader, major mistakes are a luxury you cannot afford. Did you have a good role model on whom you based your own leadership style or did you react against a poor one? Rather than observing great leaders, I prefer to follow what successful companies do – in the hospitality and other industries – to learn from their actions. Besides, of course, hotel companies, I observe the long-term strategies of successful retail and airline companies. If you look carefully at companies and brands that seem invincible even across generations and despite intense competition,you will identify common denominators, despite operating in different industries. We can learn a lot by watching the ‘winners’. Is it important for a good leader to be popular with his/her employees? ‘Popular’ is not the correct word. Employees must be able to trust their leader’s judgement. A good business leader will always recognize his employees’ efforts and let them know and feel that he is fair, approachable, and that they can count on him in difficult times. Fairness and objective feedback to employees are also essential. Not every good manager becomes a good leader. Why do you think this is? Managing a department is very different from leading an organisation. Managerial skills are focused, whereas a leader, especially

hristos Mouskis is the Executive Chairman of Muskita Hotels, the company that owns the Four Seasons Hotels in Limassol, the Aldiana Resort in Alaminos, the Melia Athens, and 50 50% of Amathus Limassol. He is also the Chairman of Muskita Holdings, a group with three divisions: Hotels, M Al Aluminium Manufacturing, and Real Estate. After studying Business Management and Marketing in the United St States, he returned to Cyprus and in 1989 established Muskita Hotels. This was a new division in the family M b u business, under the umbrella of Muskita Holdings. He dedicated himself to the construction and development d e of the Four Seasons Hotel, with a determination to set new standards of hospitality in Cyprus. The hotel soon ne began earning industry awards and a reputation that be Q\Z[PÄLK P[Z ZSVNHU HZ º[OL ÄULZ[ VU [OL PZSHUK» 0[ ^HZ Q\Z [OL ÄYZ[ OV[LS PU *`WY\Z [V HJOPL]L º0U]LZ[VYZ PU 7LVWSL» [O JLY[PÄJH[PVU HUK [OL ^PUULY VM [OL 0U)\ZPULZZ (^HYK MVY JL º)LZ[ >VYRWSHJL » º)

in small markets like Cyprus, has to be able to see everything from the very small detail to the big picture. Broad and general knowledge is not enough. That’s why an excellent field manager might not succeed as a leader. Is there an international business leader that you admire? I admire people who have changed the world in a meaningful way, or have influenced the way the world sees certain things. Take Steve Jobs, for example. He was the brain behind extraordinary breakthroughs and technological innovation that has changed the way we communicate, the way we work, even the way we live. Judging by his products, that is good leadership. Is there a specific leadership style that everyone should aspire to or do individual leaders create their own successful style? It’s not about style. It’s about mobilizing your people towards a common vision and positively energizing your organisation. To that end, I adapt to circumstances, situations and the people I am dealing with. There are times when I am democratic, and other times when I demand immediate compliance. On different occasions I act as a coach or a motivator or a pace-setter. At all times, I set high standards for myself and for others to follow. However, my values as a person always remain the same. In that sense I am predictable. How does it feel to have been selected as the winner of the KEBE Business Leader Award in your particular sector? I’m proud and honoured to be chosen for this first award, among so many other capable leaders in our industry. Beyond that, it’s business as usual, working day by day to learn and improve the business.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 27

COVER STORY

THE LEADERS CHRISTOS MAVRELLIS Managing Partner,

L

Chrysses Demetriades & Co LLC

in the Finanrvices Sector e Professional S CAPTAIN HEINRICH SCHOELLER Chairman,

Columbia Shipmanagement

A

fter many years of service at sea, Heinrich Schoeller started his career onshore in Germany but was shortly thereafter transferred to Cyprus to assist in the ZL[\W VM [OL PZSHUKÂťZ Ă„YZ[ PU[LYUH[PVUHS ZOPW THUagement company, Hanseatic Shipping Co. Ltd., in 1972. After the Turkish invasion in 1974, he decided [V YLTHPU PU *`WY\Z HUK ^P[OZ[VVK [OL KPɉJ\S[ years. This, in a sense, was the starting point for the creation of the Cyprus shipping industry. In 1978 he incorporated his own venture, Columbia Shipmanagement, which is today one of the largest shipping companies in Cyprus and one of the most renowned third party ship management companies in the world. Many international ship management companies have since followed his example and put down roots in Cyprus, greatly increasing the use of the Cyprus Registry. *VS\TIPHÂťZ JVYL ZOPW THUHNLTLU[ VɉJLZ HYL located in Limassol, Hamburg and Singapore ^OPSL [OLYL HYL [^V HɉSPH[LK VɉJLZ PU ,SZĂ…L[O HUK Athens. Covering a wide spectrum of activities in various sectors of the ship management industry, *VS\TIPH VɈLYZ ZOPWV^ULYZ H JVTWYLOLUZP]L and complete ship management service including newbuilding supervision, ship operations and consultancy services. Through its strategic network of world-wide located crewing agencies, Columbia HSZV OHZ HJJLZZ [V OPNOS` X\HSPĂ„LK HUK L_WLYPLUJLK seagoing personnel. Captain Schoeller has received many awards over the years, including the Maritime Cyprus Award for his contribution to the island’s shipping industry, his contribution to the town of Limassol (from the Mayor), the Tourism Personality Award as well as a special International Maritime Employer Award from the President of the Philippines with which he has been honoured twice. Columbia has also been the proud recipient of the International Ship Management Company Award for three consecutive years from The Institute of Transport Management UK for its excellence in ship management.

Business Leade r in the Shipping Sector

Do you agree with the saying “Great leaders are born, not made�? In my opinion, mostly good leaders are made – not born. Of course, to a point it could be in the genes but, in the main, good leaders are made. Leadership is an acquired attribute that begins early in life and continues through life’s experience of education, jobs and life itself, all of which shape a leader’s way of thinking – how to set goals and manage results. What 3 qualities would you describe as essential for someone wishing to be an excellent business leader? The three most important traits would be experience, vision and drive. Is it important for a good leader to be popular with his/her employees? I do not think it is necessary for a good leader to be popular with employees Respect, which is very closely linked with trust, is far more

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

important. Employees will perform better when they respect and trust their leader rather than when they have a leader who tries to please everyone. Not every good manager becomes a good leader. Why do you think this is? In my opinion, some managers tend not to look outside of the box whereas a leader does. A good leader mobilizes the team toward a common vision and focuses on end goals, leaving the means up to each individual. Is there a specific leadership style that everyone should aspire to or do individual leaders create their own successful style? In my view, a successful leader is not always about being in front. It’s OK to lead from behind the scenes and let others take the credit. Individual leaders have their own style and personality. How does it feel to have been selected as the winner of the KEBE Business Leader Award in your particular sector? I am very honoured to receive such a prestigious award in the maritime field which, I believe, is a new sector in the KEBE Business Leader Awards.

PHOTOGRAPHY BY JO MICHAELIDES

r e d a e L s s e n Busi cial and

eading lawyer Christos Mavrellis dealt very LHYS` VU ^P[O PZZ\LZ WLY[HPUPUN Ă„YZ[S` [V [OL Cyprus shipping industry and subsequently [V VɈZOVYL JVTWHUPLZ SH[LY RUV^U HZ PU[LYUH[PVUHS JVTWHUPLZ ([ Ă„YZ[ ^P[O [OL SH[L *OY`ZZLZ Demetriades and later through his own contributions, he played a role in the framing of legislation and policy such as special tax treatment for ship management companies, tax and marine legislation, and policy YLNHYKPUN JHW[P]L PUZ\YHUJL HUK VɈZOVYL IHURPUN As the representative of the Cyprus Bar Association, he was a member of the committee reviewing Cyprus’ tax legislation in 2002. Christos Mavrellis was an early believer in the advantages that Cyprus possessed and could gain through the right measures and the appropriate taxation regime in the shipping and services sectors and he became one of the “missionariesâ€? promoting this internationally. To this end, he took part in conferences and trade missions to many countries. He was one VM [OL Ă„YZ[ *`WYPV[ WYVMLZZPVUHSZ [V JVYYLJ[S` HZZLZZ the potential arising from the collapse of the Soviet Union and he contributed personally to the success of *`WY\ZÂť LɈVY[Z [V WLUL[YH[L [OL THYRL[Z VM 9\ZZPH HUK the other newly-created independent states. He has received international recognition and was for many years the Secretary of the International Tax Planning Association. For some years he has been Chairman of the Cyprus Bar Council’s committee on tax planning and he is an active participant in other committees. Moreover, he was appointed by the Government as Deputy Chairman of CIPA. Finally, as 4PUPZ[LY VM *VTT\UPJH[PVUZ >VYRZ OL Z\JJLLKLK in increasing the size of the Cypriot merchant shipping Ă…LL[ I` ^OPSL K\YPUN OPZ [LYT HZ 4PUPZ[LY VM -PUHUJL *`WY\Z MVSSV^LK H ]LY` Z\JJLZZM\S Ă„UHUJPHS economic trajectory.

der a e L s s e n i s u B verall

O to Contribunteiuornship Entrepre

GEORGE PARASKEVAIDES

G EFTHYVOULOS PARASKEVAIDES

Do you think your father would have agreed with the saying “Great leaders are born, not made”? It is difficult to know what my father might have thought about leadership. I feel that he was a natural born leader and this would prompt me to say that leaders are born and I believe they become prominent through hardship and in times of difficult circumstances, as in the case of George Paraskevaides. What 3 qualities essential for someone wishing to be an excellent business leader would you ascribe to your father? Some essential qualities I feel my father had in his business life were the following: Firstly, he had a clear vision of his mission. Secondly, he had absolute commitment above and beyond everything else to succeed in his mission and, thirdly, he had the talent to select the right associates and to motivate them above and beyond the call of duty to assist him. He had the ability to develop personal relationships with associates and clients alike. In the end what really matters is results. This is where I believe my father achieved what few have managed: results in the most respectable, honourable and principled way by choosing the path of making friends rather than enemies Did he make lots of mistakes on the way? My father used to say that it is always easy to criticise. Of course, the only ones who do not make mistakes are the ones who do nothing in their lives. I am sure he made his fair share

of mistakes but was always able to turn things around so that all would be well. Did George Paraskevaides consider it important to be popular with his employees? George Paraskevaides considered all his employees more as associates and co-workers. I feel that he made a conscious effort to be close to as many of the company’s staff as he could, forming a personal relationship and looking out for their personal and family issues. He often gave morale-boosting and motivating speeches at the contract sites to the staff that worked there. Living conditions in the various areas were also important for him. He wanted all the company’s personnel to have the necessary facilities including schools, messes, entertainment such as a cinema and a high level of cleanliness and hygiene throughout. He would also check this personally and he would not accept anything but the highest standards. It was not so much a question of being popular with the staff. My father was loved and admired by the people that worked with him and who would do their utmost for their boss and their company, which, in turn, looked after them. Was there an international business leader that he admired? I do not recall my father mentioning anyone in the business sector as his hero. However, there were two persons in history that he thought very highly of: Winston Churchill and Alexander the Great.

eorge Paraskevaides became a benefactor to generations of Cypriots from the day he SHPK [OL MV\UKH[PVUZ VM OPZ ÄYZ[ JVU[YHJ[PUN ÄYT 3H[LY JHTL 1VHUUV\ 7HYHZRL]HPKLZ ^P[O OPZ WHY[ULY :[LSPVZ 0VHUUV\ 1 7 ^V\SK WYVTV[L Cyprus internationally and since 1946, the contracting giant has employed thousands of Cypriots, consciously showing its preference for Cypriot materials and services. Following the Turkish invasion it provided jobs to thousands of families and breathed life into the country’s ruined economy. George Paraskevaides was undoubtedly the one who opened up the Arabian Gulf to Cypriot employees and businessmen. He also made the Cyprus Problem known throughout the world, helped by his close friendships with powerful international personalities. /L ^HZ H THU VM NYLH[ ZLUZP[P]P[` [V O\THU Z\ɈLYPUN and, with his wife, he established the George & Thelma Paraskevaides Foundation to help needy Cypriots. The Foundation, in cooperation with the Shriners Hospital in Massachusetts, USA, has enabled more than 3,000 children with orthopaedic disorders to be operated on free of charge, while the Paraskevaidion Surgical & Transplant Foundation, which he also founded, has carried out more than 900 kidney transplants. For his generous contribution, George Paraskevaides received the highest honours from heads of state, JO\YJO SLHKLYZ HUK H OVZ[ VM VɉJPHSZ IVKPLZ HUK VYganisations. He and his wife Thelma had three children Efthyvoulos, Leoni and Christina. The respected businessman and benefactor of Cyprus died in London on 5 December 2007, aged 91.

How do you think he would have felt to have been selected as the winner of the EY Honorary Award for his overall contribution to entrepreneurship? I don’t think my father ever pursued honours, medals or awards during his lifetime but he was always very touched when an honour was bestowed upon him by his own countries, Cyprus and Italy (his mother was Italian). I believe that if he were here today to receive this award, it would be a very moving moment for him especially since he was very proud of the fact that a businessman from the small country of Cyprus, together with his trusted associates, had managed to “elevate the image” of Cypriot businessmen, technicians and professionals, thus opening the door for the Cypriot businesses to expand in the region, supporting the Cyprus economy and helping his compatriots, something that I feel is still helping Cyprus to this day.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 29

CONFERENCE

WORLD-CLASS SPEAKERS

AT THE 5 LIMASSOL th

ECONOMIC FORUM )ULGD\ _ 1RYHPEHU _ _ )RXU 6HDVRQ +RWHO _ /LPDVVRO

T

he Limassol Economic Forum, now in its 5th year, has become a major platform of debate on political, economic and business issues in Europe and the Eastern Mediterranean. The Forum engages political, academic and business leaders in a wide-ranging discussion that aspires to improve the state of the broader region and contribute to the world economic debate. This year’s gathering looks set to be the best so far, the highlight for many of those attending being the presentation by Lord Dobbs of Wylye, betterknown as Michael Dobbs, bestselling author of House of Cards which has twice been filmed as an acclaimed TV series.

LORD DOBBS A HIGHLIGHT Following an introduction by the Forum Chairman, Tony Barber, Europe Editor of the Financial Times, and Official Welcome Addresses by Andreas Christou, Mayor of Limassol, Costas Galatariotis, President of the Limassol Chamber of Commerce and Industry, and Thomas Kazakos, Director-General of the Cyprus Shipping Chamber, the Forum will begin with keynote addresses by President Nicos Anastasiades and Finance Minister Harris Georgiades. Next up will be Professor Iain Begg, Professorial Research Fellow, European Institute, London School of Economics and Political Science, Specialist adviser on EU issues for the House of Commons Treasury Select Committee, the House of Lords European Communities Committee and the European Parliament. In his presentation, entitled “Recovery, stagnation or relapse: assessing the EU’s economic prospects in the aftermath of the crisis�, Prof. Begg will review recent economic developments and reform initiatives and appraise the impact they can be expected to have on growth and employment. It will highlight the emerging risks of, notably, renewed bank fragility in the wake of the ECB stress tests, the divergence of economic trends among Member States and the volatility of external influences. A discussion of policy issues and challenges will complete the presentation. Michael Dobbs, now Lord Dobbs of Wylye, will speak on “Political Uncertainty – the Roadblock to Economic Recovery�, looking at how

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

national governments have become uniquely vulnerable as electorates increasingly look not just to traditional opposition parties but to new, alternative political parties and movements. This has made it exceedingly difficult for governments to take the measures required to meet the financial crisis and deal with deteriorating economic circumstances. In a climate where people appear to be demanding government that is less distant and centralised, politicians in national capitals – and particularly in Brussels – must find the means to respond to such demands if they are to create the climate. Lord Dobbs will be followed by Graham Bishop, a Member of the European Commission’s Expert Group, and Special Advisor to the House of Commons Treasury Select Committee and to the House of Lords European Communities Committee. In his address entitled “Capital market union in the eurozone�, he will speak about funding an investment-led EU recovery; opening the door further to the euro as a global reserve currency. Another popular speaker will kick off the afternoon session: Henk Potts, Director, Global Research & Investments, Barclays is a regular commentator on Sky News, BBC, Bloomberg, CNBC, Channel 4, CNN and Fox News. His presentation to the Limassol Economic Forum, entitled “Risks and opportunities: What is the outlook for the global markets and what part will Europe play in it in 2015?,� will summarise the economic landscape across the EU, identifying areas of weakness and strength. Potts will

7+( 57+ /,0$662/

)2580

President Nicos Anastasiades

Graham Bishop

T

Finance Minister Harris Georgiades

Henk Potts

Tony Barber

discuss what this means for market participants from an investment strategy and asset allocation perspective. Constantinos Herodotou, Commissioner for Privatizations, Cyprus, will speak on the privatization process in Cyprus, providing a progress update on the island’s privatization programme, remaining obstacles and how to overcome them, the next steps forward and investment opportunities in Greece’s privatization programme. This year’s Limassol Economic Forum includes two Panel Discussions. The first features world-class international journalists Tony Barber, Europe Editor of the Financial Times, Eder Florian, Brussels Correspondent of Die Welt, and Jason Karaian, Former European Editor of CFO magazine and Financial Editor of the Economist Intelligence Unit and Senior Europe Correspondent of Quartz. Among the questions they will attempt to answer are: “Is the age of European austerity coming to an end?”, “How long will mass unemployment continue in Europe?”, Is the European banking system fixed?” and “What are the risks of geo-

Prof. Iain Begg

political confrontation?” The Second Panel Discussion (the Eastern Mediterranean Investors’ Panel) features Christopher Brown, Head of Investment companies Research, JP Morgan Asset Management, UK, Michele Faissola, Head of Asset and Wealth Management at Deutsche Bank, and Notis Mitarachi, Deputy Minister for Development and Competitiveness, Greece. They will identify investment opportunities and analyze global institutional investors’ appetite and expectations of a return on their investments. At the same time they will looking at issues such as what the bullish trend on bonds in Greece and Cyprus means for investors, institutional investors’ appetite for investing in Eastern Mediterranean, investment criteria, expected returns and investment sectors under consideration. The 5th Limassol Economic Forum is organized by IN Business magazine in association with the London School of Economics and Political Science and LSE Cyprus Alumni. It is sponsored by Andreas Neocleous and Co LLC, Barclays and Deloitte Limited.

Forum Sponsors

Organisers

Supported by

Communication Sponsors

In Association with

Stay updated on the Forum’s Agenda at www.imhbusiness.com | For further information, call IMH on 22505555

he man behind “House of Cards” Lord Dobbs of Wylye describes himself as never having had “a proper job”. Perhaps that’s because he’s spent so much of his life hanging around all the wrong places at interesting times. He was with Margaret Thatcher when she took OLY ÄYZ[ Z[LWZ PU[V +V^UPUN :[YLL[ HZ 7YPTL Minister, and was there again with John Major when he was kicked out. In between he got bombed at Brighton, was banished from Chequers (after a row with Maggie), and in the quieter moments wrote a best-selling book called House of Cards, which later became a major television series. One Chief Whip said the book had done for his job “what Dracula has done MVY IHI`ZP[[PUN¹ 0U -LIY\HY` [OL 5L[ÅP_ series of House of Cards was launched. The ZLYPLZ Z[HYYPUN 2L]PU :WHJL` PZ UV^ PU P[Z [OPYK series and available worldwide online. Born in 1948, Michael Dobbs was Chief of :[HɈ HUK SH[LY +LW\[` *OHPYTHU VM [OL *VUZLYvative Party, a role which got him dubbed by the media as the party’s “baby-faced hit man”. :VTL^OLYL HSVUN [OL ^H` OL THUHNLK [V WPJR up a doctorate in nuclear defence studies. In his restless search for that elusive “proper job”, OL OHZ HSZV ILLU +LW\[` *OHPYTHU VM :HH[JOP :HH[JOP WYLZLU[LK [OL ))* ;= J\YYLU[ HɈHPYZ programme Despatch Box, been a columnist for The Mail on Sunday and The Express and ^YP[[LU ZJYLLUWSH`Z MVY ;= HUK YHKPV Yet it is as an author that he has gained TVZ[ WSH\KP[Z (M[LY JYLH[PUN [OL PJVUPJ ÄN\YL VM Francis Urquhart for House of Cards, he went on to write books about Prime Ministers, Kings, conspiracies and the Dalai Lama. He recently ÄUPZOLK H ZLYPLZ VM UV]LSZ HIV\[ >PUZ[VU Churchill that has had the critics falling over [OLTZLS]LZ PU WYHPZL ;OL VYPNPUHS ;= HKHW[H[PVU of his House of Cards won Emmy awards and was voted one of The Best One Hundred Tele]PZPVU +YHTH :LYPLZ VM (SS ;PTL ^OPSL OPZ OPZtorical novels about Churchill have been bestZLSSLYZ PU [OL <UP[LK :[H[LZ ;OL Hollywood Reporter recently announced that two studios HYL ^VYRPUN VU KPɈLYLU[ +VIIZ IVVRZ PUJS\King his latest thriller character, Harry Jones. He is currently working on a commissioned theatre WSH` HIV\[ *O\YJOPSS HUK [OL UV[VYPV\Z :V]PL[ spy Guy Burgess. He knows America very well. He lived in )VZ[VU MVY Ä]L `LHYZ ^OLYL OL LHYULK H KVJtorate and two Master’s degrees from Tufts HUK /HY]HYK <UP]LYZP[PLZ PU <: ZLJ\YP[` Z[\Kies. Michael was also an editor for the Boston Globe throughout Watergate and the end of [OL =PL[UHT >HY HUK W\[ [VNL[OLY [OL .SVIL»Z MYVU[ WHNL VU [OL UPNO[ [OH[ 7YLZPKLU[ 5P_VU resigned. “The rest of the newsroom was drinking champagne while I was sweating over the (TLYPJHU *VUZ[P[\[PVU 0 UL]LY NV[ [V ÄUK V\[ whether they were celebrating or drowning their sorrows,” he later recalled. Michael Dobbs has observed politics from within the corridors of power and has the abilP[` [V YLSH[L OPZ L_WLYPLUJLZ ^P[O O\TV\Y HUK wit. He was created Baron Dobbs of Wylye in December 2010.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 31

SIZE matters!

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

TECHNOLOGY

IT MAY BE A SMALL COUNTRY BUT, WHEN IT COMES TO TECHNOLOGY, CYPRUS HAS A GREAT DEAL GOING FOR IT By John Vickers | Photograph by Jo Michaelides

U

pon completion of his studies in Production Engineering at the University of Warwick, UK, Christos Theocharides, CEO of AMS (Advanced Management Solutions) was employed as a project engineer by Coca-Cola. It was his first job – one that he describes as “very inspiring and interesting” – and things began to get even better when the company decided to implement SAP ERP, the world’s leading Enterprise Resource Planning Software. “I had always had a passion for computing and technology and I was mesmerized by the power of SAP and the features it provided,” he recalls. Indeed, he was so taken by SAP (in case you’re wondering, it stands for Systeme, Anwendungen, Produkte in der Datenverarbeitung, or, translated, Systems, Applications & Prod-

haven’t is doing that

ucts in Data Processing) that he went to work for the firm as a consultant for couple of years before deciding, in 2001, to set up AMS with his partners, which would place SAP at the heart of its activities. “Our core business revolves around providing the complete service related to the implementation of a major Enterprise Resource Planning application – whether that be business intelligence, a Customer Relationship Management system or something else,” he explains, “starting from the initial requirements analysis, through to realization, going live and subsequent support. We almost exclusively implement projects for big companies, which means that they may take from six to nine months. It is never just a technical project but sometimes a complete process re-engineering of the company based on the best practices that SAP provides and, in many ways, this is the real value that we are giving.” Although one of the massive changes that the Internet and smart technology

WE HAD TO REINVENT THE WHEEL – SOMEONE ELSE FOR US!

have brought about is the fact that individuals can now do many things that used to be the exclusive domain of experts, it would seem that in the corporate world, things are still too complex for ordinary people and that’s where a firm like AMS comes in. “While it is possible for companies to have their own internal competence team, it’s very expensive, it takes a lot of training and it’s a big investment,” says Theocharides. “What we often see is that companies experiencing rapid growth come to the point when they realize that their own bespoke technology can’t keep up with that growth. So they need something based on best practices from much bigger corporations that have already experienced such growth.” He adds that there is always a risk of customers asking for something that is actually too complicated for the company and an experienced external consultant knows if something can be maintained easily or if it will end up as a burden on the company. “The trick is to be up-to-date with the latest technology, know best practices and be in a position to give the proper advice to each individual customer. It’s important to know the maturity level of the company – how well organized it is, how much of a lag there is between its strategy and the execution of that strategy – and propose what it needs.” Given the rapid developments in IT,

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 33

TECHNOLOGY

enables us In-Memory changing everywhere

TECHNOLOGY NOW TO HAVE COMPUTING WHICH IS THE IT WORLD

how have AMS and its focus changed over the past 13 years? “When we started this business back in 2001, we had the notion that Cyprus was 10 years behind in technology,” the company CEO replies. “That was before the penetration of the Internet, social media, etc. Nowadays we are very close to what’s happening abroad and there is basically no difference between the technology that we are offering our customers in Cyprus and what their counterparts in the most advanced countries around the world are using. So the need for the company to be updated with all the latest technological advances is even more essential today. We’re blessed in that we haven’t had to reinvent the wheel – someone else is doing that for us! Having SAP as our sole partner with its huge human resources taking care of strategy and knowing where technology is going, we simply have to follow. Having a company like SAP as a partner gives us and our customers a real edge over the competition.” There are many new trends which the company is dealing with these days and which were unknown when AMS was set up. “A few years ago,” he notes, “we wouldn’t have been in a position to discuss the provision of a real-time business intelligence solution with customers, for example. Technology now enables us to have In-Memory computing which is changing the IT world everywhere. Another area is cloud computing. Today, everybody is looking for simpler and faster solutions and, in this case, there is the advantage that a company doesn’t have to make an initial investment in hardware but, instead, pays a monthly subscription to lease it.” Perhaps surprisingly, given the present straitened financial circumstances of many

companies, this has not really taken off in Cyprus yet, according to Christos Theocharides. People here don’t feel comfortable with the idea that someone else may have information that they own, he believes. “Eventually this will change but at present there is some resistance.” The resistance to cloud computing is rather odd in the light of another of Theocharides’ observations: “As Cypriots we are very open to new technology and our general technology background is of a very high standard compared to that of many other countries. However, it is a fact that, in many areas, we don’t necessarily have the depth of knowledge that we see in bigger countries.” It seems that in some areas, the popular phrase “small in beautiful” does not apply. Theocharides agrees: “Size does matter and in a small place like Cyprus, all of us have to play many roles and do too many things. For example, you won’t find the budget controller of a company in Cyprus doing only that. Here, the CFO of many SMEs often runs the company whereas you don’t see this abroad. So because of the size of the country, we tend to have a broad-based knowledge but we lack the depth of specific expertise that we find in other countries. Of course, this is another reason why it makes good business sense to use external consultants who do possess the required depth of specialist knowledge.” It is sometimes claimed that technology is now developing so fast that what AMS is recommending to its clients today may be obsolete in 5 years’ time. Is there any truth in this? Christos Theocharides is quick to answer: “No. Technology is evolving and you keep building on it. Technology gives you an edge and people expect it to provide a return on their investment. So if you make

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

a wise investment you will hopefully get the money back as a dividend. The trick is to know where to invest so that you have an edge over your competitors and the result will show if it was a good or a bad investment. We have never done something that is now considered obsolete. Things are being improved as technology evolves so it’s a matter of upgrading rather than switching to something completely different. Few companies in Cyprus escaped the effects of the 2013 bailout/bail-in and, for AMS, this meant that many of them were unable or unwilling to move ahead with projects. Many but not all… “Fortunately, not all sectors were affected,” Theocharides explains. “International companies based in Cyprus or Cypriotowned structures that have revenues coming from abroad remain in good shape and so we have naturally turned to them for business On the other hand, the local market has suffered and many firms are still in a bad way.” Are things looking up 18 months on? It’s not the same for everyone, says Theocharides. Different sectors are being influenced in different ways. Construction, for example, is not in good shape right now but foreign investment is promising so it really depends on what industry you are working in. “Five of the many sectors that we deal with (Insurance, Education, Healthcare, Banking and Construction) are struggling but others, such as FX, are booming. I believe that we have touched the bottom, we are seeing interest from abroad and new companies are being formed. What is happening now is a process of self-healing or auto-correction. It’s something we need to go through but we shall see growth in the next few years, we’ll emerge stronger and healthier. Thanks to the prospects of natural gas, a whole new industry is going to be created and that will provide opportunities for everyone.” For AMS itself, the future looks bright, says its CEO who intends to continue what he calls his “cautious strategy,” thanks to which the company has done very well. “From the very beginning we have been very careful. We purposely did not expand too quickly and we remain very cautious about how we move forward but we do see ourselves working outside Cyprus – we already have some projects in Qatar and our next step will be to undertake more projects abroad. The time is right.”

THE TIDE SHIPPING

IS HIGH “There is a tide in the affairs of men. Which, taken at the flood, leads on to fortune; Omitted, all the voyage of their life Is bound in shallows and in miseries.� William Shakespeare, Julius Caesar, Act 4, Scene 3

As is revealed by its key stakeholders’ exclusive interview with Gold, Fleet Management Limited PZ UV^ HÅVH[ VU M\SS ZLHZ OH]PUN Q\Z[ JLSLIYH[LK its 20th anniversary), and will continue to take [OL J\YYLU[ ^OLYL P[ ZLY]LZ ^OPJO S\JRPS` MVY *`WY\Z PZ KPYLJ[S` MVY V\Y ZOVYLZ By Chloe Panayides

A

s I step into the lobby of the Hilton Cyprus, neither the many people both at work and play, intensely engaged in conversations, nor the bright colours or the rich aroma of coffee lingering in the air manage to draw my full attention. Instead, I fix my gaze upon the banner that sits un-

assumingly off to the right, signalling that Fleet Management Limited would, that night, be celebrating its 20th anniversary in this very place. “Welcome!� Sunil Kapoor, Director & General Manger of FML Ship Management Limited – the Cyprus-based office of the Hong Kong headquartered entity – exclaims with a grin. “As you can see, we’re all set up here for the big night,� he says with a masterful blend of both pride and

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

humility. Kapoor’s graciousness is a fitting prelude of the meeting to come. “Let’s make our way over to where Mr. Banga is seated,� Kapoor suggests. “And Mr. Rajvanshy should be along shortly.� Harry S. Banga, of course, is Chairman and CEO of the Caravel Group (of which Fleet is a part), and Kishore S. Rajvanshy the Managing Director of Fleet. Both have just arrived from Hong Kong where they are permanently based to take part in the celebratory activities. “We actually met with President Nicos Anastasiades last night,� Banga begins. A prime opportunity, I think, to garner insight from someone on the periphery; and so I ask him what sort of impression the President had made. With absolute conviction, he tells me: “He’s a great leader and he has a sharp vision. He’s brought a lot of stability in just a short year, which is an achievement to be commended.� Despite being 10,000 miles away, Banga confides that a great affinity is felt with Cyprus, and so there was a serious feeling of concern when the economy all but imploded in March 2013. “This concern

has now dissipated,” Banga says. “We are no longer worried about whether or not Cyprus will move on from this hurdle; it’s now just a question of when.” The Caravel Group, headquartered in Hong Kong, is a diversified global conglomerate focused on the trading and logistics of dry bulk raw materials, investment management, and strategic asset ownership. The inception of Fleet was engendered by Banga and Rajvanshy (who, in the most timely manner, has now taken his seat around the coffee table) 20 years ago in 1994. “It was on our wish list to start a small, in-house ship management company. Little did we know that it’d grow into a big corporation! But, I’m being hasty,” Banga says in a charmingly selfdeprecating manner. “Why don’t you take over?” he says, indicating to Rajvanshy. With a kindly smile, Rajvanshy concedes: “Yes, it’s right to say that Fleet was set up out of necessity. The group under which we established ourselves had the intention of buying a lot of ships and, therefore, the need for in-house management arose.” But, as fate would have it, the winds changed and tides turned: “As it turned out,” Rajvanshy continues: “the group decided to take on chartered ships due to prevailing market conditions, essentially dissipating Fleet’s function and purpose.” Not to be discouraged, Banga and Ra-

jvanshy quickly reassessed their options. Rajvanshy confides: “We realised that the key to survival lay in taking on third-party management projects. Slowly but surely, the satisfaction of our clients with the services we provided spread – mostly via word of mouth – and we grew in tandem.” As always, I suggest, the virtue of flexibility saved the day: “Definitely!” Rajvanshy exclaims. “And I actually believe that we evolved beyond our imagination precisely because we responded to the changing conditions, and re-planned our positioning to survive. We were nimble on our feet: that’s for sure!” Having initially garnered interest from Northern Europe (“mostly from Holland

such high opinions of Cyprus’ maritime position. Without pausing, Rajvanshy responds: “For us – and you’re right, we are seasoned within this sector, completely enveloped in the intricacies of the industry – it is a very, very natural association to pair Cyprus with the term ‘ship management’. “And,” he clarifies, “this high regard is not prejudiced by personal subjectivity. Cyprus really does feature very highly on the list of top contributors and players in the industry. We were very mindful of this when making the decision to open an office here.” So what, exactly, I press, sets Cyprus apart from its competitors? “The island’s location on the cusp of three continents is conducive to the needs of ship management: it’s close to Greece; it has strong ties with German owners, and its policies are very helpful to businesses involved in ship management. It’s clear that the Government places great emphasis on developing benefits and incentives,” Rajvanshy explains. “And so it was that we found ourselves establishing a presence here seven years ago in 2007.” Mindful of certain conditions that are said to aggrieve the process of setting up an office in Cyprus, I wonder what their experience, as foreign investors, was like? All three men smile in unison. “We were actually very lucky – it was a comparatively smooth experience, and easily executed,”

WE ARE NO LONGER WORRIED ABOUT WHETHER OR NOT CYPRUS WILL MOVE ON FROM THIS HURDLE; IT’S NOW JUST A QUESTION OF WHEN and the Scandinavian nations,” Banga confirms), the support started coming through in waves, setting Fleet on a journey of growth beyond all expectations. “Of course,” Rajvanshy adds, “that’s when we decided that we needed more offices. We opened manning offices in India, the Philippines, and China, as well as offices in what we deemed to be strategic locations, that is, Singapore, London, and, of course, Cyprus.” It is pleasing, I note, that these gentlemen – seasoned professionals within the global shipping sphere – should all have

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 37

SHIPPING

a full inTHE IMPORTANCE OF CYPRUS TO THE INTERNATIONAL granted terview with the media, I’m COMPANY IS ONE OF THE REASONS WHY WE DECIDED local told), on the verge

Kapoor says, as the conversation steers into his specific domain. Rajvanshy elaborates: “We were approached by an operator from the shipping sector who, until then, had been managing his own ships. Now, he wanted to sell, and found himself wondering how most effectively and efficiently he could turn this want into a reality. “We filled this gap and were able to build on this already existing structure (also making us the only ship management company to be based in Nicosia to some people’s surprise – and we’re proud of it!). We ‘inherited’ 13 ships, which were all, in due course, sold to a Dutch company.” And this is where, I’m told, Kapoor’s strengths came in handy. “We sent him out with his suitcase in tow,” Banga says, “and had him approach different stakeholders in, for example, Greece and Norway, to help build up the business. Now, the Cyprus office runs 25 ships with 5-6 new ships in the pipeline.” That’s quite an achievement, I say. “It is. We will have 30 ships under our umbrella in Cyprus very soon. Cyprus is undoubtedly one of the centres we are most bullish on. We envision the future growth of the company to be inextricable with our branches, as opposed to our headquarters in Hong Kong.” The good implications for Cyprus abound and, Banga reveals: “Cyprus’ growth is firmly on our agenda. It is often discussed in our strategy meetings, and the importance of Cyprus to the international company is one of the reasons why we decided to celebrate our anniversary here.” Kapoor interjects: “We not only hope

TO CELEBRATE OUR ANNIVERSARY HERE but intend to increase our ships and manpower here. Our target is to be managing 50 ships in Cyprus within the next couple of years, which is reflective of 100% growth from today.” That is quite a growth strategy, I muse, to which Banga stresses that it is not a mere hope; rather it is a solid intention: “Hope won’t get you anywhere: you must be focused and committed, and that is precisely what we are.” Divulging further reasons why Cyprus is a destination worth further investing in, Kapoor notes that – considering that shipping is a specialty sector – the island supports the recruitment of the right manpower (“we are able to get visas for our staff in a timely manner”), and, furthermore, the Cyprus Shipping Chamber is praised as being unfailingly supportive: “I can’t speak highly enough of the Chamber,” Kapoor says. “It has been there for us from day one.” Along with cost-effectiveness, I’m told, a superb talent pool, and satisfactory infrastructure, Cyprus has been serving Fleet very well. “There was, of course, the issue with financial transfers,” Banga says with bathos. “When the crisis erupted, funds were locked. But,” he concedes, “the relevant authorities gave the shipping sector special privileges, and this was very comforting for us, knowing that they not only recognised our challenges, but were responding to them.” And so it is that we all find ourselves in the Hilton Cyprus (the first time they’ve

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

of the evening’s celebrations. Looking back over the 20 years, what are their impressions of the company’s growth and performance, I wonder? Rajvanshy is positive: “Our growth has been very organic, adding the pieces to our ever-growing puzzle one at a time. We haven’t engaged in a merger, and this is very much a deliberate choice. Today, we manage some 290 ships overall, and are involved in the new building supervision of approximately 70 ships. Therefore, we are attached to 360 ships in total, with a collective value of $15 billion.” Banga adds: “Internationally, compared with other players, we are the 4th largest ship management company in terms of size. Considering our age and the way we have grown, this is unique.” The conviction with which it is stressed that no merger has been engaged in is telling. And, indeed, Banga explains, the reticence to engage in a merger is precisely because of a refusal to compromise the company’s culture. “We didn’t want to simply put two cultures together. We wanted to maintain our ‘Fleet’ culture. Merging can be very challenging. Success often hinges on finding people with the same vision and thinking. We are not ruling out mergers in the future, though if we did merge, it would be with a company of the right size similar to Fleet (equal measures), and it would not be engaged with at the cost of our culture.” Inspired, Kapoor’s observation is the final fitting note to this ballad: “We invest heavily in our people. For us, working with Fleet isn’t just a job; it’s a way of life.”

COVER STORY

ADMINISTRATIVE

SERVICE PROVIDERS ADMINISTRATIVE SERVICE PROVIDERS (FIDUCIARY COMPANIES) HAVE BEEN AT THE FOREFRONT OF EFFORTS TO MAKE CYPRUS A REGIONAL CENTRE FOR PROFESSIONAL AND FINANCIAL/INVESTMENT SERVICES. FOLLOWING THE ENACTMENT OF THE LAW REGULATING THE SECTOR IN 2012, BOTH NEW AND ESTABLISHED FIRMS HAVE BECOME EVEN MORE ACTIVE IN ATTRACTING INVESTORS AND NEW COMPANIES TO THE ISLAND. ON THE FOLLOWING PAGES, 16 OF THE LEADING ADMINISTRATIVE SERVICE PROVIDERS PRESENT THEIR SERVICES, WHILE THE COMPANY CEO/MANAGING DIRECTOR GIVES HIS VIEWS ON WHAT THE GOVERNMENT AND THE PRIVATE SECTOR CAN DO IN ORDER TO RESTORE THE SECTOR TO ITS PRE-CRISIS LEVELS AND ENCOURAGE THE FURTHER GROWTH OF THE INDUSTRY.

40 Bizserve Consultants Ltd. 42 ConnectedSky Legal & Corporate Consultants Ltd 44 Cyproman Services Ltd. (CPM) 46 Dema Services Ltd. 48 First Names (Cyprus) Ltd 50 Korpus Prava (Cyprus) 52 MMG Trust (Cyprus) 54 Nobel Trust Ltd. 56 Olieserve 58 Orangefield Cyprus Ltd 60 O.T.A. Orphanides Trust Agency Ltd. 62 Prudens Ltd. 64 Servuspride Ltd 66 Totalserve Management Ltd. 68 Trident Trust Company (Cyprus) Ltd. 70 V.M.L. Venture Management Ltd.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 39

SPECIAL PROMOTIONAL FEATURE

BIZSERVE CONSULTANTS LTD.

B

izserve Consultants Ltd. is a corporate and trustee service group, established in May 2002. Its select employees and associates compose a strong team able to operate in any business environment and ready to give bespoke solutions to any inquiry. Our clients range from listed multinational corporations to individuals seeking personal trustee services. Bizserve Consultants offers a wide range of services relating to international tax planning.

OUR MAIN SERVICES: Company / Group structuring and jurisdiction advice Incorporation and administration of companies in various jurisdictions such as Cyprus, UK, BVI, Seychelles, Panama, Hong Kong, Marshall Islands and many more Incorporation and administration of branches Trust Formation Availability of shelf companies Provision of registered office and nominees Legal advice on corporate matters Secretarial services Banking Services Permanent Establishment Set Up Virtual office

issues concerning our industry. As a board member we believe we can play an influential role by proposing and/or putting forward new ideas while keeping up with the latest developments. We also maintain our membership of CFA Committees as well as of various other professional organizations, thus having the opportunity to participate and keep up to speed with news and trends in our industry. Bizserve Consultants is an active member of the Cyprus Chambers of Commerce and Industry as well as of various bilateral associations. Personal Engagement It is our belief that personal interaction is the most beneficial and constructive way of serving a client and we build our relations based on that principle. Taking actions such as travelling to various countries to meet in person with our clients and organizing forums/events are a few of the actions we take towards our goal of meeting our clients’ needs in an effective and direct way. Our staff are also trained in such a way that personal communication is achieved. We recruit among the highest-calibre professionals in the market and provide them with the required

PHOTOGRAPHY BY JO MICHAELIDES

Chris Koutouroushis Managing Director

STEPS TO EXCELLENCE Recognition – Reliability – Accreditation In our continuous efforts to deliver service excellence, we succeeded in obtaining the license to provide Administrative Services from the Cyprus Securities and Exchange Commission (CySEC). Further to the Law regulating Companies providing Administrative Services and Related Matters of 2012, Bizserve Consultants applied to CySEC in March 2013. During its meeting held on 2nd June 2014, the Commission decided by virtue of article 12 of the Law to grant Bizserve Consultants Ltd Authorization to provide Administrative Services under registration number 66/196. Furthermore, during the 2nd Annual General Meeting of the Cyprus Fiduciary Association (CFA) held on 11 June 2014, Bizserve Consultants was elected a member of the Board of Directors. Bizserve Consultants is represented by its Managing Director, Mr. Chris Koutouroushis. We consider this as an important accomplishment as the CFA plays a significant role in developments in the fiduciary sector in Cyprus. Elected members are able to participate in the decisions and express their opinion on

tools to meet customers’ needs. Bizserve Consultants’ team is made up of qualified lawyers, administrators, bankers, marketing officers and IT consultants ready to provide professional support to all assigned tasks. We are able to carry out clients’ requests in Greek, English, Russian, Bulgarian and Romanian. We greatly consider the fast pace of business life that our clients follow and we thus execute requests to the fastest and best possible way. Restless Enhancement of product offering Bizserve Consultants is always on the lookout for new products and services. As a growing company we find it essential to offer better and new products and services to meet the demands of our esteemed clientele. We seek new associates both locally and overseas continuously in order to help entrepreneurs develop and launch their new investment ideas. Consequently, we have managed to establish cooperation with a number of banking groups, legal firms, accountants and auditors, service providers in various jurisdictions, investment houses, etc.

Network Economy Our aim is to work all times in such a way as to provide direct and valid information to our clients. Believing in today’s network economy we have found it essential to redesign and launch our new user-friendly website www.bizserve.eu went live in August 2013 and is constantly being upgraded and updated. By visiting our website, clients are informed in an easy and convenient way about all the services we provide. The menu bar allows them to navigate directly to more specialized pages by using lower levels in the hierarchy. The various links we offer on our website direct clients to the actual sources of the news or to other official websites of governments, official organizations and associations. Our clients also have the opportunity to register for a weekly newsletter. Our subscribers are not only informed of the latest news and trends regarding the services we offer and the jurisdictions we represent but are also reminded about important annual obligations.

Finally, we are pioneers via the Live Chat Service on our website at satisfying online visitors with any answers and information required about our products and services. The Live Chat Service allows our online visitors to ask questions while browsing the website. We believe that by providing instant assistance to visitors, we increase their trust, loyalty and satisfaction. A STEP FURTHER Corporate Social Responsibility Actions taken in the context of Bizserve Consultants’ responsibility towards its employees, the environment and society show that our culture is structured so as to give equal opportunities to employees in every possible way. We believe that is our duty to protect the environment as well as to donate to charity and help society. Our constant efforts prove that this idea has become part of our culture and it can only continue to grow. Following the events of March 2013, what can the Government and the private

CONTACT INFORMATION: Bizserve Consultants Ltd.

sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry? Chris Koutouroushis, Managing Director: Even though the events of March 2013 adversely affected the sector, changes in the industry were well underway long before then, triggered by the global financial crisis back in 2008 and its repercussions. As liquidity in economies dried up and public finances worsened, tax authorities became more scrutinising with their methods. Service industries are built on high-calibre workforces and this is a core ingredient we have in abundance. I have no doubt that the professionals in the industry will raise the bar in terms of their service offering, once they understand the changing needs of their clientele. Towards this goal, the government and semi-government agencies must act as trustees of a wellregulated but at the same time business-friendly environment. The key to success is formulating a balanced strategy that will allow Cyprus to evolve and reposition itself in a fast-changing worldwide environment.

Address: 32, Georgiou Griva Digeni Avenue, 1066 Nicosia | P.O. Box 27670, 2432 Nicosia | Tel: (+357) 22375504 Fax: (+357) 22377583 | e-mail: info@bizserve.eu | Website: www.bizserve.eu

SPECIAL PROMOTIONAL FEATURE

CONNECTEDSKY LEGAL & CORPORATE CONSULTANTS LTD

C

haralambos Samir is the founder, CEO and sole shareholder of ConnectedSky Legal & Corporate Consultants Limited (“ConnectedSky”) which, though founded in December 2009, started proper operations in October 2011. ConnectedSky is

regulated by the Cyprus Bar Association under License Number 524 and is considered by the Cyprus Securities and Exchange Commission as an Eligible Person to conduct Fiduciary, Trust and other Administrative Business under the Law regulating companies providing administrative services and related matters of 2012.

LLC, acquired the exclusive rights of SILFA (Staubach International Law Firm Alliance) for Cyprus and as such it maintains representative offices in Beijing, Brussels, Budapest, Dubai, London, Lugano, Milan, Moscow, Nicosia, Palma de Mallorca, Prague, Vienna and Warsaw. AREAS OF PRACTICE ConnectedSky is a global provider of professional services ranging from corporate, legal, and tax advisory to risk management, assurance and industry inside help, thereby offering effective solutions to the needs of businessmen, corporate bodies and any other institution. Through ConnectedSky’s team of experienced and well-educated professionals, as well as its wide international network, a “one stop shop” package of services and solutions can be offered to local and international clients. We are proud to say that ConnectedSky offers more than 80 different types of professional services to a clientele from over 25 countries and coming from a variety of business and industry back-

PHOTOGRAPHY BY JO MICHAELIDES

Charalambos Samir - Founder and CEO

Despite the uncertain situation and the financial recession due to the bail-out of Cyprus and the haircut imposed on deposits in ex Laiki Bank and Bank of Cyprus in March 2013, ConnectedSky nevertheless managed to proceed with its next significant step and moved to its own premises in May 2013 by acquiring the former residence of the Ambassador of Portugal. The building, now named ConnectedSky House after the firm, is located in one of the most prime and privileged areas of Nicosia and consists of a total space of approximately 1,500 square metres and offers spacious working areas, conference rooms, a presentation room, a swimming pool and a large outside garden area, which is used for the firm’s private events. ConnectedSky is associated with C. Samir & Co. LLC, a firm of advocates and legal consultants duly incorporated under the laws of the Republic of Cyprus. In May 2014 ConnectedSky, through C. Samir & Co.

grounds such as: • Oil & Gas • Power & Utilities • Pharmaceutical & Chemicals • Insurance • Telecommunications • Real Estate and Construction • Banking & Capital Markets • Asset Management • Technology • Electronics & Software • Consumer Products • Government & Public Sector • Media and Entertainment • Biotechnology • Automotive Moreover, given that each of the above is a multibillion industry sector and, as such, likely to be extremely influential as far as the global economy is concerned, there is no doubt that any possible growth or collapse of the world economy is seriously dependent on them. ConnectedSky justifiably trusts that the recent and future developments within each of these industry sectors will play a vital role, not only in shaping the future world economy but also in the fight

against the current economic crisis. That is why ConnectedSky has invested in sector-inside analysis so that we can stand up and proudly say that our people have great knowledge and experience and can therefore assist our clients by providing them with information and advice on crucial issues such as compliance, risk management, strategic tax planning, mergers & acquisitions, sales, joint ventures and much more. Consequently, our clients are in a position to fully understand the multiple complex issues that each industry sector hides, giving them the advantage of taking the most profitable and organized decisions. ConnectedSky’s core areas of practice are as follows: Company Formations in over 60 Jurisdictions Formation of Foundations and Trusts Provision of International Tax Planning Services Formation of Cyprus ICIS & Foreign Funds Provision of Fiduciary, Trustee and Administrative

Services Opening and Maintenance of Bank Accounts Worldwide Legal Due Diligence and Compliance Immigration, Residency and Citizenship Services International Corporate Intelligence Services International Debt Collection Services Information Technology Accounting, Bookkeeping and VAT Services HR and Payroll Services “Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry?” Charalambos Samir, Founder & CEO: Twenty months after the events of March 2013, it is obvious that the pre-crisis level of Administrative Services has been severely affected. However, there has indeed been some improvement with respect to the restoration of Administrative Services, mainly due to the Law Regulating Companies Provid-

ing Administrative Services and Related Matters of 2012. The main aim of this law is to further regulate the professional services sector, which will ultimately benefit clients and investors who invest in Cyprus or through Cyprus. A better legal framework is now in place, making it compulsory for companies offering professional services to obtain a license either from the Cyprus Securities and Exchange Commission (CySEC) or the Cyprus Bar Association or the Institute of Certified Public Accountants of Cyprus. In light of the above, it is true that the Government and the private sector must join forces in order to pull Cyprus back from the brink of recession and take all the required steps and adopt such mechanisms that will help restore the level of the island’s providers of Administrative Services, who play a crucial role in regaining investors’ confidence. We should never forget that each and every investment in Cyprus or through Cyprus starts and ends with cooperation with an Administrative Services firm.

CONTACT INFORMATION: ConnectedSky Legal & Corporate Consultants Limited

Address: 12, Igoumenitsas Street, ConnectedSky House, 2027 Strovolos, Nicosia, Cyprus | Tel: (+357) 22258800 Fax: (+357) 22258801 | e-mail: info@connectedsky.com | Website: www.connectedsky.com

SPECIAL PROMOTIONAL FEATURE

CPM Managment team

CPM GROUP

C

yproman Services Ltd, which announced the rebranding of its corporate name to CPM (Corporate Administration Services) on the 12th of November, is a leading independent service provider in Cyprus, offering a comprehensive set of business services to local and international clients since 1996. Over the years, we have grown significantly and expanded the range of services we offer, aiming to best accommodate the business needs of today’s market and, above all, the needs of our clientele. Today, CPM is one of the largest providers of Fiduciary and Administration services to a well-diversified international clientele in Cyprus. As experienced professionals, we appreciate the importance of confidentiality, efficiency and reliability in

today’s demanding international business environment. Our staff is trained to offer efficient, reliable and prompt business services in Cyprus and other major international jurisdictions. Choosing CPM as your service provider gives you peace of mind, knowing that experts are handling all the details. CPM currently employs over 70 professionals and staff with offices in Nicosia and Larnaca. To meet the challenges of the international nature of our industry, we have an international team of multi-lingual and highly skilled professionals, encompassing accountants, lawyers and supporting staff, with extensive industry knowledge in their individual fields, as well as substantial experience in the corporate industry and global finance. We strive to build and maintain a strong and pro-

active relationship with our clients, based on mutual trust and respect, and are committed to responsiveness, reliability and customized services and solutions tailored to our clients’ specific needs. Our team is organized in small groups, headed by Senior Managers, in order to ensure highly personalized services and quality support at all times, through the extensive use of advanced technology. CPM is an Administrative Service Provider authorized by the Cyprus Securities and Exchange Commission, in accordance with the Law Regulating Companies providing Administrative Services and Related Matters (No. 196(I)/2012). We provide a fully comprehensive range of services to international and local based clients, encompassing large multinationals, banking institutions and high net worth

individuals. Services include, among others, Fiduciary, Company Administration and Secretarial, Accounting & Bookkeeping, Escrow, Payroll and Fund Administration services. Moreover, through our associates, we offer Aviation, Yachting and Crew Management and Administration services. Our comprehensive Fiduciary and Trustee services include the formation of appropriate business entities in the most advantageous jurisdictions, the provision of domiciliary, directors and management services, trustee and escrow agent services, as well as any required facility to suit diverse client needs. We offer full Company Secretarial and Administration services for companies operating in Cyprus and other major jurisdictions, with the objective of ensuring compliance with all the relevant

statutory obligations. Services include organising directors’ and shareholders’ meetings, preparation of documentation reflecting changes in the structure and composition of a business entity and all the main administrative duties needed to ensure that the company operates in accordance with the law and regulations of the chosen jurisdiction. Our team of highly qualified accountants provides day-to-day support in the preparation of accounts in compliance with regulatory reporting obligations. We can offer a wide range of Accounting and Bookkeeping services in order to satisfy a variety of clients’ needs, including day-to-day bookkeeping, the maintenance of a computerised general ledger, bank account reconciliations, the preparation and submission of VAT returns and VIES declarations, the preparation of periodic management accounts and annual unaudited Financial Statements, as well as the payment

of requisite taxes. We appreciate that the confidential, accurate and timely operation of a company’s payroll is fundamental to any business. Our team of experienced payroll professionals can help implementing all aspects of your payroll, including processing monthly payroll, the preparation of all necessary forms and reports, the preparation and filing of annual returns, the payment of relevant taxes, contributions, and premiums and assistance in the application process for work permits. We offer a comprehensive set of Fund Administration Services to a wide range of alternative investment funds and pools of collective investment schemes through the dedicated fund administration company of our group, Cyprofund (CPF). CPF utilizes state-of-the-art technology to offer a complete set of reliable fund administration solutions, built upon professionalism, experience, and compliance with relevant laws and regulations.

Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry? Costas Christoforou, General Manager: Cyprus still has several comparative advantages for foreign investors over other jurisdictions, despite the blow suffered. To be able to achieve this, both the private sector, as the backbone of the economy, and the Cyprus government need to work together towards the same direction There is an urgent need to reorganize corporate governance in order to provide tax and other incentives to stimulate investment. Furthermore, to create opportunities and establish Cyprus as an attractive destination for investment activities, the efficiency of government authorities (i.e. the Registrar of Companies and the Inland Revenue Department) needs to be improved by reducing bureaucracy and simplifying time-consuming

procedures. The Government should also promote reforms to speed up legal procedures for court cases. Additionally, the revival of entrepreneurship is also necessary to promote the internationalisation of business opportunities in alternative fields, such as Cell Companies (companies with further branches of companies, each of which deals with different businesses but with a common legal entity), Sharia Investment Funds (an investment vehicle fund structured in accordance with Islamic law), etc. Moreover, through the effective guidance of the supervisory authorities, as CySEC, the market’s integrity and investor protection can be ensured by promoting transparency. Considering the surrounding economic reality, one perceives that is imperative as never before to make the necessary modifications and take modernisation measures in the public sector, and to create a business climate which is friendly towards potential investors.

CONTACT INFORMATION: CPM GROUP Nicosia: 12, Esperidon Street, 4 Floor, CY-1087 | P.O. Box 22096, CY-1517 Nicosia | Tel: (+357) 22474000 | Fax: (+357) 22474808 Larnaca: (YJOIPZOVW 4HRHYPVZ 000 (]L *VYULY 2HSVNYLVU :[ 5PJVSHPKLZ :LH =PL^ *P[` [O -SVVY 6MĂ„JLZ )SVJR ( ) CY-6016 Larnaca | P.O. BOX 40569, CY-6305 Larnaca | Tel: (+357) 24823420 | Fax: (+357) 24823421 | Website: www.cpm.com.cy th

SPECIAL PROMOTIONAL FEATURE

(L-R): Stalo Antoniou, Andriana Pias-Hawarian, Charis Raftopoulos, Andreas Constantinides

DEMA SERVICES LTD.

D

ema Services was established in 1998 and is one of the foremost providers of International Company Services, Trust and Fund Administration. It specialises in the formation of companies in Cyprus and in other jurisdictions and provides nominee, trustee and administration services efficiently and at a reasonable cost. It also provides assistance to those Cyprus companies, and branches of foreign companies, that need an operational office in Cyprus. Furthermore, Dema Services provides escrow agent services, advice

and supervision of mergers and acquisition transactions, EU Cross-Border Mergers and redomiciliation of companies. The company headquarters are located in Nicosia and there are subsidiaries in Switzerland and Seychelles. The Seychelles subsidiary, Rosebery Ventures Ltd, and the Swiss subsidiary, Dema Consultants SA, specialise in the formation and administration of companies in Seychelles, BVI, St. Kitts and Nevis; Dema Consultants also forms and administers Swiss companies. The strong ties that the company has created and maintains with foreign associates enable it to serve its clients on an international level.

Services of the Seychelles subsidiary Rosebery Ventures Ltd provides the following services from Seychelles: • Set-up of Seychelles, BVI and Nevis companies • Administration of Seychelles, BVI and Nevis companies (nominee trustee and fiduciary services) • Set-up and administration of Nevis and BVI trusts • Set-up and administration of Foundations in Seychelles and Nevis • Set-up and operation of bank accounts • Provision of correspondence address Services of the Swiss subsidiary Dema Consultants SA provides the following services: • Set-up and administration of Swiss companies • Set-up and administration of BVI, Nevis and Seychelles companies (nominee, trust and fiduciary services) • Set-up and administration of Trusts in Cyprus, BVI and Nevis

CONTACT INFORMATION: Dema Services Ltd.

• Set-up of Foundations in Nevis and Seychelles • Set-up and operation of bank accounts in Switzerland • Provision of correspondence address in Switzerland • Wealth structuring and administration services Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry? Charis Raftopoulos, Director: No doubt the events that followed March 2013 have deeply affected our sector and the financial service industry in Cyprus. We, at Dema Services, are spending a lot of time and resources on restoring our business to pre-crisis levels and on bringing new clients, developing new markets and introducing new systems. The Government, the Central Bank and the House of Representatives must work together and introduce the reforms we have all been suggesting for years. They could make a start by appointing the right people to the right posts, people who will carry Cyprus forward, people who know and understand what it takes to be able to state that Cyprus is ‘’open for business’’. The Government could also take more radical measures, for example, introducing privatisation of certain departments such as the Office of the Registrar of Companies, from which it will be able to collect even more fees.

Address: 8 Stassinos Avenue, 2nd -SVVY 6MĂ„JL 7OV[PHKLZ )\ZPULZZ *LU[YL 5PJVZPH 7 6 )V_ 5PJVZPH Cyprus | Tel: +357 22751555 | Fax: +357 22452054 | e-mail: charisr@demaservices.com | Website: www.demaservices.com

PHOTOGRAPHY BY JO MICHAELIDES

AREAS OF PRACTICE Cyprus Services • Set-up of Cyprus companies and trusts • Administration of Cyprus companies and trusts (nominee, trustee and fiduciary services) • Set-up and administration of investment funds • Set-up and operation of bank accounts • Escrow agent services • Advice and supervision of mergers and acquisitions transactions

CONTACT INFORMATION

ConnectedSky Legal & Corporate Consultants Limited

Address: 12, Igoumenitsas Street, ConnectedSky House, 2027 Strovolos, Nicosia, Cyprus | Tel: (+357) 22258800 Fax: (+357) 22258801 | e-mail: info@connectedsky.com | Website: www.connectedsky.com

FIRST NAMES (CYPRUS) LTD

F

irst Names Group may be a new name in the global trust and corporate services sector but we’ve been around for more than 30 years. Formerly IFG Trust and Corporate Group, we broke away from IFG Group Plc in 2012 in a management

buyout supported by AnaCap Financial Partners LLP, a London-based private equity firm specialising in Financial Services. Our ability to operate on a global scale via a network of strategically located offices is fundamental to our success. Our presence in and knowledge of the regulatory

landscape in so many of the world’s key financial jurisdictions means we can respond to the varied and specific needs of our clients, either directly or via their trusted advisers. We have over 600 ‘First Names’ with offices in Jersey, Guernsey, Isle of Man, Cyprus, Switzerland, Luxembourg, The Netherlands,

France, Ireland, UK, the British Virgin Islands and Japan. And we are still growing…. We have a clear focus on professional qualifications among employees, with many accountants, lawyers, trust and estate practitioners and chartered secretaries providing the necessary experience. We are committed to all of our staff, investing in their professional development to ensure they are always equipped to deal with the ever changing and complex corporate environment As an independent firm, we are totally free of the conflicts often associated with institution-owned trust companies. This not only gives us the agility to make decisions quickly but also means we have complete freedom to choose the right banks and investment houses to work with. We do not provide tax or legal advice, choosing instead to work with third-party professionals. We are happy to work with clients or their advisers directly, or as part of a wider team. Our experienced and well qualified teams of in house professionals provide advice on and day to day management of simple and complex structures established for both private and corporate clients. Often, these structures are established for the purposes of the mitigation and neutralisation of tax and for the protection and preservation of wealth within a secure environment. The uses of such

PHOTOGRAPHY BY JO MICHAELIDES

SPECIAL PROMOTIONAL FEATURE

structures are broad and almost limitless. In many cases a bespoke approach and interpretation is required in order to ensure that client objectives are met. We have dedicated teams specialising in the following:

wide range of M&A transactions undertaken by our clients like mergers, acquisitions or disposals including drafting or reviewing of relevant agreements, financial or legal due diligence and other necessary M&A support work.

Trust Establishment and Administration We have significant experience in establishing trust arrangements for a wide variety of private and corporate clients. We will advise on the set-up of a trust in conjunction with the client’s professional advisers and will act as corporate trustee, ensuring continuity of management and administration.

It’s our independence from financial or legal institutions that means we can offer the very best in trust and corporate services. And it is our independent spirit that gives us the character our clients and professional intermediaries value so highly. It’s a culture of independence that gives our people the freedom to forge long-term, mutually rewarding client relationships and to grow as professionals and prosper as individuals. We understand that all of our clients, from single individuals to major corporations, ultimately want the same simple thing: peace of mind. They want to rest easy in the knowledge that structures are being administered by experienced professionals motivated to deliver the highest standards of corporate governance. We take the time to understand our clients’ individual needs, either working with them directly or through their advisers. And we take pride in our ability to tailor the right solutions, drawing from an extensive, integrated platform of expertise and processes

Company Incorporation and Management We provide centralised and co-ordinated management and administration of companies incorporated in a wide variety of jurisdictions with regular reporting tailored to client’s individual requirements. Our directors and senior staff will be directors of client companies, adding real substance. We also provide all secretarial, administration, banking and accounting related services. • Transaction support services Our experienced accountants and in-house lawyers are well suited to provide support on a

spread across multiple strategic locations. We’re proud of the service we offer. And we’re proud of the people who make it happen: our First Names. First Names Group is all about the people who have made us what we are. Most professional services organisations recognise that it’s their people who make the difference; at First Names Group we have taken this a step further by embedding that philosophy into the brand itself. Our name symbolizes the value we place on relationships; being on First Name terms with clients and colleagues is a privilege we both value and enjoy. It is people who are at the heart of our success, from the experienced professionals within our company to the clients and intermediaries who repeatedly put their trust in us. The name also represents our commitment to being the ‘First Name’ in the services we offer, in existing and new markets. “Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry?” Christos Michael, Managing Director: Most of the competitive advantages of

CONTACT INFORMATION: First Names (Cyprus) Limited

Cyprus, such as its growing reputation as a stable International Business Centre with the lowest corporate tax rate in the European Union have been eroded by the events in March 2013 and recent developments – including the OECD initiatives and projects under consideration to address the issue of Base Erosion and Profit Shifting and the promotion of transparency and exchange of information and tax cooperation among governments, and the intention of Russia to introduce CFC rules, most probably in 2015 – are threatening to eliminate the flexibility and even the possibility of international investors being able to use Cyprus as a tax-efficient destination. The landscape of international and offshore business has changed and Cyprus has no strategy that provides direction or clarifies objectives, redefines or builds new competitive advantages around our strongest asset, which is the highly qualified professional workforce that is able to provide personalized advice-driven service, or addresses the shortcomings of our system to provide services of substance, a flexible tax and legal environment with clarity and predictability of treatment, a quality risk management framework and high ethical standards across the board.

Address: Chapo Central, 3rd Floor, | 20, Spyros Kyprianou Avenue, 1075 Nicosia, Cyprus | Tel: (+357) 22749000 Direct Line: (+357) 22749155 | Mobile: (+357) 99685867 | e-mail: *OYPZ[VZ 4PJOHLS'ÄYZ[UHTLZ JVT | Website: ^^^ ÄYZ[UHTLZ JVT

SPECIAL PROMOTIONAL FEATURE

Artem Paleev, Managing Partner

ADVANTAGES OF THE SERVICES OF KORPUS PRAVA High professional standards The experts of Korpus Prava develop business solutions for various areas and provide professional services that meet national and international standards. Our employees are fluent in various languages, including English, Greek, Latvian and Russian, which allows them to promptly and freely communicate with clients, solve current issues, cooperate with financial establishments and state authorities.

KORPUS PRAVA (CYPRUS)

K

orpus Prava (Cyprus), located in Limassol, is a part of the global Korpus Prava structure based in Russia, Hong Kong, Latvia and Malta. Our client portfolio includes enterprises in telecommunications, mass media, oil and gas, food processing, agriculture, transport, development and construction, IT, etc. As evidence of the fruitful and confidential relations with our clients, 70% of our company’s clients have been working with us for more than three years, and after receiving specific services (tax, legal consultations), many of them order even more

complex services from our lawyers who successfully protect their interests. KORPUS PRAVA (CYPRUS), PROVIDES HIGH-QUALITY SERVICES IN THE FOLLOWING AREAS: ˜ Corporate law ˜ Tax law ˜ Legal support of business projects The company gives special attention to improving existing procedures for lawyers and consultants and conducts regular training for our specialists. This gives us an opportunity to steadily develop existing aspects and master new trends in our professional activities.

Solutions that work and meeting clients’ expectations We do not merely sell services, we develop solutions that work. The offices of Korpus Prava are well integrated into the common corporate structure and this enables the Company to carry out complex international projects, secure compliance with the principles of prompt communication, the timely exchange of information and a well organised system of document flow. Personalized approach The experts of the Company take into consideration the characteristics and the interests of each client and carefully plan all the stages of the project – tax and legal opinion, registration of companies within the group, transactions analysis, etc. We work directly with the client, take part in the talks with his/her partners, and stand by the client’s side at every stage from consulting to the completion of the project. Strict privacy and security guarantee The clients of the Company can rest assured of secure, precise

CONTACT INFORMATION: Korpus Prava (Cyprus)

and well planned business solutions as well as a high level of confidentiality. Open Mind Advising Our activities are based on the key principles that define the approach to client work: ˜ Open mind ˜ High standards and responsibility ˜ Long-term cooperation ˜ The use of innovative tools and quality control ˜ Striving for innovation and perfection Korpus Prava exercises a comprehensive approach which aims to increase the efficiency of clients’ business and reduce risks. Our experts comply with the principles of honest cooperation and transparency in client relations. Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry? Artem Paleev, Managing Partner: The main competitive advantages of Cyprus as an IFC were its effective, smart and client-oriented banking, the large number of Double Tax Treaties (DTTs) and the lowest corporate tax rate in the EU. The fundamentals are still the same today – DTTs and quite low taxation. The banks are the problem. We have to solve the liquidity problems of banks, open up the market to foreign banks in Cyprus, start financing business and change the reputation of Cypriot banks among members of the EU’s professional community.

Address: .YP]HZ +PNOLUPZ (]LU\L 6MĂ„JL 3PTHZZVS *`WY\Z c Tel: (+357) 25582848 | Fax: (+357) 25582868 e-mail: cyprus@korpusprava.com | Website: www.korpusprava.com

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

Novosibirsk, Russia

Hong Kong, PRC

LAW

TAX

Trade & Investments

International Tax Planning

Banking & Finance

VAT & Indirect Taxes

M&A & Due Diligence

Transfer Pricing

Corporate & Commercial

Tax Audit & Advise

Competition & Antitrust

Tax Disputes

Intellectual Property

Financial Services & Funds

Litigation

Corporate

Restructuring & Insolvency

Custom & Excise International Trade

FIDUCIARY & TRUST

PRIVATE WEALTH

Incorporation & Administration

Individual Tax Planning

Hedge Funds Formation

Wealth Management

Corporate Services

Real Estate

Trust & Asset Management

Legal Protection

2Î?VKRUH (8

Investments Accounts and Operations

CONTACT INFORMATION

ConnectedSky Legal & Corporate Consultants Limited

Address: 12, Igoumenitsas Street, ConnectedSky House, 2027 Strovolos, Nicosia, Cyprus | Tel: (+357) 22258800 Fax: (+357) 22258801 | e-mail: info@connectedsky.com | Website: www.connectedsky.com

www.korpusprava.com

SPECIAL PROMOTIONAL FEATURE

ing views of both the Pacific Ocean and the city’s skyline. The office in Zßrich has been most successful in establishing MMG Wealth. MMG Wealth offers integrated investment solutions, wealth planning and investment advisory services. We also provide real estate investments, direct private equity and art advisory services. These services are complemented by our renowned research capabilities and backed not only by the other members of MMG Zurich but also by the global reach of the Morgan & Morgan Group.

MMG TRUST CYPRUS HISTORY The Morgan & Morgan Group (MMG) was originally established as a law firm in 1923. Over the years it has grown exponentially to become one of the largest law firms in Central America. Concurrent with the development of the law firm, MMG has also established a successful trust business. The Group has opened its own proprietary offices not only in the Caribbean (BVI, Bahamas, Belize) but in both Europe and Asia. MMG has opened and operated fully fledged offices in all the major financial centres on these two continents and had a presence for over 30 years in cities like London, Zurich and Geneva. THE PRESENT MMG is active on three continents through its wholly owned offices in 20 different cities, including Singapore and

Shanghai. All of these offices employ professional staff and offer a multitude of legal, fiduciary and financial services to their clients. Attesting to MMG’s strength in the financial sector is the establishment of its own bank. MMG Bank (www. mmgbank.com) is a boutique private bank with a banking licence in both Panama and the Bahamas. The bank offers tailored-made services to both new and existing clients of the Group. THE FUTURE The headquarters in Panama are now housed in our new, proprietary tower, the MMG Tower (www.mmgtower.com). This state-of-the-art, environmentally friendly sky scrapper accommodates our staff locally. The tower is located in Costa del Este, one of the most prestigious locations in Panama City, with breathtak-

THE CYPRUS OFFICE The office in Cyprus commenced its operations in July 2011. It provides a multijurisdictional and interdisciplinary approach to problem solving. Amongst others, we offer: ˜ Company incorporation and administration ˜ Establishment of Trusts and Foundations ˜ Provision of corporate and physical directors and trustees, company secretaries, nominee shareholders, registered offices and telephone/facsimile facilities ˜ Opening and operating of bank accounts ˜ Accounting and bookkeeping ˜ Tax, VAT and VIES compliance ˜ Audit and legal engagements (with independent audit and law firms) Servicing both professional intermediaries and private clients, we focus on corporate structuring and succession planning. The office is staffed with qualified professionals with a wealth of experience in fiduciary, accounting, audit, finance and IT. The members of the management team, in addition to advising

CONTACT INFORMATION: MMG TRUST CYPRUS

clients, are often invited to attend conferences and lecture on a variety of topics. In April 2014, we were successful in our licence application to the Cyprus Securities and Exchange Commission. The office is now a licenced fiduciary firm, resonating the transparency and accountability with which we are servicing our clients. Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry? Pericles Spyrou, Managing Director: We have been pleasantly surprised by the fact that business continues to grow in spite of the recent challenges, both locally and abroad. Cyprus has weathered the storm and remains an attractive international business hub with a sound reputation. We hope that the recent events in Cyprus will prod both the public and the private sector to continue their efforts to that effect. The Government should persevere in its efforts to reform the public services and to attract inward investment. The incentives for citizenship, the modernization of the trust law and the licensing of administrative services providers are an eloquent example of initiatives that have been taken to safeguard Cyprus’ reputation. We, as the private sector, should continue our promotion of the competitive advantages of Cyprus. Our island still has an enviable tax regime, a sound and simple legal system and a long established tradition of offering international services. Why not continue to do so?

Contact Person: Pericles Spyrou | Address: UK Ă…VVY 1VOU 2LUULK` (]LU\L 5PJVZPH *`WY\Z Tel: c Fax: c e-mail: pericles.spyrou@mmgtrust.com.cy | Website: www.mmgtrust.com.cy

PHOTOGRAPHY BY JO MICHAELIDES

Pericles Spyrou Managing Director

CONTACT INFORMATION

ConnectedSky Legal & Corporate Consultants Limited

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

SPECIAL PROMOTIONAL FEATURE

Company/Entity Formation services We undertake the formation of private and public limited liability companies in Cyprus and other reputable jurisdictions. Moreover, we undertake the formation of Cyprus partnerships, Cyprus branches, Cyprus International Trusts, Alternative Investment Funds, UCITS and Societas Europaea.

NOBEL TRUST LTD

N

obel Trust Ltd is by design a boutique fiduciary firm which provides corporate administration and business consulting services in a client-centred manner, applying commercial acumen and servicing clients› needs with the highest level of professionalism and efficiency. The standing and quality of our client base is testament to the fact that our chosen business model is the one increasingly favoured by clients. We operate as a one-stop-shop whereby tailor-made solutions are provided to support our clients’ demanding and multidisciplinary business needs. Our philosophy is outstanding achievement in all areas of our operations, aiming at exceeding our clients’ expectations hence creating lasting relationships of trust within a confidential and

regulated environment. In line with international and local legislation and best practices, Nobel Trust Ltd is regulated as an Administrative Services Provider by the Cyprus Securities and Exchange Commission (licence number 84/196). Our dedicated and experienced team consists of in-house industry professionals and external associates including tax advisers, lawyers, accountants, economists, auditors and financial services professionals who are trained and developed so as to meet the constantly evolving needs of this dynamic and continually changing industry. During 2012 our firm was amongst the very first fiduciary firms in Cyprus to be awarded the highly acclaimed «Investors In People» accreditation, demonstrating its continued commitment to training and empowering its employees, supporting a company-wide culture of learning and creat-

ing a caring, professional and high-performance environment that delivers the ultimate value to clients. SUPPORT SERVICES Our core services are comprehensive and cover the main business needs of clients, starting from the incorporation of an entity, assisting with its daily running, operation and compliance including, where a client so desires, the structured end of the business cycle and the eventual entity dissolution. Each client is assigned to a Relationship Manager who serves as the main point of contact of the client in relation to the various departments within our firm, our external associates, government authorities and departments and other third parties. The Relationship Manager is dedicated to ensuring that all client needs and compliance requirements are completed efficiently.

Company Management services We offer ongoing administration of companies and management services. We undertake to act on behalf of our clients as trustees or nominees as requested. We provide access to or recommend professionals with the appropriate qualifications to undertake the role of the professional director and/or company secretary. Members of our team are holders of the Diploma in Company Direction from the Institute of Directors in the UK, qualified chartered/certified accountants, qualified lawyers, experienced economists, company secretaries and have knowledge on the provision of investment and ancillary services in accordance with Cyprus laws. Legal Secretarial services Legal secretarial services are essential for keeping a company in good standing in accordance with applicable laws. In this respect, we offer services of attendance at board meetings and minute drafting, preparation

of written resolutions of the directors and resolutions of the shareholders, drafting AGM/ EGM documentation, drafting of POAs, preparation and filing of notifications to the Registrar of Companies and any other adhoc filing as and if required. Financial Management, Tax and VAT compliance services We undertake bookkeeping services, preparation of accounting records and preparation of unaudited financial statements. As part of the overall financial management services we undertake tax compliance work, including VAT, VIES and Intrastat filings. Additionally, we offer payroll services which includes payroll processing, payroll preparation and payroll management. Banking services Our team can handle the entire process of selecting a bank and establishing a bank account with a bank in Cyprus or in any other reputable jurisdiction. Our banking team undertakes the day-to-day management and administration of bank accounts including bank transfer preparation and execution, online banking, credit/debit card application, monitoring of bank account movements and provision of up-to-date information to clients. In addition, we can assist with the arrangement of credit facilities and private

wealth management services. Fund Administration services Taking into consideration the recent enactment of the Alternative Investment Funds Law and the Alternative Investment Fund Managers Law, which create an opportunity for Cyprus to be established as a fully regulated and reputable funds jurisdiction, we have dedicated substantial time and resources to develop a team to undertake the establishment and ongoing administration of funds.Our services include incorporation of the appropriate entity, drafting the M&A, application to CySEC for approval and following through the process, assistance with the Information Memorandum as well as all necessary legal, secretarial and accounting support. OTHER SERVICES Escrow: Our team can provide assistance in the drafting of escrow agreements and may also arrange for acting as escrow agents to secure financial obligations arising from commercial and international activities, such as acquisitions, cross-border trading transactions and international construction projects. Business Centre: Our clients can enjoy the benefits of having a recognised, fully functioning office without moving from their present location. Services

include but are not limited to office space, secretarial attendance, telephone, fax and Internet lines. ADVISORY SERVICES Legal services Through our affiliated law firm Ioannides Demetriou LLC, we can assist with the provision of legal services on all commercial contentious and non-contentious matters. We can further assist with Listings on the Cyprus Stock Exchange with the law firm acting as the Nominated Advisor (‘NOMAD’). Tax Advisory and Business consulting services Our team of experts, in association with Ioannides Demetriou LLC, may provide a range of tax and VAT advice including but not limited to tax structure optimization and the selection of appropriate vehicles, advice on Cyprus tax implications and Double Tax Treaty application, obtaining “tax rulings� or lodging recourses with the Supreme Court for the annulment of assessments, and negotiating with the Cyprus tax/VAT authorities. We also provide sound and effective advice on the establishment of substance and proper corporate governance. In all our activities, we demonstrate a thorough understanding of business and we consistently

CONTACT INFORMATION: Nobel Trust Ltd.

provide proactive consulting and support to our clients. Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry? Nayia Morphi, Director: The government should restore confidence in Cyprus as a jurisdiction and this can be achieved predominantly by improving the general economic climate and by stabilising the banking sector. In addition, it is essential to modernise and streamline the government sector and reduce bureaucracy at all levels, with particular emphasis on processes which involve foreign investors. Further, it should promote the updating of the taxation and other business legislation in order for them to be aligned with international trends and competition and, through innovation, aim to create lucrative competitive advantages for Cyprus. The private sector should support government initiative and enrich it with new ideas. It is also imperative that it enhances its efforts to provide qualitative services with transparency and cost efficiency and thus establish itself as a good ambassador for Cyprus.

Address: +PHNVYV\ :[YLL[ ,9( /V\ZL 5PJVZPH *`WY\Z c 7 6 )V_ 5PJVZPH *`WY\Z c Tel: Fax: c e-mail: info@nobeltrust.com | Website: www.nobeltrust.com

SPECIAL PROMOTIONAL FEATURE

OLIESERVE

O

lieserve is a young, dynamic company offering administration, corporate and legal solutions to businesses of all types, backgrounds and sizes. We work with international structures and a variety of jurisdictions, but we specialise in Cyprus, Singapore, Hong Kong, Dubai and Ras-al-Khaimah. Despite being a relatively young player in this field, we have managed to acquire a strong presence in all five of the above and we pride ourselves on it. It has enabled us to provide a top-level service for our valued clients and partners. At Olieserve we believe in the

power of team spirit and, thus, pay a lot of attention to cultivating a positive and encouraging company culture. Our multinational team of young and experienced professionals is at all times ready and fully equipped to serve the best interests of our clients. Olieserve’s motto, which you can see on our logo, is “Honesty, Decency, Trust�, and it goes right to the core values of our company. Mutual trust and respect is what we aim for and this is what we have always been able to achieve in the business relationship with our clients. WHAT WE DO We provide a full range of cor-

‘A PACKAGE JUST FOR YOU’ A phrase you could associate with Olieserve is ‘quality not quantity’. Numbers are meaningless and serve only to detach you from the client and their needs; customer satisfaction is our primary target. We bring the very best premium quality services at the fairest prices, always trying to lead the way in innovation. We try to avoid generic packages and, instead, build tailor- made ones to suit the particular needs of each client. In a very competitive market and on the back of a global recession, we have proved ourselves more than worthy, as we have experienced a steady expansion over the last year and all the signs lead us to believe that the coming year will bring even more success to both us and our clients! BE OUR PARTNER Olieserve is always looking for new prospects and partnership opportunities around the world as well as in Cyprus. We try to build long-term relationships with our partners that may also be called friendships. We have two fixed partnership schemes available at all times and several limited-time promotions coming live this month. Please feel free to check our

CONTACT INFORMATION: Olieserve

website for more information. Alternatively, if after reading this short article on Olieserve, you already have a strong feeling that we are just what you need, please contact us directly to discuss future cooperation opportunities. Olieserve is always at your disposal. We look forward to hearing from you soon! Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry? Natalia Rudakova, Managing Director: After the events of early 2013, when the government choose to “stab in the back� those foreign and local investors who had put their trust in Cyprus, it bought about the need to really think how to build a positive awareness of Cyprus in places outside the island. I believe the only way to do this is for the government and every single player in the market to cooperate. Very few people in the business world know about Cyprus and, if they do, they usually have only the bad image and negative things in mind. Before we can ask investors to come back and before we invest big sums of money on marketing, there must be a hard look and a big internal clean-up. Recent events have highlighted many of the internal issues and brought to light problems within; they cannot and should not be hidden anymore. Until these issues are resolved Cyprus will struggle to attract new investors.

Address: 6MĂ„JL * 9V\ZZVZ 3PTHZZVS ;V^LY 2`YPHRV\ 4H[ZP :[YLL[ 3PTHZZVS *`WY\Z c Tel: Skype: VSPL ZLY]L c e-mail: OLSSV'VSPLZLY]L JVT c Website: ^^^ VSPLZLY]L JVT

PHOTOGRAPHY BY JO MICHAELIDES

porate services including but not limited to: ˜ Company formation ˜ Fiduciary services ˜ Accounting services ˜ Bank account opening all over the world ˜ Virtual office ˜ Legal advice ˜ Full spectrum of ‘substance package’ ˜ And many more

CONTACT INFORMATION

ConnectedSky Legal & Corporate Consultants Limited

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

SPECIAL PROMOTIONAL FEATURE

(L-R): Yiota Charalambous, Ioanna Georgiou, Paola Ioannou, Maria Karekla, Eva Shammas Chell, Constantinos Economides, Laura Michael, Mary Trimithiotou

O

rangefield is an independent global service provider of 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. The Cyprus office of the Orangefield Group was established with a view to providing quality corporate services in Cyprus with unmatched efficiency to international groups and financial institutions globally. Our team consists of professionals who serve clients at a multi-national level. We are diligent and up-todate when it comes to the latest legal matters and accounting standards. We aim to provide personalised and high-quality services, giving our clients a ‘one-stop’ service for any business activities that they wish to perform in Cyprus. FUND SERVICES Orangefield Group is specialised

in fund administration services and currently administers international funds of around ₏30 billion with some of the most advanced software in the market. The Group has passed on its advanced know-how to Orangefield Cyprus by installing up-to-date software and training our workforce in innovative procedures. Orangefield Cyprus has become a member of the Cyprus Investment Funds Association (CIFA). We position ourselves as a long-term and trusted partner that fully supports our clients’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 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 day-to-day business of our clients is guaranteed by providing 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 management, fiduciary and trust services. The depth and breadth of our experience, our presence in strategic international jurisdictions and our dedication allow us to serve our clients efficiently and effectively. Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry? Constantinos Economides, Managing Director: In the wake of recent developments and the financial turmoil, we believe that it is time for Cy-

CONTACT INFORMATION: Orangefield Cyprus Ltd

prus to establish new services and explore new industries such as energy and funds. Key elements in this process are the legal framework and straightthrough processes (STP) in order to obtain the best possible investor protection. Such incentives will encourage not only potential foreign investors but also administrative service providers to expand the variety of their services like fund registration and administration. Admittedly there is an urgent need for the presence in Cyprus of an international “brand-name� bank/custodian to supplement the funds industry. Seminars and courses subsidized by government bodies will feed administrative service providers with a well-educated workforce. The Cyprus tax regime should be favorable to activities originating from these industries by providing tax relief and/or exemptions. Cyprus needs additionally to focus on growing its DTT network with countries with mutual economic and political correlations. We strongly believe that these efforts will, by and large, be reinforced by the private sector.

Address: 20)* [O -SVVY 7YVĂ„[P ,SPH :[YLL[ .LYTHZVNLPH 3PTHZZVS *`WY\Z c 7 6 )V_ 3PTHZZVS *`WY\Z Tel: c Direct Line: c Mobile: c e-mail: THYPH RHYLRSH'VYHUNLĂ„LSK JVT c Website: ^^^ VYHUNLĂ„LSK JVT

PHOTOGRAPHY BY JO MICHAELIDES

ORANGEFIELD CYPRUS LTD

CONTACT INFORMATION

ConnectedSky Legal & Corporate Consultants Limited

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

SPECIAL PROMOTIONAL FEATURE

«

Effective and efficient corporate governance, that provides complete transparency, and which is backed up by integrity, reliability and hard work, is the foundation upon which our business is built.

Costas Orphanides - Managing Director

O.T.A. ORPHANIDES TRUST AGENCY LIMITED REPORT OF THE MANAGING DIRECTOR

T

here is no doubt that the events of March 2013 were catastrophic, not only for the administrative services sector but for the Cypriot economy as a whole. Like many others, our international clients and we ourselves suffered the consequences of the bail-in, which took us all by complete surprise. The unjust decision taken by our banks and the

Troika to freeze fixed deposits and current operating accounts were very damaging and will have lasting detrimental consequences to Cyprus’s international reputation as a strong financial haven, something which we worked so hard over many years to achieve. The great understanding, trust and confidence shown towards O.T.A. Orphanides Trust Agency Limited by our

loyal international clients, helped us overcome the effects of the economic meLimited own fairly quickly. In fact, during the second half of 2013, thanks to our dedicated team of professionals, we managed to boost our sales and maintained our profitability at the same levels as that of previous years. By employing additional professional staff and through restructuring and reorganizing our team, we were able to perform stronger in 2014. At the same time, we established full data transparency and we maintained a good balance between privacy and confidentiality while ensuring full compliance. Increased local regulation by CySEC, as well as the demands of the Troika and international regulation, have obliged us to request and constantly demand updated and thorough information from our clients. O.T.A. Orphanides Trust Agency Limited has a principle of choosing reputable clients, wealthy individuals, sufficiently experienced in the international business environment who fully comply with European Commission requirements and have proper Due Diligence

Documents in place . Our efforts were fully rewarded when we obtained our License from CySEC. O.T.A. has managed to build trusting relationships based on confidentiality. Our expert, client-focused approach has earned us a strong clientele of world class corporates and High Net Worth Individuals and reputable intermediaries. O.T.A. has invested in international business trips, visiting existing and prospective clients, and attending business forums globally to promote our local administrative services. This has led us to believe that wealthy investors see themselves as international citizens who are able to enjoy the benefits of multiple jurisdictions and who demand that their broader needs be satisfied. The main requirements of these investors are tax efficiency, effective skills, trust, speedy service, reliability, transparency, confidence and versatility. In addition, they expect to encounter minimum bureaucracy in government departments, ease of telecommunications and transport, as well as stable and healthy financial and legal systems.

PHOTOGRAPHY BY JO MICHAELIDES

«

Our international contacts have informed us that, even under the present stringent economic conditions in the EU, globally and following the financial meLimited own in the USA five years ago, there are still thousands of investors worth billions and tens of thousands of investors worth millions who are very much interested in increasing their after-tax profit through the use of efficient and legal tax structures. Cyprus Administrative Services and other related professional bodies such as the Cyprus Bar Association and the Institute of Certified Public Accountants of Cyprus, are more than capable of fulfilling all of the aforemen-

tioned needs of international investors in order to encourage the further growth of this industry. Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry? Costas Orphanides, Managing Director: The Government and the private sector can assist Cypriot Administrative Services and related professionals in attracting High Net Worth international investors in the following ways: - By jointly sponsoring inter-

national business forums to promote Cyprus as an International Business Centre. - Through their participation, Cypriot administrative professionals will have the opportunity to reassure foreign investors that Cyprus remains an attractive destination for them, that the lack of confidence in our banking system is in the past, following the successful recapitalization of local banks and their success in the recent European stress tests, that their investments are safe and that their after-tax profit can be maximized due to our favourable tax system. - By fully modernizing and computerizing the Office of the Registrar of Companies, the Inland Revenue Depart-

ment and other related government offices, and extending their operating hours to fulfil the needs of clients. - By abolishing the Registrar’s company levy for dormant companies. These companies have no financial transactions with which to sustain their expenses. - By postponing the computation of temporary corporate tax after 31December for financially active companies and wait until when the actual audited financial results are completed. - By implementing fully our rules, laws and judicial systems, stamping out corruption, red tape and favouritism in government departments. This will convince investors that Cyprus is a just and fair country. - By implementing clear strategic actions in order to ensure a sense of security for all foreign investors. Finally, the Government needs to evaluate the examples of other microstates, such as Luxemburg and endorse the recognition of Cyprus as a hub for more sophisticated investors, by promoting the island’s funds industry.

CONTACT INFORMATION: O.T.A. ORPHANIDES TRUST AGENCY LIMITED

Address: (JYVWVSLVZ (]LU\L Z[ Ă…VVY :[YV]VSVZ 5PJVZPH *`WY\Z c Tel: c Fax: e-mail: V[H'V[HNLUJ` JVT c Website: O[[W! V[HNLUJ` JVT

SPECIAL PROMOTIONAL FEATURE

ACCOUNTING Our Accounting Services include book-keeping, payroll and complying with all relevant obligations (Social Security and PAYE), preparation of monthly/ quarterly management accounts and statutory financial reports.

Antis Kaplanis, CEO

PRUDENS LTD. WE ARE AN INDEPENDENT PROVIDER OF FIDUCIARY, ACCOUNTING AND ADVISORY SERVICES.

T

he members of our team of professional advisors have extensive experience in their respective fields. The team includes lawyers, accountants, tax planning experts and bankers. These advisors work alongside relationship managers, who have the day-to-day responsibility for handling clients’ requests. We aim to provide bespoke solutions that cater to client’s short- and long-term needs. We try to accomplish this by getting to know and understand fully the environment they operate in, their respective industries and overall strategy, whilst taking into consideration all the constraints that they have to operate under.

Specifically, the services we provide include the following: COMPANY FORMATION, MANAGEMENT AND ADMINISTRATION Prudens’ expertise includes the incorporation of companies in various international centres such as Cyprus, Luxembourg, the UK, Malta, the BVI, Panama, Seychelles and Delaware (USA). We assist clients in complying with all regulatory and statutory obligations in the jurisdiction of their choice. We cater for all aspects of company management and administration, including secretarial support, provision of Trustee/Nominee Directors and shareholders, drafting of

BANKING Our team may assist clients to open and/or operate bank accounts with reputable financial institutions in various business centres including Cyprus, London, Greece, Hong Kong, Luxembourg, Singapore and Dubai, always in compliance with our company’s and the respective banking institution’s anti-money laundering procedures. TRUSTS, AND TRUSTEE SERVICES Prudens maintains a team of experts specialising in all aspects of Trust formation and related services. We are in a position to set up or assist in the set-up and the administration of a variety of trusts in an impartial and nonconflicting manner always within the expressed terms of the Trust instrument. TAX ADVISORY AND GROUP STRUCTURING SERVICE Our professional advisors are able to offer corporate and personal tax advice from an income tax to inheritance tax perspective. When providing

CONTACT INFORMATION: Prudens Ltd.

personal tax advice, we consider it fundamental that we fully understand what clients want to achieve and ensure that they pay only the tax that they have to, thus safeguarding family wealth for future generations. Our tax advisory services include VAT planning and administration whilst complying with all the relevant EU and individual EU member state tax regulations. Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry? Antis Kaplanis, CEO: The events of March 2013 have critically damaged people’s image of Cyprus which is the sine qua non of a jurisdiction which wants to portray itself as a financial centre, with a stable economic and political environment in which people can transact their business in a safe and unencumbered manner. The process of restoring the sector to its pre-crisis level cannot be anything but a long and arduous process which should be based on creating the feeling that the system may be relied upon once more. This can only achieved if both the the private and the public sector work together to remove all potential uncertainties. We need to choose those long-term goals that make sense and signal to the world that we are seriously committed to an environment of stability for all matters that may affect directly or indirectly the sector’s clients such as bank strength, tax issues, elimination of unnecessary bureaucracy, and speed of the judicial system.

Address: +PNOLUPZ (RYP[HZ (]LU\L 5PJVZPH *`WY\Z c Tel: c Fax: e-mail: RHWSHUPZ'WY\KLUZNYV\W JVT c Website: ^^^ WY\KLUZYV\W JVT

PHOTOGRAPHY BY JO MICHAELIDES

all necessary documents and agreements. Our services include the convening and holding of Board meetings, Shareholders’ AGMs or EGMs, drafting of Agendas, Notifications, Record keeping and Resolution drafting.

CONTACT INFORMATION

ConnectedSky Legal & Corporate Consultants Limited

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

SPECIAL PROMOTIONAL FEATURE

tax, legal services and business. Our specialists do their utmost to find and implement the most effective solutions using international agreements and other legislation. Servuspride Ltd. provides advice and consultancy services on all matters related to offshore business and International Business Companies which are Irina Loutchina Skittides - Managing Partner either resident in Cyprus (provided that its management and control is in Cyprus) or non-resident (if it is managed and controlled from ervuspride Ltd., outside the island). founded by Costas Using its wide experience and its Tsirides & Co. LLC, association with reputable professtarted its operations sionals, our company is able to in summer 2010 offer the following: with a focus on corporate clients ˜ Company Incorporation & investing into the Russian and Registration CIS markets. Since then, Servus- ˜ “Shelf� Companies pride Ltd. has managed to main- ˜ Nominee Services tain and develop a large portfolio ˜ Company Secretary of corporate clients, mostly ˜ Registered Office and Mail well-known and recognized Rus- Service sian and Ukrainian industrial and ˜ Maintenance of Statutory financial conglomerates. Records Servuspride Lid. offers special ˜ Bookkeeping and Audit advice on the registration of companies in Cyprus as well as on the INTERNATIONAL TRUSTS registration of entities worldwide Servuspride Ltd. renders expert and ensures continuous support advice in respect of incorporation for clients with a full range of of trusts in Cyprus and in other corporate management services. jurisdictions. In accordance Servuspride Ltd. employs an with the provisions of the Trust experienced team of in-house Deed, our company can manage experts who associate closely the Trust which may comprise with independent professionals cash, bank deposits, shares, real specializing in various fields of

SERVUSPRIDE LTD.

S

estate and other property. MANAGEMENT, BANK ACCOUNTS & SECRETARIAL Servuspride Ltd.’s management and staff are highly qualified and experienced in providing management services to suit every client’s needs and requirements. A bank account is an important attribute with regard to any company and Servuspride Ltd. takes upon itself, in collaboration with the most reliable banks in Cyprus, to provide the preparation of all necessary documentation, bank account opening, support of corporate and personal accounts, Internet banking arrangements, acquisition of credit/debit banking cards and closing of accounts. Servuspride Ltd. renders nominee services for the convenience and anonymity of our clients including nominee directors and nominee shareholders, In addition, our company can provide a physical address and mail service to simplify clients’ business activity. Servuspride Ltd. provides a number of other services including assistance in speedily obtaining different documents from the Registrar of Companies, corporate due diligence, assistance in the legalization and certification of documents, arrangements in regard to opening an office in Cyprus, liquidation or winding up procedures, communication on corporate issues with the tax authorities, etc. Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further

growth of the industry? Irina Loutchina Skittides, Managing Partner: The events of March 2013 in Cyprus – the decisions of the Eurogroup and the Cyprus Government and the subsequent termination of operations of Laiki Bank as well as the haircut of deposits with Bank of Cyprus – have been a great challenge to all service providers operating on the island. Our first task, under such critical circumstances, was to assure our clients of our full support and assistance. Thus we immediately created new options for corporate clients, including the opening of bank accounts in other jurisdictions, in order to ensure that the operations of our clients’ businesses would continue. It was very important to maintain the relationship of trust between the company and its clients, showing our full understanding of the situation and offering them our immediate solutions. We joined a team of Cypriot and European lawyers representing depositors who lost their funds in the two major Cypriot Banks for the preparation of claims. Time has passed and we can now see that we managed to keep all our clients satisfied. Now we are facing other risks due to the so-called “deoffshorization process� in Russia and global trends regarding the exchange of information which, of course, will have strong negative impact on the whole industry. Therefore our task is to develop new, more transparent structures for our clients using a Cyprus Company with substance – a fully fledged office with management and control. We strongly believe that there is a future for services providers in Cyprus.

CONTACT INFORMATION: Servuspride Ltd

Address: .YP]HZ +PNOLUPZ (]LU\L 7HUH`PKLZ )\PSKPUN UK Ă…VVY 6MĂ„JL 3PTHZZVS *`WY\Z c Tel: c Mobile: Fax: c e-mail: 0UMV'ZLY]\ZWYPKL JVT c Website: ^^^ ZLY]\ZWYPKL JVT

CONTACT INFORMATION

ConnectedSky Legal & Corporate Consultants Limited

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

CONTACT INFORMATION

ConnectedSky Legal & Corporate Consultants Limited

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

SPECIAL PROMOTIONAL FEATURE

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

TRIDENT TRUST COMPANY (CYPRUS) LTD PROVIDING CONFIDENCE THROUGH PERFORMANCE

T

rident Trust is a leading independent provider of corporate, trust and fund services to the financial services sector worldwide with an extended and successful track record of more than 35 years of providing our services to major financial institutions and professional intermediaries worldwide. Our practical, cost-effective and professional support enables institutions and advisors to focus on their asset management and advisory activities, while we take care of the day-to-day administration of the entities (companies, trusts and foundations) established by their clients.

Our clients include the world’s largest banks and brokerage firms, Fortune 500 companies, leading law and accounting firms and high net worth individuals and their families who are located in financial centres around the world including New York, London, Zurich, Luxembourg, Hong Kong, Singapore, as well as Russia and the CIS countries. Present in 34 offices in 24 jurisdictions with 600 staff, we are today among the largest organisations in our industry, offering clients access to a range of services that extends from traditional corporate domicile representation to the administration of complex trust and fund structures.

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

OUR CYPRUS OFFICE Trident Trust Company (Cyprus) Limited was established in 1996. Regulated by the Cyprus Securities and Exchange Commission, today we are one of the leading providers of administration and fiduciary services in the local financial services industry. The majority of our more than 50 employees are professionally qualified. We offer our services across a wide range of jurisdictions, principally to law firms, accountants and tax advisors, as well as financial institutions and large international organisations. Our services include: • Incorporation & Administration of Cyprus Companies • Administration of Offshore Companies • Establishment & Administration of Trusts • Registered Office & Secretarial Services • Nominee Shareholder Services • Directorship (Resident & Non-resident) • Bank Account Opening, Administration & Signatories • Accounting, Bookkeeping & VAT Services • Escrow Agent Services • Compliance Services

PHOTOGRAPHY BY JO MICHAELIDES

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

• Immigration Services • Payroll Services • Office Facilities – Physical & Virtual Offices • IT Support & Services

• Reliability - we do what we say we will do. • Personal Service – every client is a valued and distinct individual.

Our corporate and trust team focuses principally on corporate and commercial matters, with an emphasis on mergers and acquisitions, international tax planning and private equity. Our corporate department is responsible for the formation and administration of Cyprus entities, as well as entities in other jurisdictions offered by our Group. To meet our clients’ often urgent requirements and to ensure fast service, a large number of shelf companies from the 24 jurisdictions around the world in which Trident Trust is located are maintained at all times. Through associate Cyprus law and audit firms we can assist with all corporate and legal matters and provide all auditing services and tax advice on matters relating to Cyprus. These arrangements guarantee a one-stop-shop service for our clients’ corporate needs. Our Cyprus office is dedicated to the values on which the Trident Trust Group has built a 35-year track record of excellence:

Dedicated teams are assigned to handle the affairs of each client. Each team consists of a Corporate Counsel (Relationship Manager), Corporate Administrator, Banking Administrator and Accountant, and each one has a backup in case of absence. The team responsible for a client’s affairs will devote the necessary time and effort to ensure that all clients are provided with high quality, efficient and personalised service. Trident Trust Company (Cyprus) Limited is a founding member of the Cyprus Fiduciary Association. Mr Petros Livanios, Managing Director of Trident Trust in Cyprus, has been the association’s vice-president since its inception.

• Responsiveness – we will not keep you waiting. • Uncompromising attention to detail - accuracy in all that we do.

THE TRIDENT TRUST SOLUTION In today’s changing financial environment many institutions which currently offer corporate and fiduciary administration services as part of their product offering are reconsidering this element of their business model. Their reasons include both internal and external factors such as avoidance of conflict of interest, focus on core competence, cost saving, and enhanced regulatory requirements.

Trident Trust, as a “niche operatorâ€?, emerges as the obvious choice for managing the corporate element of their structures, and any ancillary services within our field of expertise, because of: • Experience - we have been successfully servicing the corporate requirements of our clients for over 17 years in Cyprus and more than 35 years globally. • Global Footprint – with a geographic reach that is one of the widest in our industry, we offer clients one-stop access to a range of jurisdictions that few can match. • Pricing - we price our services fairly and transparently. • Independence - we are an independent organisation, free of conflicts of interest and able to provide an unbiased and impartial service. • Professionalism - our staff combine professional qualifications with extensive practical experience. • Staff Continuity - our high level of staff retention means clients can expect to build long-lasting relationships with dedicated teams who will understand their needs and their business. • Standards - we adhere to the highest compliance standards. “Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels

and to encourage the further growth of the industry?� Petros Livanios, Managing Director: Following the March 2013 events Cyprus has proved resilient with a number of factors pointing towards a recovering economy. Cyprus has all the right ingredients in place to maintain the reputation of an international business centre despite the unfortunate incident which temporarily caused waves. We should: • Restore trust in the Jurisdiction which will encourage the stabilization of the banking sector. • Redefine the jurisdiction’s image, presenting Cyprus as an ideal location to do business due to its infrastructure, tax regime and high quality corporate services in comparison to other EU destinations. • Highlight that Cyprus remains an attractive international business centre and despite the bail-in, the core elements that made up the high quality service offering are still available and embedded enough to maintain the jurisdiction on the map of attractive jurisdictions. • Establish a flexible legal/ regulatory framework which will allow private sector professionals to offer high-quality services without negatively impacting the jurisdiction. I am optimistic that implementing the above can enhance Cyprus’ image as a stable and secure business environment and will attract more investors.

CONTACT INFORMATION: Trident Trust Company (Cyprus) Ltd

Address: ;YPKLU[ *LU[YL .YP]HZ +PNOLUPZ (]LU\L 76 )V_ 3PTHZZVS *`WY\Z c Tel: Fax: c e-mail: *`WY\Z'[YPKLU[[Y\Z[ JVT c Website: ^^^ [YPKLU[[Y\Z[ JVT

SPECIAL PROMOTIONAL FEATURE

V.M.L VENTURE MANAGEMENT Limited fiduciary service providers is our ability to efficiently and effectively identify our clients’ specific business needs and solve/avoid any problems they may face through our wealth of experience and vast network of contacts.V.M.L has excellent cooperation with other professionals that offer complementary services and also with all government bodies and authorities, thus enabling our clients to depend on us for a full range of services. OUR PROFILE Our firm employs a diverse set of professionals who are set apart in both their qualification and experience. They are the core of our operation and, for this reason, we are determined to maintain the highest of standards. The firm

continually invests in developing its expertise and scope by participating in international conferences and maintaining professional relationships with international firms operating in the financial and legal sectors as well as other major organisations which are considered to be vital to the future growth of the firm. In 2013, VML proceeded to obtain a license from the Cyprus Securities and Exchange Commission for the provision of administrative services, entering the firm into a new era for service providers in Cyprus. The sector is now regulated, which is a very positive step for our industry as the regulations ensure that measures are introduced to ensure vigilance, upgrading the standards of the industry as a whole.

Corporate: Our firm has established a team of highly experienced legal professionals who are set to deal with a range of legal matters both domestic and international. They have expertise in drafting and negotiating a wide variety of Corporate and Commercial agreements which cover a vast range of business transactions, including but not limited to: - Joint Ventures - Merger and Acquisitions - Agency - Share sale and purchase - Corporate Financing transactions Finance: The finance team is made up of individuals who have experience in dealing with today’s demanding business markets. They understand the needs of all types of businesses from simple bookkeeping requirements to

PHOTOGRAPHY BY JO MICHAELIDES

OUR FIRM Since its incorporation in 2006, V.M.L Venture Management Ltd. has steadily grown into an established, reliable and distinct fiduciary service provider offering boutique corporate services to a select clientele. With offices in Nicosia and Moscow, we are able to accommodate a broad spectrum of clients. We currently service international High Net Worth Individuals and large corporations and, over the years, we have managed to attract and maintain a portfolio of quality clients through our personal approach and specialised assistance in handling both their business and private affairs. Our office, therefore, has an excellent basis to perform the function of a Family Office. What sets us apart from other

the provision of tax planning advice of complex multijurisdictional structures. Our tax advisors use their knowledge of available tax schemes and mechanisms, in line with both Cyprus and International Tax legislation, to enable our clients to take advantage of any available tax benefits, thus minimising their tax liability and exposure. Our approach is always personal, whether we are dealing with a single businessman or a multinational cooperation. We pride ourselves on possessing the attitude, character and communication skills necessary to assist clients in achieving their desired objective. OUR SERVICES Our firm’s areas of expertise relate to wealth management which involves international and local tax planning, asset and risk management, accounting, corporate, trustee and fiduciary services, as well as banking in Cyprus and abroad. Corporate Providing advice and legal guidance on potential transactions and other corporate matters Arranging for legal opinions or other legal work where necessary Attending meetings and negotiating transactions on behalf of the client Reviewing transactions to ensure compliance with tax, VAT, legal, statutory and reporting requirements

Carrying out company searches and legal Due Diligence Corporate compliance and governance matters Preparation of general corporate documents Company Administration Secretarial functions We provide constant corporate secretarial support and compliance services to the Companies under our administration, ensuring that they are in conformity with the regulations of the Cyprus Companies Law Cap 113 and any other relevant jurisdictional Law. These services are provided in a diligent manner and on a continuous basis throughout the client relationship. These functions may include the preparation of minutes of meetings of the Directors and Shareholders, updating the Registrar of Companies, reserving and protecting the company’s records, the preparation of the Annual General Meeting of the Company and maintaining statutory registers. We also offer advice and services related to the establishment and administration of Cyprus Investment funds. We collaborate with a range of licensed financial consultants and external parties (e.g. custodian banks, audit firms), to provide a fully rounded “one stop shop” service that full fills all the requirements for the set up and running of a Fund. Finance Our finance department can

assist clients with the full financial administration of their companies. This includes maintaining accounting records, liaising with auditors, the preparation and review of tax and VAT returns, payroll and more. Apart from the standard financial services required for the administration of a Cyprus company, VML also offers restructuring and business turnaround for loss making companies. Taxation Services Furthermore our finance department offers the following tax-related services: Provision of tax advice with regards to prospective transactions Tax structuring (both international and in Cyprus) Negotiations with the Tax Authorities on our client’s behalf Securing Tax Rulings with the Tax Authorities to ensure the tax treatment of key matters is agreed with the Tax Authorities in advance Obtaining Tax Residency and Tax Clearance Certificates Submission of all relevant tax returns Provision of personal tax advice. Our aim is to be able to provide a complete service which accommodates all clients’ needs through accessibility to various business institutions, authorities and bodies, both national and international,

providing the basis for a fully rounded service. Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry? Andreas Orphanides, Managing Director: The aftermath of March 2013 revealed that the sector needed to strengthen its regulative basis to attract further trust in its capabilities. It cannot, however do this alone; it requires the Government authorities to update their systems and implement certain standards that will accommodate clients’ business needs, simplify procedures and minimize bureaucracy. It must also set transparent rules within the industry to illuminate the abuse of clients’ trust by individual firms which may tarnish the industry as a whole. It must be noted that the attraction of investors to Cyprus may be due to the “whole package” concept. The Government must recognize this and assist investors, who may want to use Cyprus to facilitate their business ventures and also their personal endeavours. The administrative firms, being the first point of contact with the client, must broaden their services and collaborations with other institutions to be able to offer clients assistance across a broad spectrum of services.

CONTACT INFORMATION: V.M.L Venture Management Limited

Address: 48, Akropoleos Avenue, | 2012 Strovolos, Nicosia, Cyprus | Tel: (+357) 22777711 | Fax: (+357) 22773383 e-mail: info@vml.com.cy | Website: www.vml.com.cy

RETAILING

CARREFOUR

THE RESCUE!

G

old: During the good times, supermarkets compete with one another on promotion in order to gain customers. During times of crisis, this is still the case but do you view the “promotion war” in a different light? Michalis Panayides: Social and economic/ financial developments in recent years have significantly affected consumers’ behaviour and the way they view supermarket pricing. It is true that the “promotion” war is changing according to the particular needs of the times. In the past, and more precisely during what we might call the “good old days”, it could be said that the “promotion

war” was of a strictly commercial character. Nowadays, our ultimate goal is to make every special offer have a positive impact on society at large. The aim is for the con-

CORPORATE SOCIAL RESPONSIBILITY IS ONE OF THE MAIN PILLARS OF OUR COMPANY’S STRATEGY

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

Michalis Panayides, Merchandise and Marketing Director of Carrefour Cyprus, explains how the island’s biggest retailer supports society through the bad times as well as the good. By John Vickers

sumer to truly benefit through substantial support and help in order to cope with the prevailing economic/financial conditions by offering core products at low and affordable prices. Gold: Obviously, the better your promotions are, the more customers you are likely to have. How do you decide how far you can go before you start to affect the company’s profits? M.P.: It is only natural that the more frequent and wide-ranging our promotions are – covering all our products – the more customers we will gain. As a result of the financial crisis, however, Cypriot consumers have assumed a new profile: they shop around, they are more demanding where their purchases are concerned, they seek out the best prices, they are in touch with the market and are generally more cautious

and better-informed. Recognising all this, our strategy is to offer consumers the best prices for core products; our main criterion is not profitability but rather to satisfy our customers’ needs and to strengthen our relationship of trust with them. Moreover, I would note that, as the leaders in retail trading in Cyprus and due to our negotiating power, we are in a position to offer the best prices and promotions. Furthermore, being a Carrefour franchisee enables us to deliver quality private label items to our consumers at low prices and this can really make a difference to every consumer’s basket. Gold: Over and above the issue of price, how much importance does Carrefour Cyprus give to issues related to its Corporate Social Responsibility? M.P.: Corporate Social Responsibility is one of the main pillars of our company’s strategy. Through targeted actions which truly make an impact, we are able to give something back to society, to our fellow citizens and to the environment. From the very first years of our operations as Carrefour Cyprus, we were one of the first companies to sense the need to actively support society and specifically those in need. In this light, we have successfully designed and implemented a series of actions in the context of our comprehensive corporate social responsibility plan. Gold: You also make a point of maintaining good industrial relations. M.P.: Our staff are at the centre of all decisions taken by Carrefour Cyprus. We provide 1,178 people with equal opportunities for development and training. Gold: Carrefour Cyprus has also made a point of supporting local producers and suppliers. M.P.: One of the company’s longstanding corporate strategic initiatives is to support local production and supply. Through the promotion of domestically grown products, we are actively supporting the growth of the local economy whilst upholding the local labour market. Some 90% of the perishable items we offer in our stores come from local suppliers and producers, while 100 % of our bakery and butchery goods are produced in Cyprus. Additionally, 100% of the fruit and vegetables we sell are

purchased from local suppliers, of which 50% are also local producers. Gold: What about environmental issues, which many companies are incorporating into their CSR activities these days? M.P.: Environmental protection is part of our everyday life. Carrefour Cyprus, participates in a variety of relevant activities and initiatives and implements environmentally friendly practices, always guided by the principles of sustainable development. Furthermore, we are focused on reducing our carbon footprint, on proper waste management, recycling materials and applying the criteria of environmental responsibility including the use of reusable and biodegradable grocery bags. Gold: There has been a lot of support for vulnerable social groups over the past 18 months... M.P.: Carrefour Cyprus places special emphasis on supporting vulnerable social groups in all the communities where we are active. In this framework, we are steadfast and consistent in our implementation of the Breakfast Initiative (“Progevmatizomen”) for needy schoolchildren. We actively support on a daily basis 3,077 needy pupils in the Limassol, Paphos and Larnaca districts. At the same time, we support the work of various foundations and schools through donations and the provision of foodstuffs. Two indicative examples are the Alkionides charity and the Margarita Liasidou Foundation. Gold: You have been very active regarding schools and schoolchildren particularly with last year’s Breakfast initiative. Will this continue in the 2014 - 2015 academic year? M.P.: Yes. In 2013, we started the initiative to provide breakfast to 2,100 needy pupils in the Limassol district, with the valuable contribution of the Holy Bishopric of Limassol and the Limassol School Board, and this has continued for the third consecutive school year. In 2014, we have also provided daily breakfast to 460 pupils in the Paphos district, taking the total number to 2,560. Keeping our promise to support pupils in need during the current school year, we have extended the programme further to include 517 in the Larnaca district. At present, 3,077 pupils are

AS A RESULT OF THE FINANCIAL CRISIS, CYPRIOT CONSUMERS HAVE ASSUMED A NEW PROFILE receiving a daily breakfast and we estimate that over the past three years, more than 900,000 meals have been offered. Our aim and commitment as Carrefour Cyprus is to stand by every pupil who needs us during the 2014-2015 school year in the Limassol, Paphos and Larnaca districts. Gold: At the start of the new academic year, when you would normally expect to make substantial profits on school materials such as schoolbags, uniforms, etc., you actually discounted these items. Was this a difficult decision from a business point of view? M.P.: It is true that school items are among our most important and bestselling products. Nevertheless, we remain true to our values to uphold and support vulnerable groups in society and, within the broader context of our Corporate Social Responsibility, we decided to provide special offers on school materials and school uniforms. During the past few years, we have donated 5% of our total sales from school items in Cyprus to needy pupils in the Limassol and Paphos districts. Additionally, we have offered 25% discount on a wide range of school items in an effort to make them affordable to all pupils. Gold: Such initiatives would have been unthinkable and unnecessary three years ago. Was it easy for Carrefour Cyprus to adopt this new strategy? M.P.: Carrefour Cyprus has always been guided by the principle of offering the best prices to benefit its customers. In today’s difficult financial circumstances, we feel obliged, as the largest retail group in Cyprus, to adopt actions which give back to society and in particular to those of our fellow citizens who are truly in need.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 73

WEALTH MANAGEMENT EMENT

FROM LONDON DON TO LIMASSOL, CALLING AT HONG KONG ONG AND MOSCOW… By John Vickers Photograph by Jo Michaelides haelides

A

Andrew Lumley-Holmes describes himself as an international in dependent dent financial adviser and there is good reason for the first word. He arrived in Cyprus in vious six and July, having spent the previous a half years living and working rking in Moscow and Hong Kong. “Travel is one of my great eat passions,” he says, “and, in a way, living and working abroad and immersing myself in locall culture is an extension of that. Hong Kong is a perfect hub for anyone who wants to travel avel all over Asia and I took the opportunity to do that by going to Thailand, Vietnam, Cambodia, Malaysia, a, Japan. I spent almost Indonesia, China, Korea, five years there and it was as a really good time.” Lumley-Holmes grew up in York, UK, studied Business and Economics at the University of Leeds and got his first job, trading European investment-grade debts with Bank of America in London. “I did that for two years and nine months, by which time I had decided that sitting in front of a bank of four computer screens for 14 hours a day was not me!” He then moved to HSBC Private Banking which, he says, gave him the best of both worlds: “I still had the asset management side, and the maths and economics which I enjoy, but in addition there was face-to-face contact with clients and I wasn’t stuck in the office all day. Meeting new people is an interesting and personal way to do business and that side of the job is probably the part that I enjoy the most.” He was there for just over three years, until early 2008 when he was offered the opportunity to go to Hong Kong with UBS Private Banking. “I saw it as one of those opportunities that don’t come along every day so I decided to give it a try,” he recalls.“Hong Kong is a great city and, in a strange way, it reminded me of England – all the street signs are in English, everyone speaks the language – so adapting to it was relatively straightforward or, at least, a lot

easier than it might have been.” In Hong Kong, he was doing similar work to that in his previous post, though it was sometimes rather more complex, dealing with international expatriates owning multijurisdictional assets, managing clients’ investment portfolios and providing financial advice to High Net Worth Individuals. On the other hand, it was even more interesting and, of course, he was able to do a great deal of travelling. After two years he left UBS to work as a Senior Consultant with York Capital Solutions & Alliance Group, still based in Hong Kong. Why the move? “I had always worked for banks and while being with HSBC and UBS gave me a certain level of independence, it was never true independence. There were always targets to put a certain amount of money into the banks’ own managed funds, for example. Outside them, I was free to offer clients a fuller, truly independent service – particularly High Net Worth Individuals – with access to solutions or tax structures that may not have been available through the private banks.” Despite the travel opportunities and the job satisfaction, Andrew Lumley-Holmes could see that things were changing in Hong Kong, particularly in the private wealth management sector as more and more of the business was becoming more Mandarin-based and thus required additional language skills, a lot more family trusts were being managed from China

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

and, in many ways it was becoming a very different market from the one he had entered almost five years earlier. “It’s completely diff ferent now,” he says, “so I think I got out at a good time.” His next stop was Moscow, a move not entirely unconnected with the fact that he had been dating a Russian woman in Hong Kong for more than two years and had been learning the language. “If I hadn’t got that knowledge of the language, it would have been very difficult,” he admits, “so that made the transition somewhat easier for me than it might be for others. My fluency in Russian was reasonable, though when doing business we would still have a translator there to make sure there are no misunderstandings with clients.” While the most obvious change was the weather (“From 34 degrees and 96% humidity, I found myself having to get used to temperatures of 30 below zero in winter”), there were others too. “It’s a very different culture doing business in Moscow and it can be a hard lesson to learn at first,” he says. “In Hong Kong and London, there is a great deal of emphasis on getting on well and having a good rapport with clients. In Russia, you still build relationships but at the initial stages, at least, it’s all about the business, what you can do for them and how you’re going to do it.” Lumley-Holmes spent almost two years in the Russian capital but various issues that arose

IF I WOULD NOT RECOMMEND SOMETHING TO A FAMILY MEMBER, I WOULDN’T RECOMMEND IT TO A CLIENT EITHER

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 75

WEALTH MANAGEMENT

WHILE WE HAVE CLIENTS WHO HAVE $50 MILLION WITH US, THERE ARE OTHERS WITH JUST

$25,000

there during the first six months of the year made him look positively on an offer from his present employer, Finsbury Private Wealth Management. “To be fair, I wasn’t actually looking to leave Moscow when Finsbury came along,” he explains, “but business confidence was falling and a large part of my market (mainly expats) was growing very jittery. A large number of major companies have left Moscow in the last six months and about a quarter of my clients have left too.” This, combined with the fact that Finsbury basically allowed him to base himself wherever he chose and that it is fully regulated by the FCA in the UK with MiFID passports into all EEA states and full local licensing outside Europe, made it too good an opportunity to turn down.“The beauty of being in a regulated business is that it protects us as managers and it protects our clients,” he says. “For much of the last 30-40 years the international market has been fairly unregulated – there have been some cowboys around and, unfortunately, there are still a few around today – so regulation is essential to ensure trust.” So, with the world at his feet, why did Andrew choose Cyprus as his next place of residence? “Being here makes perfect sense: my existing client base is in London, Hong Kong and Moscow. I can go to Hong Kong a couple of times a year, we’re four hours from both Moscow and London, everyone speaks English, my fiancée is Russian, there is a sizeable Russian community in Cyprus, and I think there will be a lot of opportunity to take on new clients here.” Logically, Russians will be one of his major client bases in Cyprus, though he notes that Finsbury can deal with anyone: “The main part of the business is wealth management and asset management, tax and trust solutions, wherever they may be.” There is obviously a huge responsibility involved in looking after other people’s

money, particular when millions of euros or dollars may be invested and it is something that Lumley-Holmes always has in the back of his mind. “I tend to take the line that if I would not recommend something to a family member, I wouldn’t recommend it to a client either,” he says, noting that a key element of maintaining the required quality of service lies in keeping in touch with clients, ensuring that they understand what’s happening with their money or their investment and keeping them constantly updated about what’s going on and why a particular decision has been taken. “In the end you get used to the idea of responsibility and you tend to forget how huge the sums are in many instances. When I started out with Bank of America, my team’s portfolio was close to $400 million…” That said, he is keen to point out that wealth or asset management is not the exclusive domain of millionaires and billionaires. “We deal with everybody,” he clarifies, “from young professionals of 26-27 who are just starting a career and want to invest some money, to the professional sport stars and athletes whose money and investments we manage. Finsbury Sport looks after English Premiership footballers and top golfers, for example, and they are multi-millionaires. But while we have clients who have $50 million with us, there are others with just $25,000. Everyone can benefit from good quality financial advice and, although we do very different things for them, we don’t distinguish between them, however much money they have.” At a time when banks are not giving a worthwhile interest rate, does he still recommend that clients have cash as part of their portfolio? “Everybody should have cash as part of their portfolio,” he replies without hesitation. “The level you require within your total assets depends on your circumstances. People who are working should look to have six months to one year’s salary in cash and those who are retired should have 2-3 years’ income in cash. This is fairly standard advice.” Given that today’s markets are very volatile and all kinds of events can affect company share values, it can’t be easy is it to decide where to invest a client’s money. Fortunately, he says, Finsbury has a risk management team based in Switzerland which does the bulk of the work in terms of looking at underlying valuations of stocks or bonds or different assets that he may wish to invest in, as well as at

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

sectors of interest, types of assets, etc. “In the end it’s a continuous process of invest, review, invest, review, etc. It’s that simple. You just have to keep on top of where you are investing and when.” There has been a lot of talk in the UK and elsewhere about clamping down on what is at present legitimate tax avoidance by big corporations and wealthy individuals too. How does Andrew Lumley-Holmes view the situation? “It has the potential to be very serious for British expats who still have income or assets in the UK in particular,” he says. “The UK government needs to increase tax revenue and the easiest way to do it to target those who are taking money out of the UK and those using legitimate tax avoidance strategies. They are trying to change the rules on what it means to be non-resident. That could mean a huge fall in income for a foreign-based person receiving a pension from the UK who is made to pay tax on the full amount rather than having an allowance. But in the end,” he points out, “the answer is to change the law. The British government can’t complain when people are taking advantage of what is a completely legal situation.” As a jurisdiction, Cyprus a great deal going for it, he says, noting that one of the biggest benefits of being licensed here is the ability to get into other EU countries through the Cypriot regulatory framework. “If you are a Moscow-based brokerage or finance company, why wouldn’t you come to Cyprus?” Having lived in three countries before arriving in Cyprus this year, does Lumley-Holmes envisage finally settling down long-term? “If you’d asked me 8 years ago what I would be doing in the future I couldn’t have imagined leaving London so I’ve stopped trying to predict the future!” he admits with a smile. “My intention at this moment is to base myself here long-term. Cyprus is very convenient for my business and I love the lifestyle but, this early into my stay, I wouldn’t want to put a number on the years that I’ll be here. We’ll just have to wait and see.”

EVERYBODY CAN BENEFIT FROM GOOD QUALITY FINANCIAL ADVICE

OPINION

The Economic Power of Migration Europe is once again reverting to exporting its prime-age labour

R

ecent events in Ukraine have been politics being led by economics. When the EU was flourishing economically, it proved a magnet towards which Ukraine swung politically. Then as the EU’s finances faltered, Ukraine’s political pendulum swung towards Russia which, having been practically insolvent in 1998, had by 2013 strengthened significantly. The political pendulum in Kiev has not so much swung back towards the EU but rather been forcefully wrenched in that direction. The reality is that Ukraine is now a pseudo EU state and, as such, possesses considerable threats. After all, its sharply weaker currency has made its farms and factories a great deal more competitive. Crucially, what is unfolding across Ukraine is undermining the economy of Poland, a country which, on falling into recession, would strike a huge blow to the EU’s “singular economic model’, and threaten its very existence, unless it is comprehensively revised. Already troubling economic matters across the Continent will worsen, and Germany will not be immune. Rising unemployment will spur on ever more extreme political groups; worsening economics and unwelcoming political attitudes will quite simply spur on those who are mobile enough to escape Continental Europe to do just that. For fleeing Europeans keen to find somewhere to settle, Great Britain’s ever expanding economy will seem a tantalising destination. And to turn away these – for the most part – human and financial capital rich evacuees could only serve to send Britain down the same economic hole into which mainland Europe is sinking. The reality is that Europeans have evacuated en masse in the past, including from across the British Isles. And where they have arrived has gone on to economically thrive. For all Argentina’s recent economic travails, a century ago it was one of the world’s elite. It

European migrants increased the population of the US by a staggering 12% each year between 1860 and 1910

info: Dr. Savvas Savouri is a Partner and Chief Economist of Toscafund. 78 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

By Savvas Savouri

was, in fact, the 10th wealthiest nation per capita, making European émigrés to Argentina more prosperous on average than those they had left behind in what was to become a terribly war-torn continent. The best example of what immigration can quickly do is the United States. In 1830 it boasted a population of 12 million. By 1850 it was home to 23 million and in 1880 to 50 million. The population of the United States would exceed 75 million at the beginning of the 20th century. This three-fold increase in population was almost entirely due to mass immigration from across the Atlantic. European migrants increased the population of the US by a staggering 12% each year between 1860 and 1910. Those entering the US came from all corners of Europe, and were drawn across all its religions. Since welcoming Europeans the United States has seen migrants settle there from all over the world and is now home to a population of 320 million. The US boasts the world’s largest sovereign GDP and a currency which is the numeraire of most resources and the prominent store of global wealth. None of this economic success could have been possible but for immigration, each new wave of arrivals acting to generally enrich the last. Indeed, a casual inspection of the constituents of the current S&P100 or roll-call of stocks in the Dow Jones Industrial Average reveals a raft of corporate giants with leading global brands whose founders were, in most cases, reluctant migrants from Europe. And as it struggles to find markets to sell its goods and services, Europe is once again reverting to exporting in ever growing numbers its primeage labour. Be in no doubt, wherever these peripatetic Europeans settle, economic activity and entrepreneurial endeavour will be lifted. They are off to Africa and they are off to South America. They are migrating to Asia. Closer to home, as long as Great Britain operates within the EU’s Single Labour Market, many are certain to use its freedom of movement to settle there.

CLEANING SERVISES LTD Ɣ Maintenance & Cleaning Contracting Ɣ 2I¿FH &RUSRUDWH Cleaning Ɣ Commercial Cleaning Ɣ 6KRSSLQJ &HQWHUV Cleaning

CLIENT PORTFOLIO

CONTACT DETAILS: 2, Eschilou, Engomi, Nicosia | Email: timosc@cytanet.com.cy | Tel: 22772945 | Mbl: 99606373, 99449574 | Fax: 22776948

LUXURY LIVING

the sky

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

Taking shape in Paphos, Minthis Hills resort is set to elevate Cyprus’ island living to stratospherically lavish proportions. By Chloe Panayides

T

he car moves along with a hum, the road winding mysteriously, leading me to ever higher ground and into depths of open space and rolling mountains. The radio cuts out. Now I know I am entering remote territory: in fact, some 5 million square metres of remote territory, belonging to the hallmark Paphos-based developer Pafilia. It is here that the luxurious lifestyle resort, Minthis Hills, is being nurtured, bringing to life a whole new concept of island living. I recall the legend: away from civilisation, alone in thoughts and spirit, a monastery lay in the Tsada valley where two mountains meet. As the crusaders swept through the land in the Middle Ages, the monastery was brought to its knees, left as ashes and dust. Soon after, a monk stumbled upon the only remnant: the monastery’s cross, shrouded

beneath wild growing mint, and was inspired to rebuild the religious abode. The so-called Minthis Cross still stands amongst the grounds today, lending its name to the resort taking shape around it. “The overall development will only cover 3% of the total land area (which is a part of the EU’s natural protected, Natura 2000), leaving the remainder as undisturbed nature, rich in indigenous plants, and an important habitat for many local wildlife species,” Demetris Ashiotis, Executive Director, Pafilia explains, as we take our seat in the chic clubhouse overlooking the lush green golf course, bright blue skies seemingly within reach. “The Cypriot landscape is precious, and is a key element in economic and social enhancement. That’s why we are incredibly concentrated on safeguarding it. Our development will be qualitative not quantitative.” I can see that, I think. The large glass window panes, warm wooden beams, and distinct

stone walls comprising the clubhouse (at once inspiring of both rusticity and modernity) is a mere shadow against the backdrop of the mountains sprawling out from all directions as far as the eye can see. “Minthis Hills’ design is classified as ‘sustainable development’,” Ashiotis continues. “We’ve worked tirelessly to ensure we integrate the project with the landscape, building into its natural contours, and optimally managing water resources. We already have our own herb garden, and have provisions to further develop this, growing olive trees and grape vines to produce our own olive oil and wine: a real organic plantation!” Our mint tea arrives, harvested fresh from the herb garden: perfect timing. So what comprises Minthis Hills, I wonder? “Minthis Hills is one of the most exclusive and luxurious resorts in the Eastern Mediterranean,” Ashiotis says with pride, “It has set a new standard for living and leisure in Cyprus. It is

CONCEPT:

The idea that residents should live a healthy, peaceful, and active lifestyle was critical to the master plan. – Rob Steul, Principal, Europe, Woods Bagot DESIGN:

“We set out to understand the local vernacular so that we could develop a modern interpretation of traditional architecture.” – Rob Steul, Principal, Europe, Woods Bagot THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 81

LUXURY LIVING an unmatched venue, and is placing Cyprus on the world map for refined living and experiences. Plans for the project consist of a championship 18-hole golf course, deluxe detached villas, cluster villas, a boutique hotel of only 50 rooms, a village square with commercial facilities, a spa and health club, a tennis academy, nature trails, mountain bike paths, and equestrian facilities, as well as many other facilities that residents will be able to enjoy.” Weddings and christenings are hugely popular, I am told, with advanced bookings meaning that only two Saturdays are available for such events next year, as are corporate events held at the Clubhouse’s conference rooms. Ashiotis confirms that the golf course – designed by world renowned golf course architects, Mackenzie & Ebert – is already functional (the many budding golfers I see availing themselves of it under the morning sun is proof enough), along with the resort’s core infrastructure having been completed. Moreover, 25 villas are already under construction, with eight now finished (all have been sold). “We actually have plans for some 600 villas clustered into neighbourhoods, so we still have a way to go!” Ashiotis reveals. “Phase II of Minthis Hills will see the spa brought to life, along with the village square and another neighbourhood of villas.” The project currently employs over 180 people and, to date, a total of €45 million has been invested. “The total investment over the next years will be over €400 million,” Ashiotis confirms, “thus contributing to the revival of financial activity in Cyprus, and supporting many local related businesses.”

KEY FACTS:

Minthis Hills is situated in Tsada village, in the highlands of Paphos. It is a mere 10 minutes from Paphos town, 40 minutes from Limassol, and 1h 30 minutes from both Nicosia and Larnaca Airport. The Minthis Hills team comprises: 7HÄSPH [OL KL]LSVWLY" World leading engineer and design consultants (who contributed to the London Olympics, and Dubai’s famed Burj Khalifa) Atkins, as the THZ[LYWSHUULY" Global design studio, Woods Bagot, HZ [OL HYJOP[LJ[Z" And the Church of Cyprus, serving HZ 7HÄSPH»Z QVPU[ ]LU[\YL WHY[ULY Residential Units: Minimum plot: 1,290m² Maximum plot: 2,700m² Houses span 150m²-308m²

VILLAS:

“Blurring the line between outside and inside: creating a variety of spaces to live in throughout the day and seasons. This is part of Minthis Hills’ DNA.” – Rob Steul, Principal, Europe, Woods Bagot

GOLF COURSE:

“There are few places in the world of golf where you can play in such beautiful surroundings as Minthis Hills, with the Troodos Mountains as a backdrop and the course tucked away in a valley.” – Tom Mackenzie, Mackenzie & Ebert 82 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Golf Course: 18 holes, par 71, 5843 metres Originally designed by Donald Steel in 1994, recently renovated by Mackenzie & Ebert Fairways: Challenging & undulating with plenty of strategic options Lakes: 2 Driving range: 16 bays Golf buggies, clubs, manual & electric trolley rental available Golf lessons: Tuesday to Sunday Signature hole: The 13th hole has been transformed into an island green. A par three without bunkers or fairway, and just 135m from its elevated tee to green, it’s described as being an “all or nothing” shot. Clubhouse & Restaurant: The Clubhouse, some 2,000m², is the social heart of the resort. It is home to a concierge service, a pro-shop, conference facilities and business centre, a cocktail bar, restaurant, changing facilities, residen[PHS ZHSLZ VɉJL HUK JS\I HUK I\NN` storage. The restaurant, in particular, has received high acclaim, with the Minthis Hills culinary team having been trained by the Alain Ducasse Training Center in France. And, indeed, [OPZ PUÅ\LUJL PZ MLS[ PU L]LY` IP[L VM food that is alive with French-Cypriot fusion qualities, from the duck wrapped in cumin-infused tortilla with a mango sauce, to the halloumi Z[\ɈLK WVYR ÄSSL[ ^YHWWLK PU ]PUL leaves, and the homemade carob ice cream encased in a chocolate shell. Chef Marios Karayiannis is also available for private parties held by residents as part of the concierge service.

presents

The 2nd Cyprus Hotel Management & Investment Forum

Travel and Tourism:

Challenges & Opportunities The Annual Gathering of Leading Travel & Tourism Industry Professionals

Thematology (1st Announcement) •Global & EU Travel, Tourism & Leisure Outlook and Trends •Global & EU Resort Hotels Outlook and Trends •Consumer Trends in the Resort Hotel sector •Tour Operators vs. Hoteliers: Creating Value in the Holiday Supply Chain •How to Deliver over €50,000 in Direct Bookings in Just 4 Days •Online vs. Traditional Marketing Tools •Social Media: How it is Changing Travel and Tourism Bookings

•Winter Tourism: Country Case Studies •New Business for Hotels •Structuring and Operating Mixed-Use Projects •Valuation of a Resort Hotel •Managing Distressed Assets in the Hotel Industry •Attracting Investors and Addressing Investors’ Expectations •Mergers and Acquisitions in the Hotel Industry in Cyprus

plus The Cyprus Hotels CEO Panel - The CEOs of various hotels discuss challenges and opportunities in the industry. Who should attend? The forum is addressed to hotel owners, managers, tour operators, banks, developers, real estate investors, lawyers, accountants, government tourism officials. Featured Speakers

Christopher Salman Syed Alan Mantin Hinteregger Managing Director Senior Director Head of Business Area Thomas Cook UK and Development Southern “International Projects”, Ireland, UK Europe and North Africa, Kohl & Partner Hotel Hilton Worldwide, Italy & Tourism Consulting, Austria

Nick Pattie Managing Director, Whitebridge Hospitality, UK

Arlett Oehmichen Consultant, HVS Global Hospitality Services, UK

Patrick Angwin Senior Director, Horwath HTL, UK

Adam Hamadache Chief Wow Officer, The Wow Guest Group, UK

Wednesday 3 December 2014, Hilton Park Hotel, Nicosia For further information contact IMH: tel. 22505555, fax: 22679820, events@imhbusiness.com, www.imhbusiness.com Sponsors

0DLQ 6SRQVRU

Sponsored by SWIPE LTD, sole distributor of VILEDA products in Cyprus

Supported by

Communication Sponsors

Under the Auspices of

Organiser

{November 14 – December 13, 2014}

ISSUE

44

94

+ BOOK REVIEWS MONEY: The Rich: From Slaves to SuperYachts: A 2,000-Year History By John Kampfner 87 BUSINESS: How Google Works By Eric Schmidt and Jonathan Rosenberg

86

{money}

86 Current Trends in the Repo Business Tightening regulatory changes have made the repo business less attractive for banks. Persella Ioannides explains why.

TAX & LEGAL: International Law By Malcolm N. Shaw 93 LIFESTYLE: Sapiens: A Brief History of Humankind By Yuval Noah Harari rari 97

90

{economy}

90 Skill Set Needed How to make Cyprus a Strong Funds Jurisdiction

88

92

88 Significant Shifts Things are changing in the family business sector

92 Resolving Problems Can Cyprus eventually become a Regional International Dispute Resolution Centre?

{business}

89

{tax&legal}

94

{lifestyle} le}

94 Santa, Baby! As the holiday season approaches, we compile our Christmas lists. 98 A Day In The Life Melina Pyrgou

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES OF CYPRUS

Gold 85

repurchase agreement

Current Trends in the Repo Business {MONEY}

“REPOS ARE THE OIL THAT GREASES THE WHEELS OF THE FINANCIAL SYSTEM, ALLOWING FINANCIAL INSTITUTIONS TO MANAGE THEIR CASH NEEDS.” (THE ECONOMIST) By Persella Ioannides

R

epos (Repurchase Agreements) may be defined as the sale of a security coupled with an agreement to repurchase it at a higher price at a fixed future date. However, in practical terms, the sale is not a real sale, but a loan, collateralized by the security. As such, a repo is translated into receiving financing against collateral which could be fixed income or equities alike. The liquidity and the credit risk of the underlying instrument determine the financing which can be sourced against it, also known as the “haircut”. The annualized financing rate is fixed irrespective of the underlying collateral type and it is usually set by the financial institution willing to undertake the repo

TIGHTENING REGULATORY CHANGES HAVE MADE THE REPO BUSINESS LESS ATTRACTIVE FOR BANKS transaction. As an example, US treasuries carry an ‘AAA’ S&P rating and trade with very narrow spreads; the bid and ask difference being indicative of the liquidity of the underlying. These bonds require a much lower haircut than Russian Federation bonds of par maturity which carry a ‘BBB’ S&P rating and have much wider bid and ask spreads (the haircut stands at approximately 10% vs. 30%; these are just indicative figures). So an investor that puts up $1 million worth of US Treasuries as collateral would obtain $900,000 as financing at a fixed annual interest rate versus $700,000 financing against a collateral of Russian Federation bonds of equal worth. The same variants for financing apply in the instance of equities where blue chip stocks are inherently more liquid and have lower haircuts than stocks with lower

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

credit ratings. Tightening regulatory changes especially as banks’ current role in the repo have made the repo business less attractive market is less significant. for banks. During the subprime crisis of Moreover, as banks shift to longer-term 2007-08, numerous banks cut credit lines financing, non-bank entities such as hedge with each other amid a sentiment of high funds and in particular REITS (Real Estate risk aversion, which resulted in a credit Investment Trusts) are gaining market share crunch. Consequently, financial regulators in the $4.2 trillion market. Such players turn had to adjust regulatory measures so that to repos to boost returns, given the current they could have more control of liquidity. economic environment of low rates. By using Adjustments of two particular ratios – the net more borrowed money or leverage, REITS stable funding ratio (proportion of long-term and hedge funds can take larger positions assets funded by long-term funding) and to optimize returns, a strategy which works the supplementary leverage ratio (measures in stable markets; of course, if the market ability to meet financing obligations) – made reverses, leveraged positions translate into it less attractive for banks to larger losses. engage in repo activity as it Lastly, repo financing is became much less attractive also playing a new role in the and possible to own shortmarketing of Collateralized term debt. This may trigger Loan Obligations (CLOs) further settlement issues which are bonds backed by as lower liquidity and less loans to companies. They available short-term debt consist of tranches whereby make it difficult to get hold highly rated senior slices of sought-after, more liquid offer lower yields versus the ( YL]LYZL YLWV PZ KLÄULK HZ exactly the same operation paper which can lead to riskiest slices. As investors are but the swap is performed failed trades. Although this in pursuit of higher yields, from the perspective of undermines the Fed’s goals of the buyer rather than the they either invest in the riskier financial stability, regulators slices or invest in the most seller. As the labeling of consider the financial system senior slices by leveraging the the direction of the repo is seen from the side of the stronger overall once the respective position. Banks dealer, typically, if the dealer constituent players are less are involved in the latter by borrows money it’s a repo reliant on short-term funding offering repo financing to while if the dealer lends like repos. buyers of the more senior money it’s a reverse repo. Due to the above tranches. The current, dynamics, the Fed formed a stricter banking regulatory foothold in the repo business equipped with environment, in which banks can’t hold a portfolio of more than $4.3 trillion bonds CLOs as assets “on-balance sheet”, encourages purchased while enacting its Quantitative lending against them and making returns in Easing (QE) monetary policy operations. It this manner. utilizes reverse repo operations (RRP) to raise The main risk associated with conducting short-term financing from money market repo transactions relates to collateral funds, a trade which in a more flexible era management following sharp financial market was enacted much more so by banks. The swings. For instance, in a repo transaction growing presence of the Fed in repos indicates where the dealer borrows money against its intention to formulate new methods to collateral, a sharp market downswing in regulate short-term interest rates once it starts the underlying position would translate tapering its QE. Once monetary policy is into market value losses below the secured reversed and short-term rates are hiked, the haircut i.e. the borrower’s position not being Fed may utilize RRP to squeeze cash out collateralized enough. The dealer would of the financial markets. By controlling the face then face a margin call. The opposite short-term loans of Treasuries on its huge would occur in the instance of a reverse repo balance sheet, it may manage the liquidity situation. pumped back into the capital markets, The main benefit of such transactions is

REVERSE

Repo (RRP)

facilitating financing by utilizing idle paper or securities and it is a form of liquidity that is easily accessible also to retail investors that wish to capitalize on buy and hold positions held in their respective portfolios. Instead of undergoing voluminous due diligence procedures on prospective business projects and collateralizing fixed assets such as real estate to raise financing, employing repo transactions for liquidity is a swifter and more flexible alternative.

BBOOK O RREVIEW E TH THE HE RICH RICH: FRO FROM OM SLAVES TO SUPER-YACHTS: A 2,000-YEAR HISTORY BY JOHN KAMPFNER (LITTLE, BROWN, 2014)

S

R.R.P. £25.00 (£17.00 FROM AMAZON.CO.UK) tarting with the Romans and Ancient Egypt and culminating with the oligarchies of modern Russia and China, it compares and contrasts the rich and powerful down the ages and around the world. What unites them? Have the same instincts of entrepreneurship, ambition, vanity, greed and philanthropy applied throughout? As contemporary politicians, economists and the public wrestle with the inequities of our time – including the parallel world inhabited by the ultrawealthy at a time of broader hardship – this book synthesises thousands of years of human behaviour and asks the question: Is the development of the globalised super-rich over the past twenty years anything new? Kampfner shows the rich have been with us since the start of time, exhibiting similar tendencies across all ages. The stories he tells make the book an easy read and one that carries a series of punchy messages. While he is obviously critical where he has to be, this is a fascinating history of how economic elites from ancient Egypt to the present day have gained and spent their money.

info: Persella Ioannides is Executive Director and Head of Investment Advice at MeritKapital. info@meritkapital.com (+357) 25857900

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 87

family businesses

{BUSINESS}

:PNUPÄJHU[

:/0-;: THINGS ARE CHANGING IN THE FAMILY BUSINESS SECTOR

F

amily businesses must adapt faster, innovate sooner and become more professional in the way they run their operations if they are to remain successful. These are just some of the findings of the latest PwC survey of 2,378 family business executives in more than 40 countries worldwide. The report – titled Up close and profes-

sional: the family factor – is PwC’s seventh survey of family businesses globally, this year covering more companies and markets than ever before. Overall, this year’s survey indicates that, despite a tough economic environment, with pressures around skills shortages, innovation and governance, family firms remain dynamic and resilient. Indeed, family businesses account for 70%-90% of GDP globally, and are an effective barometer of the health of the economy. One eye-catching finding from this year’s survey is that the need to professionalise the business is gaining ground as a key concern for family firms, driven by an almost perfect storm of competitive pressure, rising costs and global megatrends. It scarcely registered in 2012, but this year 40% of respondents agree this is a key challenge over the next five years. And it must be accompanied by an equally rigorous approach to professionalising the family. Says Henrik Steinbrecher (left), Network Middle Market Leader: “It’s clear that there are new challenges; the economy is a colder and harder place for the family firm, competition is more intense, price pressure is growing, and the speed of change continues to accelerate. In this climate, family businesses accept they will have to adapt faster, innovate earlier, and become far more professional in the way they

ONLY 16% OF FAMILY FIRMS HAVE A SUCCESSION PLAN THAT HAS BEEN DISCUSSED AND DOCUMENTED

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

run their operations.” In general, family businesses are in reasonably good shape, with 65% reporting growth in the last 12 months, and 70% expecting to grow steadily over the next five years. 15% are seeking aggressive growth, compared to 12% in 2012. Growth ambitions are particularly strong in China (57%), the Middle East (40%) and India (40%). However, the number of respondents apprehensive about their ability to recruit skilled staff in the next 12 months has risen from 43% in 2012 to 49% today. And the proportion citing the general economic situation as a key challenge in the coming year has risen slightly from 60% in 2012 to 63% in 2014. Family businesses have become much more hard-headed since the 2012 survey. The most important priorities they cite are to remain in business and to improve profitability. Next come the factors that will make this happen, with the ‘heart’ issues of family and community coming much lower. Two years ago, 70% of those questioned felt a strong sense of responsibility to support community initiatives; that number is down to 59% this year. Says Steinbrecher: “When we look at the interviews in detail, it’s clear that many family businesses feel they have ‘done their bit’ to support the community during the recession by protecting jobs.” This year’s survey shows that 68% of family businesses are exporting, with overseas sales accounting for about a quarter of turnover for all respondents. Around three quarters of those surveyed expect to be exporting within the next five years, and predict this will account for over a third of all

FAMILY BUSINESSES GENERALLY FAIL FOR FAMILY REASONS sales. The most internationally ambitious are those pushing for aggressive growth, with a turnover of $100m+, and based in the manufacturing and agriculture sectors. Geographically, the most ambitious are those in Eastern Europe, the BRIC countries, and the ‘MINT’ quartet of Mexico, Indonesia, Nigeria and Turkey. But few businesses expect to be exporting to a significantly larger number of countries than they do now, with most tending to stick to neighbouring countries or those with the same language and similar culture. “This suggests that they lack either the skills or confidence to break into new regions – many would probably need to hire in outside talent to bridge that gap, and they may well be missing out on new sources of growth as a result,” says Steinbrecher In this year’s PwC Global CEO Survey, 81% of those questioned cited technological advances as one of the top three global trends most likely to transform their business over the next five years. And family businesses similarly recognise the growing impact of digital technologies, with 79% placing this in the top three trends. A high 72% of family business respondents accept they will have to adapt the way they operate externally, and organise themselves internally, to exploit the full opportunities of digital and avoid being overtaken by more advanced competitors. The highest scores for understanding the commercial potential of digital are the growth markets of Romania (80%), China (77%), and Kenya, India and Malaysia all at 69%. The lowest scores came from Ireland (45%), the UK (45%) and Canada (38%). So what does ‘professionalising the business’ mean for the family firm? It’s about giving structure and discipline to the vision and energy so often exhibited by the entrepreneurial family business. This helps them innovate better, diversify more effectively, export more and grow faster. But getting the business on a professional footing is not in itself enough; it has to be accompanied by an equally rigorous approach to professionalising the family.

This means, for example, putting processes in place to govern how the family interacts with the business – including establishing an infrastructure for decision-making and formal channels for communication. These will be essential during times of tension or conflict. It’s about protecting the family’s interests, and safeguarding the firm’s survival. Nowhere is this professional approach more critical than when it comes to the all-important issue of succession. Far too many family businesses have still not fully grasped this potentially destructive issue. 53% say they have succession plans in place for some if not all senior roles, but only 30% of these ‘plans’ are properly documented. Only 16% of family firms have a succession plan that has been discussed and documented. The moment of transition has always had the potential to sink the family firm, and a number of factors are now coming together to make the succession process more hazardous than it has ever been before. There is a longer gap between generations, as people have children later, and in many cases there is a significant communications gap between those running the business now and those who expect – or are expected – to take over. Too many firms are either not planning for succession at all, or are managing it as a personal issue between two individuals, rather than as a process which requires the same rigour and objectivity as any other aspect of business decision-making. The result, all too often, is escalating tensions and a family conflict that can precipitate the demise of the whole company. As one of the interviewees said, “Family businesses generally fail for family reasons” Warns Steinbrecher: “A plan that is not written down is not a plan; it’s just an idea. And this is an issue family firms must address with the same commitment and energy as they are devoting to professionalising other aspects of the business. Because without it, the whole enterprise is at stake.” The 2014 PwC family business survey covers family companies with a sales turnover of US$5 million-US$1billion in

over 40 countries. Interviews with top executives in 2,848 companies took place between 29 April and 29 August. The full report on the findings of the family business survey, Up close and professional: the family factor, can be downloaded at www.pwc.com/familybusinesssurvey.

BOOK REVIEW HOW GOOGLE WORKS W

BY ERIC SCHMIDT AND JONATHAN ROSENBERG (JOHN MURRAY, 2014)

G

R.R.P. £25.00 (£17.00 FROM AMAZON.CO.UK) oogle Executive Chairman Eric Schmidt and former SVP of Products Jonathan Rosenberg came to Google over a decade ago as proven technology executives. At the time, the company was already well-known for doing things KPɈLYLU[S` HUK PM :JOTPK[ HUK 9VZLUILYN were going to succeed, they realized they would have to relearn everything they thought they knew about management and business. As Rosenberg says, ¸[OPZ IVVR JVKPÄLZ [OL YLJPWL MVY V\Y secret sauce: how Google innovates and how it empowers employees to succeed.” Covering topics including corporate culture, strategy, talent, decisionmaking, communication, innovation and dealing with disruption, it illustrates management maxims with numerous insider anecdotes from Google’s history. The H\[OVYZ HSZV L_WSHPU OV^ [OL JVUÅ\LUJL of the Internet, mobile, and cloud computing has shifted the balance of power from companies to consumers. The companies that will thrive in this ever-changing landscape, they say, will be those that create superior products and attract a new breed of multifaceted employees. This is an entertaining look at a company we all use but few of us know.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 89

funds

SKILL SET {ECONOMY}

NEEDED HOW TO MAKE CYPRUS A STRONG FUNDS JURISDICTION By George Theocharides

D

espite the current financial crisis and recession, one industry that stands out, is resilient and growing is Financial Services. Despite the reputational damage that Cyprus suffered following the events of March 2013, many of the benefits that made Cyprus an attractive investment destination are still in place: the strategic location, the fact that it is an EU member state and thus fully aligned with the EU legislative framework with regard to financial supervision, a highly skilled and educated workforce providing financial and professional services, as well as a “benevolent” tax system (despite the recent enforced increase, the island still has the lowest corporate tax rate in the EU at 12.5%, zero capital gains tax, and no withholding tax on dividends and interest distributed, as well as double tax treaties with around 50 countries). An exciting and promising area within the financial services spectrum is the funds industry. Significant progress to develop and promote the sector has been made in recent years by the regulators and the government authorities, as well as the private sector. However, more needs to be done and one important area that could provide a competitive advantage concerns making sure that industry participants and service providers have the necessary skill set in order to make Cyprus a strong funds jurisdiction. If we want to administer and also manage funds that register with the Cyprus Securities and Exchange Commission (CySEC), both general and specialized knowledge is paramount for industry participants. To my mind, they should have a clear understanding of the principles of finance – the concept of the time value of money, risk and return, the structure of the global funds indus-

try and industry participants, the various asset classes, the way risk is measured and managed, and the valuation of different types of securities, among others. Another area that they should study relates to the concept of ethics in financial services. This has become increasingly important these days across the globe, given the recent financial crises that we have experienced. They should also possess a basic knowledge of economics (at micro and macro level), an understanding and use of statistical techniques (that includes the ability to use computer programmes to analyze data), as well as the main accounting principles (reading financial statements, and constructing the relevant financial ratios). Beyond these basic concepts, they should possess more specialized knowledge. One area relates to the field of portfolio/asset/ wealth management. They should understand how a portfolio of various asset classes and securities is constructed, and how its performance is measured. Another area relates to the administration and structuring of the fund, as well as issues related to compliance requirements, anti-money laundering regulations, financial reporting, taxation and legal procedures. In terms of qualifications, market participants should obtain the relevant licences from CySEC (currently there are two exams offered – basic and advanced). These licences are for individuals engaged in the reception, transmission, and execution of client orders but also for those that deal on a proprietary basis, manage portfolios, offer investment advice, underwrite financial instruments, and perform the activities of collective portfolio management and risk management for collective investment schemes (either UCITS or AIFs). Academic qualifications are also important, such as relevant Undergraduate and Postgradu-

ONE INDUSTRY THAT STANDS OUT, IS RESILIENT AND GROWING IS FINANCIAL SERVICES ate degrees. At CIIM, we recently introduced a Masters in Financial Services that aims to address the specific needs of the industry and provide candidates with the skill set necessary to succeed in their careers. Apart from academic degrees, it’s also important to have professional qualifications. The Certificates offered by the Chartered Institute of Securities and Investments (CISI) are such appropriate qualifications. CISI is the largest and most widely respected professional body for those who work in the securities and investment industry in the UK and in a growing number of financial centres globally. Another excellent professional qualification is the Chartered Financial Analyst (CFA), probably the most respected and recognized investment designation in the world. The CFA Society of Cyprus, although still small, is growing fast and is, I believe, another professional body that can play a vital role in promoting the fund industry in Cyprus. The Executive Education Department of CIIM also offers preparatory seminars for a number of CISI Certificates, a specialized course on Fund Management and an Advanced Certificate in Fund Administration.

info: George Theocharides is Associate Professor of Finance and Director of MSc in Financial Services at the Cyprus International Institute of Management (CIIM). 90 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

QG

CYPRUS %$1.,1* The Challenges and the Future in Europe and Cyprus Banking Key Themes •The Challenges and the Future of European Banking •The Challenges of Restoring Trust in Order to Rebuild the Banking Industry •Regulation, Compliance and Corporate Governance: Trends and Challenges •Banking in Europe: The current status, the trends, the challenges and the future in Spain, Ireland and Greece •Dealing with the Problem of Real Estate Collaterals in Banks •Retail Investment in Europe: An Outlook Banking in Cyprus – The CEOs’ View The CEOs of the most prevalent banks discuss the current status and the future of banking in Cyprus.

George Appios Managing Director and Chief Executive Officer, Piraeus Bank Cyprus

Marios Clerides George Georgiou General Manager, Managing Director, Alpha Cooperative Central Bank Bank Cyprus Ltd Ltd

Michalis Louis Chief Executive Officer, Eurobank Cyprus

Marinos Yannopoulos Chief Executive Officer, Hellenic Bank Public Company Ltd

Kirill Zimarin Chief Executive Officer, RCB Bank Ltd, President of the Association of International Banks (Cyprus)

Who should attend: The forum is addressed to chairmen, CEO/CFO/ COOs, Executive Directors, Managing Directors, Senior-level executives from the following areas: Local and Foreign Banks based in Cyprus, Cooperative Banks, Central Bank and other regulating authorities, Other financial services organizations, Professional services firms (accountants, lawyers), Insurance Companies, Consultants, IT solutions providers

Thursday 4 December 2014 | Hilton Park Hotel | Nicosia For further information contact: IMH, 5 Aigaleo Str., 2057 Strovolos, P.O.Box 21185, 1503, Nicosia, Cyprus Tel. +357 22505555 Fax. +357 22679820, E-mail: events@imhbusiness.com, website: www.imhbusiness.com Supported by

Communication Sponsors

Sponsors

In Association with

Organizers

arbitration

{TAX&LEGAL}

RESOLVING PROBLEMS CAN CYPRUS EVENTUALLY BECOME A REGIONAL INTERNATIONAL DISPUTE RESOLUTION CENTRE?

A

t a conference held by the CIArb Cyprus Branch last month, the main requirements for Cyprus to become a Regional International Alternative Dispute Resolution Centre were clearly identified. Although Cyprus would seem to fulfil most of them, it is evident that a great deal still remains to be done, in particular as regards reform of the country’s Domestic Arbitration Act which is viewed by the experts as ‘primitive’. Moreover, while arbitration enjoys the support of the courts, in reality there are serious problems with the enforcement of awards.

THE MAIN PROBLEMS ARE THE OVERWORKED COURTS LEADING TO DELAYS AND THE LACK OF A COMMERCIAL COURT WITH SPECIALISED JUDGES FOR ARBITRAL ISSUES

WILLIAM MCLAUGHLIN, Chartered Arbitrator, identified the most important requirements for an International effective Arbitration Centre as the following: 1. A good Legal system 2. Modern legislation for International and Domestic Arbitration. 3. Well-trained Arbitrators 4. Strong support by the judiciary 5. An Arbitration Centre which will provide the following: Rules Appointing body Administrative services Proper website Proper marketing Building

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

ROBERT WHITENER, principal associate in Freshfields, addressed the common factors that drive parties to international agreements to select a particular seat and arbitral institution as the following: 1. Adoption of the New York Convention 2. Local law friendly towards Arbitration 3. A friendly approach towards the arbitration process by local courts 4. Well-trained Arbitrators 5. An arbitration venue easily accessible to courts 6. Logistical matters dealt with easily A crucial question posed to Robert Whitener was this: “Since Cyprus has a good legal system, a good International Arbitration Act, and has adopted the New York convention, why is it not selected as a country for International Arbitration?” His answer was caustic. He noted that, even if one obtains an arbitration Award in Cyprus, the other party can appeal it and the courts will take 2-3 years to resolve the appeal. ALEXANDER G FESSAS, Managing Counsel of ICC, analysed the requirements of an Arbitration Hub and what is needed to put Cyprus on the Interna-

tional Arbitration map. Fessas examined what happens in other arbitration hubs in the world, what they provide and why they are selected. In his view, the most important requirements for setting up an International Arbitration Centre are: 1. Neutrality 2. Accessibility 3. Convenience 4. Time and Cost for travel 5. Facilities and infrastructure 6. Money However, he stressed, the most important issue on which Cyprus has to decide is the market which needs to be targeted if the country is to choose which direction to follow. ARTEM DOUDKO gave a high-level overview of the latest developments in the world of arbitration in the CEE region and the latest changes to arbitration laws in various jurisdictions, together with their new arbitration rules and institutions. MARCOS DRACOS, Barrister and CEDRAC secretary, said that the Cyprus business community (local and international) needs commercial arbitration. However, even though the Cypriot Arbitration Community satisfies the basic needs, there are limitations. Dracos emphasised that the main problems are the overworked courts leading to delays and the lack of a commercial court with specialised judges for arbitral issues. He said that what is really needed is a satisfactory legal framework, support by the courts, and competent arbitrators and institutions to support and promote commercial arbitration. COSTAS TSIRIDES, lawyer and director of the Cyprus Arbitration and Mediation Centre, traced the history of arbitration in Cyprus, noting the persistent problems emanating from the domestic arbitration act (Cap 4) and the lack of Rules. These can, of course, be adopted by the parties themselves through agreement and there are several Arbitration Rules which can be adapted to suit the proceedings, William McLaughlin stated. ANDREW DEMETRIOU, lawyer and Chartered Arbitrator, vice chairman of CIArb Cyprus, also stressed the problems caused by the out-of-date domestic arbitration act and emphasised that there is no rational reason why Cap 4 cannot be

THE COURTS IN CYPRUS FULLY SUPPORT ARBITRATION AND ARE EXTREMELY CAREFUL NOT TO INTERFERE WITH THE WISHES OF PARTIES WHO RESORT TO ARBITRATION replaced by a more modern arbitration law in line with the international Commercial Arbitration Law 101/1987 which follows the UNCITRAL Model International Arbitration Law. GEORGE EROTOCRITOU, Supreme Court Judge, stated that the courts in Cyprus fully support arbitration and are extremely careful not to interfere with the wishes of parties who resort to arbitration. The courts use their powers solely to assist and facilitate the whole process, he said, adding that, should the need arise to intervene, the courts do not hesitate to do so in order to prevent abuse of the arbitral process and to safeguard the integrity of the legal framework of arbitration. MICHAEL STEPHENS, President of CIArb, emphasised the work done by the institute for almost 100 years and its promotion of ADR through education and training programmes making CIArb a global leader in the development of ADR practitioners. The conference concluded that the first steps needed towards making it possible for Cyprus to become a Regional international Arbitration Centre are these: 1. Reform the domestic arbitration act along the lines of the international act that already exists in Cyprus 2. Arbitral awards should be appealed at the Supreme court 3. Trained justices should resolve the appeals 4. Decide on the target market for the Cyprus Centre

As Michael Stephens noted in his address: “At the first Annual General Meeting of CIArb Lord Headly, the founding President, stated that the principal aim of the Institute is to raise the status of a professional arbitrator to a distinct and recognised position among learned professions ‌ and the pioneer work which the Institute inaugurated is destined to elevate the dignity of the professional arbitrator and secure the increasing confidence of the commercial world in the public generally. We have the same principal aim today!â€?

BBOOK O RREVIEW INTERNATIONAL NTERNATION LAWÂ BY MALCOLM N. SHAW

(CAMBRIDGE UNIVERSITY PRESS, 2014)

T

R.R.P. ÂŁ39.99 (ÂŁ34.63 FROM AMAZON.CO.UK) OPZ UL^ [O LKP[PVU JVUĂ„YTZ [OL [L_[ÂťZ Z[H[\Z HZ [OL KLĂ„UP[P]L IVVR VU [OL Z\IQLJ[ *VTIPUPUN IV[O OPZ L_WLY[PZL HZ HJHKLTPJ HUK WYHJ[P[PVULY 4HSJVST :OH^ÂťZ Z\Y]L` VM [OL Z\IQLJ[ TV[P]H[LZ HUK JOHSSLUNLZ IV[O Z[\KLU[ HUK WYVMLZZPVUHS )` VɈLYPUN HU \UILH[HISL JVTIPUH[PVU VM JSHYP[` VM L_WYLZZPVU HUK HJHKLTPJ YPNV\Y OL LUZ\YLZ IV[O \UKLYZ[HUKPUN HUK JYP[PJHS HUHS`ZPZ PU HU LUNHNPUN HUK H\[OVYP[H[P]L Z[`SL 0[ YL[HPUZ [OL KL[HPSLK YLMLYLUJLZ ^OPJO LUJV\YHNL HUK HZZPZ[ M\Y[OLY YLHKPUN HUK Z[\K` HUK JV]LYZ ]PY[\HSS` L]LY` HZWLJ[ VM PU[LYUH[PVUHS SH^ MYVT :V\YJLZ VM 3H^ [V :WHJL 3H^ HUK 0U[LYUH[PVUHS ,U]PYVUTLU[HS 3H^ ;OL UL^ LKP[PVU OHZ ILLU WYHPZLK MVY ILPUN ¸[OL SLHKPUN [L_[IVVR VU [OL [VWPJš HUK ¸HIV\[ HZ JSVZL [V JVTWYLOLUZP]L HZ H [L_[IVVR JHU NL[š ;OL [L_[ OHZ ILLU \WKH[LK [OYV\NOV\[ [V YLĂ…LJ[ YLJLU[ JHZL SH^ HUK [YLH[` KL]LSVWTLU[Z JV]LYPUN Z\JO JY\JPHS YLJLU[ L]LU[Z HZ [OL 0U[LYUH[PVUHS *V\Y[ VM 1\Z[PJLÂťZ 1\YPZKPJ[PVUHS 0TT\UP[PLZ KLJPZPVU [OL HUUL_H[PVU VM *YPTLH HUK [OL 3PI`HU HUK :`YPHU JP]PS ^HYZ ;OL UL^ LKP[PVU VM [OPZ L_JLW[PVUHS IVVR PZ NYLH[ UL^Z MVY HU`VUL PU[LYLZ[LK PU PU[LYUH[PVUHS SH^

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 93

luxury christmas gifts

{LIFESTYLE}

DAYS ARE FADING FAST AS THE HOLIDAY SEASON SOARS INTO ACTION: IT’S TIME TO START COMPILING OUR GROWN-UP CHRISTMAS LISTS. By Chloe Panayides

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

SHOPS BEGAN PLACING CHRISTMAS-THEMED ADVERTS IN NEWSPAPERS AS FAR BACK AS 1820 WITH SANTA CLAUS MAKING AN APPEARANCE IN ADVERTS SOME 20 YEARS LATER

Τ

he origin of gift giving at Christmas time goes back, of course, to the birth of Christ when three kings (or three wise men) from the East followed a star which led them to a stable in Bethlehem. The Bible tells how they brought gifts gold, frankincense and myrrh in honour of the new-born baby within. Since then, times may have changed (and there is not a great deal of demand for frankincense and myrrh these days) but the tradition of Christmas gifts remains. Shops began placing Christmas-themed adverts in newspapers as far back as 1820, with Santa Claus making an appearance in adverts some 20 years later. By 1867, America’s famed Macy’s department store in New York City began staying open until midnight on Christmas Eve, allowing last-minute shoppers to make their purchases. Today, Christmas is a bona fide gift-giving bonanza. Santa Claus, Father Christmas, Kris Kringle, Saint Nicholas, or Saint Basil: call him what you will, the benevolent figure to which many a child has prayed for his or her Christmas present dreams to come true now reigns supreme, invigorating retailers as he goes. This year, the US National Retail Federation is projecting that Americans alone will spend more than $600 billion on bringing their Christmas to full life, trimmings and all. Is this extravagance or a wellearned luxury? You decide, as you consider our picks from this season’s most lavish of designer goods.

For him… TATEOSSIAN 1. SQUARE DECO O CUFFLINKS IN 18K K

BILLIONAIRE 4. BUTTONED SILK TIE

ROSE GOLD WITH BLACK DIAMONDSS

S

tand out at any corporate orate event that may come your way this holiday with these Tateossian square deco cufflinks. A classic design interpreted in an unusual way, they feature black diamonds hand-set along the four corners of an 18ct square gold base with hand-twisted gold wire running along the edge. They feature the signature Tateossian 750 whaleback clasp. Established in 1990, Tateossian has built a reputation as one of the world’s leading jewellery and accessories brands, constantlyy reflectingg and reinterpreting trends in fashion.

(€6,100)

2. BRIONI CASHMERE COAT

T

his Italian high-end fashion house has been going strong for almost 70 years and knows a thing or two about crafting the most luxurious of outerwear. The cashmere utilised in creating this coat is described as making it “fitted yet flexible,” following the shape of the body like a second skin, and adapting to every little movement for outstanding wearability. Who could resist just as the cold is starting to creep in?

PANERAI 3. RADIOMIR 1940 CHRONOGRAPH ORO

BIANCO (€2,950)

SKIING BECAME A POPULAR RECREATIONAL ACTIVITY AND SPORT IN THE MID-1800S. AND NOTHING, IT SEEMS, HAS MANAGED TO REDUCE THIS FEVER

R

etro charm incarnate, Panerai’s 2014 Radiomir edition is both aesthetically stunning and mechanically sound. The chronograph movement is hand-wound and feeds a ‘bi-compax’ dial, with the watch supported by a personalised alligator strap and 18ct polished white gold adjustable buckle. But be warned: described as a ‘unique’ edition, only 100 will be made and, as you can see from the price, they don’t come cheap.

(€50,680)

O

pulence and (€180) refinement combine in this luxurious tie, courtesy of Billionaire Italian Couture. Woven in Italy from the finest silk, it features a handsome geometric motif and, for the perfect finish, a crystal button to the back of the exacting blade. Knot at the neck of a crisply tailored shirt for formal finesse.

ALEXANDER 5. MCQUEEN TARTAN SKULL PASHMINA

E

xemplary of Alexander McQueen’s gothic-inspired DNA, this luxury pashmina has been crafted from a soft blend of wool and silk. Combining classic (€410) tartan with the fashion house’s avantgarde signature skull, the featherweight scarf may be worn loosely draped at the neck for a timeless look.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 95

luxury christmas gifts

For her… ALEXANDER MCQUEEN BLOOMING SKULL SILK CHIFFON SCARF

1.

A

signature look, Alexander McQueen skull print scarf is romanticism incarnate, and inspiring of a haunting, edgy beauty. Created in Italy using the finest silk chiffon, the light scarf is embellished with white skulls amid pink floral crowns.

GEORG JENSEN 3. VIVIANNA BANGLE WATCH W

(€460)

DREAM 2. ANNOUSHKA CATCHER CUFF

A

nnoushka Ducas MBE – founder of her eponymous jewellery company – writes of her creations: “I have tried to remove the feeling o reverence that so often surrounds the (€19,150) whole experience of buying and wearing fine jewellery. I want our pieces to be worn every day, and to encourage women to wear their huge, glamorous cocktail rings to a party, but also to dress up their jeans.”

Rocking Around the Christmas tree

Certainly, this limited edition Dream Catcher Cuff, designed in 18ct rose gold with shimmering mother of pearl will serve to adequately dress up a pair of jeans. Sparkling diamonds and black rhodium form a delicate and exquisite ‘Tree of Life’ with flowers and birds. Only 24 pieces have been made.

E

ffortless elegance fuses with functionality in Georg Jensen’s Vivianna watch. A smooth, stainless steel bangle complete with a mirrored dial and contemporary, numberless design, this timeless piece was originally designed in 1969, and has endured in popularity ever since. An iconic piece for all outfits.

(€1,720)

THIS YEAR, AMERICANS ALONE WILL SPEND MORE THAN $600 BILLION ON CHRISTMAS. IS THIS EXTRAVAGANCE OR A WELL-EARNED LUXURY?

No item better conjures images of Victorian family life than the venerable rocking horse. “Rocking horses have a lot of nostalgic value,” says Dean Failey of Christie’s New York. “They remind people of a pleasant time, if not in their own lives, of an age that was gentler and slower and kinder.” Despite its popularity, the origin of the rocking horse remains a mystery and a point of contention. Some believe the child’s toy to date back to Ancient Egypt; other historians cite mediaeval manuscripts containing references to toy horses. Irrespective of its origins, the rocking horse’s prowess as a beloved childhood toy peaked in the late 19th and early 20th centuries. According to Paul Fraser Collect-

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

OSCAR DE LA 4. RENTA: MARBLED TWEED & CHANTILLY

LACE CROPPED JACKET

H

onour the recently deceased Oscar de la Renta, and invest in one of the fashion house’s new arrivals: the marbled tweed and Chantilly lace cropped jacket. Designed in New York and tailored in Italy using time-honoured techniques, (€2,060) this may be worn by day or night in enhancing any outfit.

STELLA MCCARTNEY 5. MARBLED PLEXIGLAS CLUTCH (€1,710)

S

tella McCartney’s delicate black and ivory marbled clutch is crafted out of plexiglas and features a matching clasp closure. The gold frame adds a luxurious finish perfect for evening. Add this masterfully designed clutch to your formalwear and special occasion attire, and you’ll be dressed to impress come New (€1,710) Year’s Eve.

ibles, the most coveted rocking horse brand is FH Ayres, courtesy of London-maker Frederick Henry, whose distinctive horses can achieve as much as £20,000 if in good condition. However, the most-sought-after Ayres horses (such as a swivelheaded model made in 1887) are naturally very rare and seldom come up for auction. In addition to Ayres, G&J Lines Brothers and J Collins & Sons are prestigious makers whose horses command high prices. David Kiss, a partner at the Rocking Horse Workshop in Hodnet, Shropshire, believes that toys built to last are hard to beat in the rush of Christmas gift-giving. “Rocking horses have certainly passed the test of time and have

been a childhood favourite for more than a century. They are not Q\Z[ H [V` I\[ H ÄUL WPLJL VM M\YUPture and a great decoration.” A good quality horse, Kiss notes, may set you back some £1,500. “It sounds a lot of money,” he notes, “But it should outlast you as a family heirloom that will grow in value. Compare this with a computer you could buy for the same money that is obsolete and worthless in a few years.” Signs of quality include elegant carving and a good quality top plate that holds the swinging bar, as well as glass eyes and real horsehair. Investors looking to buy a rocking horse can pick up decent horses in need of work for less than £1,000, but it will cost £5,000 or more for a topclass thoroughbred model.

All for One and One for All! BRIC’S AFRICA 82CM SPINNER TROLLEY

1. I

deal for the sophisticated travel, this four-wheel Bric’s Africa spinner trolley boasts a retractable handle and 360-degree spinner wheels for swift movement on the go. Embossed with a sleek crocodile print on the leather exterior, the interior is lavishly spacious, complete with a front (€2,230) compartment for travel documents and accessories. Skiing holiday? Tropical getaway? You’re all set. Available in three colours: blue, brown, and red.

CORAVIN 1000 SYSTEM

2. A

groundbreaking wine accessory tool, Coravin 1000’s innovation means that wine connoisseurs may now enjoy a glass without having to commit to opening the whole bottle. (€345) Leaving the cork in place means that the wine is safeguarded from oxidation, and thus allowed to mature naturally. Still, if thirsting for a taste, insert Coravin’s thin, hollow needle through the foil and cork, straight into the wine. Pressurise, thereafter, the bottle with argon, an inert gas that winemakers have been using for years, which succeeds in pushing the wine through the needle so that it flows into one’s glass without letting any oxygen into the bottle. Once the needle is removed, the cork naturally reseals itself.

S.T. DUPONT HUMPHREY BOGART ELYSÉE BALLPOINT PEN

3.

I

n 1973, S.T. Dupont started a revolution with the launch of the first luxury ballpoint pen. It was functional and technical but also very personal. S.T. Dupont has evolved the art of writing ever since, most recently its Elysée Ball(€830) with point Pen. Directly inspired by the suit worn by Humphrey Bogart in the stellar movie classic, Casablanca, this is an exquisite writing instrument, presented, no less, in a themed box.

TURNTABLE: 4.LUXURY ONEDOF (€115,000)

O

neDof is a fundamentally reinvented turntable designed by NASA award- winning aerospace engineer Aleks Bakman. A music lover’s dream, the turntable is the first in history with self-centering in all directions, a non- resonant platter bearing based on smart fluid technology. The innovative bearing also eliminates acoustic distortion. The final touch? It’s plated in 24ct gold.

(€115,000)

OLIVIA 5.PURLING: PILLING CHESS SET

B

oasting 32 professional grade tripleweighted Staunton pieces and a maple wood board with a luxurious, polished finish, the Purling Olivia Pilling Chess Set makes for a distinguished gift. Each piece has been hand-carved and finished with a deep, glossy lacquer in a unique swirling design by Olivia Pilling.

(€2,550)

An heirloom in the making, both avid chess players and connoisseurs of fine art will appreciate this thing of beauty. Ideal for enjoying a game against the backdrop of a roaring fire.

BOOK REVIEW SAPIENS: A BRIEF HISTORY OF HUMANKIND

BY YUVAL NOAH HARARI (HARVILL SECKER, 2014) R.R.P. £25.00 (£11.00 FROM AMAZON.CO.UK)

O

ne hundred thousand years ago, at least six human species inhabited the earth. Today there is just one. Homo sapiens. How did our species succeed in the battle for dominance? Why did our foraging ancestors come together to create cities and kingdoms? How did we come to believe in gods, nations and human rights; to trust money, books and laws; and to be enslaved by bureaucracy, timetables and consumerism? And what will our world be like in the millennia to come? Dr Yuval Noah Harari spans the whole of human history, MYVT [OL ]LY` ÄYZ[ O\THUZ [V ^HSR [OL earth to the radical – and sometimes devastating – breakthroughs of the *VNUP[P]L (NYPJ\S[\YHS HUK :JPLU[PÄJ Revolutions. Drawing on insights from biology, anthropology, palaeontology and economics, he explores how the currents of history have shaped our human societies, the animals and plants around us, and even our personalities. Bold, wide-ranging and provocative, Sapiens challenges everything we thought we knew about being human. It is a lucid, illuminating and brilliantly written single-volume history of our species.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 97

A Day in the Life

Melina Pyrgou The Director of Pyrgou Vakis Law Firm, on why she became a lawyer (despite a passion for interior design), why she stopped watching the TV news and how she spends her free time. “I live in Nicosia with my partner and two children and during the week I get up at exactly 6.20am, though I do some catching up over the weekend. We have breakfast every morning and then I take the kids to school before arriving at the office around 7.30am. This is the only part of my day which can be described as routine! Once I start work, nothing is regular but that’s a good thing in many ways. My mother was responsible for me becoming a lawyer. As a girl, my dream was either to become a sports trainer or an interior designer but I was discouraged from doing both. She couldn’t see how I would eventually be able to make ends meet if I tried to take up either as a profession, and law was something that she had wanted to do herself and my grandparents wouldn’t let her. In those days, it wasn’t considered “a girl’s thing”. So she “guided” me into doing it but I still have a passion for interior design. I’m always reading design magazines and at home they complain that I’m always moving the furniture round, changing and adding things. And it’s true! I studied law at the University of Keele and then became

a barrister in London before returning to Cyprus and doing my training. I later obtained a scholarship from the Swiss government and spent a year in Geneva doing Environmental Law and in 2008 I decided to set up my own firm. I must admit to having regrets about my choice of career from time to time – especially when trying to balance my roles as professional and parent. Working mothers experience a lot of guilt! The hardest part of the job is maintaining a high level of responsibility to my clients, ensuring that I give them the best possible service and present them with viable, efficient and correct solutions. But it’s not all bad. I enjoy having the opportunity to meet people from all over the world – we have a lot of international clients and associates – and the fact that I travel a lot, to make new acquaintances and develop the business outside Cyprus. After 22 years of practising law, this is actually the most challenging and interesting part for me. After lunch I can never be sure if I’m going to finish early or late but, whatever the time, I don’t take work home. I don’t watch much TV at all and I stopped watching the news last March. I don’t feel that I’m

Geneva, my home from home

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

I enjoy books like this one

missing anything at all. On the contrary, I feel I’m gaining much more by not having to worry about things that I can’t influence in any way. Missing the news gives me more time to read and I particularly enjoy personal development books. One that I found very interesting recently is Rich Dad, Poor Dad by Robert Kiyosaki. I do read fiction but I prefer autobiographies and books that are more grounded in reality. I

My favourite classic rock

enjoy the theatre and, especially, concerts. I love music and I hear lots of different styles so one day it may be Pink Floyd coming from my son’s room and the next it’s the more pop sounds that my daughter likes. I also enjoy singers such as Andrea Bocelli, and Cesaria Evora and I often download albums of the music I listened to when I was younger so recently it was Dire Straits and Fleetwood Mac. I go to the gym, though not as regularly as I would like, and I enjoy walking and cycling. I love watching sport too. I’m an APOEL fan and I sometimes go to matches with my daughter. I do a lot of travelling for work but we also go on holiday. I am always happy to go back to the classic choices – London, Paris, Athens – and I love Geneva. I am always telling my children that they should eventually do something that they love. They are going to spend so many years working and it’s much easier to do something you enjoy. My son has more or less decided on law but I keep telling him to keep an open mind. My daughter is sure that it’s not for her but she’s only 13 and she has plenty of time to change her mind. I think the fact that both their parents are lawyers acts as enough pressure. It takes an effort to get the work/life balance right. Sometimes you succeed, sometimes you fail and it really tips on the wrong side – work! – but all in all I feel very satisfied with my life.”

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.