Gold Magazine Issue 56

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Gold ISSUE 56 november 15 PRICE €3.00

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The business of culture in Cyprus CHANGING THE WORLD PR Smith on SOSTAC and the Great Sportsmanship Programme

INTERVIEWS

Savvas Constantinou Charis Kynigou Menelaos Kyprianou

RISKY BUSINESS Kirstin Gillon on Managing Risk in a Digital World

WHAT’S ON Art, Dance, Music, Opera, Film & More

Find out how a faster process to close its books helped a private company grow from challenger to leader. ey.com/acceleratinggrowth #BetterQuestions

© 2015 Ernst & Young Cyprus Ltd All Rights Reserved

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ISSUE 56 NOVEMBER 15, 2015

T H E

B U S I N E S S

M A G A Z I N E

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C Y P R U S

| COVER STORY |

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STATE

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ARTS The business of culture in Cyprus

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By John Vickers

wo months ago, the Cyprus Theatre Organisation staged its production of ancient Greek tragedy Hippolytus by Euripides at the Roman amphitheatre at Salamis, near Famagusta. It was attended by several thousand people, including President Anastasiades and the Turkish Cypriot leader, Mustafa Akinci and, as such, attracted more comment and attention for the production’s political significance than for its purely theatrical value. Cyprus has a cultural history that

stretches back thousands of years. Indeed, the original Salamis amphitheatre is said to have seated 20,000 spectators. And while the country and its people are proud of this great cultural heritage, it says a great deal about 21st century Cyprus that its ancient Roman amphitheatres continue to be the biggest cultural venues on the island. There is no concert hall or opera house, not even an indoor theatre capable of holding an audience of more than 800. In 2005, the Government established

the Cyprus Cultural Foundation, which was tasked with building the very first modern multi-purpose cultural centre in Nicosia. The centre, with an estimated cost of €115 million, was to have included a 1,400-capacity auditorium, a recital hall seating up to 4,500 people, a rehearsal hall, an education centre and an impressive foyer to house shops, a café and restaurant plus plenty of empty space for exhibitions and other performances. It was never built and in 2013 the whole plan was shelved. The former Minister of Finance Charilaos Stavrakis later wrote, “The project would make sense only if Nicosia were the size of New York and Cypriots had the musicality of Austrian people.” He had perhaps not heard the story about Winston Churchill, to whom it was suggested during World War II that he should stop investing in the Arts in order to help pay for Britain’s war effort. He is said to have responded, “Then what would we be fighting for?” Here in Cyprus, 2013 was, of course, the year in which the idea of protecting arts funding while cutting public spending in other areas was simply not an option but I would suggest that, over the 55 years of Cypriot independence, no government has ever shown more than a token interest in culture (Has any politician ever visited the State Gallery of Contemporary Art? This seems unlikely because they would surely have made an effort to do something about it), indicating that our leaders are of the opinion that culture and the arts are a luxury rather than something necessary to people’s lives. It’s a shame that they are not as enlightened as the parents of US First Lady Michelle Obama, who, not long ago, told a gathering of young students: “Even though they weren’t educated,

COVER

STORY

28 | GOLD | The Business Magazine of Cyprus

my parents always made it clear that the arts – poetry, music, writing and drama – those things weren’t luxuries. They were necessities. They knew that no matter where we come from, we need those experiences to feed our souls and to make us whole and complete individuals…” Luckily for Cyprus, we don’t have to rely on the state and the Government for our cultural needs. The private sector has always been at the forefront when it comes to providing performing and visual arts, for setting up book, record and music stores, cinemas, dance schools, recording studios and more. And in most cases, it appears to have been a labour of love by those involved rather than a ticket to wealth. It is said that, in times of crisis, luxuries are the first things that people give up. Are the Arts seen as a luxury by Cypriots? This was one of the things we set out to discover and, as you will see, there are no firm conclusions to be drawn at present but some of them are these: • Bookshops have seen their sales reduced but this is mainly due to online sales and the advent of the downloadable e-book, not because of a decrease in the number of readers. • People are buying fewer pianos but they are still buying musical instruments. • Parents continue to encourage their children to take dance and music lessons

Luckily for Cyprus, we don’t have to rely on the state and the government for our cultural

NEEDS

and talented students are studying for performing arts degrees. • Going to the cinema is still a popular family experience, despite the availability of films on DVD or the ease by which they can be downloaded illegally. • Classical music has a relatively small but nonetheless growing audience. • Quality recording studio facilities will always be in demand. • People of all ages visit art galleries and those that make an effort to attract young people are succeeding. • It is becoming increasingly difficult to stage major events due to a lack of corporate sponsorship, which used to play a key role on attracting big names to the island. On the following pages we speak to twelve key players on the local cultural scene, all of them from the private sector. Several of them express their disappointment over the lack of public sector assistance, most have seen their revenue reduced since 2013 but they are all characterised by a genuine love of what they are doing. We also discuss copyright and Intellectual Property issues in an attempt to re-state the point that cultural and artistic creations actually belong to someone and, as such, those creators should be rewarded. In the end, it seems that, in the opinion of the people to whom we spoke and their customers and clients, the Arts make living worthwhile – without books, films, music, drama, paintings and dance we’d simply be surviving. And they aren’t just things that give pleasure to life – they are the means by which we express ourselves, connect to other people, share experiences and discover new things about ourselves, each other and the wider world around us.

www.goldnews.com.cy | GOLD | 29

32 | While the business of culture has not been immune to the recent financial crisis, leaders on the private sector arts scene remain optimistic and firm in their belief that what they provide is not a luxury but a necessity.

CONTENTS 8| BUSINESS BRIEFING

Economic & Business Highlights of the past month.

14 | MY WAY

Lia Papaiacovou’s management style.

16 | FIVE MINUTES WITH… Menelaos Kyprianou

18 | THEY SAID WHAT?

A selection of memorable recent quotes from Cyprus.

FEATURES 20 | The Sky’s the Limit

Elena Leontiou on Reporter, IMH’s new media venture.

24 | Changing the World

PR Smith talks about his SOSTAC marketing model and the Great Sportsmanship Programme.

44 | The Personal Touch

Interview with Charis Kynigou, Head of Private Banking, Piraeus Bank (Cyprus).

48 | Risky Business

Kirstin Gillon of the ICAEW on cyber security and more.

24

50 | Halfway There!

Construction work on Limassol’s landmark building The Oval reaches the 8th ÅVVY

96

90 | The View from the Top

Interview with Savvas Constantinou, the newly appointed Country Director at Barclays Bank.

94 | The Impact of Tourism

Report and pictures from the recent event by PwC, the Travel Foundation and the TUI Group.

44

SPECIAL ADVERTISING SUPPLEMENT 51 | Professional Services in Cyprus The island’s leading Law 6ɉJLZ Accounting & (\KP[ ÄYTZ HUK Administrative Service Providers

114

96 | Becoming a World

Class Leader 7YVÄSL VM 7YVMLZZVY (UKYL^ Kakabadse, one of the trainers of the IN Business Executive Leadership Programme.

98 | The 6th Limassol

Economic Forum Photos from the event.

102 | Turning the Learning

Switch Back On Marios Siathas, General Manager of the European Institute of Management & Finance (EIMF) on professional education.

105| BOOKSHELF

Five of the best new business titles.

106 | IN GOOD COMPANY

How employees are powering the engine of Lavar Shipping.

110 | MY COLLECTION The Bank of Cyprus Cultural Foundation’s coin collection. 114 | LUNCH WITH GOLD Katerina Papavassiliou, Director and HR Manager of Island Oil (Holdings) Ltd

4 | GOLD | The Business Magazine of Cyprus

118 | BUSINESS CLASS Natalia Kardash, Editor-inchief of the Russian-language newspaper Vestnik Kipra and the magazine Successful Business. 120 | WHAT’S ON Gold’s guide to the best cultural events of the coming month. 122 | A DAY IN THE LIFE Christos Christodoulou

20

44 | GOLD | The Business Magazine of Cyprus

| EDITORIAL |

Necessity, not Luxury

GOLD ISSUE 56 NOVEMBER 15 PRICE €3.00

T H E

“The arts are not a way to make a living. They are a very human way of making life more bearable.” KURT VONNEGUT, JR.

B U S I N E S S

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The business of culture in Cyprus CHANGING THE WORLD PR Smith on SOSTAC and the Great Sportsmanship Programme

INTERVIEWS

Savvas Constantinou Charis Kynigou Menelaos Kyprianou

RISKY BUSINESS Kirstin Gillon on Managing Risk in a Digital World

WHAT’S ON Art, Dance, Music, Opera, Film & More

PUBLISHED BY IMH ISSN 1986 - 3543

F

ortunately, Kurt Vonnegut Jr’s view of the arts was not entirely right. Not only did he make a living as an acclaimed writer himself but others are also doing so by bringing cultural events, services and products to us. Of course, most people know that arts and culture have never been considered a road to wealth and profit. For every rich musician, painter and writer there are hundreds of thousands of poor ones. Like the artists themselves, those who deal in the arts as a business are usually doing so because they love it. This is certainly one of the points that comes out of the interviews conducted for this month’s cover story with key figures on the local cultural scene who work in the private sector. It is important to make this distinction. Those involved in state-funded bodies, such as the Cultural Services of the Ministry of Education, have a budget that they will employ as they think fit. Those who choose to sell books or pianos, to operate dance schools, art galleries or cinemas, or to organise concerts and recitals have always been taking a risk and we should be grateful to them for this. The arts are an essential part of our lives, not a luxury for the few. As the ancient Greek tragedian Sophocles stated 2,500 years ago, “Whoever neglects the arts when he is young has lost the past and is dead to the future.” This issue of Gold is the first to be included with the new Greek-language newspaper Reporter as part of its special Sunday package (costing €3.90). You can learn more about the newspaper and its accompanying lifestyle magazine Celebrity in our interview with Elena Leontiou, Head of Media at IMH (page 20). For non-Greek speaking readers, the good news is that we have reduced the cover price of Gold to €3. The magazine has always been aligned with IMH’s Greek-language monthly IN Business in terms of pricing and while magazine prices have fallen across the board, both Gold and IN Business had remained relatively expensive. Given that our advertising revenue has been growing steadily – and continues to do so – IMH took the strategic decision to lower the price and give something back to John Vickers, you, our loyal readers after almost five years. Apart from the lowChief Editor er price, nothing has changed to your favourite English-language business magazine. I’m sure you will agree that getting the same john@imhbusiness.com for less money is always a welcome development. 6 | GOLD | The Business Magazine of Cyprus

MANAGING DIRECTOR

George Michail

GENERAL MANAGER

Daphne Roditou Tang MEDIA MANAGER

Elena Leontiou EDITOR-IN-CHIEF

John Vickers JOURNALISTS

Effy Pafitis, Artemis Constantinidou PHOTOGRAPHY

Jo Michaelides, Andreas Loucaides ART DIRECTION

Anna Theodosiou

SENIOR DESIGNER

Alexia Petrou

PHOTOGRAPHY

Jo Michaelides, Harris Kyprianou MARKETING EXECUTIVE

Kevi Chishios

SALES MANAGER

Irene Georgiou

SALES EXECUTIVE

Stavros Epifaniou

OPERATIONS MANAGER

Voulla Nicolaou

SUBSCRIPTIONS

Myria Neophytou PRINTERS

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

The Bank you can trust

Welcome to RCB Bank! We expand our network of branches to come closer to you. We improve our products and services to meet your expectations.

RCB Bank Ltd. Private Company. Registration number: 72376. Registered office: 2, Amathountos street, 3105 Limassol, Cyprus.

Our branches are open Monday to Friday 9am to 5pm www.rcbcy.com

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BUSINESS BRIEFING IN THE NEWS

AWARDS

CPM ‘EMPLOYER OF EQUALITY’

Daniel Craig visits Cyprus as UN Landmines Advocate

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Panglobe celebrates 10th anniversary

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anglobe celebrated its 10-year anniversary on October 15, together with customers and associates. The company, which has its headquarters in Nicosia and offices in Hong Kong, provides corporate administration and consulting services, mainly to overseas clients. It also offers serviced offices and support services to a large number of enterprises through its specially-designed Business Centre. Managing Director Michael Constantinides announced that it will soon be present in the United Arab Emirates, with offices in Dubai.

8 | GOLD | The Business Magazine of Cyprus

RCB WINS BEST BANK AWARD

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CYPRUS IN THE TOP 10

FOR IMPROVED BUSINESS PRACTICES According to the World Bank’s Doing Business report, Cyprus was among the world’s top ten countries that improved their business practices in the last year. The island has moved up 13 places in the 2016 Ease of Doing Business, ranking 47th out of 189 countries. It was also among the top ten economies which implemented at least three reforms, including enforcement of contracts, resolving insolvency, getting electricity, getting credit and paying taxes.

SAFECHARGE WINS EGR ITALY AWARD

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LEGAL

IFLR TIER 1 RATING FOR ANDREAS NEOCLEOUS & CO LLC

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he 2016 IFLR 1000 Ratings released last month place Andreas Neocleous & Co LLC as the only law firm in Cyprus achieving IFLR’s prestigious Tier 1 rating. Five Cyprus firms were ranked in the second tier, a further five in the third tier and four in the fourth tier. Commenting on the ranking, Andreas Neocleous, Chairman of the Firm, said, “From the beginning our vision has been to provide our clients with world-class service, on a par with the world’s best law firms. Our distinction in being recognised by IFLR 1000 as the sole Tier 1 firm in Cyprus for a third successive year is a very welcome recognition of our progress in achieving this vision.�

INVESTMENT

CHINA VISIT A SUCCESS The Cyprus Investment Promotion Agency (CIPA) has described President Nicos Anastasiades’ recent visit to China as a “resounding success�. CIPA Chairman Christodoulos Angastiniotis (photo) said the meetings and conferences in China proved particularly useful in deepening the already strong ties between the two countries and that this would have positive ramifications on the investment sector. “The Chinese side showed a lively interest in a wide range of sectors of the Cyprus economy which among other, covered energy, the ports and real estate,� he said.

THE MARSHALL ISLANDS Corporate Registry

â‚Ź160 MILLION ENVIRONMENTAL INVESTMENT The Ministry of Agriculture, Rural Development and Environment is to implement a series of projects targeting h period i d 20142014 environmental protection for the 2020, amounting to â‚Ź160 million. The projects, which will be coordinated with allocations from European funds, mainly concern the management of solid and liquid waste. Agriculture Minister Nicos Kouyialis said: “We hope that through these projects we will succeed in protecting the environment, improving the living conditions in Cyprus, creating regional development and jobs, and achieving our goals over the Europe 2020 strategy.â€?

RENOVATION

The leading jurisdiction for: ˆ Asset Management ˆ Vessel Ownership

ELEFTHERIA SQUARE DUE FOR COMPLETION IN 2016

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ˆ Real/Intellectual Property Holdings ˆ Initial Public Offerings/ Publicly Traded Companies

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

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

www.goldnews.com.cy | GOLD | 9

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BUSINESS BRIEFING

LEISURE & TOURISM

CTO Focus on Accessible Tourism

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Cyprus to host 2016 European Travel Commission General Assembly

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ouse prices in Cyprus rose during the second quarter of 2015 according to figures published last month by Eurostat. The figures contrast with the Cyprus Central Bank’s Residential Property Price Index for Q2 2015 and the RICS (Cyprus) Property Price Index for the same period, both of which reported price falls. According to Eurostat, house prices in Cyprus rose by 7.4% over the second quarter of 2015 after falling 2.8% during the first quarter of the year – and rose by 2.4% compared with the second quarter of 2014. The Cyprus Central Bank had reported house prices and apartment prices falling by 0.8% and 1.5% respectively over the second quarter, and by 4.6% and 6.2% respectively compared with the second quarter 10 | GOLD | The Business Magazine of Cyprus

Emirates has announced the launch of promotional Economy Class fares from Cyprus to selected destinations across the 4PKKSL ,HZ[ -HY ,HZ[ (MYPJH HUK (\Z[YHSHZPH (]HPSHISL MVY purchase both online at www. emirates.com/cy and from travel HNLU[Z \U[PS 5V]LTILY customers can enjoy special YL[\YU HPYMHYLZ MYVT *`WY\Z inclusive of taxes starting from Ă [V +\IHP :WLJPHS MHYLZ to other destinations are also available for outbound travel until 1\UL ^P[O [OL L_JLW[PVU VM KLWHY[\YLZ K\YPUN OPNO ZLHZVU MYVT [V +LJLTILY

:VSV [YH]LSSLYZ Ă…VJR to Cyprus

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NEBOJSA PETRIDIS

REAL ESTATE

Property prices rise‌or not

Emirates launches promotional Cyprus air fares

TRAVE L

PEOPLE

The Folli Follie Group has appointed Nebojsa Petridis to the role of General Manager for Cyprus. Petridis, who was Managing Director at Shiseido Hellas, undertakes his new role following the Group’s acquisition of Shiseido. Group CEO George Koutsolioutsos said: We are delighted to welcome Mr. Petridis to the .YV\W HUK HYL JVUĂ„KLU[ [OH[ [OL` ^PSS JVU[YPI\[L [V V\Y LɈVY[Z [V HJOPL]L V\Y Z[YH[LNPJ objectives.â€?

37,016

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New Chapter

The official launch of ACAMS’ Cyprus Chapter took place on 4 November at the Hilton Cyprus in Nicosia. The Association of Certified Anti-Money Laundering Specialists (ACAMS) is investing in supporting the professional AML and financial crime prevention sector in Cyprus with the provision of globally recognised education and training programmes, access to world class AML resources to develop the highest levels of Anti Financial Crime knowledge and international best practice. ACAMS has formed a strategic training partnership with the European Institute for Management and Finance (EIMF).

New device

University of Cyprus researchers have designed a micro-device with the potential to aid in the early detection of cancers of the small intestine. This is a significant development, said the University’s Dr. Julius Georgiou, in that cancerous cells cannot currently be easily detected in this region of the body. Dr. Georgiou, who heads a team from the Holistic Electronics Research Laboratory at the University, added the breakthrough could be compared to the Papanicolaou (‘Pap’) test for the early detection of cervical pre-cancerous cells in women.

New motto

Windsor Brokers recently launched its new motto, ‘Exprocurity’ – an acronym for Experience, Professionalism and Security, three words which, the company says, best describe its core values and the foundations of its business model. “It is easy to compare trading packages and costs between brokers especially since competition nowadays is very fierce. But experience, professionalism and security are three non-negotiable assets that determine a company’s true strength,” said Windsor Brokers CEO, Johny Abuaitah. Windsor Brokers offers Forex, CFDs, Futures OTC trading to clients in over 80 countries.

Aon completes line up of Provident Fund solutions with the Aon Hewitt Multi-Employer Provident Fund– MAP Fund MAP Fund is Designed to provide Better Member Outcomes

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MY WAY

Lia Papaiacovou

General Manager, Shiphold Ltd and ADS Shipping Ltd

WHAT IS A ‘GOOD’ MANAGER MADE OF? THOUGH THE VARIOUS ANSWERS TO THIS QUESTION TEND TO DIFFER ACCORDING TO THE CHANGING NEEDS OF A VARIETY OF INDUSTRIES, ACCORDING TO LIA PAPAIACOVOU Ç? GENERAL MANAGER OF SHIPHOLD LTD. AND ADS SHIPPING LTD. Ç? SELF-BELIEF IS AN INGREDIENT WITHOUT WHICH MANAGERS CANNOT STEER OTHERS FORWARD. HERE SHE TELLS GOLD HOW PROFESSIONAL ASSURANCE WAS INSTILLED IN HER EARLY ON IN HER CAREER, HOW THIS EXPERIENCE HELPS HER NAVIGATE TODAY’S LEADERSHIP CHALLENGES, AND MORE.

“M “M y leadership style was influenced most by having a manager who believed in me and gave me tasks well above what I thought I was capable of doing earlier on in my career.�

“M

y career has been aided most by my ability to know who I am as a person, setting high standards for myself, being conscientious and loyal, and taking an avid interest in my work.�

“T

he object of my professional admiration is our Chairman, Mr. Bjorn Tore Larsen!�

y greatest professional achievement thus far has been successfully establishing the OSM office in 2007, and seeing it become it become the Group’s headquarters.�

“T

he biggest mistake that managers make is being autocratic and not delegating enough, hence not taking an interest in the development of their team and concentrating mainly on their personal success.�

“I

achieve a healthy balance between life at work and at home by being very organised at home and by leaving my work behind once I leave the office. I relax by participating in family activities or preoccupying myself with various chores at home, reading and cooking. Indeed, my favourite pastime is spending quality time with family and friends, preferably close to nature.�

14 | GOLD | The Business Magazine of Cyprus

“I

would describe my management style as authoritative; I set a vision and, sharing it with my team, step back and allow them to work. I ensure that key performance indicators are set, and this frees up my time to operate strategically. I offer the team my full support and am happy py to report that they feel With over very proud 20 years of experience of their heir in the maritime industry, Lia work.� k.� Papaiacovou opened the OSM

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LEGENDS LIVE FOREVER EL PRIMERO

I Chronomaster 1969

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MINUTES WITH MENELAOS KYPRIANOU

There are currently 200 Cypriot investment firms registered with the Cyprus Securities & Exchange Commission (CySEC). Apart from the island’s relatively low tax regime, are there other attractions for investors? There are other considerations beyond the existing well-known tax incentives. These are the relatively low set-up and operational costs and the fact that, given our EU member status, Cyprus Investment Firms can be used as a vehicle to freely access national retail markets of other EU member states. The reliable and transparent legal framework within which Cyprus Investment Firms operate is also of critical importance. Relevant EU regulations have become part of our national laws and these are interpreted and applied in the first instance by CySEC. And the bigger picture is that we have a country with a solid common law legal system and a well-trained and fiercely independent judiciary to apply it.

Cyprus has moved up 13 places in the latest World Bank Doing Business report. This suggests that efforts to cut down on bureaucracy, etc., are finally bearing fruit. Is this the case? I believe that it is. This report has examined specific measures that have been taken in Cyprus, including those which have improved access to credit information and which have facilitated the paying of taxes. Another important measure is the introduction of legislation regulating matters when

16 | GOLD | The Business Magazine of Cyprus

a company enters into an insolvency phase and a third one noted in the report is the introduction of new procedures in our Court rules which allow small claims to be adjudicated much faster. Apart from providing quicker access to justice for specific claimants, this measure will also help alleviate the overall workload of the civil courts.

nationals as a straightforward route to becoming a European citizen and I think that its simple, transparent and quick procedure has also helped. Our firm has indeed assisted a number of clients from Russia, China, the Middle East, Syria, Egypt, Ukraine, and South America. We have noted a marked preference in real estate invest investments mostly in Limassol, Paphos and the so south-east part of the island. Do you b believe that Cyprus has the potential to become a major investment fund funds centre? Yes I do. A noteworthy development in this field is the recent transfer of tthe regulation and supervision of ffunds from the Central Bank of Cyprus to CySEC and the implementation of the European Framework as to the interprettation of Alternative Investment F Funds in 2014. This focuses on tra transparency and the protection of in investors.

Managing Partner, Michael Kyprianou & Co. LLC

How would you judge the Government’s Citizenship by Exception scheme for foreign investors? Has your firm dealt with investors wishing to take advantage of the opportunity to obtain a Cypriot passport? I think the results of this scheme speak for themselves. Despite the difficult period for our economy, the scheme has attracted many foreign investors from around the globe. It has been viewed by foreign

Are the there other measures that can be taken to enhance the status of Cyprus as a cent center of business and investments? One measure is the creation of a specialised commercial court for the adjudication of high value cross-border disputes. I am convinced that this would carry enormous benefits, establishing Cyprus as a venue of choice for foreign parties to settle their disputes. The common law system that is applied in Cyprus is described by many legal commentators as the best in the world. Added to that, we have a highly competent judiciary and body of lawyers which can ensure that such a court will operate at a very high level.

SPECIAL PROMOTIONAL FEATURE

FAMELINE GROUP SPONSORS THE AGONAS ELEFTHERIA 2015 SAILING RACE ORGANISED BY LIMASSOL NAUTICAL CLUB ON 26 & 27 SEPTEMBER 2015

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www.goldnews.com.cy | GOLD | 17

QUOTES OF THE MONTH

They Said What? A selection of the more unusual statements heard in Cyprus during the past month.

“IT WAS A BIT OF SENDING A MESSAGE TO THE BANK: ‘WE’RE STILL ANGRY.’ I UNDERSTAND THAT BUT I’D PREFER IF YOU HADN’T TORCHED MY CAR.”

PRESIDENT NICOS ANASTASIADES

“GOOD EVENING FROM CHINA. WELCOME TO THE WORLD OF MODERN DAY TECHNOLOGY!”

Attorney-General Costas Clerides, being cross-examined by former Attorney-General Alecos Markides during the trial of disgraced Deputy AttorneyGeneral Rikkos Erotokritou and others. COSTAS CLERIDES

Luckily for all of us, including Green Party MP George Perdikis, the latest Turkish invasion takes the form of fresh water and not troops.

GEORGE PERDIKIS

Bank of Cyprus CEO John Hourican on what happened in March this year. JOHN HOURICAN

President Anastasiades sends a tweet to Andros Kyprianou IROORZLQJ WKH $.(/ OHDGHU·V belated discovery of Twitter.

“THE WAY YOU SUBMIT YOUR QUESTIONS MAKES ME FEEL THAT I HAVE TO UNDERGO MY BAR EXAM AGAIN.”

“THIS ACTION IS, IN ESSENCE, ONE MORE INVASION, ANOTHER ATTILA.”

“THE VOICE THAT SPEAKS WILL NOT BE SILENCED – I STATE IT OPENLY: IF SOME SEEK CONFLICT AND WAR, THEY WILL GET IT...WHAT THEY MUST UNDERSTAND IS THAT I, TOO, HAVE A LOT OF EVIDENCE ON MANY OTHERS.” EDEK Chairman Marinos Sizopoulos, accused of illegally importing botox for his dermatology practice, adopts the classic stance of the Cypriot politician XQGHU ÀUH WKUHDWHQ WR VSLOO WKH beans on the rest of them.

MARINOS SIZOPOULOS

“ENROLMENT IN ANY PROGRAMME OF STUDY AT THE UNIVERSITY OF CYPRUS SHOULD BE FREELY AVAILABLE TO ALL FOR THE FIRST YEAR, WITH ONLY THE BEST AND BRIGHTEST MAKING IT TO YEAR TWO. THIS IS A MODEL USED IN FRANCE, GERMANY, AND AUSTRIA... IT WILL DO AWAY WITH THE PRIVATE-TUTORING INDUSTRY ONCE AND FOR ALL.” University of Cyprus rector Constantinos &KULVWRÀGHV SURSRVHV D GUDVWLF FKDQJH WR the education system. For some reason, WKH VHFRQGDU\ VFKRRO WHDFKHUV· XQLRQ GRHVQ·W OLNH WKH LGHD &RXOG LW KDYH something to do with how they spend their afternoons? CONSTANTINOS CHRISTOFIDES

“THEY IGNORE SCIENTIFIC DISCOVERIES, DO NOT READ PHILOSOPHY AND ARE NOT INTERESTED IN POETRY AND THE ARTS. THEY HAVE NO CONTACT WITH THE MODERN WESTERN CONCEPT OF FREEDOM OF THOUGHT… THEY LIVE SOMEWHERE BETWEEN 300 AND 1200 AD.” MEP Takis Hadjigeorgiou describes the Holy Synod, following its decision to excommunicate TAKIS a theologian. HADJIGEORGIOU

18 | GOLD | The Business Magazine of Cyprus

READY 2016

9/16 FLOORS COMPLETE

OVAL ON THE UP T H E OVA L - R E A DY 2 01 6 35% ALREADY SOLD

Setting new standards in workplace design

T

he Oval, soon to be the most state of the art office building in Cyprus, is the latest development attracting international companies to the much-loved and diverse Mediterranean island. Setting new standards in workplace design, it is located just 100m from the sea in Limassol, Cyprus’ key business district with the most flourishing international community.

For more information call 8000 50 30 or visit Cybarco.com

A collaboration between Cyprus’ leading luxury property developer Cybarco and internationally acclaimed architects Atkins, The Oval is being built on solid foundations with a joint track record of delivering outstanding quality for over 70 years. It is already attracting new businesses to the area and is redefining the city’s skyline with its striking architectural design. Now in its final year of construction, The Oval will stand 16 floors high at 75m when it is completed in 2016. Each of the building’s light-filled floors enjoys uninterrupted sea views, while the flexible open plan design makes it simple to adjust to the requirements of any business. The project’s distinctive design is complemented by a luxury reception area on the ground floor, landscaped gardens and a cafeteria, as well as the services offered including property management, 24-hour security and controlled access to both the building’s premises and the two underground parking levels. With an energy performance certificate of ‘A’ rating, the project is a sustainable development using geothermal energy to minimise carbon emissions.

Developed by: Cybarco, Cyprus’ leading luxury property developer.

| MEDIA |

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THE SKY’S THE LIMIT The latest venture from IMH, the publishers of Gold, is Reporter, a refreshingly different Greek-language Sunday newspaper, which comes with a lifestyle magazine (Celebrity) and a dedicated online news portal. Elena Leontiou, Head of Media, explains the thinking and philosophy behind the new project. By John Vickers

A

t a time when the role of the print media is being taken over by digital and online news sources, it’s quite a bold step to start a new newspaper. What was the thinking behind Reporter and its accompanying lifestyle magazine Celebrity? 20 | GOLD | The Business Magazine of Cyprus

Elena Leontiou: First of all, let me say that it’s taken us almost three years to reach the stage of publishing exactly what we wanted. It grew out of an awareness that, as far as newspapers were concerned, the Cyprus media landscape had grown old in terms of ideas, content and design. So we started thinking about a product that would approach topics in a different way and would also deal with issues that we wanted to bring to people’s attention. Our aim was to create a multi-dimensional product – a newspaper, a magazine and an online portal, in other words two brands represented in both print and digital format, plus an application.

Gold: I’m sure people understand the multi-dimensional aspect of the project but they might question the need for a newspaper. After all, we’ve been hearing about the death of print media for a long time. E.L.: You’re right: Even 15 years ago,

Print media is still alive and well in Cyprus

there was a widespread view that we were witnessing the end of traditional newspapers but, as you know, it hasn’t happened yet. After a great deal of research and investigation, discussion with focus groups and so on, we reached the conclusion that, far from having died, print media is still alive and well in Cyprus and we believe that it still has another good 10 years of life. Gold: Reporter is a weekly. Was there ever any discussion about producing a daily paper? E.L.: No. Sunday is when people already tend to read more, a fact that was confirmed by our own research, so we decided to invest in the Sunday reading habit. Our main target group is men and women aged 35-55 but various sections in both Reporter and Celebrity will also

Gold: The design of Celebrity is certainly different from virtually every similar magazine in Cyprus and from many abroad too but is it different as regards the content? There are already lots of celebrity-focused magazines around. E.L.: It’s purposely completely different from everything else that’s out there in the local media. We have tried to incorporate the monthly magazine style and view into a weekly and to bring the various bits and pieces together in a different approach from the one that people are used to. A major difference is that Celebrity deliberately focuses on what’s going on in Cyprus. Most of the stories are about people living her and our long-term goal is to involve these people more and to present their stories.

weekend readers who have time for the analyses, the longer interviews and more in-depth information than what they get online. Gold: Until now, as Head of the IMH Media Department, you’ve been responsible for two monthly magazines – IN Business and, of course, Gold. How has the addition of a weekly newspaper affected your working week? E.L.: The change from monthly products to weekly is huge. I find myself counting hours rather than days. What makes it more challenging is the fact that all the material in Reporter and Celebrity, both printed and online, is 100% original, produced by our own people – our own interviews, our own research, etc. And we’re talking about

%X PEWX - JIIP XLEX [I GER NYWXMÁEFP] call ourselves a media group attract the attention of younger readers and those who may never have bought a newspaper. They have been designed for people who want to read something modern and different. Gold: It certainly doesn’t resemble any Cypriot paper in style and content but I see resemblances with some of the Athens weeklies. Am I right and, if so, was this a conscious decision? E.L.: Yes. Having identified what we wanted to provide in terms of content and presentation, we were determined to invest a great deal in the design of both Reporter and Celebrity. So we naturally spent a lot of time looking at media from Europe – including Greece, of course – and the US. We wanted the new product to be a fresher, more entertaining read than anything else that is available in Cyprus. Indeed, this is a concept that we have always aimed to implement in our media – Gold and IN Business each have their own distinct design and look.

Gold: Are there enough people here to fill a magazine called Celebrity? E.L.: Of course! This is why we decided to focus on Cypriot society. There are so many stories to tell so why not give people here something that is closer to them? The amount of material is endless. Gold: On the subject of the portal, do you expect it to lead to more sales of the newspaper and magazine or do you see it as an additional source of information for those who buy the paper? E.L.: While we strongly believe that the print media isn’t dead, as I said earlier, we are not blind to the fact that digital is what drives the media these days, so we took the decision to develop both the print and digital brands, enabling one to complement the other. The portal reports news as it happens, breaking news, our own exclusives and stories that are written specifically for that medium, while the paper and the magazine are for

48 pages for the magazine, more than 80 in the paper, so there’s a lot of work. Gold: So is this new addition as far as IMH media intends to go or are you planning still further expansion? E.L.: With two monthly magazines, each with its own dedicated online portal, and a new newspaper and a magazine, each with their own digital version, we have more than enough to deal with! However, now that we have moved beyond strictly business-oriented media and become more mainstream, I feel that we can now justifiably call ourselves a media group, albeit a small one. We may not have a radio or TV station, although we do have our own TV studio where we record videos for the portals but, in terms of what the future may hold, the sky’s the limit!

www.goldnews.com.cy | GOLD | 21

| CONFERENCE |

T

President Nicos Anastasiades

he Cyprus Funds Summit took place on 9 October at the Filoxenia Conference Centre in Nicosia. It was organised by the Cyprus Investment Funds Agency (CIFA) with the support of the European Fund and Asset Management Association (EFAMA) under the auspices of the Ministry of Finance and the Cyprus Investment Promotion Agency (CIPA). The aim of the Summit was to inform participants about the current EU regulatory framework, to identify the latest global trends and opportunities and to highlight the advantages of Cyprus as a centre for investment funds. *ROG 6SRQVRUV

Dr. Thomas H. Kingston, Cycap and Demetra Kalogirou, CySEC

Emily Yiolitis, Harneys LLC, Cyprus

(NH[OP 7HÄSP EFAMA, Belgium

Muneer Khan, Simmons & Simmons, UAE

Irena Georgiadou, Hellenic Bank

Panel Discussion with Kevin Mudd, KMG Capital Markets, Aristides Protopapadakis, Systemic, Greece, Johannes Muschik, AFPA, Austria, Matthias Leidt, =6;<4 .LYTHU` 7H\S :[HUÄLSK -,0-( <2 HUK Vincent Derudder, ALPP, Luxembourg Dr. Markus Lange, KPMG, Germany

6LOYHU 6SRQVRUV

Sam Brooks, LLP, UK Christopher Stuart Sinclair, Deloitte, Luxemburg and Aoife O’Connor, PwC, Ireland Averof Neophytou MP, Angelos Gregoriades, CIFA and President Nicos Anastasiades

Maria Shaw-Barragan, European Investment Bank, Luxembourg

Roy Stockell, EY, UK

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22 | GOLD | The Business Magazine of Cyprus

| MARKETING |

PR Smith may be best known for his SOSTAC marketing model but his real passion is the Great Sportsmanship Programme aimed at young people around the world. On a recent visit to Cyprus he talked to Gold about both of his creations and more. By John Vickers

CHANGING THE

WORLD

24 | GOLD | The Business Magazine of Cyprus

P

aul (PR) Smith describes himself thus: “Nine to five, I do three things: I write books, I do workshops and I advise companies. My five to nine job is the Great Sportsmanship edutainment programme.” As a business consultant with a sporting background (he played rugby for 20 years with London Irish and then coached youngsters for eight years after that), his two parallel occupations suit him perfectly and while he describes the aim of the Great Sportsmanship Programme as being “to change the world” – and he means it – it was actually his SOSTAC business plan, devised in the 1990s, that made him known beyond his native Ireland and the UK. Indeed, he was in Cyprus last month to lead a workshop on SOSTAC Marketing Strategy and Tactics in a Digital World, but before talking about the groundbreaking plan, I ask what he was doing before digital came along. “Mainstream marketing of everything from Christmas crack-

ers in America to short game golf in China,” he replies. “Before digital, the same principles applied – getting inside the customers’ minds, knowing them better than they know themselves and then reflecting it back to them in the right place at the right time. It was a more manual process, obviously, but the principles and challenges haven’t changed.” The market has gone through a revolution which started 10 years ago when social media came along. Newsweek described it as ‘the biggest single change to business since the industrial revolution’ but the spark for the creation of Smith’s marketing plan came long before that, in the 1980s when he was doing his Master’s Degree at Cass Business School in London: “I was reading through tomes and volumes that were boring me to tears, making me want to pull my hair out,” he recalls, “because every book had a different approach to a marketing plan and most of them were totally unmemorable and, to me, overcomplicated. So I started looking at the whole idea and I eventually developed something that was a rather more convoluted version of what ultimately became the six points of SOSTAC.

The moment I came up with the six-point name, I knew I had something.” Put simply, SOSTAC stands for Situation analysis, Objectives, Strategy, Tactics, Action and Control, to which are added the three key resources (3Ms): Men (& women – the human resource), Minutes (time scales) and Money (budgets). At first, Smith was simply happy to have come up with it and he used it in his own business, and occasionally told others about it but he made almost no effort to promote the fruits of his efforts. “It was just something private that worked for me and I saw that if I presented it to an audience, people seemed to like it. Then I started receiving requests to put it in book form, which I wasn’t very keen on, but one guy kept at me to do it – he even offered to help me – and he was so persistent that in the end I agreed to.”

He later published a digital version but it wasn’t until 2011 – when the Chartered Institute of Marketing marked its centenary by, among other activities, holding a poll for the best marketing model of the century – that Paul Smith finally realised that SOSTAC might be bigger than he realised: it was voted as one of the top three in the world. “I thought, ‘that’s really nice!’ he says, adding that so many people seem to like and use it these days that he has decided to franchise it for other countries so that trainers can become SOSTAC accredited, enabling them to train others with the model. That is something that will start in the New Year. Returning to the subject of marketing in today’s digital world, does PR Smith see social media as a revolutionary new channel for marketing that will replace other traditional ones or is it simply an additional channel? “It’s an additional

PEOPLE ARE UNDER THE MISCONCEPTION THAT SOCIAL MEDIA IS FREE BUT IT’S NOT www.goldnews.com.cy | GOLD | 25

| MARKETING |

channel,” he says firmly. “There’s a debate going on about whether it’s as effective as we thought, but it’s definitely not replacing the more traditional channels.” People are under the misconception that social media is free but it’s not, it says. “You can set up your platform for free and publish things for free,” he explains, “but it takes time to write the content, particularly if you’re doing a proper content strategy for the whole year that will help your audience and excite them and make them want to share it. The bigger companies will have dedicated marketing teams working on this and they have to be paid, so social media is not free, especially in its most sophisticated form.” How does he view the prospects for the printed media in what is an increasingly online-dominated world? Will it survive? And will advertisers continue to use it? Smith describes himself as “one of those people who consider it a privilege and a real treat to be sitting at my kitchen table with a coffee and a big newspaper. I still enjoy the exploration of a newspaper and I believe there is still room for the printed word.” He acknowledges, though, that this may be a generational thing. After all, I say, there are young people who have never bought a newspaper and probably never will. He agrees: “My adult children are in that category.

Today’s young people multi-task, so even when they’re watching TV they have their smartphones and tablets on too. I’m often reminded of a scene from Nicolas Roeg’s film The Man Who Fell to Earth where David Bowie’s character Thomas Jerome Newton fills an entire wall with TVs and he’s digesting them all simultaneously. That’s what a lot of people are doing today but to me there is still something magical about the printed book.” Technology continues to advance very fast and, says Smith, the next development is going to be virtual worlds. Virtual worlds? “Yes. During his election campaign last year, the Indian Prime Minister Narendra Modi addressed hundreds of rallies across the country in hologram form. And this technology is going to go mainstream. Virtual worlds will start this Christmas. In fact, I’m look forward to reinventing my rugby career in a virtual world since I can’t in this one!” That sporting reference brings us nicely onto the second reason for Smith’s visit to Cyprus in October: to talk about his Great Sportsmanship Programme, which is his “edutainment programme designed to change the world!” Yes, he says, it’s an enormous ambition but it can work: “It aims at achieving four things: We want to inspire young people to great-

ness, to rebuild their self-esteem, to boost literacy and to boost participation in sport.” The way he and his partners are doing this is through true, two-minute stories of sportsmanship, which are shared with young people through a variety of social media platforms and programmes put into schools and clubs. “We influenced about 50,000 last year and our target is 100,000 this year and then for the number to grow exponentially,” he explains. “We particularly target inner city areas and we ask the kids to send us their own stories or to post a comment on what they’ve seen. The stories are all about honour, friendship, honesty, humility, enjoyment, fair play and respect though I don’t actually use those words when I talk to them. I say they’re about sport and sportsmanship.” The world we live in, says Smith, is a chaotic one in which the pillars of society have collapsed – we don’t trust bankers, the police, politicians, the church has taken a hammering, the education system is not what it was, people don’t talk to each other or make eye contact, the family is breaking down – and so young people’s sense of identity is being lost too. “Kids are left wandering through this deconstructed society of ours but they can identify with these stories and they do.” One of the stories that they

really relate to is “Catching Kayla”, about an American girl who has Multiple Sclerosis but is a middle distance runner. “When she runs, she eventually reaches the point where she can’t feel her legs and by the end of the race she needs oxygen too. And yet she keeps on doing it! Kids identify with her courage and persistence.” Does he have tangible evidence when he says that 50,000 young people have been influenced? Yes, he says. “Those 50,000 have engaged with us with comments on the website or in some other way. At the moment we are doing simple post-course surveys to get an idea of how they feel but we intend to proceed with more structured ones that will let us measure how their behaviour has changed. We have already worked on this with the Football Association of Ireland, for whom we have designed an online programme, and with the Confederation of North, Central American and Caribbean Association Football (CONCACAF) which is taking the programme seriously too. The full assessment of how much we are changing the world isn’t in yet but I am sure we’re getting there!” For more information on: SOSTAC: http://prsmith.org/ sostac The Great Sportsmanship Programme: www.greatmomentsofsportsmanship.com

THE WORLD WE LIVE IN IS A CHAOTIC ONE IN WHICH THE PILLARS OF SOCIETY HAVE COLLAPSED 26 | GOLD | The Business Magazine of Cyprus

| COVER STORY |

STATE

OF THE

ARTS

The business of culture in Cyprus

T

28 | GOLD | The Business Magazine of Cyprus

By John Vickers

wo months ago, the Cyprus Theatre Organisation staged its production of ancient Greek tragedy Hippolytus by Euripides at the Roman amphitheatre at Salamis, near Famagusta. It was attended by several thousand people, including President Anastasiades and the Turkish Cypriot leader, Mustafa Akinci and, as such, attracted more comment and attention for the production’s political significance than for its purely theatrical value. Cyprus has a cultural history that

stretches back thousands of years. Indeed, the original Salamis amphitheatre is said to have seated 20,000 spectators. And while the country and its people are proud of this great cultural heritage, it says a great deal about 21st century Cyprus that its ancient Roman amphitheatres continue to be the biggest cultural venues on the island. There is no concert hall or opera house, not even an indoor theatre capable of holding an audience of more than 800. In 2005, the Government established

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WE’D SIMPLY BE SURVIVING

the Cyprus Cultural Foundation, which was tasked with building the very first modern multi-purpose cultural centre in Nicosia. The centre, with an estimated cost of €115 million, was to have included a 1,400-capacity auditorium, a recital hall seating up to 4,500 people, a rehearsal hall, an education centre and an impressive foyer to house shops, a café and restaurant plus plenty of empty space for exhibitions and other performances. It was never built and in 2013 the whole plan was shelved. The former Minister of Finance Charilaos Stavrakis later wrote, “The project would make sense only if Nicosia were the size of New York and Cypriots had the musicality of Austrian people.” He had perhaps not heard the story about Winston Churchill, to whom it was suggested during World War II that he should stop investing in the Arts in order to help pay for Britain’s war effort. He is said to have responded, “Then what would we be fighting for?” Here in Cyprus, 2013 was, of course, the year in which the idea of protecting arts funding while cutting public spending in other areas was simply not an option but I would suggest that, over the 55 years of Cypriot independence, no government has ever shown more than a token interest in culture (Has any politician ever visited the State Gallery of Contemporary Art? This seems unlikely because they would surely have made an effort to do something about it), indicating that our leaders are of the opinion that culture and the arts are a luxury rather than something necessary to people’s lives. It’s a shame that they are not as enlightened as the parents of US First Lady Michelle Obama, who, not long ago, told a gathering of young students: “Even though they weren’t educated,

my parents always made it clear that the arts – poetry, music, writing and drama – those things weren’t luxuries. They were necessities. They knew that no matter where we come from, we need those experiences to feed our souls and to make us whole and complete individuals…” Luckily for Cyprus, we don’t have to rely on the state and the Government for our cultural needs. The private sector has always been at the forefront when it comes to providing performing and visual arts, for setting up book, record and music stores, cinemas, dance schools, recording studios and more. And in most cases, it appears to have been a labour of love by those involved rather than a ticket to wealth. It is said that, in times of crisis, luxuries are the first things that people give up. Are the Arts seen as a luxury by Cypriots? This was one of the things we set out to discover and, as you will see, there are no firm conclusions to be drawn at present but some of them are these: • Bookshops have seen their sales reduced but this is mainly due to online sales and the advent of the downloadable e-book, not because of a decrease in the number of readers. • People are buying fewer pianos but they are still buying musical instruments. • Parents continue to encourage their children to take dance and music lessons

Luckily for Cyprus, we don’t have to rely on the state and the government for our cultural

NEEDS

and talented students are studying for performing arts degrees. • Going to the cinema is still a popular family experience, despite the availability of films on DVD or the ease by which they can be downloaded illegally. • Classical music has a relatively small but nonetheless growing audience. • Quality recording studio facilities will always be in demand. • People of all ages visit art galleries and those that make an effort to attract young people are succeeding. • It is becoming increasingly difficult to stage major events due to a lack of corporate sponsorship, which used to play a key role on attracting big names to the island. On the following pages we speak to twelve key players on the local cultural scene, all of them from the private sector. Several of them express their disappointment over the lack of public sector assistance, most have seen their revenue reduced since 2013 but they are all characterised by a genuine love of what they are doing. We also discuss copyright and Intellectual Property issues in an attempt to re-state the point that cultural and artistic creations actually belong to someone and, as such, those creators should be rewarded. In the end, it seems that, in the opinion of the people to whom we spoke and their customers and clients, the Arts make living worthwhile – without books, films, music, drama, paintings and dance we’d simply be surviving. And they aren’t just things that give pleasure to life – they are the means by which we express ourselves, connect to other people, share experiences and discover new things about ourselves, each other and the wider world around us.

www.goldnews.com.cy | GOLD | 29

| COVER STORY |

YVONNE GEORGIADOU

classical music

ARTISTIC DIRECTOR PHAROS ARTS FOUNDATION

Is the classical music business doing well these days? It depends on what we really mean by the term ‘business’. If we measure success by the increasing number of people – the audience – reached and the artistic legacy created, the answer is ‘yes, most definitely’. If we measure success by financial profits, then it is a definite ‘no’. In any case, I would not personally like to approach the endorsement of classical music as a business. There is no question that nowadays, the classical music industry attempts to imitate the methods and practices of pop culture, aiming at financial gains, ignoring what is artistically important and focusing on that which is more easily marketed. But art is art, and art is hard! One has to see it as a vocation. We should serve this art form with devotion and make it as accessible as possible to the general public. Business-wise, it might not generate huge financial profits for those directly involved but it can enhance numerous other sectors and hugely increase their profitability. Was it badly affected by the financial crisis? How couldn’t it be? But only with regard to financing projects. In these difficult times, the general public is actually turning more towards the arts to seek refuge from everyday problems. But unfortunately, music and the arts in general are considered a luxury by the decision makers of this world… In Cyprus, in particular, there is no appreciation on a state level and this is partly due to a severe lack of knowledge and vision.

The development of culture calls for a holistic approach – serious strategies, expertise and vision. Financing cultural projects should not be about sensationalism. For years we have been striving to convince the authorities that what we offer is not a luxury; it is a necessity for society, it is a basic human right, and imperative for our country’s infrastructure. It should have been a necessity for the tourist industry as well and, consequently, a tool to

aid our country’s economic rehabilitation. I have to admit that the private sector, which has suffered the most because of the crisis, is more appreciative and it is miles ahead. As a non-governmental, non-profit cultural organisation, the Pharos Arts Foundation is extremely grateful to quite a few corporates that recognize the importance of what it offers. In the last few years, it has

Unfortunately, music and the arts in general are considered a luxury by the decision makers of this

WORLD

tation has reached Europe and beyond. As a result, numerous artists are interested in presenting themselves in our series and they are kind enough to comprehend that what we do is important and truthful in its purpose, but unfortunately it cannot pay them the big cheque they would normally get in other western countries. They are still happy to come and perform for Pharos. Then it is the human element… our small team works endlessly, from dawn until dusk, to implement such a rich programme. For us, our work for the Foundation is our passion and subsequently an extension of our lives. I would like to stress that the audience for classical music is actually not that small anymore. It might be smaller compared to the audience for mainstream pop music but it is not trivial by any means. Most of our concerts are sold out and we are glad that the greatest majority of our audience are quite young in age. This is probably due to the fact that nowadays people have access to the Internet, therefore they have familiarised themselves with different genres of music.

terested in reaching more people and it doesn’t mean that other kinds of music are not good. But as Plato put it, “Pleasure is not an end in itself: it should be subordinated to another end, fostering virtue in the soul”! One really has to be truthful to one’s mission, work hard and be patient. Some events are naturally more popular than others but this is just coincidental. We never waste time thinking about what will be popular; instead, we spend time planning how to communicate an artistically important event to the general audience. This is where good artistic programming, and subsequently good marketing, enter the picture.

I would like to stress that the audience for classical music is actually not that small

ANYMORE

PHOTO: POLINA IOANNOU

been more difficult, perhaps, to attract more or to maintain certain sponsors from the private sector, but the majority of them recognize how essential these cultural events are for society, and they actively support them. This is what social responsibility is about. You have persisted for many years in presenting internationally acclaimed performers of music, for which the audience is traditionally fairly small. How do you manage? The Pharos Arts Foundation has a track record of organising hundreds of concerts with the most renowned soloists, ensembles and orchestras in the world. Through our Music Education Programme, which is offered for free to the youth of Cyprus, we have benefited over 65,000 students. The Foundation’s repu-

Have you never considered becoming involved in more mainstream concert/ event production for purely business considerations? No, never, not even for a second! This is something many organisers do nowadays and I find it extremely short-sighted and stupidly suicidal on their behalf. They end up cannibalising their very own programme.That doesn’t mean we are not in-

How would you describe the value of musical appreciation in today’s world? For those people who have their ears open and their souls and spirits liberated, the art of music is invaluable. It is invaluable also for nurturing our young people, for whom we are responsible. It should be instrumental in education – not in order to raise a society of musicians, but to foster the goodness in each person and cultivate his aesthetic experience, to reinforce his ability to think expansively, rhythmically, to comprehend various symbolisms and implement them in other areas of life. Music is commonly seen as a form of entertainment. It has the power to entertain, for sure, but not just that. Once we sort out this basic moral error, we will all instantly appreciate what good music is about and we will enjoy the fruit. After all, the greatest art is that of listening.

www.goldnews.com.cy | GOLD | 31

| COVER STORY |

KYRIAKOS P. KYRIAKOU FINANCIAL DIRECTOR

K.P.KYRIAKOU (BOOKS-STATIONERY) LTD Do you have a fairly specific customer base or do you attract people of all ages and interests? Our shops attract all sorts of customers: local Cypriots who read in Greek and English, and those of other nationalities who live and work in, or visit our country. In terms of age and gender, it is clear to us that women read much more than men and younger children much more that teenagers. As for interests, fiction and children’s books come first and then other subjects follow, such as biographies, cookbooks, diet books, self-help, politics, history, and of many more subjects.

Was it badly affected by the financial crisis? There is no doubt that people’s spending ability was badly affected by the financial crisis and it still is. There are more readers in Cyprus today compared with 10-15 years ago but a book is a commodity that can be easily borrowed from others, family members, friends, or, where they exist (!), libraries. Moreover, the printed book is no longer the only source of reading material. In northern and central Europe, as well as in the States and other Asian countries, much reading is now done on electronic devices. It’s cheaper to buy and download an e-book than to buy the printed version and you don’t have to pay any shipping charges.

Do children and young adults read for pleasure or have the Internet and social media taken the place of books in their lives? If I take as an example my two grandchildren, who have been regular readers since they learned to read, then yes, undoubtedly, the Internet takes a lot of their time, but it is up to parents to control the inevitable habit and pastime in a sensible way. However, children of all ages still love reading books, some more than others, as they always did. The huge success of the Harry Potter stories shows just that.

books

Is the book business doing well these days? When we mention bookshops in Cyprus, we usually mean shops that mostly sell stationery rather than books. Genuine bookshops – shops which display and sell more books than other merchandise – are very few: no more than 10, which shows how difficult it is to be a bookseller in Cyprus. For the past 5 years, there has been a downtrend in turnover, at least three of them have closed down, others have chosen to move into smaller premises, and some employ fewer staff today. It is not such a joy to be a bookseller these days.

It is not such a joy to be a bookseller these

DAYS

How much has it been affected by online companies such as Amazon, which often offer huge discounts? Small bookshops suffer a lot from e-shopping. It is impossible for small independent bookshops to offer the discounts that e-companies or even bookstore chains can offer their customers, so smaller entities rely on the service they provide. Fortunately for us, it is impossible to experience the thrill of physical book buying or browsing in a real bookshop by going online and this is an advantage that still attracts readers to bookshops.

Do you foresee a time when physical books will be completely replaced by their digital equivalents? No. I am very optimistic that physical books will always be here, but perhaps not all kinds of books. For example, reference and academic books are much easier to read and use in electronic form. The most recent reports from the UK say that the growth rate of e-book sales is now slowing down and, in the near future, they will stop increasing. At the same time, there are signs that sales of some types of books are starting to go up and there is an ongoing revival of bookshops in some countries of central and northern Europe, where books are prime sources of adult and children’s entertainment.

AKIS CHRISTOU SOLONEION BOOK CENTRE

Is the book business doing well these days? The culture of people undoubtedly affects their habits and priorities and we have to admit that, in Cyprus, reading has never been a priority for most people. So, one could say that the book business has always been in crisis. Saying this however, does not mean that people do not read at all. We have a percentage of the population that reads and these people read a lot. Over the past years, we have been seeing diminishing sales as the budget that people allocate for their book purchases has been limited by other more important needs. We have not seen a reduction in the number of people that enter the bookshop but the total per sales ticket has decreased. We hope that business will increase once again but, being realistic, we know that the old days will not return so adjustments need to be made in order to keep ahead in the hard times we all live in.

PHOTO: ANDREAS LOUCAIDES

Was it badly affected by the financial crisis? The financial crisis has not left anyone unaffected. This is something that was, to some extent, anticipated. Actions were

taken to deal with the situation but the shock was intense. In our case, sacrifices had to be made, by reducing staff hours and modifying the priorities of the book purchasing departments in order to offer the most popular titles. If you want real numbers, there was an approximately 55% reduction in turnover, which is a huge amount, although it compares favourably with other sectors. How much has it been affected by online companies such as Amazon, which often offer huge discounts? Online sales have had an adverse effect through the pricing that they offer. However, customers must be cautious about shipping charges. Physical books from online stores have affected the business to an extent but e-books have also affected sales, not only in Cyprus but worldwide. Sales of e-books have plateaued at approximately 25% globally so it seems that there are still plenty of romantics who prefer the smell and touch of a book over the convenience of carrying a vast number of books on a reading device. Do you have a fairly specific customer base or do you attract people of all ages and interests? The target is to attract all age groups, so we try to cater for all interests. The small market in Cyprus prohibits the creation of specialized shops so one must be as diverse as possible with regard to the products and services one offers. This is what the Soloneion Book Centre is trying to achieve.

In Cyprus, reading has never been a

PRIORITY for most people

Organising events on a regular basis, as well as selling related products that are an unusual alternative to the customer, favourably complement the vast range of books on offer. Strategic partnerships have been created with the Bank of Cyprus Cultural Foundation, the Embassy of Ireland and the Embassy of Bulgaria, with whom jointly organised events have been held and more are being planned. They have proved to be popular, with speakers who are of a very high standard and extremely knowledgeable in their respective fields. Do children and young adults read for pleasure or have the Internet and social media taken the place of books in their lives? New technologies are like nature. We cannot fight them so we need to go along with them. For this reason, ocial media has to be used as a means to reach these people and attract them to come physically to the bookshop. This is something that we must be doing right as the children’s section of the bookshop is doing well. Do you foresee a time when physical books will be completely replaced by their digital equivalents? No. There are certain categories for which this will not be so easy. Children’s books and large gift (‘coffee table’) books are just two categories that I feel are very hard to replace. Once you transform a children’s book with pictures into digital format, it is just not a book anymore!

| COVER STORY |

LOUKIA LOIZOU HADJIGAVRIEL DIRECTOR A. G. LEVENTIS GALLERY

Was it badly affected by the financial crisis? Yes and no. Yes, in that it is harder in times of crisis to secure corporate sponsorship for events and exhibitions for example – but I believe that, too, will change as companies increasingly understand the added value of culture, and of supporting culture within their community. On the other hand, no, in that in hard times, we are increasingly drawn to things that lift the spirits; and art has a powerful way of achieving this. At the A. G. Leventis Gallery, we have intentionally kept our entrance fees low, and

made a point of offering a range of free events from lectures to guided tours and special opening hours on public holidays. Such events allow people to step into that unique world of art-lovers: to learn something new, to ‘see the bigger picture’, always ensuring that this public treasure remains open to all. After all, our main goal is to promote European Art History through our collections and activities.

Technology, in my view, will not replace our

NEED

for hands-on interaction with art

Do children and young adults go to art exhibitions or have the Internet and social media taken the place of art in their lives? It is important to know how to address young audiences; and how to use technology to one’s advantage, in order to enhance the experience of art, not to compete with it. Αt the A. G. Leventis Gallery, we have worked very much within that principle, with the

tions through their own gaze. We provide special events, tours and workshops for children that are entertaining as much as they are educational – we even held our first Gallery ‘sleep-over’ this year! Technology, in my view, will not replace our need for hands-on interaction with art; hence the Gallery’s recent investment in an extensive educational wing – our Creativity Centre, open to children and adults alike – which will offer a space entirely dedicated to creative interaction with art ‘in the making’. This space will open its doors in January and, I hope, will be warmly embraced by the public.

Given that you don’t hold selling exhibitions, was your decision to open more of a matter of making a social contribution than a strictly business decision? The A. G. Leventis Gallery is the fulfillment of a vision, the embodiment of Anastasios Leventis’ belief in the need for a public space in his homeland, Cyprus, where his compatriots could experience European art first hand. It is this dream that was realized by the A. G. Leventis Foundation as a part of its enduring commitment to supporting culture and the protection of cultural heritage in Cyprus, and beyond it. How would you describe the value of being exposed to works of art in today’s world? It is perhaps a cliché to say that art is priceless but like all clichés it is invariably true. Ultimately, what makes the Gallery such a unique space is that it is much more than a treasure-trove of artworks for the generations to come. It is a hub of culture in the city, a space where everyone is welcome – where we encourage dialogue and interaction, where we build bridges between cultures as much as between individuals. That is the magic of art and the splendour of European Art History – and we hope to spread it!

PHOTO: ANDREAS LOUCAIDES

art galleries

Is the gallery business doing well these days? The world of museums and public galleries is a curious one – closely bound to society and yet subject to its own laws. Ultimately, ‘doing well’ can only be measured by the response of the public – and, in that respect, we are fortunate that the A. G. Leventis Gallery has been very warmly received in this first year of our operation, both by the critics and the public, in Cyprus and beyond.

extensive but simultaneously discrete use of cutting-edge technology (from video-walls to touch-screens and digital labels) within the Gallery and exhibition spaces. We encourage young visitors to explore the collec-

MICHAEL ZAMPELAS CEO ZAMPELASART

Is the gallery business doing well these days? The Zmart Gallery business (organising temporary exhibitions by established and emerging artists), like any other trading business in Cyprus, has not been doing well due to the financial crisis. An effort is being made to keep the business alive on a going concern basis until the crisis is over. Was it badly affected by the financial crisis? Yes. The crisis badly affected third party exhibitions and events organized by the Zmart Gallery. Do you have a fairly specific audience or do you attract people of all ages and interests? An effort is being made to maintain a specific audience but, in general, a place like the Loukia and Michael Zampelas Art Museum survives on the basis of attracting people of all ages and interests. Do children and young adults go to art exhibitions or have the Internet and social media taken the place of art in their lives? Your question is an issue that we are addressing continuously. As a result of our educational programmes for children from kindergarten age, we have witnessed a slow change in the habits of young adults and children away from the Internet and social media to the arts in general.

PHOTO: JO MICHAELIDES

Was your decision to open more a matter of making a social contribution than a strictly business decision? Our aim was the creation of a complete Art Centre, something that was missing in Cyprus. Included in our activities are the Zmart Gallery and the Zmart Framing, which host selling exhibitions and provide other services. Income generated from these activities definitely helps the social contribution of the Art Centre. How would you describe the value of being exposed to works of art in today’s world? Exploring, understanding and evaluating works of art in today’s problematic world is not only a noble exercise but it gives us a different understanding of the complex issues facing the world today. Our decision to bring people, and in particular young adults and children, closer to the arts will help them gain a better understanding of the world around us.

OUR AIM

was the creation of a complete Art Centre www.goldnews.com.cy | GOLD | 35

| COVER STORY |

ALEXANDROS KARAPATAKIS MANAGING DIRECTOR DJK GROUP OF COMPANIES

You are credited with modernizing and reviving the cinema business in Cyprus when, in 1999, you opened the first multiplex on the island. What prompted you to proceed with that investment? Our motivation came from our confidence in this amazing industry and we have great plans to upgrade our establishments over time and to introduce new and exciting trends.

The Government could be more proactive in the

Was it badly affected by the financial crisis? Like all businesses in Cyprus, ours was generally affected. However, the cinema remains high on the list of entertainment options for most people as it is not an expensive night out, though individuals who have lost their jobs may not be able to visit the cinema as regularly as in the past. As a response to this situation, and to meet our audience’s needs, we have introduced the concept of Thursday Cinema Nights so that cinemagoers can watch their favourite movies at a lower cost.

Do children and young still enjoy the cinema experience or have the Internet and social media taken its place in their lives? Children and families are a very important part of our business and that’s why we offer special packages for them during afternoon shows. We have a constant line up of family titles, which draws families for an entertaining outing in a safe environment. Furthermore, parents choose K-Cineplex to host their kids’ birthday parties, taking advantage of our integrated packages that include food, drinks, themed decoration (upon request) and, of course, a movie screening of their choice. All these services help us continue cultivating the cinema culture, so that these youngsters grow into teenagers and young adults who love the movies.

FIGHT

against piracy

How much has it been affected by illegal downloading? Illegal downloading is a worldwide phenomenon which affects many industries, such as pharmaceuticals, clothing etc. We have made a substantial investment in digital technology to ensure that the majority of our titles are released day and date with Europe in an effort to curb piracy. The Government, however, could be more proactive in the fight against piracy as in other EU countries by applying the Directive on the protection of intellectual property rights. At the end of the day, illegal downloading results in a substantial loss of tax income for the Government.

Do you think that older generations can be tempted back into the cinema or is it exclusively for young people these days? The “older” generation is certainly making a comeback to the cinemas as we constantly provide a lineup of targeted titles as well as introducing our new “cine events” concept where we screen both live and recorded performances, such as operas from The Metropolitan Opera in New York, Bolshoi Ballet performances from Moscow, concerts and musicals.

PHOTO: ANDREAS LOUCAIDES

inemma a

Is the cinema business doing well these days? The cinema industry is a healthy industry. There are a couple of widespread habits in our lives: we like to go out and spend time with friends and we like to share experiences. People go out because of the shared experiences and emotions but, even more importantly, because we all like stories. We like to dream and escape our everyday lives and cinema is all about storytelling.

OWNER ARTE MUSIC ACADEMY

Is the music business doing well these days? So and so. Was it badly affected by the financial crisis? At some point, yes is was. Parents in some cases have other priorities for their kids that they consider to be more important for them.

concert promotion

Do young people still want to learn to play an instrument or have the Internet and social me-

dia taken music’s place in their lives? Yes they do, but not as much as in previous years. Do young people wish to study an instrument to the very highest level, knowing that their opportunities to be a soloist or a member of an orchestra in Cyprus are virtually non-existent? I do not agree with this opinion about Cyprus

and I strongly believe that young people who are very talented will study to the highest level.

do not feel competitive with other Universities and conservatories in Cyprus.

Do you consider yourself to be in competition with the universities and conservatories? If so, what is your key advantage over those competitors? Not so much. Our entry criteria and the level of our studies and, furthermore, our degrees are of such a high level that we

How would you describe the value of music in today’s world? The value of music is timeless and that is the greatness of it. Such value cannot be lost due to any financial or any other kind of difficulties. Music has the ability to elevate humanity, no matter what.

PANICOS SCHINIS

MANAGING DIRECTOR PAPADOPOULOS & SCHINIS PRODUCTIONS LTD Is the concert business doing well these days? Not really. Concerts are a form of entertainment, the success of which depends to a large extent on the good mood of society. Where is the good mood in Cypriot society nowadays? Was it badly affected by the financial crisis? Yes it was very badly affected. Very few, if any, major artists from anywhere except Greece ever perform in Cyprus. Is this simply due to the size of the market? It is partly due to the size of the

market and partly due to the crisis. In the past, major sponsors were prepared to offer financial support to large events. Nowadays this situation no longer exists. At a time when singers and musicians are making most of their money from live performances and merchandising, surely there is a bigger pool of artists to choose from? Indeed there is no shortage of artists in all forms of music. Cyprus may be an island far away from the major centres but people here know the artists who appear on TV. These are the really big stars but we cannot

music schools

PITSA SPYRIDAKI

afford to bring them to Cyprus. The lack of proper concert halls in Cyprus must seriously limit your ability to organize shows. Don’t you envy your colleagues in other countries? Yes, most certainly. There is not a large number of halls to choose from in Cyprus and most of those that do exist are expensive and difficult to hire What would it take to bring someone like Madonna to Cyprus? Let’s be down to earth about this. In the past we have staged concerts by artists like Montserrat Caballe, Jose Carreras, Andrea Bocelli, Chris de Burgh, Julio Iglesias, Nana Mouskouri and others. But Madonna? You’re talking about major concerts, both technically and financially. I do not feel that this is possible here. www.goldnews.com.cy | GOLD | 37

| COVER STORY |

ANTIGONI TASOURI

DIRECTOR TASOURI DANCE ACADEMY Is the dance business doing well these days? During this difficult period the dance business continues to remain strong and continues to be proactive.

dance e

Was it badly affected by the financial crisis? I believe that despite the present crisis in Cyprus, the Arts industry as a whole is well equipped to withstand the present situation, regardless of the obstacles it may face. Do children and young adults still want to learn to dance or have the Internet and social media taken dance’s place in their lives? My personal experience has been that, in spite of the rapid evolution of

social media, the young people of today have not turned away from dance classes. Quite the contrary, they are far more aware than we give them credit for. This type of technology has allowed the younger generation’s access to information that inspires and educates them and guides them towards direct training in a dance school. Is your business still dominated by young girls or are things changing and boys also want to learn? The act of dance has no gender. Both young boys and young girls follow technical dance training worldwide. However, predominantly it has been

young girls who have pursued ballet, whilst other forms of freestyle dance have been more evenly balanced between girls and boys. What are your most popular classes and with what kind of people? We have a wide variety of classes, all of which are extremely popular. However, the art of classical ballet is primarily the introduction for all dance schools worldwide, which

is offered to young girls and boys from the age of two. How would you describe the value of dance in today’s world? Dance is an art form that allows us freedom of expression, teaches us discipline and develops creativity. Undoubtedly, all of these are qualities valuable to developing well-rounded individuals to succeed within today’s society.

The act of dance has no gender. Both young boys and young girls follow technical dance training

WORLDWIDE

ELENA SHAKALLI

good health. Life is too short so dance is a good getaway to a better life. Dance schools offer a hobby that is considered very therapeutic for all ages. Do children and young adults still want to learn to dance or have the Internet and social media taken dance’s place in their lives? The Internet and social media have actually made dance more popular because children and young adults spend a lot of time watching YouTube videos or watching dance and song competitions from all over the world online, so more of them want to be dancers or singers. Facebook has made dance more popular and brought young people closer to this art form. The real problem for me isn’t social media but more general unhealthy living. Parents should avoid letting their children eat junk food and watch too much television. I am always telling my students this.

ARTISTIC DIRECTOR SHAKALLIS DANCE SCHOOL

The Internet and social media have actually made dance

MORE

Is your business still dominated by young girls or are things changing and boys also want to learn? I would say it has changed quite a lot. Definitely, girls will always be the majority in the classes but in the past they might have been 95% of a class while now they form around 80-85%. In adult Latin classes, one man has three women to dance with per class.

What are your most popular classes and with what kind of people? It changes over the years. Right now, it’s Greek and Latin, zeimbekiko for adults and hip hop-zeimbekiko for the youngsters. When a popular new dance appears on the scene, people want to learn it and we keep it permanently in our programme or it may stay for a few months or a year before we replace it with something new.

popular

Is the dance business doing well these days? People in Cyprus want and like to express their feelings through dancing, singing and, generally, through all the arts. That is why parents start taking their children from the ages of 4-5 to learn dance, acting, singing, music and so on. Children, especially, love the art of dance and they may continue at dance school until they go to University and come back again when they have started work or a family. I think dance will always be an important part of Cypriot people’s lives. It is in our culture to go out and have

fun and dance – especially Greek dancing. Was it badly affected by the financial crisis? Of course, the crisis affected our business but not as much as it affected other areas. Even without a crisis, problems never stop; in fact I would say they multiply as we get older – especially financial problems – so people want to smile or feel some fulfillment in their lives through simple things that are very important in life: having fun, being happy, spending some quality time with real friends and family, having

How would you describe the value of dance in today’s world? Dance is so important and it can change people’s lives. I have so many examples from children to teenagers to adults, whose way of thinking and even their personality has been transformed through dance. It gives you so much energy and positive thinking, it awakens so many different feelings and makes you more emotional, more human and considerate of the people around you. Dance exercises so many different parts of the body and, very importantly, with music. I believe that this combination gives the best results, helping people get away from the world’s problems and live the dance world of feelings. Only if you try it will you understand its importance. Just give it a try and you’ll see what I mean!

www.goldnews.com.cy | GOLD | 39

music stores

| COVER STORY |

PIERIS PIERIDES MANAGER/DIRECTOR EVANGELISMOS MUSIC STORES

piano in order to get them started on lessons to learn to play.

Is the musical instrument business doing well these days? The business in Cyprus is not doing too badly nowadays. If you had asked me two years ago, I would have been talking differently because, due to the economic crisis, everything was more difficult. Our first objective then was to survive and at least cover our costs. Now our objective is to expand. After an overall growth of Cyprus’ GDP to a realistic 0.5% people can start planning their future with more comforts now. Was it badly affected by the financial crisis? Both the company and our customers were affected by the financial crisis but not to such an extent as to stop people from learning music. The difference is that, before the crisis, we were selling more high-end products such as classical pianos while now we are selling more electric pianos. To be more realistic about what is happening around us, we had to bring more products with different pricings to help those who can’t afford to pay a lot for an item, and to enable them to buy something cheaper but still good quality.

Do you have a fairly specific customer base or do you attract people of all ages and interests? We attract all kinds of customers. On our Facebook page we upload music videos recorded in our shops with products that we sell and with some of the best musicians playing them. This is a way of attracting more customers to try out our products. But I would say that we are not targeting a specific group of customers. We want to attract as many as we possibly can.

Today’s technology means that it’s possible to play and record professional-sounding music without owning a conventional instrument or knowing how to play. How has this affected your business? The Internet doesn’t affect people who want to play music and not press buttons on a keyboard! The only thing that has changed is that now more people are producing electronic music with the help of the plug-ins such as Cubase, Pro Tools and many other computer programmes where, with a press of a button, they can produce all kinds of beats and sounds.

Children still want to learn music and it’s never too late for

In other countries, young people form bands and make their own music. Is this the case in Cyprus too? Are you selling more pop/rock instruments or classical ones? I think this happens everywhere. Once you find common interests with other musicians/artists, then you get together and see if you can bond also through playing music. I’ve seen many newly formed bands walking in through our doors and asking us for a PA system to rent or buy but also to buy new equipment. I believe now we sell more electro-acoustic guitars than before and this is because many restaurants have now started employing musicians in the business to attract customers. More and more people have come to like the sound of the guitar and so more are buying nowadays.

ADULTS

Do children and young adults still want to learn to play an instrument or have the Internet and social media taken music’s place in their lives? Children still want to learn music and it’s never too late for adults. On several occasions we have seen young adults buying instruments for their parents who have started taking piano or guitar lessons, for example. We also get many parents bringing their children to the shop from the age of 4 to buy them a guitar, a drumkit or an electric

OWNER, ENGINEER & PRODUCER MIC R. STUDIOS, NICOSIA

PHOTO: NICOLAS KOUROUMTZIS

Is the recording studio business doing well these days? In today’s digital world, recording studios worldwide have less work than they did in the analog era. Everybody has a home studio, so there’s no need to go to a professional recording studio to make a simple demo of a song. That’s the challenge of having a professional recording studio today: to give artists what they can’t do at home by themselves. Was it badly affected by the financial crisis? Music was one of the first areas affected by the financial crisis. Artists and musicians are now more selective about where they do their studio work and they look for where they can get the best quality. They care more about where they will spend their money and how good the result will be. Cyprus has never had much of a record production industry, so what kind of people use your studio? Cyprus has never had any kind of music industry but,

thanks to the Internet, now anyone has the chance to do something outside the country. Artists are selling their music online so it no longer matters where they live. I work with artists and bands from Cyprus and abroad, producing their songs. I also compose music for television, films and theatre and because I care about the quality of what I do, I decided to build a professional recording studio from the ground up, based on international industry standards. I had the honour of collaborating with the Acoustic Science Corporation in the United States on my studio’s acoustic design and treatment. The equipment is from both worlds, analog and digital. Do you think that Cyprus has the potential to become a centre for record production, by combining top quality equipment and musical expertise with the environment, weather and lifestyle that many artists seek? It’s true that Cyprus has very nice weather and is

I am not so sure that

CYPRUS could ever be a centre for record production

a perfect location for holidays but I am not so sure that the country could ever be a centre for record production. I think that many artists would be interested in coming here to record, if they felt that there were people and studios in Cyprus capable of doing a great job. The weather and the environment are only minor aspects: the resulting music quality is the most important issue. You are also in great demand all over Cyprus as a piano tuner. What kind of a client base do you have? Piano tuning is a very special job. My clientele includes students, piano teachers, schools, venues, professional pianists and music shops that sell pianos. Was that aspect of your work affected by the financial crisis or have people persisted in making sure that their pianos are

recording g studioss

MICHAEL ROUSSOS

maintained? Some people stopped taking lessons due to the crisis and didn’t bother to keep their piano tuned but the majority of my clients know that tuning is good for the instrument. Piano tuning is not just a matter of tuning the strings; it’s an overall ‘service’ of the instrument. In Cyprus, we have 60%100% of humidity and four seasons, which means that pianos here require more frequent tuning due to the instability of the temperature and humidity levels, especiallyy in the coastal towns. The real effect of the crisis was on piano sales and even today the shops are not selling as many instruments as before. Whatever job you do, what matters is the quality that you offer and how professional you are. The market goes up and down. Before we had the good old days, today there’s a crisis, tomorrow who knows? That’s how it is but who said that life is easy?

www.goldnews.com.cy | GOLD | 41

| COVER STORY |

MUSIC LICENSING for which you must first seek permission from the copyright owner of that song before you do so. This permission is known as a Music Licence. PRS for Music is the trading name of the Performing Right Society Ltd, an organisation representing songwriters, composers and music publishers which licenses companies, businesses and individuals to play, perform or make available copyright music on behalf of its members. After deducting the costs of running the organisation, all the income

received from licensees is distributed back to writers and publishers of music around the world. Under the Cyprus Copyright Law of 1976 (as amended), if you play/perform copyright music in public (i.e. outside your home or domestic life), you must first obtain permission from the owner of the copyright in every piece of music that you intend to play. This means you would have to contact potentially thousands of music writers, composers and publishers worldwide to obtain their agreement to play

their songs in your business or organisation. To make things easy, PRS for Music was set up in 1914 in the UK by songwriters, composers and music publishers to manage these rights on their behalf Organisations like PRS for Music exist in almost every country in the world. PRS for Music has reciprocal agreements with many of these organisations, allowing us to license the use of their music in the UK and the other territories it serves, such as Cyprus.

MARINOS CLEANTHOUS INTELLECTUAL PROPERTY LAWYER DIRECTOR AT IP CYPRUS

There is still scope to attract

Cyprus now considered a prime Intellectual Property (IP) jurisdiction – why is this? The beneficial tax provisions of intellectual property rights in Cyprus, also known as the “IP Box”, provide for 80% tax exemptions on worldwide royalty income and/ or on profit generated from IP owned by Cypriot resident companies. The advantage of Cyprus as a business centre is reconfirmed not only because of the introduction of the IP Box, but also because of the attractive 12.5% Cyprus company tax rate and the extensive network of double tax treaties ratified by Cyprus. As an EU member state with a long history of commercial and political cooperation with all the countries of the Middle East, Cyprus has another advantage: companies in the region that cannot cooperate or work together directly, due to political restraints, can use Cyprus as a common base for business!

MORE

ture royalties, provided the intellectual property is owned by a Cyprus company which can show local substance.

Have any such firms relocated to Cyprus in the light of the attractive local IP environment? It is a fact that during the last few years, an increasing number of foreign investors who are active in the field of cultural and scientific production have shown in interest in using Cyprus as their base. However, since Cyprus’ advantages are still generally unknown, there is still scope to attract more foreign investment using this environment.

foreign investment

How might these benefits be exploited by companies which collect cultural royalties and motion picture royalties globally? Cyprus’ IP Box provisions can be used by any organisation that collects cultural or motion pic-

Finally, the European Union’s new financial transaction tax framework is set to be fully enforced in Cyprus by June 30, 2016 – how is this expected to affect the country’s IP sector, if at all? I am positive that despite the initial concerns, the outcome of these reforms will strengthen the Cypriot ecosystem, as its main result will be the empowering of the “Made in Cyprus” spirit and the development of a better skilled and trained local community.

PHOTO: JO MICHAELIDES

legal issues

There is a widespread but mistaken idea in Cyprus and elsewhere that music is free. Not true. When a song or piece of music is written, the composer and/or lyricist own the copyright and therefore have the right to decide how and when it should be played. When you buy a CD or download a track, you are paying to play it for yourself. However, if you wish to play that song to a wider group of people (for example on your business or organisation’s premises) it is classed as a public performance,

ACHILLEAS L. DEMETRIADES ADVOCATE/PARTNER LELLOS P. DEMETRIADES LAW OFFICE LLC

PHOTO: EMMA LOUISE CHARALAMBOUS

What are intellectual property rights? These are, essentially, an agreement in society whereby creators of intangible content – including inventions, literature, artistic works and more – are offered protection of their creations for a certain period of time, in exchange for promoting culture and understanding of people or products. Through this, society gives people a certain monopoly for some time, so that their idea is not diluted and doesn’t lose value. In this way, protection of the creation is extended in exchange for your commitment to continue creating so that there is advancement in society. Why is it important to respect intellectual property? People should care about protecting intellectual property because this is a sign of the civilization of the country you live in; if the country does not protect intellectual property, it obviously doesn’t value long-term social development!

How has the abuse of IP rights developed over the years? I began my first copyright case in 1989; we used to tell people that copyright is something that should be respected because, at the time, culture dictated that it was ‘cooler’ to copy rather than to buy the original. Now that has changed – I have noticed that, for example, kids will not buy a fake football shirt. If it is a fake, it is frowned upon. Thus it is no longer cool to wear the pirate version and the original is more respected. This means that the creators and authors of content are now winning the battle on a physical level, and this, for me, is the barometer of this issue. Cyberspace, however, is a whole new medium, one that is posing a great threat to intellectual property. How so? Let’s start with music and films; there are always

people trying to beat the system by illicitly downloading pirated content online. People seem to think that copying content is of no consequence because of the ease with which it may be obtained free of charge. However, regardless of this ease, somebody has actually sat down and created that song, movie, whatever it may be. By investing the time and effort to produce this intangible product, the creator has a reasonable expectation to receive income in exchange – otherwise he will not be motivated to continue creating and enhancing society. How is this affecting the businesses associated with this cultural material? From a business perspective, it has many implications. Taking the music industry as an example, we have seen that the old model

People should

CARE

about protecting intellectual property

of music production has altered greatly as a result, to the detriment of local businesses. Record companies were traditionally charged with sourcing the talent, signing, promoting and developing them, as well as encouraging their success through the sale of the music through dedicated stores. Now, however, it appears as though music stores – and to a certain extent, record companies – have been taken out of this equation due to the prominence of the Internet. Indeed, today we have many major artists who only publish their music online and,

although that may be beneficial to parties operating solely on the Internet, it has encouraged the demise of brick-andmortar music businesses. Shouldn’t the downloading of pirated content online be regulated so as to diminish these adverse outcomes? Yes; one would have thought that this was greatly unregulated, but I believe that the Internet is highly traceable and will soon become highly regulated. It is only now, however, that we are beginning to move in this direction.

www.goldnews.com.cy | GOLD | 43

| PRIVATE BANKING |

PRIVATE

banking is all about long-lasting relationships of trust and respect, which are the banker’s biggest asset

44 | GOLD | The Business Magazine of Cyprus

THE PERSONAL

TOUCH

F

OR THE LAST TEN YEARS, CHARIS KYNIGOU HAS BEEN WORKING IN THE PRIVATE BANKING SECTOR IN GREECE AND SWITZERLAND. SINCE MAY THIS YEAR SHE HAS BEEN BACK IN HER HOME COUNTRY, IN CHARGE OF PRIVATE BANKING AT PIRAEUS BANK (CYPRUS). AS SHE TELLS GOLD IN THIS EXCLUSIVE INTERVIEW, HER NEW JOB IS BOTH SATISFYING AND CHALLENGING.

By John Vickers I Photo by Jo Michaelides

Gold: You’ve been involved in private banking for your entire career. Was it by chance or design? Charis Kynigou: I studied Economics for my first degree and by the time, I came to do my Master’s in Financial Economics I had gained a passion for markets and the financial world. I love the excitement and adrenalin that comes from from the fact that every day is different. In addition, it is very interesting dealing with different people, taking the time to get to know them, learning their personal success story, their fears, their dreams, their wishes for the next generation and trying to become their trusted partner. Although my first job was with an information service provider, I actually saw it as a passport to get into banking, so I would say that my involvement in private banking came about by design. Gold: So what made you study Economics? C.K.: I was interested in the subject at school and I was good at maths, so it was perhaps the obvious thing to do. Back then, whenever I was asked what I wanted to do, I always replied that I wanted to become “a career woman”. I had this picture in my mind of what a successful, professional

woman was like and I set out to try to become precisely that. Gold: You worked in Athens and Zurich before coming back to Cyprus. Is there a different culture in banking elsewhere? And does the culture actually depend on the bank or its location? C.K.: I worked for Citibank in Athens, which had a very different culture from Piraeus Bank in Athens, but then BNP Paribas Wealth Management Suisse in Zurich was very different from both of them. And the actual work of private banking differs, depending on where you are based. I strongly believe that, to be successful, private banking should be an offshore business serving foreign clients. When you are dealing with someone’s wealth, confidentiality is number one. Clients need to feel secure and safe, and certainly not to fear that, since you reside in the same city, you might talk or reveal things that they do not want you to. I had Greek clients in Athens whom I later served in Zurich – the

same people – and they behaved in a completely different way.However, wherever it is being carried out, private banking is all about long-lasting relationships of trust and respect, which are the banker’s biggest asset and, and they have to be built and worked on every single day. This takes time – maybe years. So culture does indeed differ among banks and jurisdictions but there is one common golden rule amongst all: for all private bankers, loyalty, commitment and trust should be the driving force for servicing clients. Gold: What precisely is your main mission as head of Private Banking at Piraeus Bank (Cyprus)? C.K.: My mandate here was to reform and rebrand what was previously called the Wealth Management Unit to reflect more precisely the services that we provide. Piraeus Bank Private Banking is mainly aimed at individuals, as well as companies that require management of their cash liquidity. Clients need a partner who can dedicate time while having all the necessary knowledge and investment tools to ensure the suitable management of their assets in order to meet their financial expectations. We offer a full range of products and a “Red Carpet” service to our wealthy clients, which we define as those with more than €300,000 worth of total financial assets. At Piraeus Bank Private Banking, we design investment solutions that are custom-made to our clients’ investment profile in order to deliver our bankers’ experience and knowledge and, of course, the international

In September, our deposits rose by 14%, most of them from

FOREIGN CLIENTS

www.goldnews.com.cy | GOLD | 45

| PRIVATE BANKING |

WE CAN OFFER CLIENTS THE SAME LEVEL OF INVESTMENT SERVICE THAT THEY CAN FIND IN SWITZERLAND, LUXEMBOURG, MONACO OR SINGAPORE AND AT A MUCH LOWER COST institutions that we work with. These include the Investment Advisory Service, with active management and regular monitoring of the portfolios, Execution Only for clients who wish to make their own investment decisions, as well as Discretionary Portfolio Management through Group Private Banking. Our Investment Products basket consists of Time Deposits, FX, Bonds, Mutual Funds, Equities, ETFs that track various commodities or indices and Real Estate advice, and we’re looking into being able to provide art advisory services in the future. Gold: In all the places you’ve worked, has being a woman in such a post been an advantage or a disadvantage? C.K.: I think it has definitely been an advantage. A crucial aspect of private banking is being consistent and following up and, without wishing to generalize about men, I think that women are better organised, especially when it comes to follow-up actions. It may be more difficult for a woman to reach the very top positions in banking but in relationship management it’s not. I am glad to say that I have never experienced any kind of discrimination in any of the posts I’ve held. Gold: You were in Switzerland in 2013. Were you hesitant about coming back to Cyprus after what had happened? C.K.: I decided to move back to Cyprus earlier this year because of my family, not for reasons to do with the economy or the state of the banking sector. At that period, even before March 2013, while I was heading the Greece & Cyprus desk at BNP Paribas Suisse in Zurich I was fully aligned and closely in touch with developments of the financial crisis in Cyprus. The situation was abnormal and extremely difficult. It was uncharted territory for the whole of the European Union. Trust in the European Banking System was at risk. However, by the time I moved back two years later, things had sharply changed. Capital controls were still in place, though 46 | GOLD | The Business Magazine of Cyprus

it was only a matter of time before they would be lifted. Government Bond yields were down and the real economy was doing better. In addition, Cyprus still offered considerable advantages as regards to tax planning. I actually saw a huge opportunity, especially after the recent crisis in Greece and the EU’s agreement on tax transparency signed with Switzerland, both of which have made many clients want to move their funds here or elsewhere. Having worked all my life in private banking, I wanted to use and apply my knowledge and experience in my own country so I saw it as a personal challenge too. I have never been one to hesitate! Gold: Has Cyprus and its banking system regained the confidence of the people who, presumably, make up a large proportion of your clients? C.K.: I think we’re heading towards it, though we’re not there yet. It is not easy to regain trust once it has been lost – it takes time. That said, although this is Piraeus Bank (Cyprus), our Global subcustodian is the AA-rated Clearstream Luxembourg, a subsidiary of Deutsche Börse. Financial Assets are kept under custody in the client’s name in the PBC segregated omnibus account held with Clearstream. Consequently, we can offer clients the same level of investment service that they can find in Switzerland, Luxembourg, Monaco or Singapore and at a much lower cost. Through the Clearstream–Vestima platform, we are also able to offer clients access to 35,000 mutual funds. In addition, Cyprus is now becoming attractive to the Fund Industry too, which is certainly something that interests the bank in its potential role of custodian. It’s a very promising development and one that can make a significant contribution to the country’s GDP. Gold: So, I assume that being in a small place like Cyprus means that

you can offer a more personal service, while drawing on the advantages of a huge organisation like Clearstream? C.K.: Yes, which is why we place so much importance on building relationships and establishing the highest possible degree of personal service to our clients in order to gain and maintain their trust. I worked in the Greek market, even from Switzerland, and one of the results of the recent uncertainty in Greece is that many clients wanted to open accounts in Cyprus. Since they have known me for many years, our personal relationship has played a part in encouraging such moves. This is how the market works: when things are not going well in one jurisdiction, its competitors gain. It happened to Cyprus and now it’s happening to Greece. And of course, Piraeus Bank (Cyprus) has also benefited. In September, our deposits rose by 14%, most of them from foreign clients. Gold: Do you think that you’ll be in Cyprus to stay now or is it too early to make such predictions? C.K.: Taking this position in the first place was a decision that I had to consider very seriously. As mentioned earlier, I see a huge potential in the Cyprus economy and banks have a significant role to play. In addition, private banking is an area that requires time to develop long-term relationships. Stability and consistency are key in order to achieve it. Gold: Finally, how does the reality of your position as Head of Private Banking tally with your schoolgirl ambition of becoming “a career woman”? C.K.: There is absolutely no connection at all! Back then I thought I would stay young forever and I knew nothing of the difficulties of combining a career with being a mother but, of course, I’m trying to make it work and I’m sure I’ll manage.

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2010

Best Tax Practise in Cyprus European CEO Tax & Accountancy Awards

Athens | Thessaloniki | Nicosia | Sofia | Bucharest | Belgrade | Podgorica | Tirana | Skopje | Zagreb | Pristina | Banja Luka | Sarajevo | Cairo | Alexandria Tbilisi | Beirut | Erbil | Moscow | Kiev | Beijing

| INFORMATION TECHNOLOGY |

RISKY

BUSINESS

Ki

rstin Gillon, Technical Manager of the IT Faculty at the Institute of Chartered Accountants in England and Wales (ICAEW), was in Cyprus in October, where she had contacts with NV]LYUTLU[ VɉJPHSZ VU J`ILY ZLJ\YP[` PZZ\LZ addressed university students, and spoke at an event on Managing Risk in a Digital World. She also talked to Gold about how companies need to deal with such risks and how the so-called KPNP[HS LJVUVT` PZ HɈLJ[PUN [OL HJJV\U[PUN WYVfession in both positive and negative ways. By John Vickers

Kirstin Gillon is an experienced commentator on IT trends, who spends much of her time talking to senior business audiences, academics and ICAEW members about key IT issues, including cyber security, big data and cloud computing. However, far from having a background in computer sciences or technology, she actually studied law at the University of Edinburgh and followed it with a Master’s Degree in Human Rights Law and Cultural Diversity at McGill University in Montreal. Why the switch? “There was no great strategy involved,” she says. “Although I was passionate about the subject of my Master’s at the time, I discovered that it was not something that would easily lead me to a job! So when I went back to the UK, I simply applied to lots of companies. IBM was the first to offer me a job so I accepted it.” 48 | GOLD | The Business Magazine of Cyprus

Three and a half years later, she moved to PwC where, as a Senior Consultant, she focused a great deal on the role of IT in the Mergers & Acquisitions process, learning much of the more technical aspects from scratch. She describes the chance to visit many different companies and familiarise herself with a wide range of industries, while seeing how IT fitted into their work, as “very good training” for what was to come in 2006, when she joined ICAEW. “The position at the Institute had a particular appeal to me, especially since it concerned leadership, and a considerable amount of writing, which by then I considered one of my strengths,” she recalls. IT is one of ICAEW’s seven specialist faculties, dealing with cloud computing and security issues as well as helping accountants make good use of IT.

Gillon herself is involved in thought leadership and policy work, which entails looking at deeper issues such as how technology is changing the business environment. And although the Institute’s first concern is its members, it is clear that ICAEW is looking much further afield. “Yes, we have a public interest role,” says Gillon, who has done a lot of work on trust, privacy and cyber security. “And although we have a new report out on how technology is impacting on various aspects of how accountants do their jobs, we are always looking at the bigger picture.” Her recent visit to Cyprus, and later Greece, was partly to talk on Managing Risk in a Digital World. Was she dealing exclusively with the issue of cyber security or is there much more to the subject? “Certainly, one aspect is cyber security

and how, in today’s digital world, there are new risks to think about and deal with,” she explains. “But another is how we can use technology better to manage and understand operational and strategic risk. I am glad to note that most company CEOs and Boards are very aware of risk issues and they’re happy to spend money on taking care of them. The big challenge is that they tend to see them as being all about technology, which they don’t really understand.” One cannot reasonably expect the members of a company’s Board of Directors to be IT specialists, of course, but, says Kirstin Gillon, the question is whether they are able to make good decisions about IT and invest in the right things. “The whole issue of integrating thinking about cyber security into supply chain management and general business operations is very important. A lot of security issues are not really about technology but about people and behaviour and companies need to recognise this and have it at the heart of how they operate. Also, Boards are under a lot of pressure to innovate with technology but if they’re not thinking about the cyber security aspects, they are potentially leaving the company open to all kinds of risks.” Risk management and cyber security are on the agenda in every country that Gillon has been to, she says. “From Singapore to Zimbabwe, people are discussing the same issues and facing the same problems. Of course, there are different levels, from the big sophisticated organisations to small businesses, but it is definitely there.” While no-one doubts the advantages that the digital age has brought to business in terms of making things easier, faster, etc., there is clearly a downside to it. Does Kirstin Gillon ever think that the risks and negative aspects might outweigh the advantages? Definitely not, she replies. “I am fundamentally an optimist about the future of technology and I do see the positives. We only have to look at developing economies to can see the power of technology and financial inclusion and how it has radically

changed so many aspects of people’s lives. Of course we need to be aware of the risks but the advantages will always outweigh the disadvantages. There’s no going back!” The ICAEW’s 145,000 members are not immune to some of those disadvantages and Gillon acknowledges that certain parts of the accounting and audit profession are going to be forced to change in order to survive. “We’ve seen in the past few years that small practices are coming under more and more pressure from technology change,” she explains. “There are very powerful cloud accounting applications, for example, that enable small businesses to automate a lot of their basic bookkeeping and not have a great deal to do with their accountant, so a lot of that work is going to disappear.” Is Cloud computing seen as a greater or lesser risk? “Broadly speaking, the move from a server in a back office to a Cloud environment is going to make companies more secure and, in my experience, no-one who has moved to the Cloud wants to go back,” Gillon says. “Before people make the move, there are always lots of questions about security but once it’s done, they are very enthusiastic.” What is the Institute’s advice to those smaller practices that are in danger of losing clients? “We encourage them to develop more advisory services – and something like cyber security is a good area in which to develop – as well as new skills so that they can change accordingly when certain areas of their present work are no longer needed.”

While in Cyprus and Greece, Kirstin Gillon spoke to university students about why accountants need to be interested in technology issues and how finance directors and IT specialists need to interact. “We are looking at our qualification and how we make sure that technology is appropriately integrated into that, both in terms of the way training is done and of how much IT knowledge accountants actually need.” One aspect of today’s digital economy that is causing problems for tax authorities and accounting firms around the world is online trading or e-commerce. Does Kirstin Gillon think that governments will ever find a way of ensuring that companies doing business online pay what may be considered a “fair” tax bill? “One basic problem here concerns the definition of ‘digital economy’ because, actually, the entire economy is digital,” she says, “so saying that certain businesses need to be treated differently doesn’t make much sense. There is no point in trying separate out so-called digital businesses because that approach just doesn’t work.” Gillon sees two aspects to this particular problem. “One is the legal aspect and, at the end of the day, if companies are compliant with whatever the lawmakers come up with as being appropriate, there shouldn’t be a problem. But, of course, there are certain higher expectations on the part of the public and these impact on a company’s reputation. Businesses need to understand that mere compliance with the law may not be enough to satisfy public opinion.”

A LOT OF SECURITY

ISSUES ARE NOT REALLY ABOUT TECHNOLOGY BUT ABOUT PEOPLE AND BEHAVIOUR

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| REAL ESTATE |

THERE! HALFWAY

CONSTRUCT ION WORK O N

O

THE OVAL RE ACHES THE 8 TH FLOOR

n Thursday, 8 October, Cybarco invited a select group of associates to a private event on the site of the company’s new landmark office building, The Oval. A collaboration between leading luxury property developer Cybarco and internationally acclaimed architects Atkins, The Oval’s distinctive shape was inspired by the round pebbles found on Limassol’s beach and by the curved lines of sails. While the sweeping arc of the building reflects its waterside setting, its form and scale contrast sharply with the cityscape around it to create a building that stands out in every sense. Located 100m from the sea in Limassol, work on the pioneering development, which will reach a height of 75 metres when completed next year, has already reached the eighth floor of sixteen. The structure of the two basement levels, able to accommodate more than 200 cars, the double-height ground floor reception area, as well as seven office levels have now been completed. Work is now progressing as scheduled, with the preparation of the 9th storey’s concrete floor slab. In a preview and update on the various stages of construction, Cybarco’s Sales Director George Georghiou, said that the firm is extremely pleased with the

50 | GOLD | The Business Magazine of Cyprus

progress so far. “This new landmark project for Limassol will further enhance the image of the city as a business centre. We are experiencing increased interest in the need for office space of this calibre in prime locations, which would account for 35% of the building already being sold and reserved.” Each of The Oval’s sixteen floors enjoys uninterrupted sea views and a flexible open plan design, making it simple to adjust to the requirements of any business. The project’s distinctive design is complemented by the luxury reception areas on the ground floor, the landscaped gardens and the cafeteria, as well as the services offered which include property management, 24-hour security and controlled access to both the building’s premises and underground parking areas. With an energy performance certificate of ‘A’ rating, the project is a sustainable development using geothermal energy to minimise carbon emissions. Levels 14 and 15 are expansive Executive Office floors, comprising soaring two storey workspaces where the upper levels can become comfortable meeting rooms and offices for senior executives. These levels have direct access to the unique landscaped roof terrace on the 16th floor and the best views in Limassol.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 50

SPECIAL PROMOTIONAL FEATURE

PRESENTS

PROFESSIONAL

SERVICES

IN CYPRUS THE ISLAND’S LEADING LAW OFFICES, ACCOUNTING & AUDIT FIRMS, AND ADMINISTRATIVE SERVICE PROVIDERS

contents contents contents C0NNECTEDSKY LEGAL & CORPORATE CONSULTANTS LIMITED BAKER TILLY BIZSERVE CONSULTANTS COSTAS INDIANOS & CO LEGAL CONSULTANTS COSTAS TSIRIDES & CO LLC CHRISTOS PATSALIDES LLC DEMA SERVICES E&G ECONOMIDES LLC EUROFAST

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54 56 58 60 62 64 66 68 70

FIRST NAMES JORDANS TRUST COMPANY CYPRUS LIMITED KPMG LIMITED MARANGOS & HADJIPAPA LLC MICHAEL KYPRIANOU & CO LLC ODYSSEOS CHARTERED CERTIFIED ACCOUNTANTS SERVUSPRIDE LTD TAXATELIER TRIDENT TRUST

72 74 76 78 80 82 84 86 88

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special promotional feature

PR PROFESSIONAL

I

n December 2012, PwC published a report entitled Professional Services: Driving Jobs and Growth in Cyprus. Researched and written by Fiona Mullen and Marina Theodotou, it demonstrated that the professional services sector had become the main driver of jobs and growth in Cyprus, especially during the economic crisis. In the five years prior to its publication, international services (professional services and international financial services) grew 40 times faster than tourism

and created considerably more jobs. The and often much more), the level and research also noted that professional serquality of service is certainly not and, in vices do not compete with other sectors many cases, is recognised as being superiof the economy but rather complement or to that of many competitors. and support their development. Cyprus’ reputation as an international Since then, tourism has recovered centre of excellence for the provision of somewhat and, after a shaky period folprofessional services was strengthened lowing the events of March 2013, so has some years ago by the decision of two the professional services sector, particuof the world’s leading accountancy orlarly the sub-category of “international ganisations, the Institute of Chartered services” which has long been a resilient Accountants in England and Wales key driver of jobs growth. This sector (ICAEW) and the Chartered Institute underpins many of the most successful of Management Accountants (CIMA), areas of Cypriot business, from company to choose the island as the first country registration to finance, insurance, ship in the world outside the UK to train management and others. ICAEW and CIMA accountants. The expertise of the country’s lawyers, Over the years, the island has estabaccountants and other specialists – many lished itself as a major international of them UK or US trained – means that financial centre. One of the main reasons they are able to offer full and efficient for this, in addition to the well-educated services in all aspects of company law professional workforce, is the favourable and tax planning. The world’s leading tax regime. Even after accountancy and consulforced changes in March tancy firms are all pres2013, Cyprus still has Over the years, ent on the island, as are one of the lowest corpothe island has all the major insurance rate tax rates in the EU established and trust companies. (12.5%) and an extensive itself as a While professional sernetwork of double tax major vices costs are generally treaties (currently with lower than in other international more than 50 countries), Western European jurisÄUHUJPHS which make it a perfect dictions (by at least 20% JLU[YL

For others offering security is an OPTION… for us is a DUTY Y

52 | GOLD | The Business Magazine of Cyprus

SERVICES IN CYPRUS By John Vickers

jurisdiction for the setting up of holding companies or, indeed, for relocating company headquarters. The country’s EU membership and strategic geographical location have also helped Cyprus to gain a reputation for excellence, and its economic performance over the past two years is, in part, due to the resilience of the professional services sector. Cyprus offers a wide range of professional accounting, auditing, management consultancy, taxation, financial advisory and other administrative services to both the private and public sectors, through around 4,000 active, English-speaking, registered accountants in more than 120 limited accounting firms and 40 partnerships. The island’s legal system is based on English Common Law principles, while EU membership means that Cyprus has incorporated the body of laws and regulations of the EU known as the acquis communautaire. There are around 3,000 registered lawyers and 160 limited liability law firms providing a wide range of legal services in areas such as international law, corporate administration and management

services, while most in which the island was Professional large law firms are afcited as one of the top ZLY]PJLZ KV UV[ filiated or collaborate ten countries in the JVTWL[L ^P[O with international law world to have improved V[OLY ZLJ[VYZ firms. their business practices VM [OL LJVUVT` Professional busiin the last year. Cyprus but rather ness services and has moved up 13 placJVTWSLTLU[ international financial es in the overall 2016 HUK Z\WWVY[ services have been the Ease of Doing Business, their most resilient sectors ranking 47th out of 189 KL]LSVWTLU[ over the past decade. countries. It was also However, this is not among the top ten econto say that the sector does not faces its omies which implemented at least three own significant challenges, including reforms, including enforcement of confierce competition from relative newtracts, resolving insolvency, getting eleccomers such as Malta and Ireland, as tricity, getting credit and paying taxes. well as more traditional financial centres PwC’s 2012 report concluded with such as Luxembourg and Singapore. In a prediction that international services 2012, it was reported that Malta had could be employing more people than attracted 500 funds in five years with tourism within five years. It is not clear €8 billion under management, for exwhether this will indeed happen but ample. It is only in the past two years what can be stated with certainty is that that a concerted effort has been made to the sector has survived two stormy years kickstart the investment fund industry and is now looking well-positioned to here, with the founding of the Cyprus regain its popular description as the Investment Fund Association (CIFA). powerhouse of the economy. Last month, Cyprus and its profesOn the following pages, 18 of the sional services sector received a welcome leading names in the country’s profesboost from the latest edition of the sional services sector describe their products and services in detail. World Bank’s Doing Business report,

For others offering security is an OPTION… for us is a DUTY Y

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special promotional feature PROFESSIONAL SERVICES IN CYPRUS

CONNECTEDSKY LEGAL & CORPORATE CONSULTANTS LIMITED A boutique legal and corporate services provider

C

onnectedSky Legal & Corporate Consultants Limited is a boutique legal and corporate services provider 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. ConnectedSky was founded in 2009 by Mr. Charalambos Samir, who is the CEO and sole shareholder. It began operating in late 2011 and, since then, has managed to excel in the fields of legal, corporate and tax services, serving a clientele from over 35 countries. The headquarters of ConnectedSky are based in the capital of Cyprus – Nicosia. Today, 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 an effective solution to the needs of businessmen, corporate bodies and any other institutions. Through ConnectedSky’s team of experienced and well-educated professionals, as well as its wide international network, a “one stop

Charalambos Samir, Founder & CEO

shop” package of services and solutions is offered to our local and international clients. We are proud to say that ConnectedSky advises some of the world’s major international companies and financial institutions, while offering the same level of attention and commitment to smaller local and international clients. ConnectedSky is associated with C. Samir & Co. LLC, a firm of advocates and legal consultants licensed to practice law under License Number 323 and regulated by the Cyprus Bar Association. In May 2014, ConnectedSky obtained the exclusive rights of the legal giant SILFA (Staubach International Law Firm Alliance) and, consequently, expanded into 12 countries, with representative offices in:

54 | GOLD | The Business Magazine of Cyprus

BEIJING • BERLIN • BRUSSELS • BUDAPEST • DUBAI • FRANKFURT • HAMBURG • KONING-WUSTERHAUSEN • LONDON • LUGANO • MILAN • MOSCOW • MUNICH •NICOSIA • PALMA DE MALLORCA • PRAGUE • VIENNA • WARSAW • WIESBADEN ConnectedSky offers more than 80 different types of professional services to a clientele coming from a variety of business and industry backgrounds, including 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 and others. The core areas of practice of ConnectedSky 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 Finally and importantly, ConnectedSky has a strong charitable and humanitarian character through its ConnectedSky Study Time, ConnectedSky Breakfast Time and ConnectedSky Sports Time programs, which contribute to the areas of study, sustenance and practising sports respectively.

CONTACT INFORMATION:

Address: 12, Igoumenitsas Street, ConnectedSky House, 2027 Strovolos, Nicosia, Cyprus Tel: (+357) 22258800 / 70003517 Fax: (+357) 22258801 e-mail: info@connectedsky.com Website: www.connectedsky.com

www.goldnews.com.cy | GOLD | 55

special promotional feature PROFESSIONAL SERVICES IN CYPRUS

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solutions to our clients’ business issues. We achieve this by leveraging our wide knowledge and experience across all sectors of the economy, identifying and proactively resolving future challenges. We serve clients of all sizes across all industries, whilst devoting enough personal attention and partner involvement to meet and exceed our clients’ expectations. Our membership of Baker Tilly International provides us with a range of resources, including access to the specialist knowledge, experience and intellectual property of thousands or recognised experts worldwide. The services we provide include:

Audit and Assurance

• Statutory audit for companies registered in Cyprus • Audit of financial statements prepared in accordance with International Financial Reporting Standards (IFRS) • Review of financial statements and interim financial information • Internal Audit • Forensic Audit

Business Services • Bookkeeping services • Accounting supervision

• Management accounting • Payroll Services • Preparation of statutory financial statements • IFRS consulting services

Consulting and Business Advisory

• Business & Performance Enhancing Advisory Services • Financial Advisory Services • Corporate Governance, Risk & Compliance • Insolvency Practices • Restructuring and Recovery Services • HR Consulting • EU Funds and Subsidies

Management Services

• Intermediary services for acquiring immovable property in Cyprus or Greece • Intermediary services for acquiring citizenship and/or residency permit in Cyprus and Greece • Advice and support throught the application process and liaising with the relevant authorities as required

Tax Consulting and Compliance Services

• Local and international tax

planning for companies and individuals • Corporate and personal tax compliance services • Tax due diligence reports • Tax rulings and negotiations with the authorities • Transfer Pricing Services • VAT compliance services • VAT planning • VAT advisory services, including assistance in VAT investigations • Fiscal representation (where required)

Our online presence

Cyprus: www.bakertillyklitou. com Romania: www.bakertillyklitou.ro Bulgaria: www.bakertillyklitou.bg Moldova: www.bakertillyklitou.md Baker Tilly Greece: www.bakertillygreece.com

Social Media

Linkedin: https://www. linkedin.com/company/baker-tilly-klitou Twitter: https://twitter.com/ BakerTillyCY Facebook: https:// www.facebook.com/ pages/Baker-Tilly-Cyprus/112537415510271

CONTACT INFORMATION:

Address: Corner of C Hatzopoulou Street & 30, .YP]HZ +PNOLUPZ ʛ]LU\L 1066 Nicosia, Cyprus Postal Address: P.O. Box 27783, 2433 Nicosia, Cyprus Tel: (+357) 22458500 Fax: (+357) 22751648 e-mail: info@bakertillyklitou.com Website: www.bakertillyklitou.com

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special promotional feature PROFESSIONAL SERVICES IN CYPRUS

BIZSERVE CONSULTANTS LTD Now in its third decade

B izserve Consultants Ltd is a leading authorized administrative service provider with registration number 66/196 operating out of Nicosia, Cyprus, established in May 2002. Prior to that, it had been operating since the early 1990’s under a different umbrella of companies. Now in its third decade in the fiduciary services sector, Bizserve maintains an immaculate record with its esteemed clientele and associates. Our main line of business focuses on incorporating and managing corporate structures of companies. At the same time we provide nominee and trustee services in Cyprus and in other jurisdictions, as well as the opportunity to create permanent establishments and enhance the tax residency of Companies under our administration. Over the past decade alone, over 4,000 companies have been set up and administered by us around the globe. Our clients range from listed multinational corporations to individuals.

¸>OLU ^L HZR V\Y JSPLU[Z HIV\[ their loyalty to our JVTWHU` V]LY [OL years, their HUZ^LY HS^H`Z refers to our JVUZPZ[LUJ` reliability and WLYZVUHSPaLK ZLY]PJL¹ CONSTANTINOS KLITOU, NON- EXECUTIVE DIRECTOR

Chris Koutouroushis - Managing Director

Our strong management team consists of business people with over 20 years of experience in servicing international clients, able to operate in any business environment and ready to give bespoke solutions to any enquiry, thereby giving our clients a competitive advantage in their business undertakings.

58 | GOLD | The Business Magazine of Cyprus

Bizserve Consultants has been a member of the Cyprus Fiduciary Association since its inception in 2011 and actively participates on its Committees. Since 2014, Bizserve Consultants has also been an elected Board of Directors member. In parallel, it is a member of a number of professional bodies in Cyprus and overseas, through

which it has formed deep relationships with regulators and providers, thus delivering immediate service and the best possible solutions in its clients’ interest. Our consistent efforts resulted to the inclusion of Bizserve Consultants in the 2015-16 European Business Awards (EBA). Bizserve Consultants Ltd was selected after demonstrating commercial success, innovation and business ethics. Taking part in the EBA carries significant prestige and we feel honoured. CONTACT INFORMATION:

Address: 32, Grivas Dighenis Avenue, 1066 Nicosia, Cyprus Postal Address: P.O. Box 27670, 2432 Nicosia, Cyprus Tel: (+357) 22375504 Fax: (+357) 22377583 e-mail: info@bizserve.eu Website: http://www.bizserve.eu

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special promotional feature PROFESSIONAL SERVICES IN CYPRUS

COSTAS INDIANOS & CO, ADVOCATES & LEGAL CONSULTANTS $ IRFXV RQ TXDOLW\ WLPH HÄ´FLHQF\ DQG FRQÄąGHQWLDOLW\

C ostas Indianos & Co, Advocates & Legal Consultants, Est. 1924, provides custom-made legal services with a focus on quality, time efficiency and confidentiality. Over the years, the firm has acquired a local & international client base comprising international corporations, individual businessmen and investors, ship owners and ship owning companies, commercial banks, municipalities and individuals.

Developing substance requirements

In the face of de-offshorisation and the ongoing and progressive demand for more substance with regard to corporate business, our Law Firm provides adequate advice and assistance to clients on a case-to-case basis in order to enhance substance, management and control in Cyprus against potential anti-avoidance rules, including: • Conditions required for setting up a proper office in Cyprus with employees. • Parameters that can lead to a virtual office in Cyprus.

prus, who was • Enhancing living abroad the purpose before the start of a Cyprus of this employstructure ment, can benfurther to tax efit from a 50% saving. tax exemption • Advice on on individual corporate tax for the first governance Mr. Anthony Indianos, 5 years, a time & decision Managing Director / Lawyer delay that could making, be extended to including 10 years. the need for agreements/ An individual earning less contracts, shareholders & than â‚Ź100,000 in Cyprus, directors resolutions, adequate communication & cor- who was living abroad before the start of this employment, respondence can benefit from a 20% tax • Advice on choice of strucexemption on individual ture to face anti-avoidance tax for the first 3 years, with rules in a jurisdiction ina maximum exemption of cluding non-resident Cyprus Company, Private Life Insur- â‚Ź8,550. • The Cyprus IP Box regime, ance, Investment Fund and for which an investor can Cyprus Trust. apply until June 2016 and Recent tax reforms which will last until 2021, provides for an effective corThe following tax reforms porate tax of 2.5% on royalhave recently been introties earned by the Cyprus IP duced; Company, provided that the • According to the new ‘non-domicile’ regime, an in- intellectual property is owned dividual can be considered tax by the company. resident and non-domiciled in Cyprus, and benefit from Areas of practice tax exemption on dividends, Our main areas of practice are interest and rental income as the following: he/she is not subject to the Special Defence Contribution Corporate Law Our firm has a long experience (SDC) tax. in corporate law, providing • An individual earning the following legal services: â‚Ź100,000 or more in Cy-

60 | GOLD | The Business Magazine of Cyprus

• Company registration: Cyprus, Hong Kong, Malta, BVI& other jurisdictions • Fiduciary services • Administration, Re-domiciliation and Liquidation of companies • Joint Ventures & Cross-border transactions Contracts & Agreements • Due diligence & Company search • Escrow Agent services • International Trust • Cyprus Investment Firm (CIF) • Cyprus Investment Funds (provided in collaboration with a licensed financial consultant) Taxation & Tax Planning Together with corporate and fiduciary services, our law firm provides tax planning advice to clients wishing to optimise their international business activities using the advantages of Cyprus taxation: • Corporate Tax 12.5% • 2.5% effective tax on royalties • Tax exemption on dividend income • No capital gains tax on sale of securities/shares or immovable property situated abroad • No withholding tax on payments from Cyprus • No thin capitalization rules

• No estate duty • Unilateral tax credit relief • EU directives • Double Tax Treaty network Shipping law With the recent Merchant Shipping Tonnage Tax Legislation 44(I) 2010 providing benefits to ship owners, managers and charterers, Cyprus remains one of the world’s largest ship registries and third-party ship management centres. Shipping is one of the main activities of the firm which provides legal services to clients for shipping loans & mortgages, registration and administration of Cyprus shipping companies, registration of ships under the Cyprus flag and registration of ships under flags of other jurisdictions. Immigration Law (Permanent Residence &Citizenship) The firm provides legal advice and assistance to both EU and non-EU clients for the acquisition of the following: 1.Cyprus Permanent Resident Permit According to the relevant Regulation 6 (2): - The applicant is not allowed to exercise a business activity or profession in Cyprus, therefore must secure annual

financial resources from abroad and invest in real estate: - The applicant must have a minimum â‚Ź30,000 yearly income from abroad. - The applicant must guarantee a minimum â‚Ź30,000 deposit in a Cyprus bank. - The applicant must invest in Cyprus real estate of minimum market value â‚Ź300,000. 2.Cyprus Citizenship by exception Next to the basic rule, according to which a third country national must live and work in Cyprus at least 7 years before he/she can acquire the Cyprus nationality, the new legal framework of the Civil Registry Law provides for six different ways for an applicant to acquire Cyprus citizenship by exception, all including the additional obligation to purchase a permanent residence in Cyprus of at least â‚Ź500,000 + VAT. Furthermore, for paragraphs 1, 2,3,4,6 below, the minimum investment to acquire citizenship can be reduced from â‚Ź5 million to â‚Ź2.5 million for an investor participating in a collective investment worth at least â‚Ź12.5 million. â‚Ź5 million investment in government Bonds. â‚Ź5 million investment in financial assets of

1. 2.

7.

Cyprus Any Companies foreign6\Y SH^ ÄYT or Cyprus er who has WYV]PKLZ Organisasuffered J\Z[VT THKL tions. impairment SLNHS ZLY]PJLZ ₏5 in the Bank ^P[O H MVJ\Z VU milof Cyprus or quality, time lion direct Laiki Bank on LɉJPLUJ` HUK investments his deposits JVUÄKLU[PHSP[` in real estate, of at least developments ₏3 million & infrastrucas of March ture. 15th 2013 due to measures ₏5 million investment imposed on the two banks, in companies residing may still apply for Cypriot and operating in Cyprus that citizenship provided that he/ he has acquired, incorporated she invests the remaining or in which he has particiamount (totalling ₏3 milpated. lion) in one of the above ₏5 million deposit in mentioned ways, except ina Cyprus bank for a vestment combination. minimum period of 3 years which can be personal or of Other areas of private entity or of a trust practice include: with the applicant being the • Real Estate beneficiary. • Litigation ₏5 million investment • Inheritance Law combination of (a) to • Family Law (e) below: • Intellectual Property (a) Investments in state bonds (b) Investment in financial assets of Cyprus Companies of Cyprus Organisations CONTACT INFORMATION: Address: Kermia House, 6th Floor, (c) Direct investments in real 6ɉJLZ +PHNVYV\ estate, developments & infraStreet, 1097 Nicosia, Cyprus Postal Address: P.O. Box 21574, structure 1510 Nicosia, Cyprus (d) Incorporating, acquiring Tel: (+357) 22675231 (+357) 22665232 or investing in Cyprus ComFax: (+357) 22669678 panies e-mail: indianos@indianos.com.cy :R`WL! anthony.indianos (e) Deposits in Cypriot Banks

3. 4. 5. 6.

Website: http://www.indianos.com.cy

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special promotional feature PROFESSIONAL SERVICES IN CYPRUS

COSTAS TSIRIDES & CO LLC Costas Tsirides & Co. LLC was founded in 1970 and, since then, has become established as one of the most UHSXWDEOH DQG UHVSHFWHG ODZ ÄąUPV LQ &\SUXV

T he firm specialises in civil, commercial and cross-border litigation, among other areas. Managing Director Alexandros Tsirides has been active in the area of civil and commercial law for more than 15 years. He is a member of the Cyprus Bar Association. According to Mr. Tsirides, the use of Cypriot companies in international business structures and the country’s reliable legal system make Cyprus an attractive place to litigate. Mr Tsirides is personally seeing an increase in commercial and cross-border litigation in Cyprus. One of our primary targets and concerns in dealing with clients has been to respect their bespoke needs, offering a personalised service that is tailored to their specific circumstances. Moreover, the firm is committed to handling each case with respect and discretion, aiming to develop a personal relationship

porations; however, we aim to strengthen our litigation team by recruiting experienced litigation lawyers. Our cooperation with international law firms in handling the Cyprus aspect of international litigation is testament to our strength in the litigation field and has significantly improved our market position. We believe that our expertise in this area and the positive results we achieve for our clients, give us an advantage in the international litigation field. This is demonstrated by the cooperation we have established with international law firms and large international corporate clients as well as High Net Worth Individuals.

Alexandros Tsirides, Managing Director

with clients, based on mutual trust. This philosophy has always helped us offer our expertise by understanding the true needs of our clients, and we pride ourselves on the fact that each client, private or commercial, individual or

62 | GOLD | The Business Magazine of Cyprus

corporate, receives the same personal service and care. The aforementioned values are fundamental to our approach, and will always remain so. Our typical clients are currently High Net Worth Individuals and international cor-

Costas Tsirides & Co. LLC has been heavily involved in international business and has established a strong dedicated department dealing exclusively with corporate formation and administration. This department consists of lawyers, paralegals, accountants and client managers. We have succeeded

in attracting and maintaining a strong client portfolio, including major industrial and financial groups from Central Europe, Russia, Ukraine and other CIS countries and the Middle East. In the fast-moving world of business, it is paramount to respond to clients’ needs with speed and efficiency. We pride ourselves in being able to offer both. It has always been our aim to respect our clients’ individual needs and offer them tailor-made personal services. The personal service and attention to each client’s needs and the speed and efficiency with which we respond give us the edge in the competitive area of corporate services. Costas Tsirides & Co. LLC also specializes in takeovers, mergers and acquisitions and has acted as legal consultant in transactions where Cyprus Law is involved. Furthermore, our firm has extensive experience in IPOs and listings of Cyprus companies on various stock exchanges worldwide. Other areas in which the firm specialises are shareholder

agreements, partnership agreements, partnership formation and dissolution, agency and distributorship agreements and joint venture agreements.

ARBITRATION

COSTAS TSIRIDES & CO LLC is in a position to provide its clients with services in the field of arbitration as required. Members of the firm have substantial experience in arbitral proceedings of commercial disputes, acting both as counsel and arbitrators. We have a broad experience in a variety of commercial areas and cases involving disputes ranging from breach of contract to fraud and breach of fiduciary duty. The firm has experience in advising clients on all aspects of arbitration law and proceedings, from the drafting of the necessary arbitration agreements to referring disputes to arbitration, the hearing of the matter in dispute and dealing with the enforcement of arbitral awards, both local and foreign. Members of the firm have been appointed as members of the Chartered Institute of Arbitra-

tors. of the year in Costas Cyprus (Corpo;OL ÄYT PZ Tsirides & rate INTL legal JVTTP[[LK [V Co. LLC is awards) OHUKSPUN LHJO also one of JHZL ^P[O YLZWLJ[ • 2011 &2013 the leading Business FormaHUK KPZJYL[PVU law firms HPTPUN [V KL]LSVW tion Law Firm in Cyprus, of the Year in H WLYZVUHS with a vast YLSH[PVUZOPW ^P[O Cyprus Award experience of (Global Law JSPLU[Z Real Estate Experts Practice and Property Awards) Law, offering a wide range of • 2014 Business Formation services. Law Firm of the Year in Cyprus Our firm also provides the full Award (Corporate INTL Globrange of construction law advice al awards) and assistance. • 2015 Litigation Law Firm of The firm is a member of B.G.I. the year in Cyprus award (Cora worldwide association of porate INTL Legal Awards) independent law firms (www. • 2015 Global Law Exbgi-law.com). perts-Business Formation Law Firm of the Year in Cyprus • 2015 Global Law Experts-LitAWARDS igation Law Firm of the Year in Costas Tsirides & Co. LLC Cyprus has received the following awards: • 2010-2015 Business Formation Law Firm of the Year in Cyprus Award (Corporate INTL legal awards) CONTACT INFORMATION: • 2010 Boutique Law Firm of Tel.: (+357) 25820810 the year in Cyprus Award (Core-mail: alexandros@tsirides.com porate INTL Global awards) Website: • 2011 Litigation Law Firm www.tsirides.com

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special promotional feature PROFESSIONAL SERVICES IN CYPRUS

CHRISTOS PATSALIDES LLC The Law Firm Christos Patsalides LLC was established in 1996 in Nicosia, Cyprus by the Managing Partner of the ÄąUP &KULVWRV 3DWVDOLGHV

O ur Law firm’s goal is to provide only top quality services. It is made up of experienced and reputable advocates as well as highlyeducated and excellentlytrained staff in all specialised legal fields. At Christos Patsalides LLC, our values are professionalism, consistency, integrity, and efficiency.

Services

Christos Patsalides LLC offers a wide range of services covering all aspects of law. Corporate Services With the lowest corporate tax (12.5%) in the European Union, Cyprus is considered a very attractive jurisdiction for doing business. Our corporate services include the formation and incorporation of companies, the voluntary liquidation of a company, the establishment and management of trusts and related services such as the

Our team

establishment, management and representation of Cypriot and offshore companies, the provision of trustee services for shareholders, directors, secretary and registered office of the company. A very important part of our services relates to advisory support concerning various tax matters, tax planning restructuring, consultation for investment funds, dividend distributions, tax differences, capital gains tax, stamp duties, Value Added Tax and much more.

64 | GOLD | The Business Magazine of Cyprus

We offer a comprehensive one-stop package to the "Scheme for Naturalisation of Investors in Cyprus by exception". Together with our affiliate company, Christos Patsalides Corporate Management, and our selected external team associates, we undertake all the required legal and administration services from beginning to end, guaranteeing a smooth settling down for the client and his family in their new country of residence. Citizenship by Investment

is a process whereby a country, by way of exception, grants citizenship to eligible applicants that make a certain significant investment into its local economy. “With its requirement of â‚Ź2.5 million to invest in immovable property and â‚Ź500,000 to invest in a residential property, Cyprus compares well with competing jurisdictions such as Malta (Collective Scheme). In our experience the Citizenship Through Investment Scheme has been very suc-

cessful from the outset. Particularly strong interest in it has been expressed by clients from the Middle East, Russia and China. In general, we are very pleased from the level of service of the Ministry of Interior’s staff, their guidance and prompt responses to correspondence. With the granting of citizenship you can immediately travel freely, reside and work with the European Union, freely transfer any amount of money from any EU Member State to another, purchase property in any EU Member State and invest in any activities of your choice. By choosing Cyprus, you choose mild winters and warm-to-hot summers, English-speaking private schools, a thriving tourism destination and a rich history and culture. Another very important service provided by Christos Patsalides LLC is the Redomiciliation of a company to and from Cyprus. Cyprus’ redomiciliation legislation was enacted on

July 28, 2006, as an amendment to the Companies Law Cap.113, to permit: • Foreign (non-Cypriot) companies to redomicile to Cyprus; and • Registered Cyprus companies to be redomiciled abroad. The existing business of a foreign company continues, without interruption, as a Cyprus company since the first company is not dissolved, but simply ‘moves’ to Cyprus. Existing companies can choose to change their seat of incorporation to Cyprus without going through a liquidation and recontribution process in the current jurisdiction so it is not necessary to wind up their activities and restart under a new company shell and it is less-time consuming and more cost-effective for the clients. The ability to redomicile companies to and from Cyprus opens up a new planning dimension for investors and traders. Foreign companies can now easily

benefit from the Cypriot corporate tax regime, an option that many clients currently prefer.

which international At Christos patent or Patsalides LLC, trademark our values are applications WYVMLZZPVUHSPZT are recorded JVUZPZ[LUJ` in Cyprus. integrity, and • Cyprus is LɉJPLUJ` a member of Intellectual the Office for Property HarmonizaWe provide services includtion in the Internal Market ing the search and registra(OHIM) for the registration tion of trademarks, national, and protection of Tradecommunity and international marks and Industrial Designs trademarking together with within the European Comthe provision of the registramunity. tion of tradenames, the val• Commercial activity on the idation of patents, national, island creates the necessity European and international to offer protection to the IP patent registration and valirights of physical and legal dation. entities in order to validate A few of the advantages such activity. why choosing Cyprus are the following: • Cyprus has adopted the EU directives enabling it to recognize CTM and CD CONTACT INFORMATION: Address: 31 Evagoras Avenue, registrations, due to Cyprus Evagoras Building, accession to the European Suites 41 - 43, 1066 Nicosia, Cyprus Union. Tel: (+357) 22677677 • Cyprus is a party to the Fax: (+357) 22674422 Madrid Agreement and e-mail: info@patsalides.com.cy Website: www.patsalides.com.cy Protocol and PCT through

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special promotional feature PROFESSIONAL SERVICES IN CYPRUS

DEMA SERVICES LIMITED

A leading provider of International Company and Trust Services

D ema Services was established in 1998 and is one of the foremost providers of International Company and Trust Services. 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 is a subsidiary in Switzerland. The Swiss subsidiary, Dema Consultants SA, specialises in the formation and administration of companies in Switzerland, Seychelles, BVI and Nevis. The strong ties that the company has created and

• Provision of correspondence address

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

maintains with foreign associates enable it to serve its clients on an international level.

Services

Cyprus Services • Set-up of Cyprus companies and trusts • Administration of Cyprus companies and trusts (nominee, trustee and fiduciary services) • Set-up and operation of bank accounts

66 | GOLD | The Business Magazine of Cyprus

• Escrow agent services • Advice and supervision of mergers and acquisitions transactions • Set-up of Seychelles, BVI and Nevis companies • Administration of Seychelles, BVI and Nevis companies (nominee, trust and fiduciary services) • Set -up and administration of Nevis and BVI trusts • Set-up and administration of Foundations in Seychelles and Nevis

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 • 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 More about Dema Consultants can be found on the website: www.demaconsultants.ch

CONTACT INFORMATION:

Address: 8 Stassinos Avenue, UK -SVVY 6ɉJL 7OV[PHKLZ Business Centre, 1060 Nicosia, P.O.Box 22454, 1522 Nicosia, Cyprus Tel: +357 22751555 Fax: +357 22452054 e-mail: charisr@demaservices.com Website: www.demaservices.com :R`WL UHTL! dema.services

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special promotional feature PROFESSIONAL SERVICES IN CYPRUS

E & G ECONOMIDES LLC Continuing to grow and expand

E & G Economides LLC, a law firm based in Limassol, specialises in Corporate & Commercial, Funds, M&A and Private Client services amongst others. With a team currently comprising 18 advocates, Economides continues to grow and expand its areas of practice with the support of an active network of global associates having longstanding ties to the corporate and financial communities. The pace of the firm’s growth was and still is exponential, following its golden rule of further expanding its areas of practice and considerably reinforcing existing ones. While adapting to the financial turmoil in the country, the firm never lost its focus on and confidence in what Cyprus has to offer and concentrated on its core areas, continuously offering the best possible service to its clients. In fact, going against the trend, during 2015 the firm took on 10 more

specialised advocates in order to assist its clients on an even more efficient and effective manner. The firm’s clients include High Net Worth Individuals, entrepreneurs, multinational corporations, magic and silver circle law firms, tax firms, as well as banking and credit institutions located within and outside Europe, bluechip and financial services firms, private equity funds and shipping institutions.

68 | GOLD | The Business Magazine of Cyprus

Main Areas of Practice Banking & Finance Advising across a broad spectrum of loan and security transactions, including single lender and syndicated loans whether secured or unsecured. Capital Markets Advising on wide-ranging debt capital markets transactions, including IPO transactions on domestic and international stock exchanges, issuance

of debt securities, debt to equity conversions, derivative transactions, insolvency and restructuring. Corporate and M&A Dealing extensively with complex corporate and M&A matters including large international cross-border as well as domestic transactions. Commercial Negotiation, drafting and advising on a wide range of commercial contracts.

Investment Funds Formation, structuring and registration of various types of domestic and offshore investment funds and asset management products. Litigation Handling contentious disputes across a spectrum of areas including civil and commercial matters, corporate restructuring and white-collar fraud, having great proficiency in Commercial, Tort, Criminal, Family, Employment, Property and Administrative litigation proceedings. Tax & International Tax Planning Assisting with tax advice and tax planning on new and existing structures, cross-border corporate and commercial transactions; corresponding to matters relating on tax opinions, rulings as well as private client tax and estate planning. Trusts & Estate Planning Advising High Net Worth Individuals and their families concerning the accumulation, management and transfer of personal wealth. Undertaking of the administration of complex trusts and advising in developing estate plans to ensure the well-

ordered and tax efficient transfer of assets. Wills, Probate & Administration of Estates Drafting and undertaking the execution of tailor-made wills and advising clients how to efficiently pass on their personal and business assets. Other services Very active on matters concerning Cyprus immigration, tax residency permits and naturalisation, that are mainly applicable to non-EU persons; as well as with assistance in property related transactions and serviced office facilities.

(ɉSPH[PVUZ Economides’ affiliate corporate service provider based in Cyprus, Totalserve Management Ltd, assists its clients with the registration and administration of Cyprus and BVI companies and trusts. It is a firm, which has been active in the international services arena for 43 years, with 13 offices spanning four continents, offering a comprehensive spectrum of services in various jurisdictions. In addition, Economides’ affiliate audit firm, P. G. Economides & Co Ltd, is

the law firm’s preferred audit firm, where all directors and professional staff are highly qualified individuals with a wide range of expertise dealing with audit, accounting, bookkeeping and other related services.

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Recent developments

Following a broadening of its legal services and moving forward from its transactional nature, Economides has further expanded in terms of size through the creation of a specialized and well-developed Litigation Department. Headed by highly experienced, skillful and adept individuals, its advocates are able to assist in civil and criminal law matters appearing before the District and Supreme courts in Cyprus. As a result of this ongoing expansion, the firm has recently moved to new, larger and bespoke premises.

What does the future hold?

Moving forward, the regulatory environment both in Cyprus and abroad is changing at a fast pace and the actual challenge is to remain abreast of such developments. The firm will always look to investing as much as possible in its people and motivating its personnel on a daily basis whilst, at the same time, remaining loyal to its unwavering commitment to its clients by exceeding their expectations.

CONTACT INFORMATION:

Address: 30, Gr. Xenopoulou Street, 3106 Limassol, Cyprus Postal Address: P.O.Box 58043, 3730 Limassol, Cyprus Tel: (+357) 25866480 Fax: (+357) 25866481 e-mail: legal@economideslegal.com Website: www.economideslegal.com

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info@eurofast.eu | www.eurofast.eu

Your Regional Business Advisory Organisation

E U R O F

urofast started its operations in 1987 as Eurofast Services operating within Euroglobal SEE Audit Limited (formerly known as BKR Damianou and Partners). In 2002, Eurofast assumed the tax and consulting divisions of BKR Damianou and via a spin-off became fully independent from the audit firm.

A

leader in professional services having achieved worldwide market recognition for our exceptional advice, capabilities and innovation. Eurofast has been acknowledged as a leader in Tax in Cyprus. In the past years, we have been ranked top Tax Advisors and announced “Cyprus Tax firm of the Year� by International Tax Review which is a true recognition for the valued client work we deliver every day. In 2015, Eurofast has ranked Tier One Tax Planning Advisor by International Tax Review for the seventh time in a row. In 2014, Eurofast was also recognized for its expertise in M&A.

S T

eeking to delight our customers is our top priority. Our aim is to create customer enthusiasm by giving even more value to our clients, whether measured by price, performance, quality or service. Our portfolio includes a number of high net worth individuals and clients engaged in every sector of the economy.

niquely positioned in recent years as one-stop shop for investors looking to enter South East Europe and Eastern Mediterranean. Eurofast is a regional business advisory organisation employing over 200 people in the Region, with 21 fully fledged offices in Athens, Thessaloniki, Nicosia, Sofia, Bucharest, Belgrade, Podgorica, Tirana, Skopje, Zagreb, Pristina, Banja Luca, Sarajevo, Cairo, Alexandria, Tbilisi, Beirut, Erbil, Moscow, Kiev and Beijing. egional advisors specialised in M&A, tax advisory, accounting, payroll, HR services, citizenship and immigration services, cross border structuring and restructuring. We have a dedicated M&A Department that provides advisory services regarding Mergers and Acquisitions, strategy support, corporate finance, privatization of state owned companies, business reform and overall implementation of a sell or buy mandate in South East Europe and East Mediterranean. ur competitive advantage stems from our ability to serve our clients promptly, efficiently and effectively. Every Eurofast office consists of local teams ranging from 15-60 professionals with diverse backgrounds and experience including tax, legal, M&A, payroll, accounting, audit and consulting. lexible. Accountable. Exclusive. Personal. Innovative. The organisation is managed by a team of professionals capable of addressing all client needs in all the countries of operation in the Region in one single meeting, using one single language for all the countries involved. The fact that all local Eurofast offices are fully fledged subsidiaries of Eurofast enables us to implement and maintain a uniform region-wide management policy with the same client focused approach and partner led personal service.

wenty eight years of history, working with many global brands and leading Institutions operating in the manufacturing, retail, airlines and professional services sector are the evidence that Eurofast is your trusted business advisor in South East Europe and East Mediterranean. If you are looking for a reliable partner, you may stop searching!

70 | GOLD | The Business Magazine of Cyprus

Eurofast Executive Directors & Managers from South East Europe & Eastern Mediterranean offices. Regional Business Development Meeting; Athens, October 2015

#teameurofast

Your Regional Business Advisory team in South East Europe and East Mediterranean 2016

2015

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Ranked Tier One Tax Transactional Practice in Cyprus

Ranked Tier One Tax Transactional Practice in Cyprus

European Transfer Pricing Firm of the Year Taxand

Regional M&A Tax Firm of the Year

Ranked Top Tax Advisor in Cyprus

Ranked Tier One Tax Transactional Practice in Cyprus

Taxand World Tax Association

Ranked Tier One Tax Planning Advisor

Cyprus Tax Firm of the Year

Ranked Tier One Tax Transactional Practice in Cyprus

Cyprus Tax Firm of the Year

Ranked Tier One Tax Transactional Practice in Cyprus

INTERNATIONAL TAX REVIEW

INTERNATIONAL TAX REVIEW

ITR European Awards

M&A Today Global

INTERNATIONAL TAX REVIEW

INTERNATIONAL TAX REVIEW

Corporate INTL Global Awards

INTERNATIONAL TAX REVIEW

INTERNATIONAL TAX REVIEW

INTERNATIONAL TAX REVIEW

INTERNATIONAL TAX REVIEW

INTERNATIONAL TAX REVIEW

2010

Best Tax Practise in Cyprus

European CEO Tax & Accountancy Awards

Athens | Thessaloniki | Nicosia | Sofia | Bucharest | Belgrade | Podgorica | Tirana | Skopje | Zagreb | Pristina Banja Luka | Sarajevo | Cairo | Alexandria | Tbilisi | Beirut | Erbil | Moscow | Kiev | Beijing www.goldnews.com.cy | GOLD | 71

special promotional feature PROFESSIONAL SERVICES IN CYPRUS

FIRST NAMES (CYPRUS) LTD First 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.

F ormerly 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 char-

and day to day management of simple and complex structures established for both private and corporate clients. Often, these structures are established for the purposes of the mitigation and neutralisation of tax and for the protection and preservation of wealth within a secure environment. The uses of such structures are broad and almost limitless. In many cases a bespoke approach and interpretation is required in order to ensure that client objectives are met. We have dedicated teams specialising in the following:

(L-R): Constantinos Meivatzis - Director, Petros Petrides - Director, Christos Michael - Managing Director, Marios Alexandrou - Director, Maria Hadjivassiliou - Compliance Director

tered 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

72 | GOLD | The Business Magazine of Cyprus

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

Trust Establishment and Administration We have significant experience in establishing trust arrangements for a wide variety of private and corporate clients. We will advise on the set-up of a trust in conjunction with the client’s professional advisers and will act as corporate trustee, ensuring continuity of management and administration. Company Incorporation and Management We provide centralised and co-ordinated management and administration of companies incorporated in a wide variety of jurisdictions with regular reporting tailored to client’s individual requirements. Our directors

and senior staff will be directors of client companies, adding real substance. We also provide all secretarial, administration, banking and accounting related services. • Transaction support services Our experienced accountants and in-house lawyers are well suited to provide support on a wide range of M&A transactions undertaken by our clients like mergers, acquisitions or disposals including drafting or reviewing of relevant agreements, financial or legal due diligence and other necessary M&A support work. It’s our independence from financial or legal institutions that means we can offer the very best in trust and corporate services. And it is our independent spirit that gives us the character our clients and professional intermediaries value so highly. It’s a culture of independence that gives our people the freedom to forge long-term, mutually rewarding client relationships and to grow as professionals and prosper as individuals. We understand that all of our clients, from single individuals to major corporations, ultimately want the same simple thing: peace of mind. They want to rest easy in the knowledge that

structures are being administered by experienced professionals motivated to deliver the highest standards of corporate governance. We take the time to understand our clients’ individual needs, either working with them directly or through their advisers. And we take pride in our ability to tailor the right solutions, drawing from an extensive, integrated platform of expertise and processes spread across multiple strategic locations. We’re proud of the service we offer. And we’re proud of the people who make it happen: our First Names. First Names Group is all about the people who have made us what we are. Most professional services organisations recognise that it’s their people who make the difference; at First Names Group we have taken this a step further by embedding that philosophy into the brand itself. Our name symbolizes the value we place on relationships; being on First Name terms with clients and colleagues is a privilege we both value and enjoy. It is people who are at the heart of our success, from the experienced professionals within our company to the clients and intermediaries who repeatedly

put their trust in us. The name also represents our commitment to being the ‘First Name’ in the services we offer, in existing and new markets.

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.

Our ability to VWLYH[L VU H NSVIHS ZJHSL ]PH H UL[^VYR VM Z[YH[LNPJHSS` SVJH[LK VɉJLZ is fundamental [V V\Y Z\JJLZZ

“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 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

CONTACT INFORMATION:

Address: Chapo Central, 3rd Floor, | 20, Spyros Kyprianou Avenue, 1075 Nicosia, Cyprus Tel: (+357) 22749000 Direct Line: (+357) 22749155 | Mobile: (+357) 99685867 e-mail: Christos.Michael@ ÄYZ[UHTLZ JVT Website: ^^^ ÄYZ[UHTLZ JVT

www.goldnews.com.cy | GOLD | 73

special promotional feature PROFESSIONAL SERVICES IN CYPRUS

JORDANS TRUST COMPANY (CYPRUS) LIMITED Navigating the new UK PSC Register

M any of our friends and associates in Cyprus who have UK entities, such as Limited Companies or Limited Liability Partnerships (LLPs) on their portfolios, have no doubt heard about one of the most significant legislative and regulatory changes affecting transparencycoming into force in the UK, namely the Small Business Enterprise and Employment Act 2015 (SBEEA). As one of the UK’s leading and most established providers of UK entities and other services, Jordans has been providing regular updates and commentary on how this new legislation will be implemented, as we believeit is more important than ever to understand who will be affected.

What is the SBEEA?

Combined with the UK summer budget, the SBEEA is changing the face of corporate governance and tax in the UK. Whilst the UK is currently edging towards becoming a “mid shore” centre with corporation tax dropping from the current rate of 20% to 18% by 2020, it is spearheading EU initiatives towards transparency with the creation of the “Persons with

creates criminal offences for non-compliance. Where transparency is a major concern because of legitimate confidentiality reasons, we can help by providing advice regarding the statutory protection rules and restructuring arrangements.

Upcoming communications

Richard Melton, Managing Director

Significant Control” (PSC) register, as well as the abolition of corporate directors and bearer shares. It all adds up to a complex picture that administrators of UK companies will need to contend with.

Who controls the company?

Identifying exactly who controls the company is paramount, as it is only those with ‘significant influence or control’ who are affected by the Act.

But how HYL [OL` KLÄULK& The legislation contains a number of conditions of PSC status, and also defines which type of UK companies are affected, including Private Companies, Unlimited Companies and

74 | GOLD | The Business Magazine of Cyprus

from secondary legislation, LLPs.

Help with compliance and privacy

As experts in both corporate governance and tax matters, Jordans will be working hard in the coming months to steer clients through the necessary processes. Firstly, we can assist clients unconcerned with transparency issues to comply with the Act, with ourCorporate Governance Consultants aiding the process of identifying PSCs and creating the new register to ensure companies are compliant. We can provide this service for cost-effective fixed fees, a service which ensures your UK Company stays compliant with increasingly complex Companies Act legislation, which

Over the next few weeks existing clients and associates of Jordans will be receiving a series of letters and communications designed to guide them through this complex legislation with the minimum of fuss. If you’re not already on our mailing list, simply contact our office in Nicosia, who will be happy to help, or check our website www.jordanstrustcompany.com where you can subscribe to our monthly International Focus newsletter. Additionally, we’re also planning to hold a seminar in Cyprus early in 2016, which will give the latest updates and guidance on how best to navigate the SBEEA, once further updates occur.

CONTACT INFORMATION:

Tel: (+357) 22767294 e-mail: r.melton@jordans.com.cy Website: http://www. jordanstrustcompany.com/about/ VɉJL SVJH[PVUZ J`WY\Z VɉJL

Our local knowledge, a world of opportunity

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www.goldnews.com.cy | GOLD | 75

special promotional feature PROFESSIONAL SERVICES IN CYPRUS

KPMG LIMITED 0DNLQJ D UHDO GLijHUHQFH WR WKH FRPPXQLWLHV in which we operate

K PMG in Cyprus traces its origins back in 1948, and today is one of the largest Audit and Advisory organisations in the Cyprus market. Our Cyprus Company comprises more than 750 people, including 43 board members, working from six offices throughout the island. Our audit approach is designed to ensure we issue an appropriate and independent opinion in compliance with the auditing standards. Our promise to our clients, and to the capital markets we serve, is that of a deep commitment to audit quality, which is at the core of everything we do at KPMG. The public interest function we perform as statutory auditors means that a broad community of people and institutions rely on the quality of our work. We are committed to delivering a quality audit, to help meet the objective of credible and transparent financial reporting. The audit services we provide may be categorized according to the clients’ needs. Such audit services include statutory audit of financial statements, financial and management audits with specific features and purposes, as well as guidance and assistance in compiling financial

Angelos M. Gregoriades - Chairman and Head of Tax

(UKYLHZ 2 *OYPZ[VÄKLZ 4HUHNPUN Director

statements, limited reviews, due diligence, internal audit and internal controls’ review. The tax department of KPMG in Cyprus provides full tax support and compliance with local tax laws, as well as tax planning and advisory services to a significant number of local and multinational companies through a team of specialized tax advisors, highly experienced in the field of local and international tax and related accounting matters. Among the core functions of our tax advisory department is the provision of specialized tax opinions on specific matters raised by our clients in the fields of Corporate and Personal Income Tax, Value Added Tax (VAT), Capital Gains Tax, the Special Defence Contribution and Stamp Duty.

Additionally, KPMG has dedicated teams providing support for FATCA, the Common Reporting Standard of OECD (CRS), Base Erosion and Profit Shifting (BEPS), insolvency framework and immigration services, especially the citizenship by investment and permanent residence programmes. KPMG Advisory in Cyprus consists of experienced and specialized professionals. Through their expertise, they contribute substantially to the achievement of their clients’ business objectives. This sector supports and supplements the wide range of the services offered by our Firm and is active both in Cyprus and abroad. Through their knowledge and experience, our advisors can help businesses and organisations plan

76 | GOLD | The Business Magazine of Cyprus

and implement strategic and financial programmes, which allow them to better meet the market’s needs and achieve the desired economic growth. The Advisory services of KPMG comprise various departments: Deal Advisory, Regulatory Economics, IT Advisory, Strategy & Operations, People & Change Services, Financial Risk Management, Internal Audit, Risk and Compliance Services, Forensic Services and the KPMG Academy. KPMG’s Corporate Advisory Services include Corporate and Commercial Law, Investment Funds and Asset Management Services, Company Secretarial Services, Competition Law and EU Law, Private Client Services – Family Offices, Intellectual Property, Real Estate, Employment Law, Banking Units and Investment Firms licensing, Trusts. At KPMG we try to create sustainable, long-term economic growth, not just for our member firms and their clients but for the broader society too. We seek to be a good corporate citizen, making a real difference to the communities in which we operate. CONTACT INFORMATION:

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

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

Facing challenges in rapidlychanging markets? KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We have more than 162.000 outstanding professionals working together to deliver value in 155 countries worldwide. We have a clear vision of what we want to achieve as a network. We continuously take important steps to ensure that KPMG delivers marketleading, world-class professional services that are aligned with the changing needs of our clients and global markets.

Visit our website at:

kpmg.com.cy

www.goldnews.com.cy w ww.go .g goldn go ld ld dn new eews wss.co w ..ccom cco om.c m.cy | GOL GOLD G GO OL O OLD LD | 7777

special promotional feature PROFESSIONAL SERVICES IN CYPRUS

MARANGOS & HADJIPAPA LLC Bringing the Pieces Together

F ounded in October 2013, M&H is one of the most innovative boutique law firms in Cyprus. Our client base includes financial institutions, banks, international corporate groups and individuals. Headed by Andreas Marangos and Amalia Hadjipapa, we strive to serve our clients quickly, efficiently and with genuine knowledge of both local and international considerations. M&H is committed to forming strong relationships with its diverse client base, ensuring clients receive quality legal support at all times. Delivering high standard legal services is not just a matter of technical expertise for us; it is about knowing the detail of our clients’ businesses and understanding what drives their industries and markets. A high level of importance is also placed on advising clients in a commercial and pragmatic manner. We dare to undertake the most challenging assignments for leading companies, helping them achieve their goals by solving their most complex and serious legal issues. Our team of globally minded, committed professionals

Amalia Hadjipapa Partner and Andreas Marangos - Managing Partner

iis ffocused d on n ensuring n rin our clients receive quality advice and legal support. The M&H team focuses on developing innovative, cost-effective solutions which are designed to help our clients achieve their legal and business objectives in the most successful way possible.

Our Services

Corporate M&H’s corporate team is considered one of the best

78 | GOLD | The Business Magazine of Cyprus

in the sector with extensive international corporate and commercial experience. The favourable Cypriot tax regime and an extensive network of double taxation treaties have created an ideal base for non-European Union companies seeking to exploit the EU market, as well as for EU companies seeking to expand their global horizons. Our network of corresponding law firms abroad play a key role in this respect.

Key services include: • Provision of legal advice on contracts and group structures involving Cyprus law matters • Drafting of all legal documentation from internal company documents to contracts • Incorporation, registration and administration of Cypriot and overseas companies • Formation and administration of investment funds • Partnership formation and dissolution • Nominee services including secretarial services and provision of registered address • Escrow agency services to facilitate transactions and assist in safe-keeping and security • Internal corporate procedures and filings at the Registrar and Tax Office • Legal due diligence and provision of comprehensive legal opinions • Opening, administration and management of bank accounts • Corporate management and annual operations services • Liquidation of companies Mergers & Acquisitions M&H has astrong reputation following its involvement in significant M&A transactions in Cyprus and abroad. We assist our clients in all stages of M&As, including negotiations and drafting of agreements and supporting

instruments, tax advice on the specific transactions, legal due diligence, as well as on matters of completion and Anti-trust law. Banking & Finance M&H’s Banking and Finance Department has an exceptional track record in assisting clients in all aspects of finance work and guiding them through the industry’s ever-changing legal landscape. We provide advice on the structuring, documentation and negotiation of all aspects of transactional work (including the taking and enforcement of security and the regulation of financial services). Key services include advising on: • Acquisition, finance, leasing, maintenance and sale of a range of asset types. • Corporate recovery and all aspects of insolvency procedures, as well as pre-insolvency considerations regarding wrongful trading and directors’ duties. • Procurement, structuring, risk management and documentation for a range of infrastructure projects. • Financing or refinancing of the acquisition, investment or development of real property assets, the transfer of large property portfolios and other property-related structured financing transactions. • Factoring and invoice discounting in connection with

general working capital facilities or other more complex acquisition structures. Tax M&H’s Tax Planning service team provides tax advice for companies, businesses and individuals concerning all matters of Cypriot taxation, stamp duty and VAT issues. We also undertake tax planning regarding corporate restructurings, asset finance and structured finance transactions. Key services include: • Establishment of international trusts both purpose and discretionary to meet each individual client’s needs • Obtaining tax rulings and tax certificates from authorities Negotiation with tax authorities • Provision of advice on the interpretation and application of local law and double tax treaties • Provision of tax opinions Litigation & Arbitration Our dispute resolution team covers all areas of general and commercial law by settling disputes in the most appropriate manner. As well as commercial litigation, we also handle banking and finance disputes, debt collection, family law matters, labour law matters, personal injury claims, property disputes, cases relating to hire-purchase agreements and bankruptcy and insolvency. The department also conducts domestic and international arbitrations, mediations and other forms of Alternative

Dispute Resolution (ADR).

payment of invoices, mainWe strive tenance of statto serve our Immigration utory records, JSPLU[Z X\PJRS` The firm LɉJPLU[S` HUK ^P[O issuing and provides comsafe keeping of genuine prehensive RUV^SLKNL VM IV[O certificates and legal support ensuring comSVJHS HUK during the pliance with international various stages local regulaJVUZPKLYH[PVUZ of citizenship tions are some applications, of the services permanent residence and immi- our Maritime and Aviation gration permits, visas, as well as Department caters for, allowing employment permits. our clients to focus on their Key services include: business, while we handle all the • Direct advice to the applicant paperwork. regarding the required criteria Key services include: including discussion and advice • Registration and administraon any further actions that may tion of yachts/jets be necessary • Transfer of ownership • Comprehensive examination • Change of name and deletion of the required documents, en• Crew payroll and other servicsuring all the necessary requirees required for management of ments are met and that all the personnel essential documentation is of the • Freight and off-hire disputes appropriate standard • Salvage and pollution • M&H also submits a letter • Financing and security addressed to the Minister of • Choice or change of flag for Interior accompanying the vessels application, wherein our professional opinion is presented and arguments are presented as to why approval of the particular CONTACT INFORMATION: Address: 113, Archbishop application would constitute a Makarios III Avenue, 1st Floor, benefit to Cyprus Limassol 3021, Cyprus Tel: (+357) 25543000 • Continuous monitoring of the Fax: (+357) 25543199 approval procedure and systeme-mail: info@lawmar.com.cy Website: http://www.lawmar. atic briefing of the applicant. com.cy/ Maritime and Aviation M&H provides daily administrative support for private yacht and jet owners. Routine correspondence, arrangement for the

([OLUZ 6ɉJL Address: 353, Irakliou Avenue, 4th Floor, Neo Hrakleio 14122, Attika Region, Greece Tel: (+30) 6938449864 e-mail: athens@lawmar.com.cy Website: http://www.lawmar. com.cy/ www.goldnews.com.cy | GOLD | 79

special promotional feature PROFESSIONAL SERVICES IN CYPRUS

MICHAEL KYPRIANOU & CO. LLC MICHAEL KYPRIANOU & CO. LLC has established an enviable reputation as a broad based legal practice.

T he calibre of its lawyers and their dedication to providing clients with the most practical and cost effective services is the cornerstone of the firm’s success. The firm maintains three offices in Cyprus: in Nicosia, headed by Menelaos Kyprianou; in Limassol, headed by Tonia Antoniou and Lambros Soteriou; and in Paphos, headed by Savvas Savvides. It also maintains two offices in Greece (in Athens and Thessaloniki), headed by Ilias Tsintavis, and an office in Malta headed by David Meli.

Our international networks

The firm is a member of Multilaw and Word Link for Lawyers, both of which are leading global networks of international law firms. The firm is also a member of the International Fraud Group, the International Tax Planning Association, the International Trademark Association, the Chartered Institute of Patent Attorneys, the International Association for the Protection of Intellectual Property and the International Association of Commercial Collectors.

Accolades

The firm is consistently recommended by reputable interna-

tional legal directories such as The Legal 500 and Chambers & Partners. In the latest edition of The Legal 500 it has been praised for providing advice that is “practical and of a high standard” and for being “responsive with an indepth business understanding.” The directory describes the law firm as the “go-to firm for matters requiring Cyprus law expertise” and notes that “the value for money is impressive”. Individual lawyers of the firm have also been commended. The founder of the firm, Michael Kyprianou, has been described as an “eminent practitioner” and a “highly influential lawyer.” In the practice area of Banking and Finance, which is headed by Tonia Antoniou, the firm was placed in the top tier of Cyprus law firms. In the litigation field, Menelaos Kyprianou has been described as “an outstanding lawyer who is very prompt in integrating the clients’ objectives in case strategy.” Finally, the newly-released 2015 Chambers & Partners Directory states that the firm’s lawyers are “prompt and flexible and pay close attention to detail”. Banking and Finance: The firm is recognized as a leading adviser of banks, financial institutions, borrowers and security providers in multijurisdictional as well as domestic financing transactions involving Cyprus vehicles. Among others, the team specializes in international leveraged finance, asset and project finance, financial restructurings, security

80 | GOLD | The Business Magazine of Cyprus

enforcement and distressed debt.

in compliance matters. It also assists investors in relation to the formation, licensing and regulation of funds such as closedended funds, mutual funds, UCITS, Alternative Investment Funds and the respective set-up and assistance in their management and control.

4PJOHLS 2`WYPHUV\ & Co LLC has reJLU[S` LZ[HISPZOLK H UL^ VɉJL PU 2PL] <RYHPUL ;OL <RYHPUPHU VɉJL WYV]PKLZ SLNHS ZLY]PJLZ PU <RYHPUPHU HUK *`WY\Z SH^

Corporate and Commercial: The corporate and commercial team has extensive experience across the spectrum of corporate and mergers and acquisitions law. The work undertaken includes the incorporation and acquisition of Cyprus and offshore companies, corporate reorganisations and restructurings, cross-border and domestic mergers, corporate governance issues, joint ventures and re-domiciliation. Dispute Resolution and Arbitration: The firm advises clients on all aspects of corporate and commercial disputes and has extensive experience in cross border litigation. International Tax Planning: The firm’s tax experts provide advice on tax structures, holding companies and trust settlements in Cyprus and abroad. They also represent their clients before the tax authorities and negotiate tax disputes on their behalf.

Capital Markets: The firm specializes in the incorporation, set-up and assistance in the regulation of Cyprus Investment Firms and

Intellectual Property: The Intellectual Property team specializes in all aspects of the area, including the filing of national applications for Cyprus trademarks and patents, as well as European and International applications. Immovable property: The firm assists clients in all matters regarding Cyprus Immovable Property Law and represents clients before the land registry, the tax authorities and the stamp duty authority. It provides legal advice in all aspects of a Cyprus property purchase up until the closing of the transaction. CONTACT INFORMATION:

Address: Michael Kyprianou House, 116 Gladstonos Street, 3032 Limassol, Cyprus Tel.: +357 25 363685 Fax: +357 25 363698 Email: limassol@kyprianou.com.cy

LOCATIONS NICOSIA Address: 2 Agias Elenis Street, 6th & 7th Floor, 1060 Nicosia, Cyprus | Tel.: +357 22 447777 | Fax: +357 22 767880 Email: info@kyprianou.com.cy | Head: Menelaos Kyprianou LIMASSOL Address: Michael Kyprianou House, 116 Gladstonos Street, 3032 Limassol, Cyprus | Tel.: +357 25 363685 | Fax: +357 25 363698 Email: limassol@kyprianou.com.cy | Head: Tonia Antoniou, Lambros Soteriou PAPHOS Address: Michael Kyprianou House, 19 Kinira Street, 8011 Paphos, Cyprus | Tel.: +357 26 930800 | Fax: +357 26 930808 Email: paphos@kyprianou.com.cy | Head: Savvas Savvides ATHENS Address: 5 Zalokosta Street, 3rd Floor, Syntagma 10671, Athens, Greece | Tel.: +30 210 3387060 | Fax: +30 211 7150149 Email: info@kyprianou.gr | Head: Ilias Tsintavis THESSALONIKI Address: 44 Tsimiski Avenue & Karolou Diehl, Thessaloniki 546 23, Greece | Tel.: +30 2310 222267 | Fax: +30 2310 222269 Email: thessaloniki@kyprianou.gr | Head: Christoforos Andreou BIRKIRKARA Address: 115A Valley Road, Level 5, Birkirkara, BKR 9024, Malta | Tel.: +356 21 331810 | Fax: +356 21 331810 Email:info@kyprianou.com.mt | Head: David Meli KIEV Address: 11A Sportyvna Square, Business Centre Gulliver, 17th Floor, Kiev 01601. Ukraine | Tel.: +380 443945878 | Fax: +380 443945701 Email: perevozchykov@kyprianou.com.cy | Head: Dmitry Perevozchykov

special promotional feature PROFESSIONAL SERVICES IN CYPRUS

ODYSSEOS CHARTERED CERTIFIED ACCOUNTANTS Committed to Excellence

A s Odysseos Chartered Certified Accountants embarks on its fourth decade in business, our clients are maturing, becoming increasingly sophisticated and wealthy. Their needs, and the rules of the playing field, are changed by the global financial events surrounding us, as well as by their evolving business and lifestyle requirements. In response, we have further concentrated on what has been – and still is – the driving force behind all our activities and actions: Professionalism and Specialisation. Our focus on providing excellent quality in our core activities of audit, tax planning, business consultancy and accounting services is what has kept us at the forefront of the profession for the past thirty years. Being able to offer efficient, cost-effective and wealth-maximising solutions to our clients has always been our top priority. “Commitment to excellence” forms an integral part of our corporate culture and it is strongly reflected in all our business endeavours. In this constantly changing world, the need for professional and highly specialised business associates is essential. Being aware of this, we in-

(L-R): Odysseos Myria - Senior Manager - Audit Dept., Odysseos Stelios - Senior Manager - Business Consultancy Dept., Odysseas Odysseos - Managing Director, Odysseos Elena - Senior Manager - Tax Dept., Odysseos Pambina - Senior Manager International Business Unit

vest in recruiting individuals with great potential and zeal for work. The firm’s biggest asset is the synergy of the collective experience and technical knowledge that we have accumulated in the fields in which we provide services. All of our auditors, accountants, tax consultants and business advisors have been educated at the top universities in the United Kingdom, and are all holders of the ACCA/ACA qualification. To strengthen our capabilities, the firm pays a lot of attention – and dedicates considerable resources – to furthering staff development in order to ensure that our clients receive an outstanding level of service. Our firm has been awarded the prestigious ICPAC Quality Checked Award Certificate, following its recognition of the high quality of services provided by our organisation.

82 | GOLD | The Business Magazine of Cyprus

Additionally, communicate our organin numerous Being able isation is a [V VɈLY LɉJPLU[ languages proud holder JVZ[ LɈLJ[P]L HUK including Enof the ACCA ^LHS[O TH_PTPZPUN glish, Greek, Trainee DeRussian, Bulsolutions velopment garian and [V V\Y JSPLU[Z Certificate Serbian. OHZ HS^H`Z (Gold), as In a world been our well as the as complicated [VW WYPVYP[` ACCA Pracand rigorous as ticing Certifours, Odysseos icate Development and ACCA Chartered Certified AccounProfessional Development. tants is dedicated to providing Odysseos Chartered Certiits clients with the most relified Accountants is a member able and personalized service, of the Institute of Certified with the maximum integrity, Public Accountants in Cyprus, specialisation, discretion and holding the relevant pracprofessionalism. ticing certificate of auditing in Cyprus, as well as that of CONTACT INFORMATION: the Chartered Management Address: 16, 16th June 1943 Street, Gladstonos Court, Suite 102, Institute (CMI) of the United 3022 Limassol, Cyprus Kingdom. Postal address: P.O Box: 56902, 3311 Limassol, Cyprus Committed to delivering Tel: (+357) 25344276 practical advice and innovative Fax: (+357) 25355193 e-mail:info@odysseosgroup.com perspectives to our clients and Website: www.odysseosgroup.com partners, our professionals

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of excellence

special promotional feature PROFESSIONAL SERVICES IN CYPRUS

SERVUSPRIDE LTD.

Servuspride Ltd., founded by Costas Tsirides & Co. LLC, started its operations in summer 2010 with a focus on corporate clients investing into the Russian and CIS markets.

S ince then, Servuspride Ltd. has managed to maintain and develop a large portfolio of corporate clients, mostly wellknown and recognized Russian and Ukrainian industrial and financial conglomerates. Servuspride Lid. offers special advice on the registration of companies in Cyprus as well as on the registration of entities worldwide and ensures continuous support for clients with a full range of corporate management services. Servuspride Ltd. employs an experienced team of in-house experts who associate closely with independent professionals specializing in various fields of 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 either resident in Cyprus (provided that its management and control is in Cyprus) or non-resident (if it is managed and controlled from outside the island). Using its wide experience and its association with reputable professionals, our company is able to offer the following: Company Incorporation & Registration “Shelf” Companies

inee services for the convenience and anonymity of our clients including nominee directors and nominee shareholders, In addition, our company can provide a physIrina Loutchina Skittides Managing Partner ical address and mail service to simplify clients’ business activity. International Trusts Servuspride Ltd. provides a Servuspride Ltd. renders expert number of other services inadvice in respect of incorporacluding assistance in speedily tion of trusts in Cyprus and in obtaining different documents other jurisdictions. In accorfrom the Registrar of Compadance with the provisions of the nies, corporate due diligence, Trust Deed, our company can assistance in the legalization and manage the Trust which may certification of documents, arcomprise cash, bank deposits, rangements in regard to opening shares, real estate and other an office in Cyprus, liquidation property. or winding up procedures, communication on corporate issues Management, Bank with the tax authorities, etc. Nominee Services Company Secretary Registered Office and Mail Service Maintenance of Statutory Records Bookkeeping and Audit

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 nom-

84 | GOLD | The Business Magazine of Cyprus

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 criti-

cal 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:

Address: Grivas Dighenis Avenue, Panayides Building, UK ÅVVY 6ɉJL Limassol, Cyprus Tel: (+357) 25820810 Mobile: (+357) 99567192 Fax: (+357) 25820867 e-mail: Info@servuspride.com Website: www.servuspride.com

www.goldnews.com.cy | GOLD | 85

special promotional feature PROFESSIONAL SERVICES IN CYPRUS

TAXATELIER

Excellence in Taxation

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• International tax qualifications (ADIT, Transfer Pricing dipl) • Very high-profile clientele

Clientele

ased in Nicosia, Taxatelier is a premier boutique tax firm practising exclusively in the field of Cyprus and international tax. The firm combines the expertise, professionalism and knowledge of serving international clients for a considerable number of years (both locallyand abroad) with the personal approach, responsiveness and creativity of a boutique firm. Our directors are amongst the most experienced professionals and are generally recognized as some of the best tax advisors in Cyprus, with proven track records and excellent reputations in Cyprus and abroad. Our philosophy has been to create a team which combines long-term leading expertise with young and enthusiastic dynamism in handling a very high-profile clientele. This allows us to develop fresh and creative strategies by sharing our expertise and passion to serve the best interests of our clients.

Director of the firm, is one of the most recognized names and respected persons in the tax world with extensive experience, as Senior Tax Partner in EY Cyprus for a considerable number of years. As a boutique tax firm, we are committed to quality, a personal approach and effectiveness. Our tax advisors are consistently recommended by leading independent tax directories.

History

Our Services

Taxatelier was founded in December 2014 by the directors of KDC Chartered Accountants Ltd and Neofytos Neofytou. KDC Chartered Accountants Ltd was established in 2008, offering top quality audit and tax services to a very highprofile clientele. Neofytos Neofytou, the Managing

Our clients include Cyprus multinational corporations and High Net Worth Individuals. Many of our clients are engaged in: • Oils and derivatives • Financial services • Intellectual Property • Non-profit organizations • Manufacturing • Real estate (L-R): Christos Theophilou - Director, Neofytos Neofytou - Managing Director, Demis Ioannou - Director, Costas Savva - Director

We assist our clients with all aspects of their cross-border tax transactions and tax compliance, from setting up a tax-effective corporate structure, to reorganisations, mergers and acquisitions. International Tax Advice The globalization of the world’s economy has made effective

86 | GOLD | The Business Magazine of Cyprus

tax planning a crucial factor for the success of all business endeavours. We can help you with your tax planning. Tax Compliance We ensure that our business clients comply with the requirements of the tax regulations, while not paying more tax than they have to. Indirect Tax Services Our tax specialists assist clients with VAT compliance requirements and provide services in relation to VAT reviews.

Our Approach

Information Gathering Perusal of relevant documents and information in relation to the existing structure. Raise questions, where necessary. Tax Advice Analysis of implications from a Cyprus tax perspective. Preparation of a detailed report outlining our recommendations to the client. Implementation Preparation of an implementation plan, including documents list. Tax ruling to be obtained (if necessary). Issuance of tax opinion.

Why Taxatelier?

• Exclusive tax firm • Professionals with great experience and deep knowledge • Proven history of successful tax challenges • Four directors provide continuation and stability

CONTACT INFORMATION:

Address: Delfon Street 10, 5th ÅVVY 5PJVZPH *`WY\Z Postal Address: P.O Box 24699, 1645 Nicosia, Cyprus Tel: (+357) 22875720 Fax: (+357) 22875721 e-mail: info@taxatelier.com.cy Website: www.taxatelier.com.cy

www.goldnews.com.cy | GOLD | 87

special promotional feature PROFESSIONAL SERVICES IN CYPRUS

TRIDENT TRUST

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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 core business while we take care of the day-to-day administration of the entities established for their clients. Present in 34 offices in 24 jurisdictions, we are today among the largest organisations in our industry, offering 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 CYPRUS OFFICE

Trident Trust Company (Cyprus) Limited was established in 1996. Regulated by the Cyprus Securities and Exchange Commission, we are today one of the leading providers of administration and fiduciary services in the local financial services industry. We offer our services principally to law firms, accountants and tax advisors,

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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 • Directorships • Bank Account Opening, Administration & Signatories • Bookkeeping & VAT Services • Escrow Agent Services • Compliance Services • Immigration Services • Payroll Services • Physical & Virtual Office Facilities • IT Support 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, a

88 | GOLD | The Business Magazine of Cyprus

large number of shelf companies 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. Trident Trust Company (Cyprus) Limited is a founding member of the Cyprus Fiduciary Association. Mr Petros Livanios, our Managing Director, has been the Association’s vice-president since its inception.

THE TRIDENT TRUST SOLUTION

In today’s changing financial environment many institutions which currently offer corporate and fiduciary administration services are reconsidering this element of their business model. Trident Trust, as a “niche operator”, emerges as the obvious choice for managing the corporate element of their structures because of: • Experience - we have been successfully servicing the corporate requirements of our

clients for 19 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 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. • Standards - we adhere to the highest compliance standards.

CONTACT INFORMATION:

Address: Trident Centre, 115, Grivas Dighenis Avenue, PO Box 58184, 3731 Limassol, Cyprus Tel: (+357) 25820650 Fax: (+357) 25361857 e-mail: Cyprus@tridenttrust.com Website: www.tridenttrust.com

Your clients can rely on you... because you can rely on us. For 35 years professional intermediaries, ďŹ nancial institutions, asset managers and major companies have relied on us for independent corporate, trust and fund administration services. For information about our services please contact: Petros Livanios, Managing Director Trident Trust Company (Cyprus) Ltd Trident Centre 115 Griva Digeni Avenue PO Box 58184 3731 Limassol, Cyprus Tel +357-258-20-650 Fax +357-253-61-857 Cyprus@tridenttrust.com

W W W. T R I D E N T T R U S T. C O M

Visit www.tridenttrust.com to learn more about our global capabilities and how we can help you serve your clients.

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providing confidence through performance www.goldnews.com.cy | GOLD | 89

| BANKING |

G

old: Before being made Country Director for Cyprus, you spent almost six years as Head of Wealth and Investment Management at Barclays Bank in Limassol but in the past the Bank has tended to appoint people from outside. Are you especially pleased to have been selected ‘from inside’? Savvas Constantinou: Having worked in two foreign investment banks from 2002-2009, I was initially appointed by Barclays in January 2010 to re-establish the Limassol office. Over the last 2 years, I have also led the Relationship Management teams in both Nicosia and Limassol offices. Barclays is a banking institution with more than 300 years of history and it has been present in Cyprus for more than 70 years, so I am certainly very pleased that our senior management in London has recognized in me personally – and in the local management team – the necessary leadership skills and capabilities to lead Barclays’ business. I am excited to have been appointed as the new Country Director of the Bank, and I am very proud to lead this team of highly experienced and professional hard-working people. Gold: Do you think that your being a Cypriot makes any difference to the way is your employees and clients view you? S.C.: Yes, I believe it sends positive messages to our employees and clients alike. The employees can see that there are opportunities for career progression within the bank, even within a small team such as the one here in Cyprus, which is very positive for them. Our clients, meanwhile, can clearly see Barclays’ commitment to Cyprus, given its trust in local staff and management. They know that we are committed to supporting their business and they are aware that we know as a team what they need and how we can better support them.

Gold: Has your role really changed a great deal with this appointment, since, as you mentioned, you were involved with both the Limassol and Nicosia offices in your previous position? S.C.: The role of Country Director is both interesting and challenging and it presents a variety of tasks on daily basis, from strategy decisions and planning, business development, leading, managing and coaching teams, managing internal and external stakeholders and dealing with issues related to infrastructure, premises, payroll, invoices, etc. So I would say that my role has definitely changed, given that my responsibilities are much greater and I have a much bigger team and business to lead and manage. Gold: You have spent most of your professional career in banking, which means you have experienced a number or major and minor crises, including what happened in Cyprus in 2013. Is banking in general a lot safer today than it was when you started out? S.C.: Banking has significantly changed in recent years, especially following the sub-prime crisis in the USA and the collapse of Lehman Brothers in 2008. Many of the changes were driven by these events and the efforts of regulators to ensure that such events would not happen again. Today there is a great deal of focus not only on what a business produces in terms of growth, revenues and profits, etc., but also on how the people in a business behave and what values they demonstrate when performing their functions. There’s a strong moral aspect involved and conduct and risk management have become very important aspects of the banking business. Our am-

bition is to help people (our colleagues, clients, shareholders and regulators) to achieve their ambitions in the right way. This is critical nowadays and the regulators have a major role in driving developments in the industry and exerting more effective control over banking institutions. Is there a danger of over-regulation and reaching the other extreme? It’s impossible to say at this point; we just have to follow developments. Gold: In general, and on a global scale, banking and bankers have gained a rather bad reputation due to a few high-profile cases. Have people lost their trust in banks or are they so important that we have no choice but to forgive and forget? S.C.: My personal view is that there have been mistakes in the banking industry globally, just as I believe there are in all industries – look at VW right now – and there can be no excuses for this. People naturally lost trust in the banks, which need to try very hard to regain it. As I said, there is a lot of focus nowadays on how the people in a business behave, from the CEO to the last employee. I do believe that, historically, banks have been an essential part of the economy and society in general and they continue to be. To talk about Barclays in Cyprus specifically, I am very proud of the contribution that our bank has made to the country’s financial services industry by supporting its clients in challenging situations and also by supporting the local economy, through its role in the recent bond issues, for example. I strongly believe that it is critical to have a global international ‘A’-rated bank like Barclays in Cyprus. Gold: Your appointment coincided with some rather negative publicity in Cyprus which arose from the decision taken at Barclays headquarters to focus only on HNW clients and those with a minimum of €100,000 in

There is a lot of focus nowadays on how the people in a business behave, from the CEO to the last employee

90 | GOLD | The Business Magazine of Cyprus

THE VIEW FROM THE TOP Two months ago, Savvas Constantinou was appointed Country Director at Barclays Bank. With more than 14 years of international and investment banking experience and a strong background in capital and loan markets trading, wealth and investment management and leading and managing people, he is delighted with this new challenge and, as he tells Gold in the following exclusive interview, he and his team are optimistic about the bank’s future. By John Vickers Photo by Jo Michaelides

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| BANKING |

their account. Could the situation have been handled more sensitively? S.C.: First of all, I would like to reassure you and Gold magazine readers that Barclays never takes any decisions lightly and without considering the impact on its clients. I believe that we tried hard to handle things sensitively in this particular case but whenever major changes occur, there is, understandably, going to be an impact on people and relationships. As part of a global review of its business, Barclays has taken some difficult strategic decisions in order to focus on a core set of markets globally and in this context it introduced a new minimum threshold for the accounts of its personal customers resident not only in Cyprus but in other countries too. I would like to make it clear, however, that for our international corporate and fiduciaries business, we continue to recognise Cyprus as an attractive place to do business and we remain committed to developing our business here, via our offices in Nicosia and Limassol. We remain focused on our key fiduciaries (i.e. corporate service providers, law firms, and accountancy firms) and international direct corporate relationships.

carefully to bring the funds framework in Cyprus up to par with other international jurisdictions and we now offer a European passport to the fund management industry as well as outstanding possibilities for cross-border and global fund distribution. Hence, we do have an opportunity to develop this industry. Gold: Although you have no retail operations in Cyprus, you cannot fail to have a watchful eye on the broader banking sector. How would you rate its progress since March 2013? S.C.: I would quote from the last IMF report on Cyprus, which states that conditions and liquidity in the core banking system have continued to improve and normalize,

term sustainable solutions. In general, the legal framework and the tools are now in place to manage NPLs, though additional recovery in the real economy may be needed if we are to see a further reduction. On the other hand, there are those who believe that this is a “chicken-and-an-egg” situation: should the economy recover so as to help the banks resolve their problems or should the banks clean up their balance sheets in order to provide loans and support economic recovery? This is clearly a subject which will be followed up in the coming months and the outcomes will be further monitored. Gold: What are your aspirations for Barclays in Cyprus over the coming years? S.C.: I am an optimistic person by nature and I strongly believe that our business will continue to grow. As I noted earlier, we are the only international ‘A’-rated bank on the island and we are committed to remain the leading bank serving the banking needs of the fiduciary and international corporate sector in Cyprus and other international business in neighbouring countries. We are and we will remain the gateway to the Barclays Group, offering our clients the capabilities and expertise of a global bank. I have already said how proud I am to lead the Cyprus team and we all aspire to further grow the business as Cyprus grows as a jurisdiction, attracting companies in the fiduciary sector and serving the needs of international corporate companies with an established presence on the island. Moreover, we aim to exploit the prospects arising from a possible solution to the Cyprus Problem and, in particular, those linked to the island’s status as a regional energy hub. Needless to say, we wish to maintain client satisfaction and the high quality of our services as a priority and, last but not least, we shall continue to assist and support all our clients and the communities we work in.

It is critical to have a global international ‘A’-rated bank like Barclays in Cyprus

Gold: You are aware of Cyprus’ efforts to attract investment and investment funds to the island. Do you believe that this is an area in which Cyprus has the potential to thrive? S.C.: I am optimistic about the efforts to convert Cyprus into an attractive destination for funds and about the work of the Cyprus Investment Fund Association (CIFA). Cyprus has the whole package, given its well-educated professionals, tax incentives, a legal system based on English common law, competitive professional services, etc. Cyprus is now emerging as an attractive investment funds jurisdiction, providing solutions for the establishment of private and public investment funds (Alternative Investment Funds and UCITS), as well as fund managers. The regulatory authorities have worked

92 | GOLD | The Business Magazine of Cyprus

the local banking sector is becoming stable and confidence is gradually returning. Earlier this year, restrictions on capital movement were abolished without obvious adverse consequences on the level of bank deposits. The level of emergency liquidity assistance (ELA) to Bank of Cyprus has continued to drop, foreign investors have provided fresh capital, and the EBRD is now shareholder in the two biggest local banks on the island. It seems that the prospects for resolving non-performing loans (NPLs) are better following parliamentary approval of the foreclosure legislation. Of course, the IMF suggests further efforts to strengthen banking supervision and regulation and all the industry players recognize that challenges remain, with that of NPLs being the biggest. In this respect, recent progress on making the new private debt restructuring framework operational is encouraging. The pace of NPL restructurings has accelerated in recent quarters with a growing number of agreements reached based on more long-

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| TOURISM |

The Impact

OF TOURISM

PwC, the Travel Foundation and the TUI Group recently conducted a pioneering study on the overall influence – economic, social and environmental – of the activities of TUI in Cyprus. The results were presented at the event ‘‘Tourism: Measuring the overall impact on Cyprus” on October 15 at PwC’s new headquarters in Nicosia. By Artemis Constantinidou

T

ourism remains one of the most important sectors of the Cyprus economy and traditionally, success is measured by visitor numbers but how well does this reflect the true value of the industry? And how useful is this information to define and/or evaluate tourism strategy? These questions are answered in the study, which was presented by Malcolm Preston, Global Sustainability Leader of PwC, and Salli Felton, Chief Executive of the Travel Foundation. Malcolm Preston later spoke to Gold. Gold: According to the findings of the study on the impact of tourism on Cyprus, what are the positive and negative aspects affecting the sector? Malcolm Preston: It should be emphasised this was a pilot study of eight hotels, covering 60,000 visitors in 2013, so it was not a full assessment of the tourism sector for 94 | GOLD | The Business Magazine Magaz g ine of Cyprus Cyypru p s

Cyprus. The full results can be found in the Travel Foundation paper but among the highlights are the fact that economic activity through the supply chain and wages have a significant positive impact, along with direct and indirect taxes. Environmental impacts were smaller, although still important as they tend to accumulate over years, and so they need to be managed very carefully. Gold: To what extent do you believe Cyprus can achieve sustainable tourism? M.P.: It is clear from the study that no one actor can achieve this alone. Partnerships between the private and public sector actors will be needed but, with strong collaboration, I see no reason why this cannot be achieved. Gold: Opinion in Cyprus has always been divided between those who believe that the island should be aiming to attract high-end visitors and those who want to increase visitor numbers at any price. What’s your view? M.P.: More analysis is needed before an opinion can be reached but it is clear that it is really important to understand the value that each visitor brings to the island and is retained on the island. There would be little point in attracting high-end visitors if the money they spend does not benefit the economy or the people of Cyprus. Gold: Given the intensely competitive tourism sector, what would be your advice to Cyprus and those responsible for the industry if it is to survive and ultimately thrive? M.P.: Cyprus must retain and develop its

Cyprus must retain and develop its “unique” attributes that make it different from its competitor destinations

“unique” attributes that make it different from its competitor destinations. Tourists are increasingly looking for a unique experience, whilst always wanting “value for money” but that does not mean they are looking for cheap holidays. Gold: Considering all markets, is there a destination you could point to as a model for those that are succeeding in providing what today’s travellers want? M.P.: There are numerous destinations, including Cyprus, that deliver what travellers want. Remember that different travellers want different things! Gold: How do you view the fact that legislation has been passed regarding the creation of an integrated casino resort in Cyprus? Is this something that is guaranteed to give a boost to the tourism industry? M.P.: This is not something about which I am an expert. The issues around the development of casinos are complex, with many different and varied areas that need to be considered, both in terms of the local tourist industry and the impact on local communities.

Evgenios Evgeniou, CEO, PwC

Malcolm Preston, PwC

Tom Johnston and Kylie Bowen, TUI Group

Salli Felton, Travel Foundation

Panel discussion

Petros Petrakis PwC, Angelos Loizou, CTO, Malcolm Preston, PwC, Salli Felton, Travel Foundation, Tom Johnston TUI Group

Elena Tanou, Vice President, Nicosia Chamber of Commerce & Industry

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www.goldnews.com.cy | GOLD | 95

| LEADERSHIP |

BECOMING A WORLD CLASS LEADER Andrew Kakabadse, who was ranked 14th in HR Magazine’s list of ‘Most Influential Top 25 UK Thinkers’ in 2012, is one of the trainers in the IN Business Executive Leadership Programme being held from November-January at the Amathus Beach Hotel in Limassol.

A

ndrew Kakabadse, Professor of International Management Development at Cranfield University’s School of Management, was recognised by HR Magazine in 2012 for his “massive influence on board attitudes to people”, and as an “influential global speaker on HR issues”. An experienced and highly successful author with a following in Europe and parts of Asia, and a growing influence in the US, he has published 41 books, over 240 articles and 18 monographs. He has consulted and lectured in the UK, Europe, USA, China, Japan, Russia, Georgia, the Gulf States and Australia. His latest book, The Success Formula: How Smart Leaders Deliver Outstanding Value (Bloomsbury Information Ltd) was 96 | GOLD | The Business Magazine of Cyprus

published in March arch 2015 the Ziton Case Study is to great acclaim.. After examine how to used to exam conducting interviews rviews effectively lead through with over 80 leading Restructuring and ading Restruct organisations in SStrategic Change. On private, public and third sectors from tthe second iissue of Govall over the world, eernance LeadProfessor Kakabadse ership, the er gained a fascinating importance im of insight: organisations Governance G where stakeholder enANDREW KAKABADSE and an Boards is gagement is highest are not emphasized, em those led by charismatic highlighting the criticality for high perand visionary leaders, but by a culture of forming Boards as the means to attain delivering outstanding value. The Success Formula demonstrates high performing organisations. The how value-delivery-led organisations are Highland Plc Case is used to explore the outperforming their strategy-led counter- nature of Governance, the shape and parts and how the world’s best organisanature of high performing Boards and tions deliver value to their stakeholders, the challenges Board Directors face in with examples drawn from Anglo Amerensuring for effective governance. ican, Deutsche Bank, Citibank, Jaguar/ Other issues to be dealt with include Landrover, Microsoft, BMW and Alfa Engaging with Stakeholders, and ManBank. It is an authoritative guide that aging Burnout (using the Kerry Schwartz shows leaders how to improve the way Case to examine its nature). they gather meaningful evidence to create a value-delivery culture that maximizes ‘Becoming a World Class Leader’ by the benefits for their organisations and Professor Malcolm McDonald is one of stakeholders. the five components of the IN Business His workshop in Limassol (January 22 Executive Leadership Programme, aimed & 23, 2016) examines the capabilities at Directors and Senior Managers in Cynecessary for realising high performance prus. The programme has been approved leadership. Attention is given to the critby the Human Resource Development ical capabilities that make for outstandAuthority. Enterprises and Organisations ing leaders. Designing the organisation participating with their employees who for value delivery overseen by effective satisfy the HRDA’s criteria are entitled governance through vigilant Boards is to a subsidy. given distinct attention. In effect, how Organiser: IN Business Magazine to engage and win credibility with conCo-organiser: Cyprus Institute of trasting stakeholders is a central theme Marketing of the workshop, which will conclude by Coordination: ΙΜΗ providing each individual feedback on For more information: their capabilities and the steps to take to Tel: (+357)22505555 22(+357) develop further as a high performer. 22505555 The workshop deals first with Stratee-mail: events@imhbusiness.com gic Leadership, looking at issues such as Website: www.imhbusiness.com/execuredesigning the organisation. For this, tive-leadership-programme

Entity Management

Banking Administration

Tasks & Workflows

24 | GOLD | The Business Magazine of Cyprus

Time & Billing

Contacts & Clients

Document Management

Reporting

KYC/AML Compliance

Integrations

+357 2582 0789 sales@quorumcentral.com www.quorumcentral.com 166 Ag. Fylaxeos Str, CY-3083, Lemesos, Cyprus

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EVALUATING THE FUTURE OF THE EUROPEAN ECONOMY

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he elite of Cyprus’ business community gathered at the Four Seasons Hotel on October 21 for the highly acclaimed sixth annual Limassol Economic Forum. Members of the local political, economic and business environment were PUMVYTLK HIV\[ [OL ÄUHUJPHS Z[H[L VM [OL broader European region and developments in the global economy via presentations delivered by renowned speakers. These included local and internationally respected personalities – most notably the former UK Chancellor of the Exchequer, Lord Lamont of Lerwick (Norman Lamont), and Gavin Hewitt, Chief Correspondent of the BBC, who also served as Chairman of the Forum. Additional speakers included Finance Minister Harris Georgiades; Elias Neocleous, Advocate/Vice Chairman, Andreas Neocleous & Co LLC; Nicos S. Kyriakides, Partner in charge of LimasZVS 6ɉJL /LHK VM -PUHUJPHS (K]PZVY` Services, Deloitte; Savvas Constantinou, Country Director, Barclays Bank; Mujtaba Rahman, Europe Director Eurasia Group; Dr. Thomas Mayer, Former Chief Economist, Deutsche Bank; Henk Potts, Director, Global Research & Investments, Barclays; and Ian Stewart, Partner and Chief UK Economist, Deloitte.

Sponsors

Organisers

Communication Sponsors

Supported by

In Association with

Harris Georgiades, Minister of Finance

CySEC, Savvas ConAndreas Michaelides, MP, Demetra Kalogirou, Deloitte, Elias Neocleous, stantinou, Barclays Bank, Nicos S.Kyriakides, of t Lerwick Andreas Neocleous & Co LLC & Lord Lamon Yioulie Anastassiadou, PWC

Mujtaba Rahman, CNBC

Gavin Hewitt, BBC

Andreas Neocleous, Andreas Neocleous & Co LLC, George Pamborides, Minister of Health & Haris Georgiades, Minister of Finance

Lord Lamont of Lerwick

Maria Kyriacou, Andreas Neocleous & Co LLC

Andreas Heracleous & Sophia Paraskeva, Limassol Marina Ltd

Andreas Michaelides, MP Elias Neocleous, Andreas Neocleous & Co LLC

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Henk Potts, Barclays

Nicos S. Kyriakides, Deloitte

Martina Meinders, Marin Shipmanagement Ltd

Elias Neocleous, Andreas Neocleous & Co LLC, Savvas Constantinou, Barclays Bank & Gavin Hewitt, BBC

| LIMASSOL ECONOMIC FORUM |

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Dr. Thomas Mayer, Former Chief Economist, Deutsche Bank

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Henk Potts, Barclays UK Michalis Sarris, Former Minister of Finance & Thomas Kazakos, CSC

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| EDUCATION |

Turning the Learning Switch BACK ON

Adult Education is an area that remains underdeveloped in Cyprus but Marios Siathas, General Manager of the European Institute of Management & Finance (EIMF) believes passionately in its potential to raise standards in the crucially important professional services sector and elsewhere. By John Vickers

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M

arios Siathas’ passion for adult education began when he was working at the University of Guelph in Ontario, Canada and was appointed to deal with retraining programmes for unemployed professionals. “I became very interested in the whole idea of giving people a second chance or an opportunity to do something else,” he told Gold. ”Most people go to university, get a degree and find their first job and, in many instances, they think that learning has stopped. In fact, they are only at the start of a process of getting to know what they need to do for their employer, learning about their sector, etc., and this is something that should never really stop.” He points to the fact that, after the age of 25, many people mistakenly believe that they don’t have to learn anything anymore. “Our job is to make sure we provide them with the environment that will make them turn their ‘learning switch’ back on,” he says. “People always need to know new things and this is where we come in, to help working professionals whose employer decides to send them to train or who decide for their own reasons to obtain more qualifications.”

Siathas took up the post of General Manager of EIMF just seven months ago, having spent 14 years at the Cyprus International Institute of Management (CIIM), including seven as Director of Executive Education. What attracted him to his new post? “It was mainly the challenge of doing something more directly linked to what’s happening in the Cyprus economy,” he explains. “I saw a need for an educational

sector that offers so many educational opportunities and our aim is to give such people what they need.” He cites the example of the need for people to be trained on issues regarding fund management, custodian services, Anti-Money Laundering (AML), due diligence and so on. “We have a good regulator in CySEC but, obviously, if the professionals are well-trained and up-to-date, that makes things easier for the regulator,” Siathas notes, and makes the point that some sectors are relatively new for Cyprus, having developed over the past 5-10 years, and that many people may be working in them without an obviously relevant degree. “Lawyers are asked to deal with fiduciary and corporate finance issues and they often need specialist training in these areas.” Next month, in conjunction with the International Capital Markets Association (ICMA), the EIMF is introducing a Foundation Course in Finance which is aimed precisely at such professionals. I wonder what kind of people the Institute is providing courses for. Do they tend to be new to their profession or are they well-established but want to understand new or related areas? “It’s both: complete newcomers but also those who need updating on the latest developments in a particular area,” Siathas says, adding: “Our only problem is making sure that we get the content right so that some people don’t get bored! It’s important to make sure that people on a particular course have more or less the same level of knowledge and proficiency.” The

The professional services sector is undoubtedly thriving institution dedicated to the professional services sector – one providing training and qualifications to those in financial services, to lawyers, accountants and administrative service providers. It is a

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| EDUCATION |

EIMF provides training in sectors such as the Forex market, which was relatively unknown in Cyprus 10 years ago. The demand is still high, says the General Manager, but the content of the courses is changing: “There’s a much greater focus on compliance and regulatory controls issues rather than technical analysis these days.” How does Marios Siathas rate the health of the professional services sector in Cyprus following the banking and financial crisis of 2013? Is it back to where it was pre-crisis? “I don’t think it’s there yet but, frankly, 2013 is not a realistic scenario that we should be trying to return to. The banks aren’t offering interest rates of 6% anymore! However, the professional services sector is undoubtedly thriving. In the 12 months up to June 2015, employment in the sector was up by 300% and it was – and is – still hiring. Most corporate service providers managed to retain their clients after 2013 – don’t forget that many of them are active in several jurisdictions and not only Cyprus – and in many instances, firms have been diversifying: looking at the latest trends and offering services in new areas such as investment funds, for example. Compared to other jurisdictions, Cyprus’ professionals offer top quality services at much more affordable rates than their competitors abroad and I am sure that companies and individuals are going to keep on relocating to Cyprus.” Marios Siathas has only been with the EIMF since May 2015 but he already has plans for its development over the coming years. In January 2016, it will start offering training courses for a global audience through its online platform. “People place their trust in the location from which something is being offered, so

as Cyprus’ image continues to improve, it is going to be easier for us as well to offer training from Cyprus” he tells Gold. “The island is a hub for Forex trading, for example, so where better to obtain training than from here? The same applies to

Some people happen to be late developers and they deserve a chance

Compliance Certificate, the Certificate in Wealth and Investment Management, etc., IT for investment firms, preparation for the CySEC exams and much more. Most of these are global qualifications from organisations like ACAMS, CISI, HRDA and so on and they give people a professional advantage.” A broader ambition is to be able to offer chances to people who may not have been at their best when they were younger. “If you were not a good student in high school for some reason, or it was impossible to go to university, your options in Cyprus are very limited,” he explains. “In other countries there are free community colleges where people can go and retake exams that they may have failed some years ago, or learn a basic accounting qualification, for example. Some people happen to be late developers and they deserve a chance. This is something we’re working on right now. And it’s not only a matter of taking and passing exams but about developing a community of young people who have a basic knowledge of a wide variety of subjects, including current affairs, for example. This is not provided right now.” Having worked in Canada and the United States, does Siathas ever regret coming back home? Not at all, he says, noting that in addition to a very enjoyable lifestyle, Cyprus also has a large, interesting and accessible business community. “In many bigger countries, you will probably never end up meeting the top CEOs, simply because it is impossible to get access to them. Here it’s much easier to meet people and, thus, to learn from them too. There are lots of good things about Cyprus. I’m glad to be here.”

Cyprus’ professionals offer top quality services at much more affordable rates than their competitors abroad

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various areas in which the country has a reputation for excellence. In addition, we want to provide work-ready qualifications for people who are looking for a job but lack the relevant qualifications for the specific area they are interested in. As an Accredited Training Provider for the Chartered Institute of Securities and Investment (CISI), for example, we already provide the Global Financial

BOOK SHELF

BOOKS of the month 1

How to create true gender equality at work and home

2

3

Joke, scam or a new currency for the Internet age?

The pace of innovation can be too much even for the leaders

4

Hidden dangers lie behind DUWLÀFLDO intelligence and automation

5

We GRQ·W like it but we need it for a better society

;OL ÄYZ[ MV\Y VM [OPZ TVU[O»Z [P[SLZ OH]L ILLU ZOVY[SPZ[LK MVY [OL -PUHUJPHS ;PTLZ HUK 4J2PUZL` )\ZPULZZ )VVR VM [OL @LHY (^HYK ;OL V[OLY [^V IVVRZ VU [OL [P[SL ZOVY[SPZ[ OH]L MLH[\YLK PU WYL]PV\Z PZZ\LZ VM .VSK ;OL ^PUULY ^PSS IL HUUV\UJLK PU 5L^ @VYR VU 5V]LTILY

1.

2.

Slaughter is a leading voice in the discussion on work-life balance and here she explains what is really necessary to get true gender equality, both at work and at home. As Melinda Gates says: “Slaughter shows us that when people share equally the responsibility of caring for others, they are healthier, economies prosper and both women and men are freer to lead the lives they want.”

The notion of a new currency for the Internet age, maintained by the computers of users around the world, has been the butt of many jokes, but that did not stop Bitcoin from growing into a technology worth billions of dollars. New York Times technology and business reporter Popper charts its dramatic rise, which led to untold riches for some, and prison terms for others.

UNFINISHED BUSINESS: WOMEN, MEN, WORK, FAMILY By Anne-Marie Slaughter (Oneworld Publications, 2015) R.R.P. £16.99 (£11.89 FROM AMAZON.CO.UK)

DIGITAL GOLD: THE UNTOLD STORY OF BITCOIN By Nathaniel Popper (Allen Lane, 2015) R.R.P. £20.00 (£13.38 FROM AMAZON.CO.UK)

3.

LOSING THE SIGNAL: THE UNTOLD STORY BEHIND THE EXTRAORDINARY RISE AND SPECTACULAR FALL OF BLACKBERRY By Jacquie McNish & Sean Silcott (Flatiron Books, 2015) R.R.P. £18.45 (£16.63 FROM AMAZON.CO.UK)

In 2009, BlackBerry controlled half of the smartphone market. Today that number is less than 1%. So what went so terribly wrong? This riveting story of a company that toppled global giants before succumbing to the ruthlessly competitive forces of Silicon Valley reveals the dangerous speed at which innovators race along the information superhighway.

4.

5.

As technology continues to accelerate and machines begin taking care of themselves, fewer jobs will be necessary. This may be the most important technological shift since the industrial revolution and, unless we radically reassess the fundamentals of how our economy and politics work, we risk a future of massive unemployment and inequality as well as the implosion of the economy itself.

Tax has been a feature of society for hundreds of years and while we may not like it, we do like the public services which governments provide and have been more than happy for governments to run deficits by spending more than they raise in taxation. Murphy argues that, by embracing the concept of tax, we can create a fairer society and change the world for the better.

RISE OF THE ROBOTS: TECHNOLOGY AND THE THREAT OF MASS UNEMPLOYMENT By Martin Ford (Oneworld Publications, 2015) R.R.P. £18.99 (£12.91 FROM AMAZON.CO.UK)

THE JOY OF TAX By Richard Murphy (Bantam Press,

2015) R.R.P. £16.99 (£11.89 FROM AMAZON.CO.UK)

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IN GOOD COMPANY

SAILING TO SUCCESS +2: (03/2<((6 $5( 32:(5,1* 7+( (1*,1( 2) /$9$5 6+,33,1* By Effy Pafitis | Photos Andreas Loucaides

³:( $5( ),50 %(/,(9(56 7+$7 (03/2<((6 $5( $ &203$1<¶6 0267 ,03257$17 $66(7 ´

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O

ften described as the backbone of the economy, the maritime industry’s contribution to Cyprus’ economic, business and professional development is profound. With 1,800 ships registered with 22 million gross tons, the sector’s operations account for some 7% of the island’s total GDP, elevating the country’s reputation globally by fully utilizing its strategic location and advantageous tax environment. Behind the impressive statistics, however, is the commitment of the 100+ shipping and ancillary shipping-related companies based in Cyprus which is truly responsible for the continued prominence and success of the Cyprus flag globally. Lavar Shipping is more than just one such company. Among the first large shipping firms to be established on the island, its 50year presence in Cyprus has played a leading role in the evolution of the industry. In turn, it recognizes that the professionalism of its seafarers and onshore personnel is responsible for navigating the company into calm (and profitable) waters, enabling it to attain the pinnacle of success. “You know,” confides Christina Tsanos-Panayides, Chief Operations Officer of Lavar Shipping, “I have been with the company for some time, and one of the things I am always struck by is how low absenteeism rates are at Lavar Shipping. We are firm believers that employees are a company’s most important asset.” It is indicative of great employee satisfaction, she says, that the majority of Lavar’s staff members have been with the company for over 10 years, and have thus contributed to its success. “Just to give you an example: our longest-serving employee has been with us for 35 years, while we also have someone who has been with us for almost 30 years as well!” The key to maintaining an optimal corporate culture is securing – and looking after – the right talent, according to Lavar’s COO. “We look for people with the right

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IN GOOD COMPANY

character, one which aligns with our values of reliability, performance and trust, and individuals who believe and work towards our vision and mission. When I look around our offices I really do believe that our people have embraced our corporate philosophy of “broadening horizons”, while at the same time maintaining excellent customer service at all times.” This management appreciation is reflected in the treatment of its employees. Recognising that the requirements and requests of employees are constantly changing, Lavar constantly upgrades the benefits it offers as a company, says Tsanos-Panayides. “To start with,” she notes, “we ensure that all our offices and facilities are fully compliant with health and safety standards and procedures. Our people are entitled to paid annual leave, full medical and life insurance, and we have a bonus scheme based on annual performance. On top of that, we cover the cost of all work-related phone calls, provide company vehicles, and also cover the costs related to membership of professional associations.” Additionally, Lavar Shipping encourages its people to continue with their professional development and actively encourages their participation in training programmes and workshops. Furthermore, it seeks to bring management closer to employees of all levels so as to facilitate greater professional integration. “Senior management maintains a close proximity to its entire workforce, and we believe that this tight-knit environment is just one of our competitive advantages. Moreover, within the context of our 50th anniversary, we are planning some events that will take place towards the end of the year as mark of thanks to the people who have made Lavar Shipping so successful.” The company, she reveals, aims to carry some events into 2016, including a number of team-building activities that will not only seek to boost employees’ productivity, but also to receive their feedback on how Lavar can improve even more as a company going forward. Further to its remuneration policies and support for professional development – including salary levels and financial incentives – Lavar’s management, Tsanos-Panayides comments, has realised that there are additional drivers towards retain-

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285 3(23/( +$9( (0%5$&(' 285 &25325$7( 3+,/2623+< 2) ³%52$'(1,1* +25,=216´ ing the company’s best people: making them feel part of a successful project, reaffirming their job security and receiving the appreciation of senior management. “As a result, I would say that our retention strategy is characterised by four key elements: performance, communication, loyalty and competitive advantage.” Explaining further, she details that monthly departmental meetings are supplemented by a series of in-house meetings, while at Lavar Shipping, management also conducts ‘stay’ interviews with existing personnel. “In the case of a vacancy, we try to promote from within the company, providing upward mobility for our people, making them aware of what is expected of them and how they can continue to grow within the organisation.” Moreover, as Lavar Shipping is part of the RPT Group, it looks towards supporting employee mobility across the group, maximising people’s skills in their fields of expertise. “In light of the uncertainty of our

times, our personnel creates and sustains profitable growth while simultaneously playing a crucial role in retaining the company’s competitive advantage within the market,” the Chief Operations Officer says with sincerity. “We are all a team here at Lavar Shipping, working together to achieve company-wide goals and objectives, while also acknowledging credit where it is due to everyone who has contributed to our success. This motivation helps people maintain high levels of productivity and enables them to continuously develop and deliver new products and services to clients.”

MY

COLLECTION

MONEY! MON 110 | GOLD | The Business Magazine of Cyprus

This

FEW ISLANDS AS MINISCULE IN BOTH SIZE AND POPULATION MAY LAY CLAIM TO SUCH AN EMBROIDERED CULTURAL HISTORY AS THE REPUBLIC OF CYPRUS. NOW AN INDEPENDENT STATE AND MEMBER OF THE EUROPEAN UNION, CYPRUS TPOSSESSES ITS OWN CULTURAL IDENTITY. By Effy Pafitis

proud heritage, complex in its saturated abundance, is depicted most skillfully in a rather surprising form of cultural artifact – the Cyprus coin. Yes, the modest coin in your pocket is the product of the struggles and victories the island has endured and celebrated throughout the years, as each ruler used the design, style, size, weight and material of their denominations to proclaim their power. Holding such cultural significance, its preservation for future generations is a national priority – the very reason behind the Bank of Cyprus Cultural Foundation’s Numismatic Collection. This collection comprises in excess of 550 coins, covering the entire spectrum of Cypriot coinage, from the 6th century BC to the present day. A large part of the Foundation’s collection is, today, on display at the Museum of the History of Cypriot Coinage, a dedicated permanent exhibition within the Foundation’s premises located in downtown Nicosia, established in 1995. The coins are divided into nine chronological periods and 23 showcases, which trace Cyprus’ tumultuous history, from the first coins minted on the island in the 6th century BC to the present day. “The coins constitute a very important part of the evidence available for evaluating and studying the rich and influential culture of Cyprus,” Eleni Zapiti, Curator at the Foundation told Gold. Cyprus, she explained, played a major role in the distribution of goods particularly throughout the Late Bronze Age (1600-1100 BC), as the island was situated in the midst of the trade and sea

routes between the Aegean, the Central Mediterranean, Egypt and the Near East. The country began producing copper since the Early Bronze Age, 2500 BC and the process and trade was the foundation of both the island’s economy and the main source of its wealth at that time. Copper ingots were used as a unit of weight and value in Cyprus. They were produced in the shape of a stretched oxhide, perhaps referring to the earlier use of cattle as a means of transaction. The use of such metals in transactions ultimately led to the creation of coinage. The first coins were issued in the late 7th-early 6th Century BC in Lydia and along the western coast of Asia Minor, the hub of commercial activity in the Eastern Mediterranean. The phenomenon of the minting of Cypriot coinage began sometime during the final three decades of the 6th Century BC. Although the Cypriot kings of this era paid tribute to the Great King of Persia, they issued their own coins, the Curator continued. The first coins were made entirely of silver, and the images impressed upon them were inspired by the animal kingdom and Greek mythology. The Foundation’s Numismatic Collection depicts the history of Cypriot coinage from these modest beginnings right through the days of the Cypriot City-Kingdoms (6th-4th century BC), the Hellenistic Period (330 - 30 BC)– most frequently marked by the reign of Alexander the Great – the Roman (30 BC–AD 330), Byzantine (330 – 1191),

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Frankish(1192-1489), Venetian (1489-1571) and Ottoman periods (1571-1878), the most recent British rule (1878-1960) and finally the independence of the Republic of Cyprus and its eventual accession to the European Union. “The Numismatic Collection of the Cultural Foundation is one of the few unique collections of Cypriot coins covering the whole spectrum of the history of Cypriot coinage from the 6th century BC to the present day,” Zapiti imparted. “The Collection also includes some rare specimens.” These include thegold quarter stater from Salamis, of king Evagoras I (411-374 BC) depicting the Hercules with the head front-facing of which another three are known in collections, or the silver siglos from Paphos of king Timochares (386 BC) depicting Aphrodite. The coinage of the Cypriot City Kingdoms is of particular importanceit often consists a unique source of historical information asthey bear

It is one of the few collections covering the whole spectrum of the history of Cypriot coinage inscriptions with names of kings that are not mentioned in any other source. Salamis and Paphos remained prominent kingdoms until the abolition of the Cypriot kingdoms at the end of the 4th century BC. The Byzantine cup-shaped electrum coin of the last Byzantine governor of the island, Isaac Comnenus is also a unique piece in the collection as well as certain rare specimens of coins issued by the Lusignan kings. Another numismatic piece whose prominence is reflected in the banking sector even today the ΚΟΙΝΟ(Ν) ΚΥΠΡΙΩΝ coin.A bronze coin from the Roman period, donated to the

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Bank by a member of the Board of Directors of the Group, it bears the legend “ΚΟΙΝΟ(Ν) ΚΥΠΡΙΩΝ”, League of the Cypriots; it was a symbol of unity among the peoples of the island. This particular coin has been the official logo of the Bank of Cyprus since 1963. Zapiti revealed that these coins were first issued during the reign of Claudius (AD 41-54). However, the institution of ΚΟΙΝΟ(Ν) ΚΥΠΡΙΩΝ, an assembly of representatives from all Cypriot cities who gathered for religious purposes and to pay homage to the island’s rulers, dates back to the 2nd century BC. The obverse bears the head of the Roman emperor and the reverse the inscription ΚΟΙΝΟ(Ν) ΚΥΠΡΙΩΝ within a laurel wreath. “We really want people to feel proud of their culture,” Zapiti imparted earnestly. “Cyprus has so much to be proud of, and it is very important to us that young children grow up with this sense

of national awareness, pride and – indeed – appreciation of the civilizations which have shaped the history of the island so much.” In this context, the Cultural Foundation has formulated a strategic plan through which it conducts educational programmes, seminars, specialised lectures and periodical exhibitions devoted to Cyprus numismatics. In fact, since 1992 (well before the permanent display of the collection in the Museum in 1995), its programmes have been delivered to more than 70,000 young students, and continue to reach even more. Indeed, in order to satisfy today’s students’ zeal for obtaining information online and bring the collection to a wider audience, the Foundation has undertaken to offer the entire collection online, and has even developed an interactive, informative tour of each showcase presented in the Museum, available at its dedicated website www.boccf.org. A specific publications’ series including numismatic studies and lectures was initiated in 1996, a year after the opening of the Museum. These publications, as well as items inspired by the collection, are available for purchase at “Agora” the shop of the Cultural Foundation and online. Admission to the Bank of Cyprus Cultural Foundation, located in Old Nicosia Town, is free of charge. The Foundation is open seven days a week, from 10:00 to 19:00.

the

Compliance Forum

Lunc Lunch with KATERINA PAPAVASSILIOU

THE DIRECTOR AND HR MANAGER OF ISLAND OIL (HOLDINGS) LTD TALKS ABOUT HER MANAGEMENT PHILOSOPHY, THE ROLE THAT ‘QUIRKY MOMENTS’ HAVE PLAYED THROUGHOUT HER CAREER, AND HOW SHE FEELS ABOUT STILL BEING REMEMBERED AS ONE OF CYPRUS’ FIRST-EVER TV COOKS, 15 YEARS AFTER THE SERIES ENDED.

Gold

IT

is a lovely sunny day and the beachfront location of Fat nt on Fish, the popular restaurant the Limassol Nautical Club’s premises, is even more inviting than usual, given that it is the beginning of November. Katerina Papavassiliou is already waiting for me and, as I am later to discover, punctuality is just one aspect of the broad concept of ‘doing things right’ that plays a key role in her life. Indeed, the first meeting between Katerina and the man who would eventually become her husband took place when the two of them were the only

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By John Vickers

FAT FISH b autical Clu Limassol N os m ta o P t, tree l George I S o s ias, Limas Yermasoy

ALAD CRETAN S AMAS R TA S O R ASP CTOPUS GRILLED O ARI M BABY CALA TR 1L R E AT W TOTAL

€10.00 €3.50 €11.00 €8.50 €2.00 €35.00

ones to arrive on time for the inaugural meeting of the Hellenic Students Association at San Francisco State University. More of that later. We order a Cretan salad, octopus and baby squid and decide to stick to plain water since we both have to go back to work. And we reminisce… I first met Katerina Papavassiliou almost 20 years ago when she hosted “Food & Wine” on Sigma TV. Her enthusiasm for cooking and her bright, bubbly

personality soon gained her thousands of fans across the island. Such was the demand for her recipes, in the days before everyone had 24/7 Internet and access to dedicated cookery websites, that in 1998 she published A Matter of Taste, a book containing a selection of those she had prepared on TV and many more. It was a huge success. At a time when food programmes are to be found on every local television channel, Katerina Papavassiliou is both flattered and somewhat bemused that, all these years later, people still remember her as the first person to present such a show in Cyprus. As a stickler for detail and accuracy, however, she has often found herself having to correct people who unwittingly introduce her to others as ‘a chef’. “I always tell them that although I had been a professional cook in a hotel, I was never a chef, which is a title that is earned, similar to being a captain or a master on a ship,” she explains. “I loved cooking and I did some professional cooking but I never put myself in the category of chef. Even the dishes I prepared on TV were things that viewers could make for their dinner that night. I wasn’t into Chinese acrobatics on a plate! It’s nice that people still remember the TV series and the book but after all these years, when I’m at a business function I anticipate to talk about business, not recipes!”

While she may not have trained as a professional chef, she is not short of academic qualifications – she holds a degree in Hotel & Restaurant Management and another in English Language & Literature, both obtained in San Francisco – or of experience, including no fewer than 18 years as a lecturer on Hospitality and Food & Beverage Management courses. Indeed, she has no qualms in revealing that her working life began at a very early age: “From the age of 12, I used to help my father at weekends when he would earn extra money painting people’s homes. I still enjoy doing a good paint job! And I have always believed in doing things as

best I can. One thing I can’t stand is mediocrity.” Katerina was born in Piraeus but moved with her family to the US when she was seven years old. She was interested in cooking from a young age and knew that it was what she wanted to do. After high school she studied hotel and restaurant management and at the same time worked in the kitchen of a luxury hotel in San Francisco. Unsurprisingly perhaps, her parents’ friends couldn’t understand why they hadn’t encouraged her to try for one of the more academically mainstream professions. “My

father’s philosophy was that, since your work is going to take up many hours of your life, it should be something that you enjoy doing. He was very supportive and when I finished high school I started work at the hotel for the summer. When I was ready to start my studies, they wouldn’t let me leave so we agreed that I would work at weekends but it ended up being a full-time job so for the five and a half years that I was at university, I was also working and my career was moving ahead while I was still studying.” Meanwhile, Katerina decided to prepare herself for a possible move back to Greece but, knowing that working in a hotel kitchen in the States was well-paid whereas it was not in Greece, she decided to take a degree in English, so as to be able to teach if and when she went back home. “Ironically, no sooner had I gone back to university than I was offered a management position in a 700-room sister hotel so I found myself working as Head of a Department and taking six university courses at the same time. And if that sounds crazy, it got even crazier a few months later when, at the age of 22, I

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was named Department Head of the Quarter!” Meanwhile, that first meeting of the Hellenic Students Association would prove to be much more significant that she had imagined since she and Chrysostomos Papavassiliou later became a couple and got married. “Running with several things at the same time has been a familiar experience throughout my life and it was no different when we decided to get married,” she recalls, before explaining that the only time she could take leave from the hotel happened to be the week of her final exams. “That was bad enough but that same week I was given a promotion to a new department. And I had also decided for some crazy reason that I would cater my own wedding!” An hour before the ceremony she was still in her jeans, t-shirt and trainers and her mother was naturally panicking but in the end everything was fine. Katerina says that she has never been an ambitious person but, she adds laughing, “things just seem to happen to me, Forrest Gump-style!” One such occurrence led to her first job in Cyprus, 30 years ago. After applying to numerous hotels, she grew frustrated at being rejected on the grounds that she was over-qualified for the vacant positions and so she reluctantly applied to a hotel that was still under construction. “I was offered the job of Food & Beverage Manager but, as I discovered some time later, it was another of those quirky moments that seem to follow me around: someone else was going to be hired and the General Manager was about to call him and offer him the job. At that moment, his secretary came into his office carrying a pile of CVs, with mine on top. It was a laser-printed CV with a professional photo on it – very uncommon back then – and so he put the phone down to look at it. He read through the CV and called me instead!” The position was very challenging

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(“I was basically given a blank canvas to do what was necessary in a country I’d never lived in before”) and Katerina eventually decided that she didn’t want to be working such long hours, especially when she had children, so she applied to teach English at Intercollege. “When I went there for an interview, they told me, ‘We can easily find people to teach English but we need someone who can teach hotel and restaurant management’. I enjoyed doing that for more than 18 years.” By the time her two sons had finished high school, she felt it was time “to do things for myself”. Things didn’t quite work out the way she had anticipated: “My husband suggested that I become a director of Island Oil, the company he had established in 1992, and work ‘for a few hours’ as HR Manager,” she says before adding with a big smile, “and almost nine years later, I’m still there!”

I still occasionally feel the need to make a point of letting people know that I had a successful management career in the past.” Although sharing a workplace with one’s husband/wife is not always a positive experience, it has proved to be so with Chrysostomos and Katerina Papavassiliou. “We share the same philosophy and management style,” she explains. “This includes basic principles such as the fact that, regardless of what position or title someone has, we try to treat everyone in the company with the same respect. We are also proud of the fact that we have a relatively high proportion of women who are department heads – around 45% – and this was the case before I joined.” If one quality sums up Katerina’s attitude to business and life in general, it is fairness. “It is one of the most important things to me,” she says. “I try very hard to be fair, to have a voice and an opinion

I TRY VERY HARD TO BE FAIR, TO HAVE A VOICE AND AN OPINION AND I LIKE THIS IN OTHERS TOO The company deals with marine fuels supply and trading, shipmanagement and ship agency. Although it was a completely new sector to her, Papavassiliou subscribes to the view that “people management is basically the same in any business” and so she was not afraid of a new challenge. What did cause her concern, however, was the fact that she didn’t want to be perceived as simply being the Managing Director’s wife and everything that entails, rather than as a person with a long career and management experience. “It’s not an issue at the office anymore,” she says, “and I hope I’ve proved myself by now. But outside,

and I like this in others too. I can’t stand ‘yes people’.” She believes that one of her greatest assets is her ability to solve problems and to think outside the box. “In a difficult situation, I tend to resolve things and this is a very useful thing to have in business. I sometimes have to tell people that there is ‘method in my madness’ but I like to think that I’m doing more things right than wrongly. Although as the Managing Director’s wife, I may not get all the feedback that someone else might, I think I’m doing a pretty good job. I’m certainly doing the best I can.”

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BUSINESS CLASS What is the most exciting destination you have visited for work? And for pleasure? *OPUH 0 ^HZ [OLYL MVY [OL ÄYZ[ [PTL PU T` SPML K\YPUN HU VɉJPHS ]PZP[ I` 7YLZPKLU[ 7HWHKVWV\SVZ PU ;OL SHZ[ [PTL ^HZ PU ^OLU 0 ^HZ invited by the World Association of Russian 7YLZZ -VY WSLHZ\YL 0 HT NVPUN [V ZWLUK Christmas in Vienna so, for the time being, this is my favourite destination! Among others I could mention Rome, :[ 7L[LYZI\YN 4PUZR Strasbourg and :[VJROVST

How often do you travel, whether for business or pleasure? ([ SLHZ[ [PTLZ H `LHY 0 WYLMLY ZOVY[ trips of 3-4 days that can take me out VM T` \Z\HS ^VYRPUN YV\[PUL 0M P[ PZ MVY pleasure, I take my kids and we go to explore European capitals (museums, WHYRZ [OLH[YLZ 0M P[ PZ MVY ^VYR I always combine the trip with a short sightseeing L_J\YZPVU

Natalia Kardash The Editor-in-chief of the Russian-language newspaper Vestnik Kipra and the magazine Successful Business tells Gold about her favourite European and international destinations, and where she’ll be spending Christmas this year. By Effy Pafitis

What is your favourite airline? 0[ \ZLK [V IL ;YHUZHLYV Âś [OL` had very professional approach [V^HYKZ [OLPY YLN\SHY JSPLU[Z 4` UL_[ JOVPJL PZ 3\M[OHUZH ;OL` HYL ]LY` W\UJ[\HS HUK VU [OLPY Ă…PNO[Z `V\ HS^H`Z get what you L_WLJ[

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

Tell us about your best corporate travel experience.

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118 | GOLD | The Business Magazine of Cyprus

What is your favourite international destination?

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How d does oes Cyprus compare to this location?

I am sure that Cyprus can become a regional medical centre but for the time being there med is a lack of vision and experience from the WYVMLZZPVUHSZ KLHSPUN ^P[O [OPZ Ă„LSK PU *`WY\Z 0 WYVMLZ a sure that sooner or later there will be a doctor am company that will develop the concept of a or a co Cypriot “sanatoriumâ€? – a place that will be a good JVTIPUH[PVU VM H OV[LS HUK H OVZWP[HS ;OPZ [`WL VM JVTIPUH rehabilit rehabilitation and preventive medicine centre was ]LY` ^LSS KL]LSVWLK PU [OL :V]PL[ <UPVU ]LY In the modern world, India is the leader PU TLKPJHS [V\YPZT

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BABIS STOKAS One of the founder member of the legendary Greek rock band Pyx Lax, VASSILIS KAZOULIS returns to Cyprus to perform with p The Greek singer-songwriter, who has been recording the Cypriot band Prospectus. and performing since 1987, performs in Limassol with his trio. RED MUSIC

TEPEE EPEE STRICTLY RICTLY ROCK, OCK, K, MASO OYIA A, YERMASOYIA, ASSOL LIMASSOL URD RDAY,, SATURDAY, MBER R 14,, NOVEMBER 00 PM 10:00

STAGE, NICOSIA WEDNESDAY, NOVEMBER 18, 9:00 PM SAVINO LIVE, LARNACA NOVEMBER 19, 9:00 PM

JAZZ MUSIC 2ND CYPRUS JAZZ & WORLD MUSIC SHOWCASE Two nights of jazz and world music, performed by the Andreas Rodosthenous Ensemble, the Greg Makamian Quartet, the Κoulouras Trio, the Marios Gregoriou Quartet, the Zilla Project, Afro Banda Banana, Morfitis Funkastic and Tricoolore, all from Cyprus. Rialto Theatre, Limassol Friday, November 27 & Saturday, November 28, 8.30pm

120 | GOLD | The Business Magazine of Cyprus

Tosca One of Puccini’s greatest works, as performed in Pierre %YHM¸W ĀþÿĂ TVSHYGXMSR for the Opera Bastille, Paris. K-Cineplex Nicosia and Paphos Saturday, November 28, 9:00 pm

LAVRENTIS MACHAIRITSAS & YIANNIS KOTSIRAS Popular singerTHURSDAY, songwriters DECEMBER 10, 9:00 PM Lavrentis FRIDAY, Machairitsas ritsas DECEMBER R 11,, 9:00 PM and Yiannis nnis Kotsiras perform togetherr in Nicosia.

OPERA LULU Live fro from the Metropolitan Opera, New Yo York, Alban Berg’s opera about the notorious noto femme fatale who shatters lives, in including her own, stars soprano Marlis P Petersen (photo) in the title role. Rialto Theatre, T Limassol Saturday, November 21, 7.30pm Saturday

BALLET THE NUTCRACKER The Bolshoi Ballet’s 2014 production starring Denis Rodkin as the Prince and Anna Nikulina as Marie.

K-CINEPLEX NICOSIA A P APHOS AND PAPHOS DECEMBER R 5, 9:00 PM

FILM ED SHEERAN: JUMPERS FOR GOALPOSTS The story of Ed’s triumphant road to Wembley, where he played the biggest shows of his career in July 2015, presents a revealing and personal glimpse into life backstage and on the road.

RIALTO THEATRE, LIMASSOL SUNDAY, NOVEMBER 15, 8:30 PM

THE SHOE THE WONDERLAND FACTORY PROJECT THURSDAY, To mark the 150th anniversary of the NOVEMBER Ą publication of Lewis Carroll’s Alice’s Ć ā PM Adventures in Wonderland, one of the great works of children’s literature, 13 internationally renowned composers were commissioned to write music inspired by a different chapter of the story, after which 13 films were created corresponding to the music. This is their world premiere.

CLASSICAL MUSIC

ART EXHIBITION The exhibition of paintings and mosaics by one of Cyprus’ best and most popular artists, George Kotsonis, continues for one more week.

APOLLON INTERNATIONAL CHAMBER MUSIC FESTIVAL The festival continues with three more concerts of music by Borodin, Schubert, Mozart, Haydn, Brahms and others. Annabelle Hotel, Paphos Saturday, November 14, 8pm Sunday, November 15, 3pm & 8pm

BEETHOVEN: COMPLETE WORKS FOR CELLO AND PIANO Péter Somodari (violoncello) and Nicolas L’OR ET L’OMBRE Costantinou (piano) in the second part of Renowned Cypriot soprano Zoe Nicothis project to perform Beethoven’s challaidou and pianist Nicolas Costantinou lenging three sets of variations and five present the song cycle by Cypriot comsonatas for the two instruments. poser Constantinos Stylianou for the first Pallas Theatre, Nicosia time in Cyprus. Saturday, 12 December, 8pm Technopolis 20, Paphos Wednesday, November 25, 9pm VINYL RECORD DAY Pallas Theatre, Nicosia Collectible, second-hand and rare vinyl Saturday, November 28, 7.30pm records for sale. Nicosia Flea Marketm Kaimakli, Nicosia VITALY PISARENKO Sunday, November 15, 10am-7pm The acclaimed Russian pianist Vitaly Pisarenko performs works by Rachmanihmaninov, Scriabin, Chopin and Haydn.. The Shoe Factory, Nicosia Thursday, December 3, 8.30pm

APOCALYPSE GALLERY, NICOSIA UNTIL NOVEMBER , ā AM- PM & ā 41 Ć PM DAILY, ā AM- PM SATURDAY

Zoe Nicolaidou

www.goldnews.com.cy | GOLD | 121

A DAY IN THE LIFE

Christos Christodoulou

The CEO of Trust International Insurance Company (Cyprus) Ltd on why he never worked as an engineer, despite his EGEHIQMG UYEPMÁGEXMSRW what he loves about his work, and the enduring MRÂYIRGI SJ¬ 0EVV] /MRK

always on the alert, studying the markets and studying people. The only negative aspect about my job relates to other people’s perceptions about insurance, which is often viewed as a commodity when it is not. Some people feel that they are wasting their money on insurance premiums when nothing bad happens to them. They don’t realise that they are actually transferring a financial burden to someone else. I try to be at home by 8pm. When I was young, my father always insisted that the family had dinner together and it’s a tradition that we also maintain. Later we may watch a movie on TV. I like movies that require some thinking or which contain a good message. I’ve seen The Godfather many times and Rain Man is a favourite. I am a great admirer of Robert De Niro, Dustin Hoffman and Nicolas Cage. I read a lot, mainly books on self-improvement. One that I must have read at least ten times is How to Talk to Anyone, Anytime, Anywhere: The Secrets of Good Conversation by the great American TV interviewer Larry King. I first read his book when I decided that I wanted to be in the ‘people business’. It’s almost 20 years

old now but I still go back to it. I like all kinds of music and I have Great lyrics are what I admire. always been attracted by good lyrics. I admire people who can convey a great message in a three-minute song. Alkinoos I have read this at least 10 times. Ioannides (photo), Vassilis Papaconstantinou, Alkistis Protopsalti and Notis Sfakianakis all have good lyrics. In An all-time a totally diffavourite movie. ferent style, I haven’t forgotten Guns N’ Roses who were the biggest band around when I was a student! I enjoy my work so much that I almost consider it a hobby. I’m preparing myself for a more advisory role later, and in fact I’m taking my second Chartered Director exam for this reason. I still have more things I want to learn before I retire so that I’ll keep myself busy. The idea of sitting at home doing nothing is not for me!”

“I consider myself a morning person and this is why I make sure that I deal with the most important things as early as possible, when I am at my best and can think more clearly. It’s the ideal time for preparing significant strategic decisions for the Board or holding important meetings. I consciously structure my day in order to get the best results. At school I was good at maths and physics, so the decision to study engineering was a straightforward one. I obtained my BSc. in Mechanical Engineering and a Master’s in Computer Controls at the University of Akron in the US. Afterwards, I took

some courses in psychology and sociology and I was so affected by them that, when I came back, I realised that I didn’t have to be an engineer but I could do something else. Those courses had shown me that I had a talent for dealing with people and I felt that insurance was an area in which I could distinguish myself so I decided to give it a try. Within three years, I was the Sales Manager of the biggest insurance company in Cyprus and since then I have dedicated myself to the business. I’m very glad I chose this path. The best thing about it is that I am constantly creating and this keeps me young! I am

I ADMIRE PEOPLE WHO CAN CONVEY A GREAT MESSAGE

IN A THREE-MINUTE SONG

122 | GOLD | The Business Magazine of Cyprus

www.pwc.com.cy

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