Issue 61 April-May by INBusiness

Gold ISSUE 61 april 17, 2016 PRICE â&#x201A;Ź3.00

t h e

b u s i n e s s

m a g a z i n e

o f

c y p r u s

John Hourican and Bert Pijls

The dynamic duo of the Cyprus banking sector

Brothers

in Arms 00001 >

5 291 295 0 00 577

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ISSUE 61 APRIL 17, 2016

T H E

B U S I N E S S

M A G A Z I N E

O F

C Y P R U S

| COVER STORY |

n October 2013, the Independent Commission on the Future of the Cyprus Banking Sector published its final report, which began: “Over the last three years, the Cyprus banking system has suffered a series of disasters which have transformed what was once a large and prosperous industry into a national catastrophe.” It went on to note that “urgent work is now underway to repair the damage, much of it under the terms of the Memorandum of Understanding (MoU) reached by Cyprus with the Troika of the EU, the ECB and the IMF as a condition for a €10bn loan in March 2013,” describing how the country’s two largest banks had been merged and recapitalised, the co-operative sector had been restructured with an emergency capital injection of €1.5 billion, and what it called “important improvements” were being made to the country’s supervisory system. The report found that the Cyprus banks’ downfall was caused by the interplay of a number of factors and failures, some of them outside Cyprus’ control, but many within it. The most significant internal cause was identified as “a failure at the national policy level to appreciate that running a big banking industry involves risk as well as reward. The public attitude was that the banks were doing a good job of supporting economic growth and that the international business they brought added to the nation’s wealth. Insufficient attention was paid to the fact that the banks were acting imprudently and that the international business was resulting in serious domestic imbalances, or to how any potential shocks might be handled.” Into this bleak recession landscape, two experienced non-Cypriot Chief Executive Officers were brought in order to restore confidence and stability to the two leading banks and to resolve the many internal issues that had led to the 2013 meltdown. In separate exclusive interviews on the following pages, John Hourican, CEO, Bank of Cyprus, and Bert Pijls, CEO, Hellenic Bank, reveal the challenges that faced them when they took up their new posts, their progress to date, their priorities for 2016, how they are dealing with the non-performing loans problem, banking in the digital era, the prospects that the reunification of the island will bring, and more.

IN ARMS JOHN HOURICAN AND BERT PIJLS The dynamic duo of the Cyprus banking sector By John Vickers | Photography by Jo Michaelides

BERT PIJLS Before being appointed CEO of Hellenic Bank in November 2014, Bert Pijls was Managing Director, Customer Services & Commercial of British Gas (2012-2014), Managing Director, EMEA Consumer Business Development & Re-engineering at Citigroup (2011-2012) and CEO of Egg Banking plc (2008-2011).

JOHN HOURICAN Before being appointed as Group CEO of Bank of Cyprus in October 2013, John Hourican served as Chief Executive of the RBS Group’s Investment Bank (Markets & International Banking) (2008-2013). In 2007-2008, he was Chief -PUHUJPHS 6ɉJLY VM ()5 AMRO Group.

CONTENTS

BROTHERS

COVER

STORY

28 | Brothers in Arms 1VOU /V\YPJHU *,6 )HUR VM *`WY\Z HUK )LY[ 7PQSZ *,6 Hellenic Bank, reveal the challenges that faced them when they took up their new posts, their progress to date, their priorities for 2016, banking in the digital era, the prospects that the YL\UPÄJH[PVU VM [OL PZSHUK ^PSS bring and more.

6 | EDITORIAL 8 | BUSINESS BRIEFING

Economic & Business Highlights of the past month.

12 | MY WAY

Alex Hooft van Huysduynen’s management style.

14 | FIVE MINUTES WITH… Schulz

Martin

16 | THEY SAID WHAT?

This month’s memorable utterances by Cypriots in the public eye.

OPINION 22 | STRONGER, SAFER AND BETTER OFF By Ric Todd

48 | PHARMACEUTICALS MANAGEMENT By Kyriakos Mikellis

FEATURES 18 | A GREAT AND COMPLEX PLACE

Interview with US Ambassador Kathleen Doherty

24 | CRIMINAL MINDS

Constantinos Constantinides on what the Constanteion Criminology and Forensic Sciences Research Centre has achieved.

86 IS I

TH E AIR N

SPECIAL ADVERTISING SUPPLEMENT 1 51 | Companies Involved in the Investment Funds Sector Fourteen companies present their products and services in detail.

42 | KEEPING EVERYTHING

ABOVE BOARD Simon Walker, Director General of the Institute of Directors, on his work and the multiple challenges facing business around the world.

50 | THE 6TH NICOSIA 86 | LOVE IS IN THE AIR 45 | SHIPPING INDUSTRY GALA ECONOMIC CONGRESS Maria Christodoulou on how Details of the May 17 event.

46 | HOW TO LEAD IN HIGH TURBULENCE )` ;H^ÄR 1LSHZZP

49 | INTERNATIONAL FUNDS

SUMMIT Meeting on “Bridging the Gap Between Europe, the Middle East, Africa and Asia”.

her Selective Matches service Looking ahead to the SLHKPUN ÄUHUJPHS LJVUVTPJ JHU OLSW WYVMLZZPVUHSZ ÄUK H SPML partner. event in the capital.

82 | A NEW CHAPTER

BEGINS Gregory Dellas explains the purpose of the newly founded ACAMS Cyprus Chapter.

4 | GOLD | The Business Magazine of Cyprus

88 | MY COLLECTION

92 | LUNCH WITH

GOLD 7OPSPW ]HU +HSZLU *,6 MTN Cyprus Ltd

95 | WHAT’S ON

Angelos Tsirides and the world of fossils.

Gold’s guide to the best cultural events of the coming month.

91 | BOOKSHELF

98 | A DAY IN THE LIFE

Five of the best new business titles.

Eleana Spyris

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

| EDITORIAL |

GOLD

A Time for Heroes

ISSUE 61 APRIL 17, 2016 PRICE €3.00

T H E

B U S I N E S S

M A G A Z I N E

O F

C Y P R U S

JOHN HOURICAN AND BERT PIJLS

The dynamic duo of the Cyprus banking sector

BROTHERS

IN ARMS 00001 >

5 291295 000577

PUBLISHED BY IMH ISSN 1986 - 3543

MANAGING DIRECTOR

“

George Michail

GENERAL MANAGER

Daphne Roditou Tang

ver the last three years, the Cyprus banking system has suffered a series of disasters which have transformed what was once a large and prosperous industry into a national catastrophe.” So began the final report by the Independent Commission on the Future of the Cyprus Banking Sector, published in October 2013, six months after the €10 billion bailout of the economy, the resolution (i.e. closing down) of the country’s second largest bank, a bail-in of its deposits and those of Bank of Cyprus customers, and a two-week period when all the island’s banks remained closed. Three years on, not a day goes by without a mention in the media of the 2013 crisis, whether it be in relation to ongoing investigations into the causes of the banking sector collapse, the continuing trial of senior Bank of Cyprus officials, discussions in the House of Representatives, efforts to bring others to justice and demonstrations by those who lost their savings. By any standards, it was a bad time for everyone. No-one has yet made a movie based on Cyprus’ 2013 experience but, if it ever happens, you can be sure that two of the heroes arriving on the scene in the nick of time to save the day will be the men on this issue’s cover: John Hourican and Bert Pijls. They may not resemble super-heroes or even traditional Wild West heroes but saviours they surely are. These two shrewdly appointed foreigners (from Ireland and the Netherlands respectively) have quietly made their mark on their banks (Bank of Cyprus and Hellenic Bank), bringing them back from the brink of disaster and transforming them into healthy financial institutions with steadily improving reputations. Messrs. Hourican and Pijls have proved quite elusive to Gold since their arrival but I’m delighted that we finally persuaded them to respond to questions in the two interviews that make up this month’s cover story (page 28). I believe you will find their answers revealing and extremely interesting. This month we also spoke to Kathleen Doherty, the recently-appointed American Ambassador to Cyprus (page 18), Simon Walker, Director General of the Institute of Directors (page 42), Constantinos Constantinides, Head of Research at the Constanteion Criminology and Forensic Sciences Research Centre (page 24), and Gregory Dellas, Chair of the newly established Cyprus Chapter of ACAMS (page 82). Add to this a fascinating article by Tawfik Jelassi, the Tunisian Minister of Higher Education, Scientific Research, and Information & Communication Technologies during the transitional technocratic government in 2014-2015 John Vickers, following the Arab Spring revolution, plus all our usual features Chief Editor and more, and I am sure you will find this issue of Gold one of our best yet. Happy Easter! john@imhbusiness.com

6 | GOLD | The Business Magazine of Cyprus

MEDIA MANAGER

Elena Leontiou

EDITOR-IN-CHIEF

John Vickers

JOURNALISTS

Artemis Constantinidou, Voula Loizou CONTRIBUTORS TO THIS ISSUE

Tina Adamidou, Amalia Hadjipapa, Tawfik Jelassi, Kyriakos Mikellis, Andrestinos Papadopoulos, Ric Todd PHOTOGRAPHY

Emma Louise Charalambous, Jo Michaelides, Andreas Loucaides ART DIRECTION

Anna Theodosiou

SENIOR DESIGNER

Alexia Petrou

ASSISTANT DESIGNER

Stephanie Andreou 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

BUSINESS BRIEFING ENERGY

Third round for oil and gas drilling bids

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IN THE NEWS

Egy EgyptAir flight hijacked to Larnaca Cyprus was on the world’s front pages last month, following a hijacking that diverted a domestic Egyptian flight to Cyprus. EgyptAir fight MS181, carrying 72 passengers and crew, was taken over by Seif Eldin Mustafa, who appeared to be wearing a suicide explosive belt, soon after taking off from Alexandria. The belt later proved to be fake. Everyone on board was eventually freed unharmed and the hijacker’s motives remained unclear – he claimed that he wanted to see his ex-wife and children in Cyprus but also made demands about freeing female prisoners in Egypt. On 6 April, the Ministry of Justice approved an order to extradite the hijacker back to Egypt.

CYPRIOT LAWYER WINS EU PRIZE FOR LITERATURE AWARD

Limassol lawyer Antonis Georgiou was among the 12 winners of the European Union Prize for Literature, announced on April 5 by Tibor Navracsics, European Commissioner for Education, Culture, Youth and Sport. Georgiou, author of the book An Album of Stories, was named as one of the year’s emerging authors. Although Georgiou studied law, he also holds an MA in theatre studies and has written a number of short stories, poems and plays. Each winner of the European Union Prize for Literature receives €5,000 HUK [OL H\[OVYZ ILULÄ[ from extra promotion and international visibility at Europe’s major book fairs, including Frankfurt, London and Paris.

8 | GOLD | The Business Magazine of Cyprus

STATISTICS

FORD

SHOPPING

SHOP HOURS FREE-FOR-ALL

wo court decisions last month on shop opening hours have resulted in total liberalization of the market, leaving stores of all types and sizes to implement their own timetables. The Nicosia district court ruled recently that the law preventing supermarkets from opening on Sundays was unconstitutional, according to a previous Supreme Court ruling, according to which the House of Representatives had no jurisdiction over the issue. The House, nonetheless, passed a new law, which President Anastasiades then appealed. The Supreme Court eventually dismissed the appeal on a technicality because it had not been filed on time, leaving the supermarkets, large stores and many consumers happy that they can now shop seven days a week. REAL ESTATE

ARISTO DEVELOPERS OPENS EGYPT OFFICE

risto Developers established a new 9LWYLZLU[H[P]L 6É&#x2030;JL PU *HPYV ,N`W[ SHZ[ TVU[O THYRPUN HUV[OLY TPSLZ[VUL PU P[Z NSVIHS I\ZPULZZ VWLYH[PVUZ *VTTLU[PUN VU [OL JVTWHU`ÂťZ L_WHUZPVU (YPZ[V *OHPYTHU HUK *,6 ;OLVKVYVZ (YPZ[VKLTV\ ZHPK Â¸;OL UL^ VÉ&#x2030;JL ^OPJO OHZ ILLU LZ[HISPZOLK PU SPUL ^P[O V\Y J\Z[VTLY VYPLU[LK Z[YH[LN` PZ IVSZ[LYLK ^P[O L_WLYPLUJLK WYVMLZZPVUHSZ [V TLL[ J\Z[VTLY ULLKZ >L ILSPL]L [OLYL PZ Z[PSS [YLTLUKV\Z VWWVY[\UP[` [V IL [HWWLK 6\Y LUOHUJLK WYLZLUJL ^PSS further enable us to position ourselves as a leader in [OL *`WY\Z WYVWLY[` PUK\Z[Y` IYPUNPUN \Z JSVZLY [V V\Y L_PZ[PUN HUK WV[LU[PHS JSPLU[Z HUK V\Y UL[^VYR VM HZZVJPH[LZ HJYVZZ ,N`W[ HUK IL`VUK Âš

tops car registrations so far

he automotive industry in Cyprus continues to show an upward trend in sales. During the first two months of 2016, Ford recorded the highest car sales in Cyprus with 366 registrations, while Nissan came second (291), followed by Kia (270), Toyota (226) and Volkswagen (145) registrations. Pilakoutas Group, which imports Nissan, BMW, Land Rover and Mini, remains the leader for car sales in Cyprus with 504 sales, while Michaels Automotive, Ford representative in Cyprus, is second with 366 registrations.

TOURISM

revenue rises 2.5% in January

evenue from tourism rose by 2.5% in January, to â&#x201A;Ź29.1million. While the number of tourists who visited Cyprus in January rose by 16%, the more modest increase in revenue was due to a shorter time spent here, combined with a drop in average spending per visitor. The average length of stay in January was 9.9 days compared to 11.4% in January 2015. On average, every tourist spent â&#x201A;Ź598.39 in the first month of the year, a 12% drop compared to 2015.

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www.jordanstrustcompany.com www.goldnews.com.cy | GOLD | 9

BUSINESS BRIEFING

NEW TO CYPRUS Alpha TV Cyprus

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Apple Store

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APPOINTMENTS

TECHNOLOGY

Endometriosis Centre Cyprus

Jamieโ s Italian

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GOVERNMENT TO INTRODUCE E-PETITIONS

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DESPINA PANAYIOTOU THEODOSSIOU

he Limassol-based Tototheo Group, a T leading provider of satellite communications for the global shipping industry, has

announced the appointment of Despina Panayiotou Theodossiou as joint Managing Director. In addition to her new duties, she remains responsible for the Corporate Strategy, Finance and Commercial matters.

ANDREAS MICHAELIDES

lpha Bank Cyprus Ltdโ s Board of DiA rectors unanimously elected Andreas Michaelides as Chairman of the Board of

Directors of Alpha Bank Cyprus Ltd. In March, following the resignation of Spyros Filaretos. Andreas Michaelides has a long career in the accounting, auditing and finance sectors. 10 | GOLD | The Business Magazine of Cyprus

CYPRUS INSTITUTE LAUNCHES LINEAR FRESNEL SOLAR ENERGY SYSTEM

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ฤ ฤ

THIS IS THE NUMBER OF UNEMPLOYED PEOPLE IN CYPRUS IN MARCH 2016. WHEN THE FIGURE IS SEASONALLY ADJUSTED, IT FALLS TO 40,079, WHICH IS 11% BELOW THE RESPECTIVE 2015 FIGURE, ACCORDING TO CYSAT. THE FALL IN THE NUMBER OF REGISTERED UNEMPLOYED IN MARCH IS MAINLY DUE TO A DROP IN THE NUMBER OF JOBLESS PEOPLE IN THE CONSTRUCTION INDUSTRY AND SERVICES SECTOR, WHOSE NUMBERS DECREASED BY 1,153 AND 785 RESPECTIVELY COMPARED TO MARCH 2015.

THE MARSHALL ISLANDS MILESTONES

AVIATION

Corporate Registry

ELLINAIR TO START LARNACA-THESSALONIKI FLIGHTS ÖL SHIPPING GROUP

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UNIVERSITY OF CYPRUS AMONG WORLD’S BEST

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tel: +30 210 4294 404 piraeus@register-iri.com www.goldnews.com.cy | GOLD | 11

www.register-iri.com

MY WAY

Alex Hooft van Huysduynen

Managing Director, Malta and Cyprus TMF Group

LIVING IN A FOREIGN COUNTRY PRESENTS ALL SORTS OF CHALLENGES TO EVEN THE MOST EXPERIENCED MANAGER. FOR ALEX HOOFT VAN HUYSDUYNEN OF THE GLOBAL BUSINESS OPERATOR TMF GROUP, IT MEANT OVERTURNING SOME PRECONCEIVED NOTIONS ABOUT BUSINESS AND SEEING HOW CYPRIOTS VIEW THEIR INDUSTRY. MOVING TO CYPRUS ALSO OPENED UP MANY ENJOYABLE LIFESTYLE OPPORTUNITIES THANKS TO THE ISLAND’S GREAT CLIMATE AND NATURAL BEAUTY.

“O

ne notable feature of my management style is that I do not micro-manage. I try to take a back seat in the company whenever possible to focus on bringing in new revenue to the group. As a global industry leader, TMF Group attracts the best and brightest lawyers and accountants, who expect their employer to respect their professional integrity.”

“T

he biggest mistake that managers make is to forget that, at the end of the day, it is all about the client. Internationally Cyprus is still struggling with a reputation of poor regulation, overcharging and bad service. In many cases this perception is not justified but there are still one or two odd firms around that short-change their clients on service and fees and do not allow them to move on to other service providers. We need to keep our eye on the ball and work twice as hard with double the integrity to regain the trust that we have lost over the years.”

“M

y greatest professional achievement has been helping to build fastgrowing operations in Cyprus, Malta and Greece. You need great staff, discipline, mutual trust and patience to lead operations from a distance.”

“O

ne object of my professional admiration is my father, who had an outstanding career with ING Bank, leading entire divisions. It was built on hen it comes eadership years of complete dedito relaxation, I styles are cation, hard work and a say thank God determined wide interest in current I live in Cyprus! The great climate by industry and affairs. Another is my and beautiful countryside allow us environmental factors wife who has kept the to spend time outdoors and enjoy like culture. Coming to ship straight in difficult the sun. My ideal weekend starts Cyprus has forced me to times. With her experion Friday night with a meze with challenge preconceived ence as Regional Director friends. On Saturday morning notions on how the of an international hotel tel we play tennis while in the afterbusiness is run and how chain, she has managed ged Alex Hooft noon we take our bikes to Agioi people’s minds work in to adjust my expecvan Huysduynen Trimithias or the Athalassa park. this part of the world. tations and make mee studied Accounting at the On Sunday, I watch my favourite Cypriots working in my understand the someeInHolland University of Applied industry have very positive football team (Ajax) or Formula 1 times seemingly irra-Sciences in the Netherlands. After driver (Max Verstappen) and on mindsets and tend to tional expectations off working for ING and ING Trust for Sunday nights I gear up for the put their trust in their my co-workers and eight years, he joined TMF Group busy week that is ahead of me!” employer.” superiors.” in 2005 as Manager of the Legal Department before being appointf there is one thing that has helped me most throughout the course of ed Managing Director. As well as being responsible for Cyprus and my career, it is the ability to put myself in the position of my clients and Malta, he also set up TFM Hellas co-workers.” in Greece. He has lived in Cyprus since 2010.

“L

“W

“I

12 | GOLD | The Business Magazine of Cyprus

info@eurofast.eu | www.eurofast.eu

M&A Investment opportunities We, at Eurofast, take pride in our dedicated team of professionals, specializing in M&A and transactional work in our offices, throughout South East Europe and East Mediterranean. Eurofast has over 25 years of experience working with global businesses and leading institutions. Over the years we have performed successfully significant number of local and international M&A transactions in the region. We have unique approach to support M&A transactions at international level through our professional network providing assistance to our clients in all phases of M&A transactions from planning for M&A process to closure and post integration, overall implementation of a sell or buy mandate.

Our fully integrated M&A and Transactional services include: B B B B B B B B

Research of the business environment and market Searching for investors/targets & approach Due diligence (legal, tax and financial) Price negotiation, contract negotiation and closing Sourcing of capital Tax-optimized deal structuring, including tax rulings Preparation and drafting of all legal documents Support services

We have unique investment opportunities

We are currently looking investors for: Students Halls Development – Cyprus Location: Aglantzia Total area floor: 4512 m2 Accommodation: 166 Units Luxury, modern, stylish and equipped studios – 20 to 25 m2 Common Areas: Parking Spaces and common areas will be developed, such as gym rooms, common kitchen, study rooms, launderettes etc.

Brand Hotel (a famous international chain), Constanta, Romania The Offer: Price for the land + the construction as it is now: € 12 M The capital injection needed to finish the project: € 6.25 M Projected GOP: 46% - 50% Projected IRR: 15.8%

Preliminary agreement: The rooms will be rented by the University directly – 15 years of guaranteed income. Expected IRR in the first year is 9.56%. Investment needed €8.740.000

B Already contracted with an international chain to undertake the operation of the hotel. B A prominent position overlooking Tomis Touristic Harbour in Constanta’s Historic Centre. Land Plot: 3,384 m2 Total Build Area (C.U.T.): 9,836.47 m2 Floors: 10 Rooms in Total: 147 Other Facilities: Fitness Centre, Conferences, Restaurant, Parking for 44 Cars

Contact: Eylem Philippou at eylem.philippou@eurofast.eu

For more information on Eurofast and its service portfolio, please visit www.eurofast.eu. 82 | GOLD | The Business Magazine of Cyprus

FIVE

MINUTES WITH

hat was the purpose of your March 28 visit to Cyprus? Cypriots face some crucial months ahead of them. The chance for reunification has never been so close and never been so tangible. I visited Cyprus to show the support of the European Parliament for the process being undertaken and to publicly back both President Anastasiades and the leader of the Turkish Cypriot community, Mr Akinci, for the considerable efforts they are making. Keeping the momentum going will be essential and I believe that, apart from receiving the helpful verbal support of the international community, Cypriots and their leaders can benefit from direct backing on the ground. To this end, I was also seeking to see in what way the European Parliament could best help the process. How does the European Parliament assess the ongoing efforts for a settlement and how do you see Cyprus’ role in the EU after a possible solution? The efforts being made by all sides to resolve the division in Cyprus are nothing short of remarkable. The speed and depth of the talks are impressive. I see an invigorated role for a post-solution Cyprus because it will be the leading example in the EU of how deep-seated divisions can be overcome through diplomacy and with patience

14 | GOLD | The Business Magazine of Cyprus

MARTIN SCHULZ

and perseverance. At a time when the “us against them” culture is becoming more dominant, a post-solution Cyprus can provide a counterbalance and a much-needed breath of fresh air for Cypriots, for the EU and for the whole Mediterranean region.

President of the European Parliament

Do you think that Cyprus’ EU membership constitutes an adequate guarantee for the security of the country and its people after a settlement? One of the recurrent reasons that sovereign nations have advocated for joining the EU has been that the peace and stability of that country are served better inside the EU. I see no reason why this would not be the case for a united Cyprus.

In which concrete ways can the European Parliament support efforts for a Cyprus settlement? With my visit I wanted to convey a message of hope on behalf of the European Parliament and it is a political message: Cypriot citizens will not be left alone the day after reunification. The EU presents th the best guarantee for a prosperous and br bright future for all Cypriots in the contex context of a Federal Cyprus. I have no dou doubt that, even though a settlement is within touching distance, there is sstill work to be accomplished and efforts to be made even after eventual unification. The international community and the EU must be ready to help out wherever this is beneficial. How do you view Cyprus’ recent completion of its economic aadjustment programme? It is to be highly commended. In three years the country has gone from an economy eco in meltdown, with all its eggs in one basket, to one on a clear path of recovery. Reforms have been undertaken speedily, which will help make the economy more resilient and also help in diversification. This rapid recovery shows that effort and persistence pay. But there should be no complacency. Reforms must continue, notably to reduce the high proportion of non-performing loans but also to further reform the public administration and move ahead with the privatisation of the Cyprus Telecommunications Authority. The establishment of a fairer tax system is also an important goal to pursue. (From an interview with the Cyprus News Agency)

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2016: A Breakthrough Year for the Economy? T h e S t a t e o f t h e C y p r u s E c o n o m y a n d P r o s p e c t s f o r 2 016 - 2 018

Christodoulos E. Angastiniotis Chairman of the Board, CIPA

Chrystalla Georghadji Governor of the Central Bank of Cyprus

Vincenzo Guzzo Resident Representative in Cyprus, IMF

Kyriakos Iordanou General Manager, ICPAC

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â&#x20AC;&#x153;THERE IS ALWAYS A WOMAN INVOLVED.â&#x20AC;? DISY CHAIRMAN AVEROF NEOPHYTOU

â&#x20AC;&#x153;SOCIETY NO LONGER TOLERATES COVER-UPS AND THE FACT IS THAT, SINCE THE FOUNDING OF THE REPUBLIC, THIS IS THE ONLY PERIOD WHEN SCANDALS INVOLVING WELL-KNOWN PEOPLE, POLITICIANS OR OTHER OFFICIALS ARE REACHING THE COURTS.â&#x20AC;?

President Nicos Anastasiades leaves himself open to accusations of sexism and political incorrectness in his assessment of the hijack of an Egyptair plane to Larnaca. In his defence, visiting European Parliament President Martin Schulz thought it was a great joke. PRESIDENT NICOS ANASTASIADES

â&#x20AC;&#x153;NO SLANDEROUS EUROPEAN ATTACK BY THOSE WHO PARLIAMENT PRESIDENT WANT TO BRING BACK MARTIN SCHULZ AND IMPOSE THE ANNAN WILL PREVENT US FROM â&#x20AC;&#x153;RIGHT NOW, SEEKING THE CORRECT THERE ARE NO SOLUTION THAT WE REGULATIONS, WANT. OUR PEOPLE THERE ARE NO DEKNOW WHO TASSOS CREES, THERE ARE PAPADOPOULOS WAS. NO LIMITATIONS THEY HAVE MEMORIES, AND SO ANYONE JUDGMENT AND DIGNITY CAN DO AS THEY AND THEY WILL ANSWER PLEASE.â&#x20AC;? SLANDERERS WITH THE Lawyer Alecos Markides, UTMOST CONTEMPT.â&#x20AC;? speaking after the Supreme DIKO Chairman (and son of Tassos Papadopoulos), Nicholas Papadopoulos would have us believe WKDW DQ\ UHIHUHQFH WR KLV IDWKHUÂˇV DOOHJHG LQYROYHPHQW LQ D Ă&#x20AC;QDQFLDO scandal is based solely on the desire of political rivals to take revenge for WKH ODWH 3UHVLGHQWÂˇV RSSRVLWLRQ WR WKH Cyprus yp solution that was rejected by Gree e k Cypriots in 2004. 20 Greek DIKO CHAIRMAN NICHOLAS PAPADOPOULOS

&RXUWÂˇV UXOLQJ RQ VKRS opening hours, accidentally describes life in Cyprus. LAWYER ALECOS MARKIDES

â&#x20AC;&#x153;I AM NOT SAYING THAT A SOLUTION IS AROUND THE CORNER. I AM NOT OVER OPTIMISTIC, AS THE LOCAL NEWSPAPERS ARE SAYINGâ&#x20AC;ŚRATHER, I AM REALISTICALLY OPTIMISTIC.â&#x20AC;?

ESPEN BARTH EIDE

The UN SecretaryGeneral`s Special Advisor on Cyprus, Espen Barth Eide, insists that he knows better than anyone HOVH ZKDWÂˇV JRLQJ RQ LQ WKH WDONV Given that those opposed to a settlement claim that they are EHLQJ NHSW LQ WKH GDUN ZK\ GRQÂˇW they believe him?

â&#x20AC;&#x153;HIS DECISION MAKES MY BID FOR REELECTION COMPLETELY HOPELESS, THUS RENDERING MY PARTICIPATION IN THE ELECTIONS INEFFECTIVE AND UNCONVINCING. I CANâ&#x20AC;&#x2122;T PRETEND THAT I DONâ&#x20AC;&#x2122;T BELIEVE THIS PARTY DESERVES BETTER.â&#x20AC;? ('(.ÂˇV RQH DQG RQO\ /LPDVVRO MP Nicos Nicolaides accuses party leader Marinos Sizopoulos of ruining his re-election chances after the latter decided to stand in Limassol. At least he shows a good understanding of how the party is likely to fare in the elections. NICOS NICOLAIDES

â&#x20AC;&#x153;THE RIGHT TO STRIKE IS A WEAPON IN THE HANDS OF THE WORKERS, WHICH SHOULD REMAIN AND CONTINUE TO BE USED AS SPARINGLY AS POSSIBLE. THERE MUST BE SKELETON STAFF, WHICH REDUCES THE EFFECTIVENESS OF THE STRIKE BUT YOU CANNOT USE A WEAPON THAT AFFECTS OTHERS.â&#x20AC;?

AKEL parliamentary spokesman Yiannos Lamaris reveals a curious understanding of what a ZHDSRQ LV IRU ,I LW GRHVQÂˇW affect anyone, what exactly is its purpose?

YIANNOS LAMARIS

A GREAT –AND COMPLEX –

PLACE CYPRUS MAY BE A SMALL COUNTRY BUT, SAYS THE US AMBASSADOR, IT HAS A DEPTH THAT IS FAR GREATER THAN ITS SIZE.

By John Vickers | Photo by Emma Louise Charalambous

athleen Doherty was appointed Ambassador of the United States to Cyprus six months ago. In her first interview with Gold, she expresses her optimism about the island’s political and economic future, talks about the role that US companies can play before, during and after reunification, and comments on the ongoing global terrorist threat. Gold: Before being appointed Ambassador to Cyprus, you were Deputy Chief of Mission in Rome and you’ve worked in London and Moscow, all major European capitals. What was your first reaction to being posted to the relatively tiny city of Nicosia? Kathleen Doherty: I like the Mediterranean climate, food, wine and people so I knew immediately that it was going to be a good fit! Gold: The present situation in Cyprus has a complexity that far exceeds the

18 | GOLD | The Business Magazine of Cyprus

country’s size and importance on a global scale, of course, and you may be fortunate to have arrived at a more optimistic moment than any of your predecessors since 1974. What’s your reading of the situation? K.D.: I’m optimistic about Cyprus in many different ways. First, I’m optimistic about the talks. Obviously, it’s up to the two leaders and their teams and to the Cypriot people to decide what their future will look like but I think the potential is great and I’m hopeful that a resolution will happen. Having emerged from the Troika programme, Cyprus is heading in the right direction economically and the growth that’s happening here is very exciting. Because of its geographical location, it is becoming more important as an economic platform for both Cypriot and foreign companies. I’m also excited about the potential for Cyprus as a reunified country, which will be of even greater importance – politically and economically – for the region. Gold: What impact do you think a

settlement of the Cyprus Problem could have both here and on the broader region? K.D.: It’s almost a cliché but we need a good inspirational model of how people can overcome differences, division, conflict, prejudices and pain and find a shared future that offers only good things to people. In this part of the world more than anywhere else in this day and age, we’re all searching for a path that promises a better future. We need a model and I am personally inspired by the courage of the leaders and the two communities to go down this path – even this far. I find this inspirational and if it is completed successfully, it will be inspirational for many people. Gold: A lot has been said about the cost of a solution, partly due to the need to bring the economies of the two federal states closer in terms of size. Do you envisage the US playing a role in the actual funding of a settlement? K.D.: When Vice-President Biden and Secretary of State Kerry were here, we

| INTERVIEW |

www.goldnews.com.cy | GOLD | 19

| INTERVIEW |

THERE WILL BE SOME OFFICIAL US GOVERNMENT SUPPORT AND THEN PRIVATE SECTOR SUPPORT FOR A CYPRUS SETTLEMENT committed that we will financially contribute to the settlement. As to what form and shape it takes as a US government contribution, a lot will depend on what is actually needed. Right now it’s hard to know what the exact costs of a settlement will be and how we can provide financial support but I’ve already been speaking to the US private sector – I was in Washington two weeks ago and I also went to New York – and I’ve probably met with more than two dozen US companies that have expressed interest in doing business here in Cyprus and helping support the settlement. So I think we could do a lot of creative private sector financing, a lot of it through the projects that might unfold under reunification. There’s a lot of potential here and I think there are a lot of creative ways to find answers so there will be some official US Government support and then private sector support for a Cyprus settlement. Gold: Since your arrival, Cyprus has officially exited the EU-IMF economic adjustment programme. Would you agree that it’s quite an achievement? K.D.: Yes, I would, and they did it early and they didn’t use all the money they were entitled to under the programme so we have to give credit to the Government for taking some tough decisions and fulfilling the requirements of the programme. I’ve heard that some of the planned privatisations haven’t happened and I would encourage the Government to look at them because I think they are opportunities which foreign investors would be very interested in and which could bring even more jobs to the country. Gold: What is the current state of the economic and trade relationship between Cyprus and the US? K.D.: It’s still low but it’s growing. Noble

20 | GOLD | The Business Magazine of Cyprus

Energy, an extremely important energy company both for the region and the US, is here and a US company is one of the finalists for the casino licence. Also, I’ve seen a real, significant uptick in company interest in Cyprus, primarily because the region is so unstable and companies are taking decisions about whether they want to stay or move their operations elsewhere. Cyprus is increasingly coming up as a possible destination for these companies. They haven’t yet decided to leave but they are thinking about it and what I’m hoping is that, when they come to Cyprus and have conversations with government officials and private sector counterparts, they will hear good stories about good experiences and see for themselves what Cyprus has to offer. Gold: What is the current situation visà-vis a Double Taxation Treaty between Cyprus and the US? K.D.: We hear a lot about the Double Taxation Treaty, which is viewed with concern by some Cypriots as regards its impact on potential US foreign investment. The existing treaty is an old one but, to date, no US company has ever come to the Embassy and said that it has impeded their investment in Cyprus. When they have raised concerns about Cyprus it’s been more about labour and regulatory issues rather than taxation. The corporate tax rate is already low here and there are a lot of favourable conditions so, at this point, it’s not a priority to renegotiate. If we see that it is impeding US investment in Cyprus, we’ll certainly be more likely to look at it. Gold: How do you see the Transatlantic Trade and Investment Partnership (TTIP) negotiations between the US and Europe progressing? K.D.: We’ve had 12 rounds and we have

now reached a point where both sides have put really good offers on the table for the other side to respond to. We’re hopeful that these good offers will allows us to get closer to a conclusion of TTIP. Gold: Many Europeans are feeling very insecure these days, following the terrorist attacks on Paris and, more recently, Brussels. This year it will be 15 years since 9/11. Do American citizens feel a similar insecurity or have the measures implemented since then made them confident that a similar act can’t be repeated? K.D.: I think we all share a sense of insecurity about the world. We’ve had our own attacks on a much smaller scale in California and in Texas. I think sometimes there’s a disconnect between our sense of fear and what is likely to happen – we always say that it’s more dangerous to drive a car or to cross the street – but I don’t want to underestimate what fear does to people. Governments are trying to find the right balance between protecting people, their rights and their privacy with the obligation to ensure the safety of their people and it’s a constant challenge to figure out what that balance is. I think that, more than anything, sharing information is probably the key element to combating some of the threats that are being posed against us and I see European governments trying to figure out how to share information among themselves better. We’ll try to figure out how Europe and the US can share information while respecting how we see things and human rights issues. Gold: How concerned is the US about the spread of so-called Islamic State (ISIL) across the Middle East? K.D.: We’re doing our best to combat the threat from ISIL and we’re doing a lot. There are 66 countries working to counter ISIL and we can see, especially in places like Iraq, that the threat is being diminished. ISIL has lost a lot of ground and is being pushed back and a lot of its financing has been cut off. It still poses a significant threat but we’re hoping that, by attacking in many different ways, we’re controlling and then, hopefully, diminishing it to a point where it doesn’t really pose the threat that it is right now. Cyprus is a secure country but this is a difficult neighbourhood and there’s always

reunification, there will be a lot of infrastructure needs. American companies have a lot of experience of working in Europe and in the region on major infrastructure projects and they would be very well positioned to come here.

I WAS VERY IMPRESSED WITH HOW CYPRIOT AUTHORITIES ADDRESSED THE RECENT HIJACK a possibility of it spilling over so I think everyone has to be vigilant here too. It’s hard to know what the targets are of people who want to cause damage to our countries and societies and I think there’s more potential concern in Europe where we’ve already seen attacks in the major capitals but you never know. The message is that we should always be vigilant and always take heed and make sure we have the best capabilities. We’ve been working with the government to enhance some of the capabilities here too. I was very impressed with how the Cypriot authorities addressed the recent hijack and I think it should be reassuring to people that Cyprus might be a small country but there are very capable people here.

Gold: You mentioned the possibility of investment by US companies and everyone here is agreed that foreign investment is key to reviving the economy and achieving growth. Are there specific sectors in which you believe American investors may be interested? K.D.: Yes. I think what’s underdeveloped here and offers some of the greatest potential for Cyprus is the Information Technology (IT) industry. Thanks to the benefits such as the high educational standards and English language fluency of so many Cypriots, the country should take advantage of IT, innovation and start-ups. I also think there’s a lot of great potential for biomedicine; tourism is obviously another area and, in the context of

Gold: It was the American company Noble Energy that created a whole new outlook for Cyprus with the discovery of natural gas offshore. There have been a few setbacks but do you believe that Cyprus’ aspirations to become a regional energy hub are realistic? K.D.: Certainly, although I think that, given the low energy prices that have already been sustained for longer than anyone anticipated, it’s very hard nowadays to predict what the energy picture will look like in terms of exploration, production and services needed in five or ten years’ time. But due to its geographic location, Cyprus could be a very important hub in the Eastern Mediterranean. If reunification comes about, it could very well become an energy hub of some type, thanks to the Turkish market, which is growing in terms of its energy needs, and the benefit that Cyprus has as a member of the EU with a highly skilled labour force. But right now we’re all struggling to work out what the energy picture is so it’s a difficult time to predict the future on this. Gold: How would you describe your personal experience of Cyprus so far? K.D.: You said it when you described Cyprus as a small but complex place! I’m finding the complexity greater than I anticipated and more interesting because of that. It’s easy to see Cyprus from a one-dimensional viewpoint and the more I understand the culture and the island, the more interesting I find it, to the point that I joke with my colleagues that I have to learn 10,000 years of history. It makes the depth of this place far greater than its size and far greater than most people realise. I can’t think of too many places that offer as much as this island has, in terms of its history, anywhere else in the world. There are things that are just tremendous about this place: the wine country, the natural beauty, the sun… I think Cyprus is much misunderstood by the outside world. It’s a really great place…with a lot of complexity!

www.goldnews.com.cy | GOLD | 21

Opinion

STRONGER, SAFER AND BETTER OFF WHY BRITAIN SHOULD REMAIN IN THE EU By Ric Todd

he referendum to remaining in a reformed Europe than determine whether we would be out on our own. Our the UK remains partt global influence is enhanced by being a of the EU is due leading member of the world’s largest to take place on 23 trading bloc. We can play a leading June. The Governrole in one of the world’s largest organment is clear that Britain would be isations from within, helping to make safer, stronger and better off inside a the big decisions inside the EU – as we reformed EU. have been on Russian sanctions, bringMany British expatriates living in ing Iran in from the cold, and tackling Cyprus will be concerned about the people smuggling in the Mediterranean. issues under discussion and how the Throughout our history, our strength results of the referendum may affect as a nation has come from looking bethem. What is clear is that leaving yond our shores and reaching out to the the EU will have many serious imworld. And today the EU, like NATO plications and no one yet knows the and the UN, is a vital tool for Britain – extent of them. The Prime Minister just as it is for other Member States – to has said that a vote to leave would boost our influence and multiply our be “a leap into the dark”. It would ability to advance our common intermean years of uncertainty. The ests. Prime Minister firmly believes the Secondly, the UK Government Info: Ric Todd is best future for the UK lies in a reformed EU. believes that Britain will be safer remaining in a rethe British High Practically, if the British people vote to leave the formed Europe than we would be out on our own. Commissioner to Cyprus EU there is only one way to bring that about – and Today we – like other Member states – face myriad that is to trigger Article 50 of the Treaties and begin threats to our security, from terrorism to organised the process of exit. That would start straight away, triggering crime, from human trafficking to cyber attacks. We defeat a 2-year time period to negotiate the arrangements for exit. At these threats by working together, through the closest possible the end of this period, if no agreement is in place, then exit is cooperation between countries, especially with our EU partautomatic unless every one of the 27 other EU member states ners. agrees to a delay. And finally, the UK Government believes that Britain will For British citizens living within the EU, nothing would also be better off remaining in a reformed Europe because change immediately. It would merely trigger the above two British businesses will have full access to the free trade single year process for exiting the EU. If a deal to leave wasn’t done market of 500 million people. This brings jobs, investment within 2 years, the UK’s current access to the single market and financial security to our country, just as it does to Cyprus. would cease immediately, and our current trade agreements So in the months leading up to the Referendum, the Prime with 53 countries around the Minister is campaigning hard for world would lapse. This cannot be Britain to remain in a reformed OUR GLOBAL INFLUENCE European Union – which, he described as anything other than IS ENHANCED BY BEING risk, uncertainty and a leap in the believes, will make the UK dark that could hurt our country stronger, safer and better off. A LEADING MEMBER OF for years to come. And on Referendum Day, it will THE WORLD’S LARGEST The Prime Minister firmly bebe for the British people to make TRADING BLOC lieves that Britain will be stronger their decision.

22 | GOLD | The Business Magazine of Cyprus

The Cyprus

19 May 2016

Forum 2016

Hilton Park Hotel Nicosia | Cyprus

Internal Audit

08:30 - 14:30

Internal Audit: Adding Value and Governance

Programme Highlights Include:

Keynote Speaker Richard F. Chambers President & CEO The Institute of Internal Auditors Global Headquarters USA Featuring Speakers • Martin W. Stevens, Management Board member of the European Confederation of Institutes of Internal Auditing (ECIIA), Norway • Kristiina Lagerstedt, VP Internal Audit & Assurance, Sanoma Group, Sweden • Anna Zavou-Christoforou, Commissioner of Internal Audit of the Republic of Cyprus, Internal Audit Service of the Republic of Cyprus • Konstantinos P. Triantafyllidis, Internal Audit Consultant, Greece • Nicola Rimmer, Global Board Member, The Institute of Internal Auditors Inc., UK • Nicholas Hadjiyiannis, CEO, Cooperative Central Bank, Cyprus • Dr. Alexandros Antonaras, Director of Institutional Excellence & Business Services and Assistant Professor, University of Nicosia, Cyprus • Onisiforos A. Onisiforou, Director of Internal Audit, Cyprus Broadcasting Corporation (CyBC) & Chairman of IIA Cyprus Standards & Ethics Committee, Cyprus

Addressed to • Members of the Cyprus Institute of Internal Auditors, European & other Institutes • Internal Auditors, CFOs, CEOs, Managing Directors, Chairmen and Board Members of Cypriot companies • Audit Committee Members • Members of other related professional bodies • Executives from the Internal Audit Service in the Public & Private Sectors • Media representatives

• Trends in European Governance and Internal Audit • Latest International Standards for effective Internal Auditing • Challenges and Opportunities in Internal Audit • Internal Auditor and Second Line of Defence tasks • The Role and Objectives of the Internal Audit Service in the reform of the Public Sector • Internal Audit Quality Assessment and Improvement Programme • The Business Ethics Perspective in Internal Auditing

5 Reasons to attend

• Enhance your professional knowledge and skills - Stay up to date on all the important areas of Audit, Risk,Governance, Fraud, Corruption, Cybercrime and Information Security. • Experienced Speakers – Hear exclusive case studies and keynote presentations and benefit from the first-hand advice and guidance from renowned international speakers. • Best practice – Receive a comprehensive explanation of the latest detection, investigation, response and prevention strategies employed by prominent multinational companies, banks, governments and the international community. • Networking opportunities – This is a rare opportunity to meet and discuss shared issues of concern with the representatives of local and national government, public sector organisations and private companies. • Earn 5 CPE credits.

For further information contact: IMH, 5 Aigaleo Str., 2057 Strovolos, P.O.Box 21185, 1503, Nicosia, Cyprus Tel. +357 22505555 Fax. +357 22679820, E-mail: events@imhbusiness.com, website: www.imhbusiness.com Coordinator

Communications Sponsors

Organizer

| CRIMINOLOGY |

M CRI INAL MINDS THE CONSTANTEION CRIMINOLOGY AND FORENSIC SCIENCES RESEARCH CENTRE, WHICH WAS ESTABLISHED IN NICOSIA IN 2010, CONDUCTS SPECIALIZED SURVEYS, STUDIES, LECTURES AND SEMINARS, HOLDS CONFERENCES AND RUNS COURSES ON CRIMINOLOGY AND FORENSIC SCIENCE TOPICS, INCLUDING DNA EVIDENCE, FORENSIC GRAPHOLOGY, CRIMINAL PROFILING, FINANCIAL CRIME AND CRIMINAL CASE ANALYSIS. AS THE CENTRE ENTERS ITS SIXTH YEAR OF OPERATIONS, CONSTANTINOS CONSTANTINIDES, HEAD OF RESEARCH, TALKS ABOUT WHAT IT HAS ACHIEVED, PARTICULARLY IN RAISING PUBLIC AWARENESS OF CRIME AND CRIMINOLOGY. BY JOHN VICKERS | PHOTO BY EMMA LOUISE CHARALAMBOUS

24 | GOLD | The Business Magazine of Cyprus

ost of us have probably learnt the word “profiler” through movies such as The Silence of the Lambs or the TV series Criminal Minds, based on the FBI’s Behavioural Analysis Unit (BAU), but few would imagine that there could be a link between them and Cyprus. And yet only six months ago, a course on Criminal Profiling began at the Constanteion Criminology and Forensic Sciences Research Centre in Nicosia. Yes, such a place really exists, although the Centre’s Head of Research, Constantinos Constantinides, acknowledges that it has maintained a fairly low profile over its first five years of operation. However, things are changing as greater public awareness means a growing willingness to report crime and Constantinides – somewhat reluctantly, it must be said – accepts that he and his colleagues have played their part in this. “Six years ago, only the police were doing anything related to criminology and forensic sciences in Cyprus,” he says. “There was nothing of an academic or scientific nature, so someone needed to fill this gap and create international relations and connections in order to develop this area. The Centre, which is a member of the British Society of Criminology, the American Society of Criminology and the International Corrections and Prisons Association, is still the only such organisation here.” As Head of the Centre’s Research Unit, Constantinides sees one of his

roles as that of trying to control and reduce crime by looking at the causes of criminal behaviour and activity. “Many people think we can eliminate criminality,” he says, adding, “but this is, unfortunately, not true. Criminality is part of society but we can certainly try to understand it better and thereby find ways of controlling it.” Surely the amount of research done in other countries with much higher crime levels is enough to give the Cypriot authorities plenty of examples of best practice? No, Constantinides states firmly. It’s essential that Cyprus does its own. “Every society is different so you can’t just copy/paste what other countries are doing. You have to carry out your own research, use the data to make your own evaluation and then implement your specific aims. If your objective is to reduce child abuse or murder, you need to identify the profile of the violent offender in your country and the factors affecting this behaviour so as to have a chance of preventing it in the future.” Another of the Constanteion Centre’s key aims is to create greater awareness of precisely what constitutes crime. There is a complete lack of it in Cyprus, says Constantinides, who recalls with a smile how, “When we started, people used to call us and ask if we could follow

THE INSTITUTIONS THAT ARE RESPONSIBLE FOR JUSTICE MUST BE TRUSTWORTHY, TRANSPARENT AND FREE OF CORRUPTION

their wives and husbands!” He goes on to explain how, not only did they have no idea about criminology or forensic sciences but, if you asked them if they considered certain actions to be crimes, many of them would say no, especially to what are seen as ‘victimless’ or white collar crimes. “This is why we started organising public lectures and seminars on specific crimes so that there is much greater awareness. We visit schools to talk about child abuse, drugs, and so on. We also train professionals in the field – police, prison staff, lawyers, judges, social workers – in an effort to increase the standards of criminology and forensic sciences in Cyprus so that they can be used in court, during criminal procedures, in the correction system.” Cyprus has always promoted itself as a relatively crime-free country and society but we live in the real world and crime has surely increased over the years. I ask Constantinides if, through his studies and research, there are specific things that he can point to as reasons why crime has risen on the island. “People’s ethics have changed,” he says. “Every major event in any society affects the way people think, so 1974 had an effect, as did 2013. In order to survive, some people are forced to lower their moral standards.” And it doesn’t have to be a particular incident, he goes on. It could be a gradual change of perceptions, such as the way that we all use technology these days to obtain information about virtually anything. This was not the case 20 years ago. “We are seeing a lot of white collar and financial crime, much of which has been made possible by new technology, but we shouldn’t blame the technology,” he explains. “More significant is the fact that there have been no criminal prosecutions or convictions. This makes some people think: ‘If that person can

www.goldnews.com.cy | GOLD | 25

| CRIMINOLOGY |

get away with something, why shouldn’t I?’ So the institutions that are responsible for justice must be trustworthy, transparent and free of corruption. If they are not working well and doing a good job, this will lower the deterrent factor and those ‘red lines’ will be crossed by more and more people.” Crime will continue to become more widespread because we lack the knowledge of who the offenders are, Constantinides says, noting that, “In banking there is a ‘Know Your Client’ rule and I believe that there needs to be a ‘Know Your Offender’ concept so that the police and other bodies can take the necessary actions to control criminality.” Asked what he makes of all the scandals that are being uncovered these days, he answers at once, “They are only the tip of the iceberg” and refers to an IMF estimate that the aggregate size of money laundering in the world could be somewhere between 2% and 5% of the world’s gross domestic product. “That was almost 20 years ago but even if financial crime and fraud in Cyprus represent a much smaller percentage of GDP, it still means that something is seriously wrong and to change it we need ethics and transparency, which have obviously been missing.” One of the Constanteion Criminology and Forensic Sciences Research Centre’s first projects was to draw up a 2012-2016 action plan related to the crime prevention policy of the Ministry of Justice & Public Order. Among its recommendations were more research, profiling offenders, updating criminal laws, improving the juvenile justice system and drawing up a Correction Law, which does not exist in Cyprus. “Unfortunately, in 2013 many things were halted or changed in response to

26 | GOLD | The Business Magazine of Cyprus

WHEN WE STARTED, PEOPLE USED TO CALL US AND ASK IF WE COULD FOLLOW THEIR WIVES AND HUSBANDS! the financial crisis,” Constantinides explains. “Recruitment to the police and the prison service was frozen, for example. We had proposed that staff numbers needed to be increased and that there should be more training but, once the money was not there, it meant that a large part of the action plan was not implemented.” The police are regularly criticised for not being efficient and the prison service for not being fit for purpose. What is the view of the Centre? Regarding the police, Constantinides believes that, since the appointment of the current Chief of Police, they are doing a much better job. “Their campaigns, whether they concern road accidents, drugs, burglaries, domestic violence or sexual abuse, are continuous and ongoing,” he notes. “They are much quicker to react and they show a better attitude towards the public. Above all, they acknowledge their weaknesses and are trying to eliminate them.” The prison service is a bit more complicated, he says. We frequently hear that the Central Prison is overcrowded but he believes that simply building a bigger one is not the solution. “We need to be much more innovative by allowing judges, for example, the power to

impose sentences involving community service rather than a prison term. The point should not to be to give every offender a custodial sentence but to have a system that allows judges to view each case separately and impose the most appropriate penalty, which will encourage the guilty party not to reoffend.” Is there a country or system that he can point to and say that it is a model from which Cyprus could learn a lot? “Canada!” Constantinides replies enthusiastically and he goes on: “Its legal system, like that of Cyprus, is based on English Common Law but it pays much more attention to the victim of crime and it invests a great deal of money in tackling juvenile delinquency and victimisation, controlling criminality and suppressing crime.” Finally, I ask Constantinides what he considers to be the Centre’s achievements during its first five years. Modestly, he says that it is too early to be talking about achievements but he is willing to acknowledge that, together with other bodies, the Constanteion has contributed to the creation of greater awareness of certain crimes and a corresponding increase in people’s willingness to report them. “We were the first to highlight the problem of child abuse within the home, something that had previously been considered a taboo subject. Now people talk about it and act on it. As a result, many mistakenly believe that there has been an increase in child abuse over the past five years,” he says, “but in fact it is all about the difference between actual and reported crime. Today more people are coming forward and reporting something they know to be wrong – this is what has increased. Awareness is greater so people are more willing to do the right thing. I see this as

| COVER STORY |

BROTHERS

IN ARMS JOHN HOURICAN AND BERT PIJLS The dynamic duo of the Cyprus banking sector By John Vickers | Photography by Jo Michaelides

| COVER STORY |

W hat was the main challenge for you when you took over as CEO of Bank of Cyprus in 2013? John Hourican: The restoration of confidence in all constituencies was the key challenge. Our customers had lost a great degree of confidence, our employees were embarrassed about where they worked, our investors were suspended… So the question was how to restore confidence with every stakeholder and I think we’ve steadily achieved that. The fact that I was in a new place, a new country, a new culture was also a challenge, of course, but having lived abroad out of Ireland for the last 20 years I’ve been a “foreigner” all my life and that helps. You need to recognize that you’re living in someone else’s country and doing what has to be done in a different culture but, while there was perhaps a degree of difficulty in that, it certainly wasn’t the main challenge.

JOHN HOURIGAN, CEO, BANK OF CYPRUS

30 | GOLD | The Business Magazine of Cyprus

Gold: How far would you say you have achieved your initial aims? J.H.: I think we’re a long way through many parts of what we set out to achieve. We said we would remove all of what I would call the “overseas tourism” – being in places we really shouldn’t have been – and that’s all done. We’re re-establishing customer confidence in the bank, as well as deposit growth, which is well on its way to being achieved. Deposits grew by 12% last year. There’s more to do on non-performing loans but in terms of raising new equity, restoring the bank’s capital base and bringing back confidence, a lot of that has been done. I would say that we’re a long way through the process but it’s always going to be a work in progress – and I believe that any good business should always be a work in progress, anyway.

Gold: The reputation of the Cyprus banking system was dealt a severe blow in 2013. Three years on, has public and investor confidence returned? J.H.: Again, I think “work in progress” is an appropriate phrase. Our customers now recognize that the bank is in healthier shape by some distance than it was in the past and that this is a place where they can safely put their money, which is a long way from where we were when we started. I would say that we’ve been rewarded by our customers’ faith in the bank to grow their deposit base and I hope we continue to earn that trust. As for investors, we brought in €1 billion of new equity – the largest direct foreign investment in Cyprus since the foundation of the state – so we have been able to attract real money but we have to make it more valuable. The stock markets have not been an easy place to put valuations on banks, so we have to keep holding ourselves to a very high standard and one would expect that eventually it will manifest itself in the bank’s value.

Gold: Have enough reforms been put in place in the banking sector to ensure that it doesn’t grow out of all proportion to the economy again? J.H.: I think people are extremely conscious of what happened before – not just in Cyprus but across Europe – and most of the regulations that have been introduced into banking are designed to protect the sector against that happening again. What everyone needs to understand is that crises generally happen where they are not expected so it may well happen somewhere else but I think that another crisis of the nature of the one that happened in 2013 is much less likely to happen than it was in the past.

MOST

of the noise you hear about banks not lending is from those that nobody should lend to!

Gold: How significant was the injection of capital into Bank of Cyprus in 2014 by WL Ross & Co. LLC and others? J.H.: It was huge because it validated what we were saying. When 40 sophisticated financial investors put their real money where our story was, they were saying to everyone else, “We believe this story, and we could have put our money in any sector any-

THE ECONOMY

Gold: How would you describe the path of the Cyprus economy over the last three years? J.H.: The starting point is that NVVK NV]LYUTLU[ ÄZJHS KPZJPWSPUL OHZ ILLU HU PTWVY[HU[ ILKYVJR MVY WLVWSL [V YL[\YU [OLPY JVUÄKLUJL [OYV\NO [OL ZV]LYLPNU PU[V [OL LJVUVT` 0[ OHZ ILLU H KPɉJ\S[ JV\WSL VM `LHYZ I\[ 0 OH]L [V ZH` [OH[ VU H WVSPJ` SL]LS [OL .V]LYUTLU[ OHZ ILOH]LK PTWLJJHIS` PU [LYTZ VM [OL ZJY\[PU` P[»Z JVTL \UKLY I` [OL PU[LYUH[PVUHS HNLUJPLZ 0[»Z JHYYPLK V\[ H YLHZVUHISL HTV\U[ VM YLMVYT ¶ HS[OV\NO 0 ^V\SK SPRL [V OH]L ZLLU TVYL PUJS\KPUN 3HIV\Y 3H^ YLMVYT¶ HUK 0 [OPUR [OH[ UV^ *`WY\Z PZ V\[ VM [OL LJVUVTPJ HKOQ\Z[TLU[ WYVNYHTTL [OL .V]LYUTLU[ ULLKZ [V JVU[PU\L ^VYRPUN VU [OH[ YLMVYT HUK JYLH[PUN [OL JVUKP[PVUZ MVY YLJV]LY` There are good signs in the LJVUVT` HUK [OLYL»Z Z\ɉJPLU[ L]PKLUJL PU T\S[PWSL JVTWVULU[Z VM [OL KH[H [V Z\NNLZ[ [OH[ [OL LJVUVT` PZ PUKLLK Z[HY[PUN [V YLJV]LY *VUZ[Y\J[PVU PZ \W MVY [OL ÄYZ[ [PTL PU X\HY[LYZ UL^ JHY YLNPZ[YH[PVUZ ¶ HS^H`Z H NVVK ZPNU VM JVUZ\TLY JVUÄKLUJL ¶ HYL \W [OLYL PZ KLTHUK MVY UL^ SLUKPUN [V\YPZ[ HYYP]HSZ HYL ]LY` ZPNUPÄJHU[S` \W VU WYL]PV\Z `LHYZ [OLYL»Z PU]LZ[TLU[ OHWWLUPUN PU [OL OV[LS ZLJ[VY [OL LK\JH[PVU ZLJ[VY HUK V[OLYZ ;OLYL HYL LUV\NO ZPNUZ [OH[ [OPZ YLJV]LY` PZ UV[ Q\Z[ PU VUL WSHJL I\[ HJYVZZ [OL IVHYK 0[ PZ HSZV [Y\L VM JV\YZL [OH[ THU` JVUZ\TLYZ HYL UV[ `L[ MLLSPUN P[ PU [OLPY ^HNL WHJRL[Z HUK P[ TH` IL H ^OPSL ILMVYL [OH[ OHWWLUZ I\[ \ULTWSV`TLU[ PZ MHSSPUN ZV ^L»YL ZLLPUN LUV\NO L]PKLUJL [V Z\NNLZ[ [OH[ ^OH[ ^HZ H MYHNPSL YLJV]LY` PZ UV^ Z[HY[PUN [V NHPU TVTLU[\T Gold: Everyone agrees on the importance of Foreign Direct Investment if the island’s economy is to grow. Which sectors ^V\SK `V\ ]PL^ HZ VɈLYPUN [OL greatest potential for such investment? J.H.: ;OL ]LY` VI]PV\Z VUL PZ

[V\YPZT HUK ^P[O [OL U\TILYZ WPJRPUN \W ZPNUPÄJHU[S` VU SHZ[ `LHY [V IL [OL SHYNLZ[ L]LY U\TILY VM [V\YPZ[ HYYP]HSZ HUK HU PUJYLHZL PU [OL T\S[P `LHY JVU[YHJ[Z [OH[ HYL ILPUN VɈLYLK HZ ZVTL VM [OL [V\YPZT PU [OPZ [\T\S[\V\Z YLNPVU JVTLZ [V *`WY\Z ;OLZL HYL HSS [OPUNZ ^L OH]L [V I\PSK OLH]PS` VU :V [V\YPZT PZ [OL PTTLKPH[L JSLHY HUK WYLZLU[ ZLJ[VY I\[ [OLYL HYL SV[Z VM V[OLYZ ÔLYL *`WY\Z JHU JVTWL[L! [OL I\ZPULZZ ZLY]PJLZ ZLJ[VY ^P[O HSS [OL T\S[PWSL [H_ [YLH[PLZ [OH[ *`WY\Z OHZ OHZ OLSK \W ]LY` ^LSS K\YPUN ÔH[ OHZ ILLU H T\JO ZJY\[PUPZLK WLYPVK MVY I\ZPULZZ 4LKPJHS ZLY]PJLZ HUK LK\JH[PVU HYL HYLHZ [OH[ ^L ZOV\SK HSZV PU]LZ[ PU HUK ^L ULLK [V THRL Z\YL [OH[ H[ H WVSPJ` SL]LS [OL JVUKP[PVUZ HYL YPNO[ MVY WLVWSL [V W\[ [OLPY PU]LZ[TLU[ KVSSHYZ PU[V *`WY\Z PUZ[LHK VM HU`ÔLYL LSZL PU [OL ^VYSK 0M ^L JHU JVU[PU\L [V JYLH[L [OVZL JVUKP[PVUZ *`WY\Z OHZ L]LY` JOHUJL VM YLJV]LYPUN I\[ 0 YLWLH[ [OH[ [OL TVZ[ VI]PV\Z ZLJ[VY MVY PU]LZ[TLU[ PZ [V\YPZT Gold: Do you believe that Cyprus has what it takes to become a centre for Investment Funds and their management? J.H.: >L KV OH]L [OL IHZPJ MV\UKH[PVUZ I\[ [OLYL»Z Z[PSS TVYL [V KV PU H WYHJ[PJHS ZLUZL ([ [OL TVTLU[ ^L»]L UV[ NV[ LUV\NO WYVSPMLYH[PVU VM IYVHKIHUK HUK JVUULJ[P]P[` VM [OL PZSHUK [V V[OLY ZV\YJLZ PU [LYTZ VM WO`ZPJHS JVUULJ[PVUZ MVY *`WY\Z [V IL H ZHML WSHJL MVY WLVWSL [V ZL[ \W [OLPY I\ZPULZZ ZV [OH[ PM [OL IYVHKIHUK JVUULJ[PVU PZ KVÛ [OL` JHU Z[PSS VWLYH[L ;OLYL HYL ZL]LYHS [OPUNZ SPRL [OH[ 0U T` ]PL^ ^L V\NO[ [V IL WYVTV[PUN [OL JV\U[Y` H IP[ TVYL /PNO ]HS\L LTWSV`LLZ NL[ ]LY` NVVK [H_ IYLHRZ MVY JVTPUN [V *`WY\Z MVY H WLYPVK VM `LHYZ I\[ ^L KVU»[ [HSR HIV\[ P[ LUV\NO 0 [OPUR ^L ULLK H T\JO TVYL JVUJLY[LK KLSPILYH[L HUK MVJ\ZLK Z[YH[LN` HPTLK UV[ ZV T\JO NLULYHSS` I\[ H[ ZWLJPÄJ JVTWHUPLZ HUK [Y` HUK H[[YHJ[ [OLT [V *`WY\Z

www.goldnews.com.cy | GOLD | 31

| COVER STORY |

where else in the world”. So it was very significant.

ANOTHER crisis of the nature of the one that happened in 2013 is much less likely to happen than it was in the past

Gold: How would you describe the recent investment of EBRD into Bank of Cyprus? J.H.: It was very welcome and it sent a different message: about governance, about the quality of how we manage the bank, and about the standards to which the bank is being held. Alongside the other investors, who also say that they think they can make money, I hope it sends out a powerful message about the bank’s strength.

Gold: What is the thinking behind the move to list on the London Stock Exchange later this year? J.H.: In simple terms, the Athens Exchange is a legacy of what we used to do rather than what we currently do and both the Cyprus Exchange and the Athens Exchange are very illiquid – they have very little volume going through them every day – and so it’s very difficult to discover the value of the bank and encourage liquidity in the stock. We therefore decided that we needed to put our equity on a large liquid index-driven Exchange, which could have been Euronext or London and eventually we decided that London was right for us because of the governance, the law, the size of the liquidity pool and the size of investor. There is a good bit of work for us to do to make that happen but our intentions are now very public and very clear and we think it’s the right thing to do. It’s great, also, to carry the flag of Cyprus onto an Exchange such as Lon-

32 | GOLD | The Business Magazine of Cyprus

don and hopefully get ourselves included in the FTSE 250 Index.

Gold: What are your main priorities for 2016? J.H.: We need to make progress with non-performing loans and we are making slow but good progress. We reduced the 90+ stock, which is where the NPLs really are, by €700 million in the fourth quarter and by a similar amount in the third quarter and we expect that trend to continue. It’s been a lot of work and it requires a lot of attention to detail. A rising economy will help float that boat. As I have just said, we need to put the company on a liquid Exchange and we also need to continue to try and display an investment that can show and make repeated profit. It’s only repeated profit over time or a business that, at its core, is valuable, that will ultimately display itself in value. Gold: Is Bank of Cyprus now back in the loan business for individuals and SMEs? J.H.: Yes and there is no question that we want to make loans. We just have to make good loans and most of the noise you hear about banks not lending is from those that nobody should lend to! It’s not an issue of supply but one of good demand. Gold: You appear to have four profit centres: Consumer & SMEs, Corporate, Wealth & Asset Management and International. Which of the four is the most profitable? Where do you place the most emphasis?

THE FUTURE

.VSK! >OH[ ^V\SK [OL YL\UPÄJH[PVU VM Cyprus mean for Bank of Cyprus? J.H.: 0[»Z HU PU[LYLZ[PUN JOHSSLUNL MVY \Z HUK ^L HYL HSYLHK` [OPURPUN HIV\[ P[ ;OL LJVUVTPJ TVKLS PZ UV[ JSLHY I\[ [OL WVSP[PJZ VM P[ SVVR WYL[[` NVVK 0U [OL SVUN Y\U P[ ^V\SK IL H NYLH[ [OPUN PU [OL ZLUZL VM ILPUN HISL [V IHUR MVY TVYL WLVWSL ÔPJO ^V\SK IL H T\JO IPNNLY THYRL[ [OHU ^L OH]L [VKH` 0U [OL ZOVY[ [LYT P[»Z KPZY\W[P]L [V V\Y TVKLS HUK ^L ^PSS OH]L [V ÄN\YL V\[ OV^ ^L [HRL H [YHKP[PVUHS IHURPUN I\ZPULZZ HUK L_WHUK P[ [V ZLY]L ZV THU` TVYL WLVWSL :V KPZY\W[P]L H[ ÄYZ[ I\[ PU [OL SVUN Y\U NVVK MVY V\Y I\ZPULZZ )HUR VM *`WY\Z VÛZ WYVWLY[PLZ PU [OL UVY[O [OH[ HYL VU V\Y IHSHUJL ZOLL[ H[ aLYV ZV [OLYL ^V\SK HSZV IL ZVTL MVYT VM ÄUHUJPHS NHPU [OLYL I\[ ^L OH]L [V IL JSLHY [OH[ [OL Z[LWZ ^L [HRL ^PSS NP]L YPZL [V WYVZWLYP[` ZV [OLYL ^PSS KLÄUP[LS` IL H SV[ VM ^VYR [V KV Gold: If there is no solution in the near future, how do you see Cyprus and its economy developing by 2020? J.H.: ;OLYL PZ HU VI]PV\Z SV^ [V TPK ZPUNSL KPNP[ NYV^[O JHWHIPSP[` PU [OPZ LJVUVT` NP]LU [OL YLZV\YJLZ P[»Z NV[ HUK [OL \ZL VM [OVZL YLZV\YJLZ 0 [OPUR [OH[ *`WY\Z JHU LHZPS` WVZ[ NYV^[O WLY HUU\T IL[^LLU UV^ HUK [OLU ;OH[ ^PSS NV H SVUN ^H` [V YLWHPYPUN YH[PVZ HUK \ULTWSV`TLU[ HUK [V KPZ[PUN\PZOPUN *`WY\Z HZ HU LJVUVTPJ TVKLS MVY V[OLYZ [V MVSSV^ (J[\HSS` 0 [OPUR ^L ZOV\SK IL KPZHWWVPU[LK ^P[O NYV^[O >L»YL JHWHISL VM T\JO TVYL I\[ P[ KVLZ YLX\PYL JVUZ\TLY JVUÄKLUJL YL[\YUPUN HUK P[ ULLKZ [OL .V]LYUTLU[ [V MVJ\Z P[Z WVSPJ` VU RLLWPUN [OL JV\U[Y` VWLU *VUULJ[P]P[` PZ ZVTL[OPUN ^L OH]L [V YLZVS]L OLYL 0[»Z Z[PSS MHY [VV KPɉJ\S[ [V NL[ [V *`WY\Z HUK PM ^L JHU PUJYLHZL WLVWSL»Z HIPSP[` [V HJ[\HSS` NL[ OLYL ^L ^PSS PUJYLHZL [OL U\TILY VM WLVWSL ÔV HYL OLYL HUK JVUZ\TPUN [OL ZLY]PJLZ WYV]PKLK HUK VM JV\YZL [OL T\S[PWSPLY LɈLJ[ PU [OL LJVUVT` Gold: How do you see the long-term future of Bank of Cyprus? J.H.: >L»YL HU PUZ[P[\[PVU [OH[ PZ OLYL [V Z[H` HUK 0 [OPUR P[ JHU IL H ]HS\HISL JVTWHU` V]LY [PTL ;OLYL HYL [OPUNZ ^L ULLK [V KV [V WYV[LJ[ P[ MYVT ZVTL VM [OL [OPUNZ [OH[ OHWWLULK PU [OL WHZ[ HUK ^L ULLK [V WYLZLU[ P[ HZ H JVYL JVTWVULU[ VM [OL MHIYPJ VM H ZVJPL[` Z\JO HZ *`WY\Z >L OH]L H NYLH[ YLZWVUZPIPSP[` ILJH\ZL ^L JHYY` [OL ÅHN ¶ ^L JHYY` [OL UHTL VM *`WY\Z PU V\Y IYHUK ¶ HUK ^L HYL [HRPUN P[ VU[V HU PU[LYUH[PVUHS Z[HNL >L UV^ OH]L H ]LY` OPNO X\HSP[` )VHYK ^L OH]L H OPZ[VY` ÔPJO WYPVY [V ^HZ H NVVK VUL HUK ^L ^HU[ [V IL WHY[ VM *`WY\Z MVY HUV[OLY JLU[\Y`

We’re seeing enough evidence to suggest that what was a fragile recovery is now starting to

GAIN MOMENTUM

J.H.: We love all our children! Together they make Bank of Cyprus what it is and they all balance and counterbalance one another. We have to support the Cypriot economy, which is where the Consumer & SMEs and Corporate businesses are. The Wealth business is quite small but it’s an important adjunct to our Consumer business and to our International business. The International business is really about facilitating the trade flow of international companies wanting to be in Cyprus and do their transaction banking here. So all of these businesses are about showing what Cyprus can be for those who live in Cyprus and for those that come to Cyprus. Gold: Mobile and online banking are changing the role of banks in our lives. Is Bank of Cyprus taking the necessary steps to keep up with the global trend? J.H.: We’re certainly trying to. A small bank like us in a peripheral country in Europe needs to be careful about pioneering but to be very conscious of fast following. We were the first into mobile banking in Cyprus but we have to go very fast in revolutionizing what’s on that and then make sure that our systems behind what

might look like a sexy app are capable of delivering lowcost, highly efficient banking. We have more to do but we are extremely conscious that we need to do it and we are iterating our product and the customer experience to make sure that we don’t fall behind. Gold: Do you anticipate a gradual reduction in the number of actual branches of your bank as more transactions are conducted online? J.H.: There’s no question that the banking industry as we know it is in secular decline and what we need to do is replace the traditional model with a modern one. That will be a painful transition but it’s one we have to be conscious of. When Bank of Cyprus combined with Laiki, we reduced the employee base by 25% and costs by 35% and we are now going through another limited staff reduction process. Unfortunately, the bank-

ing industry has to change in order to stay competitive so this is going to be a constant pressure. Gold: Are there other European and global banking trends that will inevitably influence how Cypriot banks are run? J.H.: We are regulated by the European Central Bank, so regarding the way in which banks are held to account with ratios, how the money is managed, the leverage and so on, we have to hold ourselves to the same level of account as any other bank that is managed by the ECB in a regulatory sense. There will be no special deals for Cyprus. The real competitive pressure is about having lots of capital against increasingly less remuneration for the risk you take. Over time, that means that your cost model has to adjust to it so that your bank is strong and can actually be a place where people have jobs but also where investors are remunerated. What we have to do somehow is to continue to try and excite

Over the

LAST 100 YEARS, banking has been one of the worstperforming industries

customers who, for a long time, have been used to free banking in some sense while, at the same time, finding reward for the shareholders. Unfortunately, over the last 100 years, banking has been one of the worst-performing industries, including airlines, which is not a good statistic. Gold: Gold has always maintained and stated that the excessive power of the trade unions is an obstacle to business. You have come up against the unions on more than one occasion. What’s your philosophy for dealing with them? J.H.: We have to be respectful of what they represent. Over a very long period of time, our employees have been extremely “well-treated” by the deals that have been done between their representatives and the bank but, if we are to survive and be competitive, we have to change the nature of that relationship so that we are remunerating the capital in use as well as those that contribute to that capital in use. There are some respectful and difficult conversations that need to be had in the coming years and they need to be conducted sensibly and carefully. We need to respect the role of the unions in society even if, philosophically, people like you and I might wish our relationship to be a less biased in their favour.

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| COVER STORY |

W BERT PIJLS,

CEO, /,33,50* BANK

34 | GOL GOLD D |T The he Bus he Business B usine u iness ss Magazine Maga agazin zinee of of C Cyprus y us ypr

hat was the main challenge for you when you took over as CEO of Hellenic Bank in 2014? Bert Pijls: The main one was the managing of non-performing loans and I knew when I took the job that it was going to be our No. 1 focus. But there were others and on a more personal level, the biggest challenge in the beginning was just to understand Cyprus, the bank and the environment in which we operate because, whilst I’ve spent most of my career in banking, every market is different and I believe you need to start getting the nuances really quickly in order to be effective. In addition, nobody in Cyprus, including myself, had the luxury of time – it is in many ways our biggest enemy – so in the beginning it felt like a bit of a pressure cooker where there were big issues that I had to deal with and at the same time I was trying to learn a new culture and to understand a completely new employer. I think all those things put together were the biggest challenge. Also, there was the fact that, because my teenage children are at school in the UK, it was the first time that I moved somewhere without the family. This has confirmed to me that, deep down, I’m a family man! I smile and I’m proud when I say that but it’s been difficult for me and doubly so because it’s difficult for them, especially my wife. I always say to people, “If you want to blame me for being here, blame me, but if you want to thank me for being here, thank my wife.” Gold: How far would you say you have achieved your initial aims? B.P.: I am happy with the progress that we’ve made but I’m not satisfied because there is still much more work to be done. We are still at the beginning stage of the change that I believe is required in the Cyprus banking sector and at Hellenic Bank. I feel that we did quite a lot of good work in 2015 and I’m anticipating that there will be more this year and in 2017. Given the context in Cy-

prus, the results were OK. We’ve strengthened many things but we’re still not where we need to be. Gold: The reputation of the Cyprus banking system was dealt a severe blow in 2013. Three years on, has public and investor confidence returned? B.P.: I think it’s starting to. You know the cliché about how it’s easy to lose trust very quickly and then it takes ages to rebuild it? Well, we are still in that process of rebuilding trust, especially with clients. Investors can look at numbers, ratios and capitalisations and make their minds up and I think we may have made more progress there. The situation is much better than it was in 2013 and I do believe that investor confidence is returning. However, does the average person in the street or the average business here trust banks? No, and it’s my job to make sure that, over time, people in Cyprus regain their trust in Hellenic Bank. A lot of people think that banking is purposely made complicated so that it’s difficult for them to understand what’s going on so we have to do things in a more transparent and simple way and demonstrate through our actions that we proactively represent the best interests of our clients. This is not a Cyprus-specific problem – it’s a global one – but it may be much deeper here because of the bail-in, which was a very scarring event that will last in people’s memories for a long, long time. But I meet clients on a regular basis and I’m starting to get the feedback that we’re getting better at how we manage our relationship.

ernment here for having done what it has done. However, is it enough? No. Gold: What are the areas in which we need to improve? B.P.: There are three in particular. One concerns implementation of new legislation. Last year, parliament approved the foreclosure law but there’s not been a single auction yet. Sometimes the machinery doesn’t work fast enough and while, ultimately, having good legislation in place is a necessary prerequisite, the implementation is sometimes too slow. Let me give you an example: if you want to take a property to auction, you can only do this by sending a final letter four months in advance, stating where and when the auction will take place and who the auctioneer is. Until a few weeks ago, there were no locations where such auctions could take place and no licensed auctioneers! Society – and the business community in particular – does not seem to understand that time is not our friend. It’s a bit like going to the doctor: if you know

THE BAIL-IN

was a very scarring event that will last in people’s memories for a long, long time

Gold: Have enough reforms been put in place in the banking sector to ensure that it doesn’t grow out of all proportion to the economy again? B.P.: Yes and no. I don’t believe we could have carried out more reforms over the last few years than we have done. If you put this in an international context, Cyprus has carried out many more reforms than most other markets so I have to compliment the Gov-

THE ECONOMY

Gold: How would you describe the path of the Cyprus economy over the last three years? B.P.: ;OPUNZ OH]L ILLU WHPUM\S I\[ [OL`»]L WYVNYLZZLK T\JO IL[[LY [OHU L_WLJ[LK ZV JYLKP[ ÔLYL JYLKP[ PZ K\L 0U HSS OVULZ[` *`WY\Z OHZ Z\YWYPZLK H SV[ VM WLVWSL I` JVTPUN V\[ VM [OL JYPZPZ Gold: Now that the Troika’s economic adjustment programme has come [V HU LUK HYL `V\ JVUÄKLU[ [OH[ [OL positive momentum will continue? B.P.: 0 MLHY JVTWSHJLUJ` HUK [OL PKLH [OH[ UV^ [OL WYVNYHTTL PZ V]LY ¸^L»YL [OLYL¹ HUK ^L KVU»[ OH]L [V JHYY` V\[ HU` TVYL YLMVYTZ >L HYL Z[PSS UV[ PU]LZ[TLU[ NYHKL HUK [OLYL HYL Z[PSS Z[Y\J[\YHS PZZ\LZ [OH[ ULLK [V IL HKKYLZZLK >L HYL ILULÄ[PUN MYVT L_JLW[PVUHSS` Z[YVUN [V\YPZT HUK [OL PUK\Z[Y` PZ PTWYV]PUN I\[ H SV[ VM [OH[ PZ K\L [V [OL \UMVY[\UH[L WHPU VM THU` V[OLY JV\U[YPLZ HYV\UK \Z ZV ^L ULLK [V OHYULZZ [OL NVVK ^VYR [OH[ OHZ ILLU KVUL HUK THRL P[ YVI\Z[ HUK Z\Z[HPUHISL 0 KVU»[ ZLL HU` YLHZVU Ô` ^L JHU»[ KV [OH[ Gold: Everyone agrees on the importance of Foreign Direct Investment if the island’s economy is to grow. Which sectors would you view as offering the greatest potential for such investment? B.P.: :OPWWPUN HUK [V\YPZT HYL [^V VI]PV\Z VULZ I\[ [OLYL HYL V[OLYZ *`WY\Z OHZ HU HI\UKHUJL VM ]LY` ZTHY[ ^LSS LK\JH[LK WLVWSL HUK 0 ILSPL]L [OL M\[\YL SPLZ PU PUK\Z[YPLZ HUK ZLY]PJLZ PU ÔPJO WLVWSL OH]L [V \ZL [OLPY IYHPUZ :V ^L ZOV\SK W\[ WYVNYHTTLZ PU WSHJL [V Z[PT\SH[L :PSJVU =HSSL` [`WL PUP[PH[P]LZ! IPV[LJO HUK IPV TLJOHUPJHS LUNPULLYPUN ÔLYL H SV[ VM [OL [OPURPUN HUK KLZPNU ^V\SK IL KVUL OLYL HUK [OL WYVK\J[PVU LSZLÔLYL ;`WPJHSS` [OPZ ZJLUHYPV Z[HY[Z ^P[O LK\JH[PVU HUK \UP]LYZP[PLZ ;OPZ PZ ÔLYL ^L ULLK [V SVVR MVY PU]LZ[TLU[ >OLU [OL SHZ[ JYPZPZ OP[ L]LY` ZPUNSL ZLJ[VY Z\ɈLYLK ÔLYLHZ PM [OLYL OHK ILLU H IPNNLY [LJOUVSVN` ZLJ[VY OLYL P[ ^V\SK OH]L Z\ɈLYLK T\JO SLZZ [OHU [OL YLZ[ 0[»Z NVVK [V KP]LYZPM` YPZR Gold: Do you believe that Cyprus has what it takes to become a centre for Investment Funds and their management? B.P.: @LZ 0 KV :[Y\J[\YHSS` [OLYL»Z UV YLHZVU Ô` *`WY\Z JHU»[ ILJVTL [OL 3\_LTIV\YN VM [OL ,HZ[LYU 4LKP[LYYHULHU /V^L]LY [OL M\UKZ PUK\Z[Y` PZ NSVIHS HUK ZV ^L Z[PSS ULLK [V ^VYR VU LZ[HISPZOPUN H NVVK WVZ[ JYPZPZ YLW\[H[PVU

you’re getting ill, the sooner you go to the doctor the more he can do for you and the less painful it will be. The more you postpone it, the harder it’s going to get. So we need to improve, regarding the implementation of reforms. Gold: What are the other two other areas of improvement? B.P.: The second one concerns labour relations. If you examine unemployment rates correlated with labour market flexibility, it is clear that the more flexible your labour market is, the lower unemployment is. One of the biggest problems we have in Cyprus is unemployment. I am very encouraged that there has been a significant drop but it remains a real social problem and what worries me most is youth unemployment. Today’s under-25s are those who are going to drive future economic growth and run the economy when most of the people that are currently in leadership positions will retire. But they’re not getting the right skill sets or the right experiences to be able to do that. The Government has a scheme that encourages employ-

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| COVER STORY |

ers to hire young people and Hellenic is the No. 1 company in Cyprus participating in this. I believe we need to give young people a chance and there are lots of very good young people in Cyprus who are not getting the chances they deserve. A very large part of this comes down to labour market inflexibility. The way labour relations work in Cyprus is very old-fashioned and it has to modernize, which is not going to be easy. I am encouraged by what I’m seeing in the public sector where people are now talking about some form of framework around strikes in essential services. I recognize the right to strike but not willy-nilly over any small argument and without the democratic backing of members. This has to change. Gold: And the third area for change? B.P.: The structure of the financial services market in Cyprus hasn’t really changed, so in a country of 800,000 people, we have eight banks claiming to be what I would call ‘High Street banks’ and many more smaller ones. This is unsustainable. Cyprus is perhaps the most overbanked market in Europe and this is an issue that must be addressed. An overbanked market can lead to irrational competition and this contributed to the crisis of 2013: there were too many banks for a too small group of clients and assets. While the banks have been recapitalized and they have strengthened processes and procedures, the fundamental structure of the market has not really changed. This makes Cypriot banks exceptionally uncompetitive in a European context. In my opinion, we need fewer players and something has to give over time. How and when exactly, I don’t know. Gold: How significant was the injection of capital into Hellenic Bank in 2013 by Third Point LLC and Wargaming.net? B.P.: The investments were hugely significant for us but also for the sector and for Cyprus. Each invested more than €100 million, which is significant by any stretch of the imagination. We should all be exceptionally grateful that they’ve done so. Gold: How would you describe the recent investment of EBRD into Hellenic Bank? B.P.: As yet another vote of confidence

36 | GOLD | The Business Magazine of Cyprus

in Cyprus, the economy and Hellenic Bank. It also opens up opportunities for further cooperation with the EBRD – we recently worked with it on trade finance and we’re working in many other areas, including shipping where, hopefully, we’ll soon come to an agreement to start doing things together. Gold: Are your major shareholders happy with the bank’s progress? B.P.: Probably not! I think they would say that things in Cyprus – and therefore at Hellenic – are moving too slowly. It is not about when they will get a return on their investment but from their standpoint, some things take too long. Certain aspects – the way of doing things the regulatory environment – can be very difficult as well. So I think they recognize the progress that we have made and that the country has made – everybody is very happy about the GDP growth and the reforms that have been put in place – but this has not yet led to enough actual improvement in the strength of the sector. Gold: What are your main priorities for 2016? B.P.: We have three main ones, the first being the managing of non-performing loans. In the last quarter of last year, we saw the first very slight reduction, both as a percentage as well as in absolute terms, and that gives confidence but we now need to accelerate that trend. We’re still not moving fast enough as an

THE FUTURE

Gold: What would the YL\UPÄJH[PVU VM *`WY\Z mean for Hellenic Bank? B.P.: 0[ ^V\SK IL KPZOVULZ[ VM TL [V ZH` [OH[ 0 RUV^ L_HJ[S` ÔH[ ^V\SK OHWWLU I\[ 0 [OPUR P[ ^V\SK IL JH[HS`Z[ MVY TVYL NYV^[O HUK WYVZWLYP[` >L»]L started investigating the ^H` IHURZ VWLYH[L PU [OL VJJ\WPLK UVY[O HUK HS[OV\NO P[»Z [VV LHYS` [V ZH` ^L OH]L HU` JVUJYL[L WSHUZ ^L HYL YLHK` HUK 0 ILSPL]L YL\UPÄJH[PVU ^PSS IL ILULÄJPHS [V HSS [OL IHURZ PUJS\KPUN /LSSLUPJ 0[ ^PSS HSZV TLHU TVYL MVYLPNU KPYLJ[ PU]LZ[TLU[ HUK WVZZPIS` Z\WWVY[ M\UKZ MYVT [OL ,< ;OL ;\YRPZO *`WYPV[ JVTT\UP[` PZ WLYOHWZ L]LU TVYL V]LYIHURLK ZV [OH[ JV\SK IL H JH[HS`Z[ MVY Z[Y\J[\YHS YLMVYTZ PU [OPZ ZLJ[VY Gold: If there is no solution in the near future, how do you see Cyprus and its economy developing by 2020? B.P.: 0 ZLL H JVU[PU\V\Z NYHK\HS PTWYV]LTLU[ *`WY\Z ^PSS UV[ NV \W H[ [OL ZHTL ZWLLK H[ ÔPJO P[ JHTL KVÛ PU ÔPJO PZ WYVIHIS` IL[[LY 4` MVYLJHZ[ PZ [OH[ ^L ^PSS OH]L ZL]LYHS `LHYZ VM WVZP[P]L ZPUNSL KPNP[ .+7 NYV^[O Gold: How do you see the long-term future of Hellenic Bank? B.P.: 0[»Z ]LY` NVVK >P[O UVU WLYMVYTPUN SVHUZ [OLYL PZ VM JV\YZL Z[PSS ZVTL \UJLY[HPU[`" [OLYL HYL YLN\SH[VY` WYLZZ\YLZ HUK UL^ HJJV\U[PUN Z[HUKHYKZ JVTPUN \W ZV H SV[ VM JOHUNL PZ ULLKLK )\[ ÔLU 0 SVVR H[ ,\YVWL P[ PZ JSLHY [OH[ HSS IHURZ HYL PU [OL ZHTL ZP[\H[PVU HUK 0 RUV^ [OH[ ^L HYL T\JO Z[YVUNLY [OHU ^L ^LYL ILMVYL >L HYL [OL VUS` IHUR PU *`WY\Z [OH[ OHZ JVU]LY[PISL ZLJ\YP[PLZ HUK PM `V\ HKK [OVZL PU V\Y ;PLY JHWP[HS YH[PV PZ >L»YL NL[[PUN IL[[LY HZ [PTL NVLZ I` HUK 0 HT VW[PTPZ[PJ

island or as a bank (this applies to all the banks). Even if we halve the problem, we’ll still be at 25%-30% which is still far too high. I have to say that nothing quite cures a non-performing loan problem like economic growth and I am starting to see encouraging signs when I speak to clients. They have more confidence and certainty about the future, which makes it easier for them to engage with us. We’re doing everything we can to tackle the problem one client at a time – our restructurings amounted to €758 million last year – but we’re also looking at wholesale solutions, such as the sale of loans, which may allow us to make a bigger difference in a shorter period of time. Gold: The second priority? B.P.: The second priority is growth. In our case, there are several reasons for this. First of all, we have a significant amount of excess liquidity that we would like to put to work. Our excess liquidity is a key strength of the bank but, at the same time, if you can’t utilize it, it can become costly. I have to pay a negative 0.4% interest rate to keep the funds that we have with the European Central Bank in Frankfurt, so to better utilize our liquidity and our capital we need to grow our assets. Gold: Wouldn’t the obvious thing be to use

it to provide more loans? B.P.: It might be the obvious thing but it may not be the right thing! You’re right: the best way to use our excess liquidity would be to give as many loans as we possibly can. However, Cyprus is relatively small and there is a finite number of loans that we can and should give without creating the next bubble. Last year we exceeded our targets by approving a total of €377 million of new loans. I am confident that we are going to meet our targets this year but I think we’re getting close to the maximum. For us, it is clear that we have to start thinking about lending outside Cyprus. This doesn’t necessarily mean setting up operations elsewhere or buying other banks, which is out of our league and it’s no longer the way things are done in today’s world. But I believe that there are growth opportunities in the shipping sector, for example. So, in addition to supporting the local economy, there are ways of doing some lending outside Cyprus. Gold: And the third? B.P.: The third priority is investment in technology and digitization. Our technology needs to help us become more efficient and give better customer service. We are going to digitize the bank. A lot of people think that this simply means having a nice website and maybe a nice mobile phone app (which we do, by the way) but we really mean the whole bank – the middle office, the back office, everything – and we are embarking on a threeyear programme to upgrade our technology infrastructure to become more digital, more straight through, less paper, better customer service. We recently launched the Hellenic Bank mobile app, which is

receiving international acclaim. Tech gurus in the UK are saying it’s better than any app from Barclays or NatWest or any UK bank. The team here have done a phenomenal job and they did it in six months for one tenth of the cost in the UK. Gold: Presumably the move towards digital is one of those global banking trends that will inevitably influence how all Cypriot banks are run? B.P.: There are essentially two main pressures in global financial services: one is regulatory and the other concerns technology. I believe that in the future, my competition here in Cyprus and in the rest of Europe will not necessarily be Bank of Cyprus or the Co-op – they will be there obviously – but fintech companies and Internet start-ups that want to take my business. In order to get ready for that competition, which will definitely come, we need to modernize and to compete with them on the technology, which is why we’re starting this journey. Banking will change fundamentally in the next 10-15 years. Technology is going to completely revolutionise the sector in the same way that Amazon did to retailing. In some markets, it has already happened.

When you’re trying to manage 59% non-performing loans, you can’t start reducing branches because that will just affect your ability to collect cash on the non-performing portfolio. However, if we take a longer-term view, it is clear that things cannot stay as they are. Branch closures are already a European trend as the banking sector becomes much smaller so I believe that, at some stage in the future, something will have to give here too. Cyprus already has too many financial institutions, too many head offices, too many CEOs, too many of everything and we simply can’t afford it. That needs to be looked at and then questions can be asked about the appropriate number of branches, how to run them and what to do with them. The very purpose of branches will change over time.

CYPRUS is perhaps the most over-banked market in Europe

Gold: Will digitization mean a gradual reduction in the number of actual branches of your bank as more business is conducted online? B.P.: It’s all about timing.

Gold: You have three profit centres: personal, business and international. Where do you place the most emphasis? Which of the three is the most profitable? B.P.: The emphasis is on all three. We’re a universal bank and we don’t prefer one sector over another. Each needs to perform in its own right. The International Business Unit (IBU) is the most profitable, mainly because it’s not a lending business so we don’t have the credit losses and the provisions that I’ve built in the retail and corporate sides. If you have 59% non-performing loans, as we had

at the end of last year, you can’t recognize the interest on 59% of your assets, which makes it hard for those sectors to be profitable. Gold: Gold has always maintained and stated that the excessive power of the trade unions is an obstacle to business. You have come up against the unions on more than one occasion. What’s your philosophy for dealing with them? B.P.: In previous markets in the past, I’ve had exceptionally cooperative and constructive relationships with employee representation, be they unions or workers’ councils. However, it is clear that, in Cyprus, the lines between management prerogative and employee representation have become blurred. I believe that many of the issues we face here are not so much to do with employee representation but more about power and influence and who actually runs these institutions. I will always be constructive and I will always listen to reason but, when it comes down to who runs the bank, which people I hire, which decisions we take and what our strategy is, I am very polite but exceptionally firm. This is the prerogative of the shareholders who ultimately run the bank, since they are the ones who have invested, and I am in charge of the bank. I believe we should be fair to our employees and recognise their interests but our conversations should be about their benefits, how we can train them and give them life and career skills, not about who we should hire or not. I think it’s time to take the Labour Code – which contains principles that were good when they were drawn up –modernise it and put it into a legal framework. At the moment, there is none.

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| INTERNATIONAL AFFAIRS |

THE ART OF DIPLOMACY THERE IS A DISTINCTION BETWEEN FOREIGN POLICY AND DIPLOMACY, AND MANY PEOPLE CONFUSE THESE TWO CONCEPTS. FOREIGN POLICY CHARTS THE COURSE TO BE FOLLOWED BY THE STATE IN ACCORDANCE WITH ITS GOALS. THESE GOALS ARE DEFINED BY PERMANENT DATA SUCH AS GEOGRAPHY, HISTORY, CIVILISATION, NATIONAL CHARACTERISTICS, ETC, AND BY CHANGING FACTORS OF AN INTERNAL OR EXTERNAL NATURE. DIPLOMACY IMPLEMENTS THE FOREIGN POLICY CHARTED BY THE STATE. By Dr Andrestinos N. Papadopoulos, Ambassador a.h.

he function of a diplomat is a very serious affair, since it is through diplomacy that relations between states are governed. The general public may believe that diplomats are simply well-dressed people who spend their time at receptions, dinners, social functions, etc. The truth, however, is that diplomats work hard to protect the independence of their country through friendships and alliances, to promote its various interests, to settle international disputes peacefully and patiently develop international

38 | GOLD | The Business Magazine of Cyprus

relations. The art and the technique deployed to that effect have to respect rules and time-honoured practices. The diplomatic profession is very old. Ancient documents contain treaties of peace and alliance, and we know that, in ancient Greece, the amphictyons, (depu-

ties from Greek states) formed a council to resolve disputes. To the amphictyonies, the ancient Greek cities would send their elders, who were wise and experienced. In fact, the Greek word for Ambassador is presbys, meaning ‘old man’. In the 15th century, relations between states were served through the establishment of permanent missions in foreign capitals. This practice was generalised in the 17th century and, in particular, after the Treaty of Westphalia. The term ‘diplomat’ appeared at the end of the eighteenth century, and derives from the Greek word diploma, meaning ‘folded paper’, i.e. official letters of credence delivered by the Ambassador.

THE ADVICE

Napoleon would give to his ambassadors before they left for their country of accreditation was “Tenez bonnes tables” (Entertain well)

DR AN D N. PAP RESTINOS ADOPO ULOS

The functions of the diplomat essentially cover four areas: representation, protection, information and negotiation. The Ambassador represents the government of his country, and speaks in its name. Hence the reference in his/ her title “extraordinary and plenipotentiary”. In the past, the Ambassador was considered as representing the person of the sovereign, which explains the exceptional immunities enjoyed by the Chief of Mission and his staff. Since diplomats reflect the image of their country, their public and private behaviour should be irreproachable. In order to promote good relations between the two countries, the Ambassador should establish good personal relations through contacts with the central authorities of the receiving country, as well as the local authorities. Also important is the duty to entertain well. In this respect, mention should be made of the advice Napoleon would give to his ambassadors before they left for their country of accreditation. “Tenez bonnes tables” (Entertain well). We observe that he took the advice given to him by his close personal aide, soldier and diplomat, the Marquis de Caulaincourt, that “C’est principalement par la table que l’on gouverne” (It is principally through the table that we govern). Within the general framework of protection, the Ambassador should protect and ameliorate the status of the citizens of his country, enhance commercial trade and strengthen intellectual and cultural relations, essential elements for the development of good relations between two countries. Another important field of activity is information. There are many ways to obtain it: through the press, discussions with Foreign Ministry officials, colleagues from other embassies, and

personalities of different backgrounds, to mention just some. Any action aimed at obtaining secret information through devious means gives the right to the government of the country of residence to expel the diplomat engaged in such activities as persona non grata. On many occasions, the Ambassador has to find a solution to problems arising from the need to adjust the views of the receiving country to those of his government. He is, therefore, obliged to negotiate. Given that negotiation is “the art of the possible”, the Ambassador has to know the maximum objective he is pursuing, the minimum result he can live with, and the maximum concessions he can make. The success of his endeavours depends on his personal temperament, the respect and confidence he can command, his connections, his discretion and modesty. On the other hand, what may help a successful conclusion of any negotiation are, inter alia, an in-depth knowledge of the policy of his country, and that of the host country, good general knowledge to guide his reactions, a vigilant and objective spirit, a prudent and reserved character, healthy judgement, immense patience, a knowledge of foreign languages and, most importantly, tact. In order to be efficient in the exercise of his four main functions, the diplomat should have these qualities. With the expansion of international organisations the functions of diplomat-

ic agents have taken on a multilateral character. In contrast to bilateral diplomacy, multilateral diplomacy offers advantages to small states, as they can benefit from the conflict of interests of the great powers and can count on the ‘one country, one vote’ system. Mere reference to multilateral diplomacy immediately introduces the complex system of international relations and the constant element of change, which gives a new dimension to the functions of the modern diplomat. He has to cultivate contracts and establish relations with a host of diplomatic agents from different countries for the promotion of his country’s interests. This is exactly the case of Cyprus, whose diplomats have been trying for the last fifty years to find a solution to the Cyprus problem within the framework of international organisations, using existing mechanisms. The functions of the diplomat have undergone big changes. In the past, the Ambassador was handling exclusively the affairs of his Government. Today, the Head of State or his Foreign Minister communicate directly with their counterparts, by telephone, e-mail or otherwise. The Ambassador is informed about the event and the content of their understanding post factum. Newly independent countries of the Sixties, mainly from Africa, brought considerable changes to aspects of the diplomatic protocol, the tenets of which he has to obey in his everyday activity, and this is what is expected of him.

THE FUNCTIONS

of the diplomat essentially cover four areas: representation, protection, information and negotiation www.goldnews.com.cy | GOLD | 39

| FUNDS |

STRENGTHENING THE EU BRAND NAME IN FUNDS

WHAT UCITS V MEANS FOR INVESTORS

Back in 1985, the original UCITS Directive (85/611/ EEC) created the internal market for investment funds in Europe. UCITS (short for “Undertakings for the Collective Investment in Transferable Securities”) are investment funds regulated at a European Union level and they account for around 75% of all collective investments by small investors in Europe. Current EU legislation for investment funds (the UCITS Directive) has been the basis for an integrated market facilitating the cross-border offer of collective investment funds. Managing almost €6 trillion in assets, UCITS have proved successful and are widely used. They are also sold to investors outside the EU, where they are valued for their high level of investor protection. By Amalia Hadjipapa

CITS funds can take many forms, depending on where they invest. They can be equity funds, money market funds, bond funds, mixed funds, exchange traded funds… the list practically limitless. Since 1985, the UCITS Directive has been amended five times to take into account market developments and the experiences of market participants and supervisors. In Cyprus, the UCITS Directive has been transposed into national Law by the Open Ended Undertakings for Collective Investments Law of 2012 (L. 78(I)/2012). The latest amendment (UCITS V Directive) is based on the experience of the financial crisis, and aims to continue to ensure the safety of investors and the integrity of the market. The UCITS V Directive addresses three areas: 1. A precise definition of the tasks and liabilities of all depositaries acting on behalf of a UCITS fund. 2. Clear rules on the remuneration of UCITS managers – their remuneration should not encourage excessive risk-taking. 3. A common approach to how core breaches of the UCITS legal framework are sanctioned, introducing common standards on the levels of administrative fines, so as to ensure that they always exceed any potential benefits derived from violation. The new remuneration policy being introduced tries to control the behaviour of people in a position to take added risks during the management of UCITS such as investment advisors, analysts and senior management. The Directive forces UCITS management companies to introduce sound and effective risk management. In particular, it limits variable remuneration to exceptional circumstances and pay-for-performance is limited to the first year of engagement. Regarding depositaries, UCITS V clarifies which legal entities may be appointed as depositaries and that a single depositary needs to be appointed for every UCITS, having general oversight

40 | GOLD | The Business Magazine of Cyprus

duties over the assets. A uniform list of oversight duties has been introduced in order to ensure a harmonized approach by member states. It is also clarified that the depositary is responsible for the proper monitoring of cash flows and ensuring that all assets are booked correctly on accounts opened in the name of the UCITS or the management company or the depositary acting on behalf of the UCITS. Regarding the new provisions on sanctions, UCITS V copies to a great extent other recent European legislative acts that are entering into force in the next few months, including MiFID II, MAR, CRD IV, PRIIPs and the Transparency Directive. The idea is that sanctions should be imposed in a uniform manner across the EU to ensure consistency of approach by regulators and regulatory convergence. The Cyprus Securities and Exchange Commission (CySEC) has already prepared a draft law amending the current UCITS Law and has conducted a public consultation with market participants. One therefore can only wait for the draft Law to become actual Law and complete the national legal framework on UCITS. Cyprus was obliged to implement UCITS V into its national legislation by March 2016.

SANCTIONS SHOULD BE IMPOSED IN A UNIFORM MANNER ACROSS THE EU TO ENSURE CONSISTENCY Info: Amalia Hadjipapa is a Partner at Marangos & Hadjipapa LLC. She specialises in Corporate Law and Mergers & Acquisitions.

| CORPORATE GOVERNANCE |

Keeping Everything Above Board 42 | GOLD | The Business Magazine of Cyprus

Established in 1903, the Institute of Directors (IoD) is the UK’s longest-running organisation for professional leaders, dedicated to encouraging entrepreneurial activity and promoting responsible business practice. Simon Walker, who became Director General of the IoD in 2011, was in Cyprus recently to give a lecture entitled “Good Business, Bad Business – Corporate Trust and Reputation”. Here, he speaks exclusively to Gold about the issues covered in his lecture, the work of the IoD and the multiple challenges facing business around the world. By John Vickers

hat is the purpose of the IoD? Simon Walker: It is primarily about promoting good corporate governance. The IoD was established in the UK 113 years ago, when the laws about how you should run a company were pretty random. The founders, including the future Prime Minister Stanley Baldwin who was then a businessman, aimed at creating conditions under which companies would be run in an appropriate way from the directors’ perspective, with the responsibility that the relatively new companies legislation had brought into play. In the 1930s, the IoD became much more establishment and throughout the last century it was dominated by large companies, holding an annual meeting at the Albert Hall, which we still do every year. More recently, we spend a lot of time teaching people how to run a business from a strategy, marketing, corporate governance and financial perspective. Gold: How would you describe your work as Director-General? Who do you deal with and on what issues? S.W.: I do a lot of direct work with the Government, so I go in to see the Chancellor of the Exchequer ahead of budgets, I meet the Prime Minister periodically, as

well as the Business Secretary and other key ministers, and we keep good links with the opposition parties as well. Gold: Does the Institute play a role in formulating government policy? S.W.: No, or at least no formal role but they do tend to listen and take notice of what we say because we represent a big part of the business community. Gold: Having worked in journalism early in your career, you obviously have a good understanding of the media. Have you used this experience to raise the public profile of the Institute? S.W.: Yes, and I think I’ve raised it quite significantly. We’ve intervened on a number of issues where governance was involved and we thought we could catch people’s attention, for example with FIFA, which has certainly had governance problems. We haven’t been coy about criticizing business where we feel it’s gone wrong because my view is that, if you believe in the free market system and in companies as a force for good, then you need to be able to shout when you feel that they haven’t lived up to the standards that they should have. Gold: Am I right in thinking that, as an organisation, you are maintaining a neutral stance on the EU referendum? S.W.: As an organisation, yes. We’ve surveyed our members and, by two to one, they favour staying inside the EU. That doesn’t mean that they’re in love with the European Union! I think that everyone sees its problems. Gold: A recent poll of members of the British Chambers of Commerce was similarly split, but Director-General John Longworth was forced to resign after saying the UK’s long-term prospects could be “brighter” outside the EU. I assume you are not going to express your own view in a similar way. S.W.: My position has always been that the reason I have a platform is that I’m Director-General of the IoD. Take that away and I’m just one individual so I don’t think I can have a personal view that is separate from the members in terms of the platform. What I have said is that the IoD will provide

facts. There is a case for leaving the European Union but it’s not primarily a business case; it’s more about sovereignty and border controls. From a business perspective, the choice is between an imperfect EU and the uncertainty of what the alternative could be like, so I’m not really surprised that many of our members feel the way they do. The IoD has always supported the idea of holding a referendum because we think the question needs to settled and put behind us. Gold: Business is changing everywhere, not least because we are now in a new digital era in which the concept of “disruption” has come to play a key part. What are you seeing in the UK? S.W.: There’s very definitely a move in that direction. Something like 12.5% of Britain’s economy is done online so it’s had a major impact on areas like retail. I first noticed something was happening about five years ago when my daughter stopped going to shops at the weekend and every day a parcel seemed to arrive from somewhere called ASOS. Had I spotted the opportunity quickly enough and bought shares I would have done very well! I read an awful lot and I’m afraid I can’t remember when I last spent money in a bookshop. Behaviours have changed very dramatically. If there is one word I’d like to be associated with the IoD as well as governance, it’s “competition”. We believe in competition so we welcome the arrival of Uber to challenge taxi monopolies, for example, and Airbnb is having a big impact on the hotel trade. We see disruption as a positive force and society needs to embrace change rather than hold out against it. Gold: One of the positive things about the so-called sharing economy is that it gives an awful lot of opportunities to women, many of whom still feel discriminated against. S.W.: In the UK, about 65% of the participants in the sharing economy are women, and for large numbers of women who may have left work to raise children, it does

We see disruption as a positive force and society needs to embrace change rather than hold out against it www.goldnews.com.cy | GOLD | 43

| CORPORATE GOVERNANCE |

Tolerance of improper behaviour at the top flows down an organisation very quickly provide a real opportunity for economic activity that is very fulfilling and, as well as that, it helps consumers. Gold: What about women’s representation in the Boardroom? S.W.: The number of women on FTSE 100 Boards has gone up to around 25%. Could it be better? Yes it could. What needs to be focused on much more is how executive talent is nurtured in order to deliver company bosses and here there is a problem. If you look at accountancy firms or law firms in Britain, they are meticulous in taking the same number of male and female graduates but what happens when it gets to partner level? What happens 20 years later? Quite often it’s the same old story that you have only 10%-15% women. One reason, of course, relates to having children and taking time out to look after them but there may be other problems about behaviour and whether an ‘alpha male’ approach to business is considered desirable in some sectors. Ultimately we want the best people to be running businesses, whoever they are, male or female. Gold: From a round table that you chaired recently, I noted the rather shocking statistic that there are only four FTSE 100 company directors under the age of 40. What does this tell you? S.W.: I was astonished too, so much so that I asked for it to be checked and double-checked to be really sure. To me it’s a huge missed opportunity. Of course, it’s natural that experience helps you to become a good director and if the figure was 10% I would think that it was entirely manageable and reasonable. The fact that it’s so tiny seems wrong from a company perspective and suggests that companies are missing out on a serious competitive advantage in terms of knowing and having an instinctive feel for the younger part of the marketplace. 44 | GOLD | The Business Magazine of Cyprus

Gold: Your recent lecture in Nicosia dealt with issues of corporate trust and reputation. We know that, in recent years, the banks have lost both of these but is the problem a lot more widespread than that? S.W.: It is but the banks have been particularly at fault. For a long time they wouldn’t recognize that something quite serious had gone wrong and, of course, no-one at all has gone to prison for the banking crisis. There still hasn’t been a widespread recognition that a culture had been allowed to grow up – and culture is very much the responsibility of directors – which had made the cutting of corners part of everyday life, in the pursuit of massive short-term profit in order to be paid a lot of money. So the banks were seriously at fault, though not exclusively so. There have been plenty of errors in other companies too. If we look at a case like Volkswagen, we can see that corner-cutting and a willingness to flout the law – a kind of “what can I get away with that is not going to put me in prison?” attitude – becomes the norm rather than the question “What is in our company’s long-term interests?” Gold: Doesn’t it all start at the top of an organisation? S.W.: Yes. Tolerance of improper behaviour at the top flows down an organisation very quickly and it gets to the point where anyone can behave in a certain way. If you read some of the transcripts from the banks relating to the financial crisis, they reek of that. Gold: The IoD has numerous huge multinational members, some of whom have been in the public eye due to their tax arrangements. What’s your position on the issue of how much tax they should be paying? S.W.: A company has an obligation to its shareholders, employees and everyone connected with the company to maximize profit and I don’t blame them for that at all. Of course, they must obey the law but the law needs to be clear and simple. In Britain, the way corporation tax is defined allows

endless scope for manipulation and evasion whereas a payroll tax, a turnover tax or a sales tax would be impossible to avoid and my suggestion to the British Exchequer would be to look at these alternatives. I also believe in tax competition and I think it’s a good thing that countries compete in order to keep taxes down and make themselves an attractive place to invest in. Ireland has done that very successfully, just like Cyprus. Gold: On the subject of Cyprus, since the 2013 crisis many people have lost trust in the banks and in the politicians. Can trust be regained once it’s been lost? S.W.: It can be regained but how long it takes depends on how they behave in the meantime. When a company acknowledges that something has gone wrong and tries to put it right aggressively, things can come right quite quickly. As Warren Buffet rightly said, “It takes 20 years to build a reputation and five minutes to ruin it”. Gold: What are the IoD’s priorities going to be over the next few years? S.W.: We need to tilt ourselves more towards earlier stage enterprises where people have a great idea that can be commercially successful but don’t actually know how to run a business or what being a director involves. Aiming at that group is a huge priority. The other point is to keep reminding people that being a director is different from being a manager: it implies taking overall responsibility for a company, its ownership and governance model and recognizing that it’s your fault if it all goes wrong. You can’t just lend your good name to a business or, for that matter, to a charity and then forget about it. You need to watch all the time and recognize that you have a responsibility to encourage a culture within Boards where directors are expected to challenge, to argue, to resist, to come up with options and to ask difficult questions. That is their job and noone should feel bad about doing it. You’re not the enemy because you may have aggressively argued against a proposal that ends up being adopted. That to-and-fro of ideas is what it’s all about.

Ultimately we want the best people to be running businesses, whoever they are, male or female

| SHIPPING |

Theodore Veniamis Dimitris Constantinou Tom Boardley Marios Demetriades

Harry Theochari

Richard Clayton

/($'(56 *$7+(5 72 ',6&866 75(1'6 $1' &+$//(1*(6

hipping has long been one of the driving forces of the Cyprus economy, with the sector contributing around â&#x201A;Ź1 billion per annum to the islandâ&#x20AC;&#x2122;s GDP. In recent years, the island has become one of the leading ship management centres and currently hosts the 10th largest merchant fleet in the world the third largest in Europe. As a country at the forefront of world shipping, it has a direct interest in global developments in the industry, particularly in the way economies impact on world trade. In recognition of shippingâ&#x20AC;&#x2122;s prominent role in the economy of Cyprus and in the rest of Europe and worldwide, Gold magazine and IMH, supported by the Cyprus Shipping Chamber, are organising the Shipping Industry Gala on 17 May 2016 at the Four Seasons Hotel, Limassol. High-profile speakers from the public and private sectors and distinguished guests will engage in an open dialogue about the significance of the industry to Cyprus and its prospects for growth. This exclusive invitation-only event has been designed to bring together all key players involved in shipping industry. They include government ministers and other senior government officials and policymakers, CEOs, General Managers and partners of major ship owning and ship management companies, banks and other financial institutions, insurance companies, law firms, accounting, audit and consulting firms. The keynote address at the Gala will be given by Theodore Veniamis, President of the Union of Greek Shipowners. He is the Founder and Chairman of the Golden Union Group of Companies as well as Chairman of Maritel. In 2015 he was ranked 48th on the Lloydâ&#x20AC;&#x2122;s List Top 100 Most Influential People in Shipping.

27+(5 35(6(17$7,216 '85,1* 7+( (9(1,1* ,1&/8'( â&#x20AC;˘â&#x20AC;&#x153;The future of the shipping industry in Cyprus: The Governmentâ&#x20AC;&#x2122;s Visionâ&#x20AC;? (Marios Demetriades, Minister of Transport, Communications & Works) â&#x20AC;˘â&#x20AC;&#x153; â&#x20AC;&#x153;International Legal issues and challenges in the shipping industryâ&#x20AC;? (Harry Theochari, Global Head of Transport, Norton Rose Fulbright) â&#x20AC;˘â&#x20AC;&#x153; â&#x20AC;&#x153;Maritime Leadership for the Period 2016-2018: Clear Vision rather than Micro Managementâ&#x20AC;? (Richard Clayton, Chief Maritime Correspondent, IHS Maritime and Trade, UK) â&#x20AC;˘â&#x20AC;&#x153; â&#x20AC;&#x153;The Vision of the Cyprus Shipping Industryâ&#x20AC;? (Themis Papadopoulos, President, Cyprus Shipping Chamber) Addresses will also be given by Tom Boardley (Marine Director, Lloydâ&#x20AC;&#x2122;s Register,UK), Bert Pijls, CEO, Hellenic Bank and Dimitris Constantinou (Assurance Partner, Global Shipping Network Leader, EY Greece). Coordinator of the Shipping Industry Gala is Peter Economides, Brand Strategist and Owner/President, Felix BNI, Greece. For further information contact IMH. Tel: 22505555, e-mail: events@imhbusiness.com Website: www.imhbusiness.com 3ODWLQXP 6SRQVRUV x (< &\SUXV x +HOOHQLF %DQN 6SRQVRUV x 'HPHPDULQH 6HUYLFHV 'HPHWULDGHV *URXS x 071 x * $ 3 9DVVLORSRXORV *URXS 1HWZRUNLQJ FRFNWDLO 6SRQVRU x 3KRWRV 3KRWLDGHV /WG &RPPXQLFDWLRQ 6SRQVRUV ,1 %XVLQHVV 1HZV *ROG 1HZV 2IILFLDO &DUULHU x 4DWDU $LUOLQHV www.goldnews.com.cy | GOLD | 45

| LEADERSHIP |

HOW TO LEAD

IN HIGH

FIVE LESSONS FROM THE TUNISIAN REVOLUTION By Tawfik Jelassi

TURBULENCE

hat would you do if you were offered a new job and were told you would be fired after one year but you weren’t allowed to quit during your mandate? That you would be paid peanuts compared to your old comfortable job, and you would be harassed and bashed in the media constantly. And you wouldn’t be allowed to complain. You would probably say “no thanks,” right? I ended up with that job and found out what it really means to lead in a high turbulence environment. I was Dean of a leading business school in Paris and Chairman of the Board of Directors of the top mobile telecom operator in Tunisia

when the Arab Spring broke out, turning the already troubled Middle East and North Africa upside down. It was a hopeful moment across the region and particularly in Tunisia. Even more surprising was that unorganized youth, impoverished people and Facebook played a huge part in toppling the dictator Ben Ali, whose stifling reign had lasted nearly a quarter century. After a rocky start for the

incumbent Islamists hand over power to a technocratic transitional government. This was the context when, on Christmas day 2013, the then designated Prime Minister Mehdi Jomaa offered me the aforementioned thankless and non-lucrative opportunity. I was asked to be Minister of Higher Education, Scientific Research, and Information & Communication Technologies. How could I refuse?

SUCCESS ONE YEAR DOESN’T GUARANTEE FUTURE WINS country after Ben Ali’s fall, the 2015 Nobel Peace Prize went to the Tunisian Quartet, composed of four civil society associations, which facilitated the country’s national dialogue. This dialogue reached a consensus among political parties, stipulating that the

46 | GOLD | The Business Magazine of Cyprus

I tried. My family was against it and it was risky. I didn’t want to turn down such an honour over the phone, so I travelled from Paris to Tunis to meet Prime Minister Jomaa. When I got there, he pointed out that I had never done my

obligatory military service and that it was time for me to pay my dues with a one-year commitment to my country. That was the beginning. I would later become the first minister he hired for his government and a very close collaborator in his core team. With the two political assassinations that took place in Tunisia in February and July 2013 being among the reasons our government was put in place, our team knew from the start we would be working in an extremely high turbulence environment. We were faced with the threat of being taken hostage; hostile mobs quite often waited for us outside our ministry; at times, we couldn’t go home; our own staff went on strike, and on and on. How can you start each day being positive and ready to lead under these circumstances? Despite all of the hardships,

it was the experience of a lifetime! Here are five lessons I learned about leading in a high turbulence environment:

Build a team with a fresh perspective. When setting up the transitional government, Prime Minister Jomaa didn’t gather the usual suspects from the Tunisian political scene. As any good leader should, he gathered the best people for the job from far and wide, bringing back countrymen from the US, Brazil, France, Switzerland, the UK and other places. He picked people who he knew had the skills to do the job and particularly looked for experienced leaders who had an outside perspective without connections to the old regime.

Destroy silos. In order to get our monumental tasks done in the short timeframe we were given, we had to create a network structure. It was important to collaborate across ministries and hierarchies to move forward. We leveraged the local knowledge and experience of ministers on the ground as a foundation for cross-silo collaboration. For the Prime Minister, it also meant that he had to empower his team to make autonomous decisions.

Separate the transformation or innovation team from the traditional part of the organisation. Just like a technology company, we intentionally physically set up our “lab” on the opposite

side of Tunis, far from the main body of government. Big problems need big solutions and you can’t come up with great ideas when you are bogged down with e-mails and day-to-day issues. Our job was to come up with innovative ideas to move our country forward and for that we needed the space to think and be creative.

Build bonds to strengthen trust. There is no way you can accomplish any major feat, let

challenges like ours had been approached elsewhere. All of this helped us be on the same page and have faith that we could succeed together.

Recognize your window of opportunity and set priorities. We had one year to get the job done. In that timeline and with the task of bringing an entire country back from the brink, you have to focus. We made it a priority to set up state institutions as outlined in the constitution, to

Tawfik Jelassi

A SENSE OF URGENCY CAN HELP LEADERS REACH GOALS alone getting an prepare the ground Info:Tawfik Jelassi is Professor of Strategy entire country off to for fair and internaand Technology a new start, if you tionally recognized Management at the International Institute don’t trust, respect parliamentary and for Management and have confidence presidential elections Development (IMD) in Lausanne. He was in your team. To before the end of the Tunisian Minister strengthen our our one-year manof Higher Education, Scientific Research, teamwork, we got date, to create an and Information out of the office and investment-friendly & Communication Technologies did outdoor team environment and to during a transitional building exercises. resolve ongoing potechnocratic government in 2014We met each other litical conflicts. The 2015 following the during the weekend situation was dire. A Arab Spring revolution in the country. for social gatherings sense of urgency can or to play soccer help leaders reach together. We went goals. We couldn’t on learning expeditions and work on issues that weren’t of gathered insights into how the most pressing importance.

So did we succeed? We redesigned the national subsidy system and put the country on a better economic path. We led the fight against terrorism, redesigned the higher education system in the country, formulated a fiveyear strategic plan for “Digital Tunisia,” created a “country chief information officer” role that reports directly to the Prime Minister. On our watch, an SMS-based registration system for national elections was also created. I would say that, overall, we harnessed technology to push the country toward the future. But sadly Tunisia is now facing an unprecedented terrorist threat following three attacks in 2015 on the Bardo National Museum, on a major hotel in Sousse and on the presidential guard in Tunis. More recently, an all-out military style attack by ISIS was carried on Ben Gardane, a Tunisian city on the Libyan border. Because of this, tourism, one of the country’s biggest income generators, has plummeted, leaving it in an economically weakened state. But that’s also how business is. Success one year or even one week doesn’t at all guarantee future wins. Look at Volkswagen in 2015. The formerly top-selling brand experienced a scandal that put its future in danger. So leaders in any type of organisation need to prepare themselves, mentally and otherwise, to face high turbulence, or else. Do you have what it takes to lead in high turbulence?

www.goldnews.com.cy | GOLD | 47

Opinion

PHARMACEUTICALS MANAGEMENT IT IS ESSENTIAL THAT CYPRUS ADOPTS EU PRACTICES By Kyriakos Mikellis

n most European countries, transparent, timelines are adhered to and though not in Cyprus, policy decisions are taken based on substantiated regarding pharmaceuticals and verifiable criteria. means that patients are given The Reimbursement Agency supplies access to the treatment their pharmaceuticals to patients and is essentially doctors consider the most apthe one that implements the decisions of the propriate. Pharmaceuticals and pharmaEvaluation Agency. The required monetary ceutical care are usually administered by fund is set up using revenue from citizensâ&#x20AC;&#x2122; three independent agencies, each with its special contributions, mass contributions own area of responsibility, thereby ensur-or tax contributions. The Reimbursement ing that patients have access to the best A Agency covers the biggest part of the cost quality pharmaceutical care possible. w a nominal part is covered by the while The Regulatory Agency is responsible patient in what is known as a co-payment for licensing pharmaceuticals, controllingg system. Individual patient participation and supervising marketing (pharmain the cost of treatment serves to control covigilance), licensing and supervising use and should be kept at a low rate, while pharmacies, and monitoring drug the patient must not be discouraged from manufacturing factories as well as the using the appropriate pharmaceutical treatInfo: Kyriakos Mikellis is importers and distributors of pharmaceuticals. In ment because of cost. President of the Cyprus Association of Research and general, the Regulatory Authority is responsible Recognising the importance of these procedures and Development Pharmaceutical for ensuring that the patient receives safe and efservices for citizens, the European Union issued a diCompanies (KEFEA) fective treatment. One example of such a service rective in 1989 (89/105/EEC) regulating procedures to at the European level is the European Medicines determine prices and to introduce pharmaceuticals into Agency, to which manufacturers apply for centralised Eurohealth systems. An equivalent to these procedures must be intropean approval of pharmaceuticals and whose decisions apply duced in Cyprus. If we find that this is beyond our capabilities as a to all EU Member States. Additional examples include the country, we should not attempt to reinvent the wheel. We always Medicines and Healthcare Products Regulatory Agency of the UK have the choice to adopt the models of other countries, particularly (MRHA) which regulates the marketing of pharmaceuticals in the those with high quality medical care such as Sweden, Germany, United Kingdom and the National Pharmaceuticals Organisation Israel and Switzerland. (EOF) in Greece. To a large degree, Cyprus lags behind the rest of Europe with The Evaluation Agencyâ&#x20AC;&#x2122;s main responsibility is to evaluate new regard to the management of pharmaceuticals since it has not yet pharmaceuticals and medical devices approved by the Regulatory set up a similar structure to ensure the independence of the three Agency, following an application by the marketing authorisation agencies mentioned above. holders (manufacturers) so that their products can be marketed and We expect the state to adopt a structure similar to other European prescribed to patients. This agency is independent with a legislative countries regarding the administration of pharmaceuticals the soonmandate, so as to have the most crediest possible and not necessarily with bility. As a rule, its members are health the implementation of the NHS. CYPRUS LAGS BEHIND experts such as academics in the health Such a system should safeguard THE REST OF EUROPE sciences and those versed in pharmatransparency in decision-making coeconomics. Other stakeholders, such within specific time frames while, at WITH REGARD TO as patients, doctors, pharmacists and the same time, aiming to improve THE MANAGEMENT OF industry representatives, also particithe quality of pharmaceutical care PHARMACEUTICALS pate so as to ensure that procedures are for Cypriot patients.

48 | GOLD | The Business Magazine of Cyprus

| CONFERENCE |

INTERNATIONAL

Funds Summit

BRIDGING THE GAP BETWEEN EUROPE, THE MIDDLE EAST, AFRICA AND ASIA

“B

ridging the Gap Between Europe, the Middle East, Africa and Asia” is the title of the International Funds Summit, which takes place on May 30-31 2016 at the GrandResort in Limassol. Organised by the Cyprus Investment Funds Association (CIFA) and endorsed by the European Fund and Asset Management Association (EFAMA), the Summit will host senior expert speakers, including representatives from international law firms, EFAMA and members of international fund industry associations and fund/asset managers. Its main objective is to inform local participants about the current EU regulatory framework, identify the latest global trends and opportunities and highlight the advantages of Cyprus as an Investment Funds hub. The International Funds Summit 2016 has been meticulously structured with the professionals’ needs and wants in mind. Ample time and opportunities for networking, conversations and interactive panel discussions will be provided, in addition to first class presentations by a gathering of world-renowned industry professionals and thought leaders on topics such as: “The current challenges for the asset management sector in the context of the Capital Markets Union and the retail financial services”, “Key trends and new products opportunities in the alternative investment industry”, “The regulatory landscape: main regulatory developments in key fund centres”, “Difficulties in raising capital”, “Best practice marketing and the right distribution strategy”, “Depositaries in the post-AIFMD and UCITS V era”, “The impact of MIFID on asset

managers”, “The importance of robust compliance” and “Alternative Investment Strategies and structures”. CONFIRMED SPEAKERS INCLUDE • Peter De Proft, Director General, EFAMA, Belgium • Harris Georgiades, Minister of Finance, Cyprus • Demetra Kalogerou, Chairman, Cyprus Securities and Exchange Commission • Evelyne Christiaens, Head, Legal & Tax Department, Alfi, Luxembourg • Sheila Nicoll, Head, Public Policy, Schroders, UK • Aki Corsoni-Husain, Partner, Head of Regulatory, Harneys • Julie Patterson, Director, Investment, Management, Regulatory Change, KPMG, UK • Roy Stockell, Partner, EMEIA Wealth & Asset Management Leader, EY, UK • Speaker from PwC • Speaker from Deloitte • Summit Chairwoman: Emily Yiolitis, Partner, Harneys Aristodemou Loizides Yiolitis LLC For further information contact IMH. Tel: 22505555, e-mail: events@imhbusiness.com Website: www.imhbusiness.com Platinum Sponsors: Barclays, Bank of Cyprus. Treppides Fund Services. Gold Sponsor: Deloitte, Eurobank, EY Cyprus, KPMG, Harneys, PwC Cyprus. Silver Sponsors: CPF, GMM Global Money Managers, KMG Capital Markets, Numisma Capital and Systemic. Media Partners: Gold Magazine and Savvy Investors. Organizer: CIFA. Endorsed by: EFAMA. Under the Auspices of President Nicos Anastasiades and CIPA. Secretariat: IMH.

࢝ PETER DE PROFT, DIRECTOR GENERAL, EFAMA, BELGIUM

࢝ SHEILA NICOLL, HEAD, PUBLIC POLICY, SCHRODERS, UK

࢝KONSTANTINOS V. BOTOPOULOS, DR. JUR., ADVISOR TO THE GOVERNOR OF THE BANK OF GREECE, EX CHAIRMAN OF THE HELLENIC CAPITAL MARKETS COMMISSION, GREECE

࢝ EVELYNE CHRISTIAENS, HEAD, LEGAL & TAX DEPARTMENT, ALFI, LUXEMBOURG

www.goldnews.com.cy | G GOLD D | 49

| 6TH NICOSIA ECONOMIC CONGRESS |

he Nicosia Economic Congress is the leading annual financial/ economic event held in the capital. This yearâ&#x20AC;&#x2122;s Congress, which poses the question â&#x20AC;&#x153;2016: A Breakthrough Year for the Economy?â&#x20AC;?, takes place at the Hilton Cyprus on Thursday, 26 May. It gathers together

Harris Georgia des

government ministers, industry and business leaders, economists, academics and representatives of major international institutions, who will debate and discuss the countryâ&#x20AC;&#x2122;s recent economic and social progress and take a detailed look at what the future holds for the Cyprus economy in 2016-2018. Last month, Cyprus officially exited the â&#x201A;Ź10 billion EU-IMF economic adjustment programme, following drastic changes to

Constantinos Petrides

e Georg oridis Pamb

the banking system and three years of major reforms in other areas. Although problems still remain â&#x20AC;&#x201C; notably the huge burden of Non-Performing Loans (NPLs) and structural reforms such as the privatisation of semi-government organisations â&#x20AC;&#x201C; the signs of economic recovery and a return to growth are clearly visible and the state budget for 2016 is a â&#x20AC;&#x153;balancedâ&#x20AC;? one, according to the Minister of Finance. Chris to Anga doulos stinio tis

THE NICOSIA ECONOMIC

CONGRESS Among the topics to be presented at this yearâ&#x20AC;&#x2122;s 6th Nicosia Economic Congress are the following: â&#x20AC;˘ â&#x20AC;&#x153;The Implementation of the three year EU-IMF Aid Programme and the Economic Forecast for 2016-2018â&#x20AC;? (Harris Georgiades, Minister of Finance); â&#x20AC;˘ â&#x20AC;&#x153;Structural Reforms: Transforming & Developing the Economyâ&#x20AC;? (Constantinos Petrides, Under-Secretary to the President â&#x20AC;˘ â&#x20AC;&#x153;Transforming the Health Sector: The Proposed National Health Schemeâ&#x20AC;? George Pamboridis, Minister of Health) â&#x20AC;˘ â&#x20AC;&#x153;Direct Investment in Cyprusâ&#x20AC;? (Christodoulos Angastiniotis, Chairman, Cyprus Investment Promotion Agency) â&#x20AC;˘ â&#x20AC;&#x153;Banking in Cyprusâ&#x20AC;? (Chrystalla Georghadji, Governor, Central Bank of Cyprus) â&#x20AC;˘ â&#x20AC;&#x153;How foreign investors view Cyprusâ&#x20AC;? (Vincenzo Guzzo, Resident Representative

50 | GOLD | The Business Magazine of Cyprus

in Cyprus, IMF) Two panel discussions form part of the Congress. The first, â&#x20AC;&#x153;Forecasting the Economy: Cyprus Economy Forecasts 20162018â&#x20AC;? features a panel of academics, who will present their own forecasts for the economy and discuss them with the Minister of Finance. The panelists are Sofronis Clerides, Associate Professor, Economics Department, University of Cyprus; Andreas Haritou, Professor, Accounting & Finance Department, University of Cyprus; and Alexandros Michaelides, Professor of Finance, Imperial College, London. In the second panel discussion, entrepreneurs from various sectors share their personal experiences and discuss the challenges faced during the recent difficult times, how their strategies have evolved and their forecasts for

the future of the economy and business overall. The panelists are Dr. Andreas Pittas, Executive Chairman & Founder, Medochemie and Dinos Lefkaritis, Executive Director Finance, Petrolina Holdings. For further information contact IMH. Tel: 22505555, e-mail: events@ imhbusiness.com Website: www.imhbusiness.com

6th Nicosia Economic Congress Organisers: 0UZ[P[\[L VM *LY[PĂ&#x201E;LK 7\ISPJ (JJV\U[HU[Z VM *`WY\Z 0*7(* .VSK magazine Main sponsor: (SWOH )HUR *`WY\Z 3[K Sponsors: )HRLY ;PSS` 2SP[V\ 7HY[ULYZ 3[K . ( 7 =HZZPSVWV\SVZ .YV\W 1VOUUPL >HSRLY 4;5 )\ZPULZZ Communication Sponsors: .VSK 5L^Z :PNTH 3P]L Coordinator: 04/

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COMPANIES INVOLVED

IN THE INVESTMENT

FUNDS SECTOR Over the past few years, and particularly since 2013 when the Cyprus Investment Funds Association (CIFA) was established, *`WY\Z OHZ ILN\U [V WSH` HU PUJYLHZPUNS` ZPNUPÄJHU[ YVSL PU [OL global investment funds industry.

Ahead of the forthcoming International Funds Summit entitled “Bridging the Gap Between Europe, the Middle East, Africa and Asia”, which takes place on May 29-31 2016 at the GrandResort in Limassol, fourteen companies present their products and services in detail on the following pages.

CONTENTS 54 ALTER DOMUS (CYPRUS) LTD 56 BDO LTD 58 COSTAS TSIRIDES & CO LLC 60 CPF 62 CYDRIS FUND SERVICES 64 DELOITTE 66 EUROBANK CYPRUS 68 FORTICAP LTD 70 GMM GLOBAL MONEY MANAGERS LTD 72 KMG CAPITAL MARKETS 74 KPMG 76 MICHAEL KYPRIANOU & CO LLC 78 PwC CYPRUS 80 TREPPIDES FUND SERVICES LTD

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COMPANIES INVOLVED

IN THE INVESTMENT

FUNDS SECTOR

CYPRUS AND

THE INVESTMENT

FUNDS INDUSTRY

ome years ago, the Cyprus Investment Promotion Agency (CIPA), identified the investment funds sector as a priority

sector with very good development prospects. It worked closely with the Government, regulatory and other bodies and organisations active in the specific sector, initially setting up an Expert Advisory Group for Investment Funds which, in 2013, became the Cyprus Investment Funds Association (CIFA). The Cypriot funds industry is, arguably, still in its infancy compared to other financial sectors but since then, considerable progress has been made.

ccording to Association President Angelos Gregoriades, â&#x20AC;&#x153;Cyprus has a breadth of experienced and

recognised fund service providers, which include both local boutique and international names representing the fund administration sector. In recent years, a number of international players have set up local branches in Cyprus, showing the trust they place in the growth prospects of the industry.â&#x20AC;?

t the moment, Cyprus may still have relatively few custodians and managers, but several international industry leaders have already set up in Cyprus and others look set to follow in the coming years.

WE WOULD LIKE TO ESTABLISH CYPRUS AS A PRIME EUROPEAN FUNDS JURISDICTION

52 | GOLD | The Business Magazine of Cyprus

he island’s regulatory authorities have worked well to bring the island’s’ funds and asset management framework up to the standard of other international jurisdictions. In 2014, the Alternative Investment Funds (AIF) Law replaced the existing ICIS Law, after Cyprus transposed the UCITS IV Directive in 2012 and the Alternative Investment Funds Managers Directive (AIFMD) in 2013. The island now offers a European passport to the fund management industry, which is expected to bring more business, attracting EU and non-EU firms wishing to gain access to European Union investors.

vice providers established in Cyprus, ranging from global names to local independent operators servicing all types of funds at very competitive rates.

et-up costs for a fund in Cyprus are significantly lower than in the more mature fund centres, notes Angelos Gregoriades. “Cyprus is

and modernising the Alternative Investment Fund framework, Cyprus now possesses the means to play a significant role in the global industry.

“T

he challenge is to effectively promote the advantages that Cyprus can offer and enhance our potential with existing markets while creating awareness in new markets,” he says. “A further challenge will be to remain flexible so as to meet the demands of the market and continuously upgrade the framework in place so as to remain competitive. We would like to establish Cyprus as a prime European funds jurisdiction.” On May 29-31 2016, the International Funds Summit takes place at the GrandResort in Limassol. Entitled “Bridging the Gap Between Europe, the Middle East, Africa and Asia”, it is organised by the Cyprus Investment Funds Association and endorsed by the European Fund and Asset Management Association (EFAMA). The Summit will host senior expert speakers, including representatives from international law firms, EFAMA and members of international fund industry associations and fund/asset managers. Its main objective is to inform local participants about the current EU regulatory framework, identify the latest global trends and opportunities and highlight the advantages of Cyprus as an Investment Funds hub. (See page 49).

THERE ARE ALREADY SEVERAL RECOGNISED FUND SERVICE PROVIDERS ESTABLISHED IN CYPRUS, RANGING FROM GLOBAL NAMES TO LOCAL INDEPENDENT OPERATORS

any industry experts believe Alternative Investment Funds will ultimately dominate the funds industry in Cyprus. The law on AIFs provides for a framework that is as competitive as that of Luxembourg, Ireland and Malta and allows for the establishment of funds marketed to professional and retail investors, as well as for the introduction of umbrella funds. It has also expanded the scope of legal forms by adding the Common Fund to the existing legal forms of Variable Capital Companies, Fixed Capital Companies, and Limited Partnerships. With the implementation of the new framework for alternative investment funds, all regulation has been brought under the Cyprus Securities and Exchange Commission (CySEC). There are already several recognised fund ser-

very cost-effective, with service provider fees being substantially lower than in other more established jurisdictions. Cyprus is without a doubt positioned as a place of choice on the map of fund domiciles and asset management jurisdictions.”

he CIFA President also believes that, by closely mirroring the regimes established under EU directives governing asset management

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COMPANIES INVOLVED

IN THE INVESTMENT

FUNDS SECTOR

ALTER DOMUS (CYPRUS) LTD

lter Domus is a leading provider of Fund and Corporate Services, dedicated to international private equity & infrastructure houses, real estate firms, private debt managers, multinationals, capital markets issuers and private clients. Our vertically integrated approach offers tailor-made administration solutions across the entire value chain of investment structures, from fund level down to local Special Purpose Vehicles. Founded in Luxembourg in 2003, Alter Domus has continually expanded its global service offer and today counts 30 offices and desks across five continents. This international network enables clients to benefit globally from the expertise of more than 900 experienced professionals active in fund administration, corporate secretarial, accounting, consolidation, tax and legal compliance, depositary services and debt administration services. We are proud to serve 9 of the 10 largest private equity houses, 7 of the 10 largest real

estate firms and 3 of the 10 largest private debt managers in the world. Key factors in our success include a central point of contact who expertly manages our client relationship across jurisdictions, experienced local operational teams and a cutting-edge globally integrated IT system. A substantial amount of our revenue is derived from the alternative fund industry and our dedicated Fund Services Teams have an in-depth knowledge of the global technical and operational issues that are necessary to support expectations from both general and limited partners. SERVICES/EXPERTISE Alter Domus has traditionally had strong accounting, financial reporting and audit liaison skills. The scope of our fully-integrated Corporate Services includes company formation and liquidation, corporate secretarial services, daily administration and management, accounting and tax compliance. We also provide independent directors for the companies we administer. Alter Domus has dedicated teams focusing on private equity, infrastructure and real estate clients. With over 70% of our revenues derived from the alternative investment

George Rologis, Group Head Corporate Development, Strategy & M&A Regional Executive Europe & MEA, GEC Member, e-mail: George.Rologis@ alterdomus.com

fund industry, we have gained an in-depth knowledge of the global, technical and operational issues that are necessary to support expectations from both general and limited partners. Alter Domus has over $74 billion of assets under administration (AUA) and more than 6,500 structures for Fund Administration clients. Alter Domus is the only global fund administrator with an active and highly experienced execution team based in Cyprus, capable of servicing and adding value to all of the Investment Manager’s needs. The Cyprus funds team is part of the global Alter Domus Funds team sharing knowledge, best practices and our highly efficient and

CONTACT INFORMATION: ALTER DOMUS (CYPRUS) LTD

capable IT platforms to cater for our client’s needs. ALTER DOMUS’ FUND SERVICES • Outsourcing Solutions • Coordination of Fund Launches • Investment Processing • Fund Accounting & Administration • Investor Relations • INREV/EVCA AIFMD Reporting • Depositary Services • Debt Administration Services • Client Portal 24/7 access • Corporate Services • Compliance & Regulatory Support • Financial Reporting • Consolidation • Liquidation

Headquarters: 5, rue Guillaume Kroll, L-1882 Luxembourg | Tel: (+352) 4818281 | Fax: (+352) 481863 | Website: www.alterdomus.com *`WY\Z 6ɉJL! Address: 11, Limassol Avenue, Galatariotis Building, 2112 Nicosia, Cyprus | Tel: (+357) 22465151 | Fax: (+357) 22379379 54 | GOLD | The Business Magazine of Cyprus

CREDIBLE RELIABLE CONNECTED

EUROPEAN SPECIALIST ADMINISTRATOR WINNER FUNDS EUROPE AWARDS

ͼͺͻͽ, ͼͺͻ; & ͼͺͻͿ

FUND & CORPORATE SERVICES

www.alterDomus.com

www.goldnews.com.cy | GOLD | 55

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COMPANIES INVOLVED

IN THE INVESTMENT

FUNDS SECTOR

BDO LTD

DO Ltd is amongst the largest professional services firms in Cyprus, employing over 100 professionals providing audit, tax, accounting, global compliance and advisory services, predominantly to International clients in all areas of business activity. We have been a member of BDO International Ltd since 2006. BDO's global network provides advisory services in 154 countries, with over 64,300 people working out of more than 1,200 offices worldwide. We have demanding client service standards that all our firms must meet and we trust and empower our people to use their skills and experience to deliver the exceptional service that global clients expect. Our distinctive reputation for building close personal relationships with our clients is based on our commitment to all our stakeholders that what mat-

ters to them matters to us. We work with our clients to define what exceptional client service means to them and we aim always to bring insight and up-to-date thinking to help them meet their objectives. BDO network firms combine their in-depth technical knowledge and expertise of the local market with the specific expertise and technical resources of a worldwide network to provide effective and relevant advice to the highest standards. Our Fund services department specializes in providing fund advisory services, administration and support services enabling our clients to set up and manage regulated funds anywhere in the EU. INCORPORATION SERVICES • Establishment of regulated Alternative and UCITS funds anywhere in the EU • Establishment of regulated fund management companies and alternative investment fund management companies and advising throughout the licensing procedure • Assisting in the drafting of the necessary procedures manuals to comply with the relevant laws and regulations • Advising to ensure compliance with the applicable

UCITS management company and AIFM Laws • Coordination of Securities Services Providers and other outsourcing solutions • Drafting of the prospectus • Preparation of business plans

issuing other communications • Applying the anti-money laundering and counter-terrorism financing (AML) rules and control procedures • Identifying clients (KYC / risk management)

ADMINISTRATIVE AGENT • Accounting for all transactions and movements • Portfolio valuations • Reconciling portfolios and accounting records with the service providers involved • Checking investment restrictions • Maintaining, storing and archiving accounting data • Calculating taxes and levies • Calculating and publishing net asset values • Liaising with external auditors • Preparing consolidated financial statements in accordance with the accounting standards required • Preparing and sending out financial and legal reports REGISTRAR AGENT • Maintaining shareholder registers • Registering and performing transactions (subscriptions, redemptions, conversions, transfers and distributions) • Settling and monitoring transactions • Convening shareholders to annual general meetings and

DOMICILIATION AND CLIENT COMMUNICATIONS AGENT • Registered offices • General secretariat and administrative management • Correspondence management • Organizing board and shareholder meetings • Managing notifications, notices, and legal announcements • Managing invoices • Maintaining, storing and archiving documents • Managing the secure access to confidential data • Assisting you to identify corporate officers with the relevant experience BDO Fund Services Ltd, a Cyprus limited liability company, is a subsidiary of BDO Ltd and a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.

CONTACT INFORMATION: BDO LTD

5PJVZPH c (KKYLZZ! 236 Strovolos Avenue, 2048 Strovolos, Nicosia, Cyprus | 7VZ[HS (KKYLZZ! P.O. Box 25277, 1308 Nicosia, Cyprus Tel: (+357) 22495707 | Fax: (+357) 22495717 | e-mail: nicosia@bdo.com.cy | Website: www.bdo.com.cy | *VU[HJ[! Karlos Zangoulos 3PTHZZVS Address: 261 28th October Street (Seafront Road) | View Point Tower, Floors 6,7 and 8 | PO Box 51681, CY3507, Limassol CYPRUS 7VZ[HS (KKYLZZ! P.O. Box 51681, 3507 Limassol, Cyprus | Tel: (+357) 25735450 | Fax: (+357) 25735455 | e-mail: limassol@bdo.com.cy Website: www.bdo.com.cy | *VU[HJ[! Rois Potamitis 56 | GOLD | The Business Magazine of Cyprus

BDO Fund Services Total Fund Solutions that allow you to focus on what matters most-your fund’s performance. A # "! ! 897:)9:7/3- '3* /3)47547'9/43 A :3* *2/3/897'9/43 A +-/897'7 "7'38,+7 -+39 A 42/)/1/'9/43 A +(9 897:)9:7/3- '3* (43* /88:'3)+ )'5/9'1 897:)9:7+ 459/2/?'9/43 A !41:9/438 ,47 8+):7/9/+8 1+3*/3- (4774</3BDO Fund Services Ltd is a subsidiary of BDO Ltd, a Cyprus limited liability company. BDO Ltd is a member of BDO International Limited, a UK company limited by guarantee and forms part of the international BDO network of independent member firms. BDO Fund Services Ltd is registered in Cyprus under registration no HE327441. A list of directors and their professional qualifications can be obtained at our registered office.

Nicosia 236 Strovolos Avenue 2048 Strovolos, Nicosia P.O. Box 25277, 1308 Nicosia T + 357 22495707 F + 357 22495717 Karlos Zangoulos nicosia@bdo.com.cy

Limassol View Point Tower, 261 28th October Street (Seafront Road), Floors 6,7 and 8 PO Box 51681, CY3507, Limassol T + 357 25735450 F + 357 25735455 Rois Potamitis www.goldnews.com.cy | GOLD | 57 limassol@bdo.com.cy

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COMPANIES INVOLVED

IN THE INVESTMENT

FUNDS SECTOR

COSTAS TSIRIDES & CO LLC

C ostas Tsirides & Co. LLC was founded in 1970 and, since then, has become established as one of the most reputable and respected law firms in Cyprus. The 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 countryâ&#x20AC;&#x2122;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

58 | GOLD | The Business Magazine of Cyprus

tailored to their specific circumstances. Moreover, the firm is committed to handling each case with respect and discretion, aiming to develop a personal relationship 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 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 corporations; 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 interna-

Alexandros Tsirides, Managing Director

tional 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. 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

THE FIRM IS COMMITTED TO HANDLING EACH CASE WITH RESPECT AND DISCRETION, AIMING TO DEVELOP A PERSONAL RELATIONSHIP WITH CLIENTS 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 Arbitrators. Costas Tsirides & Co. LLC is also one of the leading law firms in Cyprus, with a vast experience of Real Estate and Property Law, offering a wide range of services. Our firm also provides the full range of construction law advice and assistance. The firm is a member of B.G.I. a worldwide association of independent law firms (www. bgi-law.com).

AWARDS Costas Tsirides & Co. LLC has received the following awards: • 2010-2015 Business Formation Law Firm of the Year in Cyprus Award (Corporate INTL legal awards) • 2010 Boutique Law Firm of the year in Cyprus Award (Corporate INTL Global awards) • 2011 Litigation Law Firm of the year in Cyprus (Corporate INTL legal awards) • 2011 &2013 Business Formation Law Firm of the Year in Cyprus Award (Global Law Experts Practice Awards) • 2014 Business Formation Law Firm of the Year in Cyprus Award (Corporate INTL Global awards) • 2015 Litigation Law Firm of the year in Cyprus award (Corporate INTL Legal Awards) • 2015 Global Law Experts-Business Formation Law Firm of the Year in Cyprus • 2015 Global Law Experts-Litigation Law Firm of the Year in Cyprus

CONTACT INFORMATION: COSTAS TSIRIDES & CO LLC

Address: Tel.: (+357) 25820810 | e-mail: alexandros@tsirides.com | Website: www.tsirides.com www.goldnews.com.cy | GOLD | 59

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COMPANIES INVOLVED

IN THE INVESTMENT

FUNDS SECTOR

CPF

Fund Administration Services

yproFund Services Ltd (CPF), a member of CPM Group, has been dedicated to providing comprehensive fund administration and accounting services as well as assistance with compliance and other operational issues to private investment funds, both onshore and offshore, for more than 15 years. CPF is the leading Fund Administrator in the Cyprus market, providing fund administration services to a significant number of Alternative Investment Funds (AIFS) and pools of Collective Investment Schemes (UCITS) recognized by the Cyprus Securities and Exchange Commission as well as to other Private Equity and Fixed Income funds. The value of Funds under CPF’s administration was approximately €1.5 billion as at 31/12/2014. CPF is ISAE 3402 COMPLIANT CPF has completed an independent examination complying with the Interna-

tional Standard on Assurance Engagements (ISAE) 3402 Type II audit demonstrating the reliability, security and operational excellence of the fund administration services performed. CYPRUS: AN IDEAL FUND DOMICILE The last few years have seen great progress in the shaping and development of the Funds Industry in Cyprus, which is becoming one of the top emerging fund centres in Europe. New regulation has been enacted, reflecting harmonization with EU directives. The island’s strategic geographic location, in the middle of three continents – Asia, Europe and Africa – provides an easy access to new markets. Cyprus is a natural gateway to the Middle East and has gained significant experience with the Russian and Central and Eastern European markets. It is a European jurisdiction with its legal framework completely EU- aligned, which means more transparency towards the regulators, better investor protection and EU passport for Fund Managers. It has a rich network of double tax treaties and an advantageous tax system which render it very attractive as a tax residence,

and it has unparalleled cost-efficiency that is hard to overlook. Cyprus has still a long way to go with respect to improving its macroeconomic considerations but the banking system is on its way to recovery and has already been upgraded by Moody’s, Fitch and Standard & Poor’s. The Cyprus Securities and Exchange Commission has already shown good signs that it will be early adopting new laws. All of these, together with the high quality of life enjoyed in Cyprus, make Cyprus as close to an ideal fund domicile location as you can possibly get. CPF FUND ADMINISTRATION SERVICES CPF offers a complete fund administration solution, including fund accounting and reporting, corporate and trustee services, as well as shareholder and investor services to a broad range of investment products, including mutual funds, private equity, partnerships and property funds with investments in the former CIS, African and European markets. We ensure the accurate and timely release of the fund’s NAV with the required frequency (monthly, quarterly, half-yearly and /or yearly). Our extensive reporting capabilities can meet a wide

CONTACT INFORMATION: CPF

range of needs and can be specifically tailored to suit the requirements of each client. CPF’s team of highly qualified professionals provides comprehensive Compliance and Anti Money Laundering Services to Investment Firms and other professional legal entities (such as ICIS and UCITS). Our experienced Compliance officers provide professional compliance and AML best practices advice aligned with the latest regulatory requirements. WHY CPF? • We are an Independent, experienced, and efficient third- party administrator • We provide customized, full-service back-office support resulting in greater operational efficiency freeing the investment manager to focus on core priorities • We allow for greater alignment with the new changes and requirements taking place in the funds industry • We possess in-depth knowledge of the relevant legislation • Through strategic alliances we are able to provide international expertise in multiple jurisdictions • We are better positioned to support the new, demanding environment and the investment manager

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COMPANIES INVOLVED

IN THE INVESTMENT

FUNDS SECTOR

CYDRIS FUND SERVICES

ydris Fund Services is a fund administration business with offices in Limassol and Nicosia, Cyprus. Our aim is to provide superior fund administration and related services to accommodate the needs of funds, fund managers, investors and other stakeholders of the funds industry. We are able to offer a one-stop-shop service to investment funds and their managers. Our pledge is to provide services that are delivered promptly, are of the highest quality and are provided at competitive rates. ABOUT US Cydris Fund Services is the trade name of AMF Horwath DSP Limited, a joint venture of two professional firms. The partners of AMF Horwath DSP Limited are AMF Global Ltd and Horwath DSP Fund Services Ltd. AMF Global Limited is a 62 | GOLD | The Business Magazine of Cyprus

fund administration and corporate service provider, established in 2011. It is wholly owned by the law firm Kannava, Kitromilidou & Co LLC (KPK Legal). Horwath DSP Fund Services Ltd, is a wholly owned subsidiary of Horwath DSP Ltd an audit, tax and advisory firm established in 1987. The two firms joined forces in 2015 with the aim of enhancing their offering of fund administration services to funds established in Cyprus, or anywhere else in the world.

TYPES OF FUNDS We can provide services to all types of funds that well-informed or professional investors have set up in Cyprus or overseas. The size of the funds we aim to serve varies, depending on the complexity and number of investors and ranges from small funds of approximately US$50 million to much larger funds with features matching our services offering. Funds investing in illiquid asset classes, such as private equity, real estate, shipping and infrastructure,

will be especially sought after. PAST HISTORY While Cydris is a newly established fund services company, in the last few years its joint venture partners have been offering fund administration services for Forex, shipping and private equity funds reaching more than US$500 million under administration. The joint venture partners of Cydris have been offering set-up, licensing and compliance services to Alternative

Investment Funds (AIFs), fund management companies and investment firms in Cyprus and abroad for many years. Setting up a fund management company or investment firm in Cyprus has extraordinary tax benefits and other advantages for companies, their executives and employees. WHY CYDRIS? We are able to offer a onestop-shop service to investment funds and their managers. Our pledge is to provide services that are delivered promptly, are of the highest quality and are provided at competitive rates. Cyprusâ&#x20AC;&#x2122; cost of living is much lower than that of all other advanced European countries and we believe our pricing to be very competitive compared to that of our counterparts in well-known European fund administration centres. We employ experienced and talented personnel who are committed to meeting client expectations and deadlines. Our staff is supervised and directed by qualified ac-

countants and lawyers. Cydris currently uses the dedicated Microgen 5Series fund administration software in combination with Thomson Reuters DataScope Select (DSS). This ensures that prices of the transferable securities in our fund administration software are updated automatically and accurately. The whole company operates under an on-premise private cloud platform which offers very high security and less risk of potential data loss. We also maintain our own disaster recovery/business continuity site.

ances â&#x20AC;˘ Preparation and monitoring of execution of all legal documentation â&#x20AC;˘ Liaison between Liquidity Provider/Broker and Banks/ Custodians â&#x20AC;˘ Complete range of legal services from our associate legal team â&#x20AC;˘ Liaison with external auditors â&#x20AC;˘ Consulting on valuations, restructurings, side-pockets â&#x20AC;˘ Ongoing due diligence procedures including KYC â&#x20AC;˘ Ensuring that all statutory requirements are met in respect to anti-money laundering (AML) procedures

FUND ADMINISTRATION â&#x20AC;˘ Administration of Cyprus, European and offshore funds â&#x20AC;˘ NAV calculations and provision of periodic bespoke reports â&#x20AC;˘ Bookkeeping and maintenance of accounting records â&#x20AC;˘ Maintenance of shareholder documentation to ensure compliance with all relevant regulatory bodies â&#x20AC;˘ Execution of payments and bank account administration â&#x20AC;˘ Monitoring of cash bal-

INVESTOR SERVICES â&#x20AC;˘ Regulatory and shareholder reporting, including filings to regulatory bodies â&#x20AC;˘ Registrar and transfer agency services, processing of subscriptions, redemptions, transfers or switches â&#x20AC;˘ Maintenance of share register and relevant record keeping â&#x20AC;˘ Dividend distribution â&#x20AC;˘ On-line access of shareholder transactions, current holdings, fund performance

â&#x20AC;˘ Regulatory and shareholder reporting, including filings to regulatory bodies â&#x20AC;˘ Customised reporting â&#x20AC;˘ Initial and ongoing communication with shareholders â&#x20AC;˘ Equalisation record keeping and reporting SET-UP, LICENSING, COMPLIANCE AND OTHER FUND SERVICES â&#x20AC;˘ Set-up and licensing of fund management companies â&#x20AC;˘ Set-up and licensing of Cyprus and offshore funds â&#x20AC;˘ Redomiciliation of funds and fund management companies â&#x20AC;˘ Corporate, fiduciary and administration services â&#x20AC;˘ Risk and other consulting services â&#x20AC;˘ Audit, tax and VAT advice â&#x20AC;˘ Legal support and regulatory advice â&#x20AC;˘ Set up of an office in Cyprus â&#x20AC;˘ Selection of licensed directors â&#x20AC;˘ Accounting and payroll services â&#x20AC;˘ Regulatory compliance â&#x20AC;˘ Recruitment and personnel services

CONTACT INFORMATION: CYDRIS FUND SERVICES

Our Funds Advisory Services An integrated solutions offering

ollowing the transposition of the UCITS IV directive into national law in 2012 and the AIFM directive into AIFM and AIF Laws in 2013 and 2014 respectively, Cyprus is able to fully utilise the harmonised European framework on UCITS, AIFs and their managers (UCITS Management companies and AIFMs). The combination of this framework and Cyprus’s tax-friendly environment with more than 50 signed Double Tax Treaties, coupled with the very competitive set-up and operating costs for such structures, has increased considerably Cyprus’s popularity as a European Fund jurisdiction. Deloitte Cyprus Funds Advisory Services has developed a sophisticated set of expertise enabling us to help our clients take up the challenges of today and prepare proactively for those of tomorrow. Whilst regulatory and legislative compliance are undoubtedly critical for the successful operation of a Fund, identifying solutions that facilitate growth in assets under management requires having advisors with credible industry and market expertise that are able to optimise across all kinds of constraints. Whether you are in private equity, hedge funds or mutual funds, Deloitte Funds Advisory services can help you rise to the challenges and capitalize on opportunities. We provide specialized knowledge and fresh insights into the wide range of operational, technological and regulatory issues surrounding the industry today. Our client offerings include: Preliminary analysis stage

O O

On-going support and outsourced services O O

Understanding the client’s needs and overall objectives including their investment strategies and advising on possible solutions, structures, jurisdiction and implications of the UCITS/AIF/AIFM/ UCITS ManCo regime on the client. Assistance in sourcing ofﬁce space and human capital including Executive and Non-Executive Director appointments.

O O

O O O

Setup and licensing process stage Turn-key solutions offering for licensing of UCITS/AIF/AIFM/UCITS ManCo with the Cyprus Securities and Exchange Commission (CySEC). Our offering includes:

Preparation or review and submission of the application ﬁle to the CySEC Assistance with drafting or review the Constitutional Documents – Memorandum & Articles of Association, Partnership Agreement, Common Fund Agreement, Management Regulations

64 | GOLD | The Business Magazine of Cyprus

On-going compliance on legislative matters and risk management Provision of training on various aspects of regulation (including MiFID II, Basel III, AML, Risk Management etc) Business performance and technology solutions Tax compliance and tax structuring advice – Direct and Indirect tax services Internal audit (including Internal Audit manual and schedule) External audit and statutory reporting Accounting and payroll services Regulatory reporting (FATCA, CRS, EMIR etc)

Additional services O O

Assistance with drafting or review of the Product Offering Memorandum and the KIID Preparation or review of Operating Manual, Risk Management Policies and Procedures, Complaints process, Conﬂicts of Interest process, Business Continuity and Disaster Recovery, business plan, organizational chart, and policies required to satisfy the CySEC requirements Liaising with the regulator Assistance with the appointments of Custodian/Depositary, Fund Administrator and Legal Advisors including drafting or reviewing the delegation agreements.

O O O

Re-domiciliation of investment funds or asset managers Fund listing Assistance in passporting a fund management license from within the EU in Cyprus Fund restructuring Transaction advisory and valuation services Cyprus Citizenship through the use of an AIF

www.goldnews.com.cy | GOLD | 65

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COMPANIES INVOLVED

IN THE INVESTMENT

FUNDS SECTOR

EUROBANK CYPRUS

urobank Cyprus was established in 2007 with the opening of the first banking centre in Nicosia and currently operates a network of eight banking centres in all major cities of the island. The Bank focuses on International Business Banking, Corporate and Investment Banking and Wealth and Asset Management ,offering a wide range of products and services to both retail and institutional clients. During these nine years of operation, the Bank has grown at an impressive pace, demonstrating at the same time a very healthy profitability, a solid capital base and strong liquidity. The cornerstone of Eurobank Cyprus’ success is the firm commitment to relationship management, offering high quality services, innovative products and a culture of professionalism, trustworthiness and discretion. Eurobank Cyprus provides custody services to local and

international clients including institutional investors, large corporations and investment funds. The Bank is distinguished for its leading position in the funds industry, acting as the depositary of choice for UCITS and AIFs funds currently operating in Cyprus. DEPOSITARY SERVICES SAFEKEEPING • Safekeeping of financial instruments • Record keeping • Ownership verification • Due diligence and monitoring CASH FLOW MONITORING • Overview of all cash movements • Identify significant cash flows OVERSIGHT DUTIES • Ensure the timely settlement of transactions • Verify NAV calculation • Ensure the correct processing of subscriptions and redemptions • Receipt of transaction proceeds • Application of AIF income • Investment restrictions monitoring Apart from depositary services, the Bank can also

provide investment funds with a wide range of services that cater to the fund industry including banking and brokerage. Cyprus is a financial services jurisdiction, aiming to become a global fund services centre. Recent changes to the legislative and regulatory framework aim to place Cyprus on the global map of fundfriendly jurisdictions and enhance its strong network

CONTACT INFORMATION: EUROBANK CYPRUS

of financial and professional service providers. The island now offers a European passport to the fund management industry, providing exceptional possibilities for cross-border and global fund distribution. Our Bank is committed to working with all stakeholders in a joint effort to improve the framework within which the fund market in Cyprus can flourish.

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

(XUREDQN &\SUXV /WG www.goldnews.com.cy | GOLD | 67

special promotional feature

COMPANIES INVOLVED

IN THE INVESTMENT

FUNDS SECTOR

FORTICAP LTD

orticap is a licensed AIFM and UCITS Management Company. In addition to our discretionary funds, we operate AIF and UCITS open structures, enabling third parties to launch/ manage their own AIFs and UCITS funds. Fund initiators, Wealth Managers, Family Offices, Financial Advisors/Planners and Entrepreneurs gain market access for funds in all asset classes from listed equities to hedge funds, private equity and real asset funds. Fund developers benefit from cost-effectiveness through economies of scale, back office support, administration and distribution services for the establishment, operation and growth of regulated funds. INCORPORATION We don’t just write your prospectus. We identify the fund type and jurisdiction that is appropriate for your objectives. We review your investment strategy, policy and management to estab-

lish a fund that will not require corrective measures after launch. We ensure that your regulatory setup supports your distribution plans Operations are optimized through efficient flows with the custodian bank, the administrator and the registrar. REGULATED INVESTMENT MANAGEMENT SERVICES For funds that operate under our structures, we offer day-to-day management, regulatory compliance, and risk management services allowing you to focus on the investment process of your fund. As long as the fund operates within the applicable rules, our role is to monitor, measure and support, not interfere. CUSTODY The custodians with whom we cooperate are selected on their ability to answer complex requirements of safekeeping, controls and reporting. We can accommodate any custodian or sub-custodian of your choice as long as they operate within adequate regulatory and quality parameters. ADMINISTRATION, REGISTRAR AND TRANSFER AGENCY SERVICES We cooperate with top qual-

ity fund service providers using state-of-the-art systems for fund administration, registrar and transfer agent services. We are also able to accommodate your own selection of fund administrator based on regulatory and quality criteria. SECURITIES LENDING Having access to solutions that allow you to borrow or lend securities can optimize your fund’s liquidity and performance. With our banking partners, we bring you solutions in liquidity management and securities lending/borrowing. ISSUER SERVICES & LISTING/IPO In the context of your fund or as a standalone requirement, we facilitate complete debt structuring solutions through international banks. For price listing only or public trading, we arrange for your fund or debt instrument listing on a stock exchange relevant to your objectives. We assist you in all steps of an IPO, covering eligibility analysis, investment bank contracting and market entry. PROMOTION AND DISTRIBUTION SUPPORT By appointing us as your external authorised AIFM, your investment vehicles become AIFMD compliant

CONTACT INFORMATION: FORTICAP LTD

and can be marketed in the EU under our EU distribution passport. We assist in the promotion of your fund with cooperating investment platforms, advisors, insurance companies, private banks and institutional investors. We cover elements of corporate branding and promotion including presentations, fund sheets, brochures and web marketing. DOMICILIATION AND CORPORATE SERVICES We arrange for the provision of quality domiciliation and corporate services including: • Registered offices • Secretary and administrative management • Correspondence management • Organisation of board/ shareholder meetings • Management of notifications/notices/legal announcements • Management of expenses • Maintenance, storage, archiving and destruction of documents • Management of secure access to confidential data • Identification of corporate officers with relevant experience

www.goldnews.com.cy | GOLD | 69

special promotional feature

COMPANIES INVOLVED

IN THE INVESTMENT

FUNDS SECTOR

GMM GLOBAL MONEY MANAGERS LTD

G MM Global Money Managers Ltd is a Fund Management Company in compliance with Law 78(I)/2012, holding UCITS Manager License No.2/13. It operates in the financial sector, setting up, running and managing UCITS Mutual Funds as well as Alternative Investment Funds (AIFs) in line with the most recent EU directives, fully incorporated in the Cypriot legislation. The Company, established in 2013, is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC). GMM is an innovative fund management firm based in Cyprus, seeking to provide effective investment solutions for investors from the local market and the wider region (Greece). GMM’s management team and associates are well reputed with many years of experience, specialized knowledge and the right kind of inspiration needed

to monitor market developments. Their primary aim is to protect invested capital and generate optimal returns. Moreover, the members of the Company’s Investment Committee have extensive experience (over 20 years), as fund managers and as members of investment committees in various organizations of the industry (mutual funds, closed-end funds, provident funds etc.). GMM is a member of the Cyprus Investment Funds Association (CIFA) and of the International Capital Markets Association (ICMA), an influential voice for the global capital markets that represents a broad range of capital market interests, including global investment banks and smaller regional banks, as well as asset managers, exchanges, central banks and other professional advisers. GMM was established with a solid mission & vision:

“TO BECOME ONE OF THE LEADING ASSET MANAGERS OF CYPRUS AND THE BROADER REGION, THROUGH A CUSTOMERORIENTED APPROACH”

GMM’S PRODUCTS & SERVICES GMM is firmly focused on achieving wide diversification of investment risk in international money and capital markets via the mutual funds and other related products it manages. It offers an extensive range of potential investment options (money market, fixed income, balanced, equities, real estate, commodities and special purpose funds) either in the form of UCITS Funds or in the form of AIFs for the small, medium and large portfolios of private individuals, corporations and institutional investors. Currently, the Company manages 18 UCITS Mutual Funds of all main categories and asset classes (bond, balanced, equity). Among them, GMM offers a specific mutual fund that invests solely in the Cypriot bond market: GMM Marathon Cyprus Assets Bond Fund * * For further information about the above UCITS characteristics and risk profile please refer to the “Prospectus” and the “KIID”, available at www. global-mm.com Additionally, GMM is an active Investment Manager

for Alternative Investment Funds (AIFs). Under its license, GMM is eligible to set-up and manage stand alone Funds or in the form of umbrella structure with multiple investment compartments, allowing the management of different asset pools with separate investment policies, as well as manage third party Funds. GMM’S COMPETITIVE ADVANTAGES FOR INVESTORS • Customized asset management provided by qualified fund managers with extensive professional experience • Construction of tailor-made investment products (UCITS and AIFs) • Asset Management team focused on investment goals, following specific investment rules and strategies • Structured and well disciplined investment process • Flexibility in decision making and strategy implementation, according to the customer’s needs • Continuous market monitoring and information analysis • Direct communication of the client with the asset management team • Transparent and strict internal procedures to ensure client requirements • Competitive fee policy

CONTACT INFORMATION: GMM GLOBAL MONEY MANAGERS LTD

The world of investments is complex. The selection of investments is simple. GMM Investment Funds UCITS & AIFs 36 Stasinou street Strovolos 2003, Nicosia, Cyprus Â¨ ) )XQG 0DQDJHPHQW &RPSDQ\

: ZZZ JOREDO PP FRP ( LQIR#JOREDO PP FRP

GMM is a UCITS Management Company (License No 2/13) also licensed to create and manage AIFs. The Company is a member of ICMA and CIFA. Units of the mutual funds managed by GMM are distributed in Cyprus and Greece. GMM is authorized and regulated by the Cyprus Securities and Exchange Commission. www.goldnews.com.cy | GOLD | 71 INVESTMENT IN UNITS OF THE UCITS HAS NO GUARANTEE RETURN AND PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RETURNS

special promotional feature

COMPANIES INVOLVED

IN THE INVESTMENT

FUNDS SECTOR

KMG CAPITAL MARKETS

Kevin Mudd, C.E.O

K MG Capital Markets (KMG) is a fully licensed, AIF and UCITS management company which provides a range of specialised services to enable fund managers to convert their fund structures into fully compliant AIFMD and UCITS funds. To this end, KMG’s high-end management services and outsourced turnkey solutions help fund managers fulfil today’s ever-increasing EU regulatory requirements. INVESTMENT MANAGERS Appointing KMG as an external authorised AIFM enables investment vehicles to become AIFMD compliant which can subsequently be marketed into the EU under

Paul Pavli, Operations Director

an EU distribution passport. KMG effectively takes the reins by becoming fully responsible for the overall regulatory requirements of all investment vehicles, leaving clients to concentrate on the portfolio management of their fund. KMG WORKS WITH CLIENTS TO: • Ensure their operating procedures and fund documents are fully compliant • Offer customised services providing the level of assistance in portfolio management or risk management required, while ensuring structures are compliant with the latest EU regulations • Qualify funds for the all-important EU distribution passport • Save time and money, improve efficiency and become compliant with all the required regulations Since the company’s inception, KMG has built an extensive track record in transforming any regulatory

Andreas Aloneftis, Director

burden into a competitive advantage. SETTING UP FUNDS There is no reason why having a fund should be a complex procedure and this is where KMG can help by simplifying the process. We have all the essential tools required to establish a standalone fund, a segregated subfund on one of our existing ‘white-label’ fund structures, as well as an exclusive fund platform, should this be required. Whatever the fund set-up, KMG is here to help. With 20 years of experience in fund structuring across Europe and Offshore, our dedicated team of qualified financial professionals have in-depth, hands-on experience in a wide range of fund types and investment strategies from which our clients can benefit. In addition to our experience and knowledge, we have partnered with leading depositories, central admin-

CONTACT INFORMATION: KMG

Socratis E. Socratous, Director

istrators and auditors, each bringing with them their own expertise. Synergistically, our network of professionals provides a highly efficient working structure, guaranteeing an effortless launch and the smooth running of even the most complex fund projects. OUR SERVICES KMG offers services in: • Migrating Non-EU fund to an EU domicile • Opting-in under-threshold funds to AIFMD • Establishing a new fund • Setting up an EU-based fund that mirrors an offshore fund • Establishing an EU segregated sub-fund on the KMG platform in Luxembourg, Cyprus, Malta, Ireland or any other European or non-European jurisdiction. KMG Capital Markets is regulated by CySEC under licence no. AIFM01/56/2013 Member of CIFA and CIFSA

www.goldnews.com.cy | GOLD | 73

special promotional feature

COMPANIES INVOLVED

IN THE INVESTMENT

FUNDS SECTOR

KPMG Angelos Gregoriades, Chairman

Christos Vasiliou, Deputy Managing Director, Head of Funds

PMG in Cyprus has been actively involved in the funds industry, serving local and international clients for more than 17 years. We operate through fully integrated teams that include professionals across our Audit, Tax and Advisory practices, combining a wide range of skills and experience tailored to meet the individual requirements of our clients. In our commitment to better meet the increasing industry demands, we continue to invest in our people and expand on our services. FUND SERVICES PRACTICE Our Fund Services practice is a market leader in Cyprus: • Holding the largest local investment fund audit market share; • Having expertise in the set-up and authorization of investment funds – both alternative investment funds and

Costas Kalias, Board Member

Undertakings for Collective Investment in Transferable Securities (UCITS); • Having extensive experience in the authorization of Cyprus Investment Firms (CIFs), and more recently becoming involved in the asset management sector with UCITS Management Companies and Alternative Investment Fund Managers (AIFMs); • Acting as auditors of a number of Cyprus based investment fund administrators and custodians, utilizing, among others, computer-based automated audit tools. KPMG professionals are deeply experienced in the issues, trends, and risks related to funds and assist clients in ensuring effective compliance with the increasingly varied and complex requirements. KPMG professionals also regularly participate in discussions with the regulatory authorities to improve the end product which Cyprus has to offer. In addition, a number of our team members are actively involved with the Cyprus Investment Funds Association (CIFA) and actively participate on related

Zakis Hadjizacharias, Board Member

Costas Markides, Board Member

technical committees. Our firm in Cyprus is further supported by the KPMG international network of specialists which spreads across 155 countries, using a consistently high quality methodology for their work. At KPMG, we can guide our clients through the challenges and opportunities posed by the evolving regulatory developments, and assist in identifying optimal and pragmatic solutions for the mutual benefit of the fund manager and the investors. ‘ONE-STOP’ SERVICE OFFERING KPMG offers a wide range of services with the aim of providing our clients with a ‘onestop’ service in order to facilitate and simplify the process of setting up and managing fund vehicles. OUR SERVICES INCLUDE: Regulatory Services • Assistance in set-up and structuring; • Acting as promoter of the client’s entire application and liaising with the regulatory authorities, as necessary; • Assistance with drafting of

CONTACT INFORMATION: KPMG Limited

George Prodromou, Board Member

constitutional documents and private offering memorandum/ prospectus; • Design of corporate governance framework and preparation of internal operations manual; • Assistance with re-domiciliation of funds. Audit Services • Audit of the statutory annual financial statements based on IFRS; • Compliance and regulatory reporting for clients; • Consultation on audit and accounting matters. Tax Services • Fund structuring and transaction analysis; • International tax planning and implementation of cross-border investments and transactions; • Preparation and submission of corporate tax returns; • VAT services in relation to fund providers and VAT compliance. Advisory Services • Internal audit, risk and compliance services; • Financial risk management; • Transactions and restructuring; • IT advisory; • Business performance services.

Global experience, local approach in the Funds Industry KPMG provides comprehensive audit, risk advisory, tax and regulatory services to fund managers in setting up and operating through Cyprus. Our clients look to us for leadership and guidance in areas such as: fund set-up and structuring; regulatory interpretation and support; proactive tax advice; investment acquisitions and due diligence; fund liquidation, re-domiciliation and/or restructuring. Our local practice is at the forefront of industry issues, working closely with the industry and its representatives and actively participating in the firm’s global product development programmes. The combination of a strong local practice, with significant professional and industry experience, along with the global reach of KPMG International fund services network places us in an optimal position to provide added value service to our clients as they address the industry challenges, and guide them in grasping opportunities.

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

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www.goldnews.com.cy | GOLD | 75

special promotional feature

COMPANIES INVOLVED

IN THE INVESTMENT

FUNDS SECTOR

MICHAEL KYPRIANOU & CO LLC The Future of Funds

ichael Kyprianou & Co LLC has established an enviable reputation as a broad based legal practice. The calibre of its lawyers and dedication to providing clients with the most practical and cost effective services is the cornerstone of the firm’s success. The Firm specializes, amongst others, in the sector of capital markets and funds. It may provide high end advice and assistance in the incorporation, set-up and regulation of Cyprus Investment Firms, Management Companies, AIFs and UCITS. It also assists investors in relation to the formation, licensing and regulation of these funds and the relevant assistance in their management and control along with assistance in compliance and regulatory matters. Since the implementation of the Alternative Investment Funds Law of 2014 (the “AIF Law”) in mid July 2014, the International Collective Investment Schemes Law (the “ICIS Law”),

76 | GOLD | The Business Magazine of Cyprus

which governed the international investment funds since 1999 in Cyprus, has been replaced. According to the AIF Law the supervisory body for the regulations and supervision of Alternative Investments Funds (“AIF”) is the Cyprus Securities and Exchange Commission (“CySEC”) instead of the Central Bank of Cyprus, which was the regulatory authority according to the ICIS Law. The AIF Law adopts the relevant European Union Directives on asset management and protection and updates the funds regime in Cyprus in an effort to focus on transparency and investors protection. The relevant rules for the authorization, operating conditions, transparency requirements and management of AIFs as well as the roles of their directors, custodians and managers are now standardized under the AIF Law. An AIF is a collective investment undertaking, including its investment compartment, which raises capital from a number of investors with a view of investing it in accordance with a defined investment policy for the benefit of the investors that has not been authorized as a UCITS. It also has the

exclusive purpose of the collective investment of its available capital in assets to ensure the benefit of the results of the management of their assets for the investors.

and / or to well – informed/ professional investors. They have can have investor shares which are freely transferable and may be listed on a Stock Exchange.

CLASSIFICATION OF AIFS: Unlimited AIFs can be made available to an unlimited number of investors, thus being “unlimited”. These can be marketed either to retail

Unlimited AIFs are subject to minimum capital requirements equal to €125,000 or €300,000 in cases of self-managed AIF or Alternative Investment Fund Managers.

An unlimited AIF can take the form of a mutual fund. Restricted AIFs can take the form of restricted funds as they are marketed to only 75 investors or fewer. The difference is that they are marketed to well-informed /professional investors only. The definition of a well-informed /professional investor follows the MiFid requirements. Both types of AIFs can be open-ended or closed-ended funds. Whereas AIFs enables public offerings of shares of AIFs and securities issued by AIFs can also be listed, this allows the increase of liquidity, marketability and participation of potential investors. STRUCTURING OPTIONS The AIF can take the form of a variable capital company or a fixed capital company or a limited partnership. The innovation of the AIF Law is that it introduces new structuring options which were not

available under previous legislative frameworks, i.e. an umbrella structure with multiple investment compartments allowing the management of different pools of assets with distinct investment policies, while each such pool has its safeguarding requirements. It can also be a common contractual fund where investors participate jointly as co-owners of the assets of the AIF. An Alternative Investment Fund Manager (â&#x20AC;&#x153;AIFMâ&#x20AC;?) can undertake the management of an AIF to act as the internal fund manager of the AIF or an AIF can be managed by external AIFMs. External Managers can be a UCITS Management Company having the authorization to proceed with such undertaking or an Investment Firm also authorized by its competent authority to act as such. DEPOSITARY Under the AIF Law the AIFM must ensure that a single depositary is appointed in regards to each individual AIF. The Depositary can now be not only a credit or banking

institution but also can be an investment firm or another category of institution subject to eligibility as per the relevant regulations of the depositary requirements and conditions as set by the European Union Member States. This offers mostly convenience to AIFs which do not invest in financial and money market institutions solely but also to private equity and real estate funds. The new AIF Law brings Cyprus into the 21st century of the investment funds regime. Cyprus is now able to assist investors in the international funds market in addition to its corporate income tax rate and other tax benefits. Michael Kyprianou & CO LLC may provide you with assistance in the set up, incorporation and management in relation to any types of Funds under the laws of the Republic of Cyprus. It may also provide you with legal advice as to your options and requested objectives so you will make an informed decision subject to Cyprus law requirements.

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 Limassol Address: Michael Kyprianou House, 116 Gladstonos Street, 3032 Limassol, Cyprus Tel.: +357 25 363685 Fax: +357 25 363698 Email: limassol@kyprianou.com.cy Paphos Address: Michael Kyprianou House, 19 Kinira Street, 8011 Paphos, Cyprus Tel.: +357 26 930800 Fax: +357 26 930808 Email: paphos@kyprianou.com.cy Athens Address: 5 Zalokosta Street, 3rd Floor, Syntagma 10671, Athens, Greece Tel.: +30 210 3387060 Fax: +30 211 7150149 Email: info@kyprianou.gr Thessaloniki Address: 44 Tsimiski Avenue & Karolou Diehl, Thessaloniki 546 23, Greece Tel.: +30 2310 222267 Fax: +30 2310 222269 Email: thessaloniki@kyprianou.gr Birkirkara Address: 115A Valley Road, Level 5, Birkirkara, BKR 9024, Malta Tel.: +356 21 331810 Fax: +356 21 331810 Email: info@kyprianou.com.mt Kiev Address: 1A Sportyvna Square, Business Centre Gulliver, 17th Floor, Kiev, Ukraine, 01601 Tel.: +38044 394 58 78 Fax: +38044 394 57 01 Email: Perevozchykov@kyprianou.com.cy www.kyprianou.com.cy

CONTACT INFORMATION: MICHAEL KYPRIANOU & CO LLC

Address: 2, Agias Elenis & Stastinos Street, Stasinos Building, 6th & 7th Floor, 1060 Nicosia, Ayias Elenis, Nicosia, Cyprus Tel: (+357) 22447777 | Fax: (+357) 22767880 | e-mail: info@kyprianou.com.cy | Website: www.kyprianou.com.cy www.goldnews.com.cy | GOLD | 77

PwC Cyprus

Setting up of an Alternative Investment Fund in Cyprus The Asset Management industry continues to experience major challenges. The ongoing changes in the regulation, technology, products and markets are key elements â&#x20AC;&#x153;shapingâ&#x20AC;? the industry for 2020. The VHFWRU KDV HPHUJHG IURP WKH Ä&#x;QDQFLDO FULVLV WR IDFH LQFUHDVLQJ FRPSOH[LWLHV LQ WD[ FRPSOLDQFH DQG PRUH sophisticated and demanding clients. Additionally, the global pensions system is suffering from huge GHÄ&#x;FLWV DQG PDQDJHUV DUH YHU\ VFHSWLFDO WR ZKLFK DVVHWV WR VHOHFW IRU WKHLU SRUWIROLRV All these changes though bring opportunities. The economic situation in Europe with the quantitative easing and all time low interest rates are â&#x20AC;&#x153;pushingâ&#x20AC;? VLJQLÄ&#x;FDQW DVVHW Ä RZV WR VHHN VWURQJ UHWXUQV LQ Alternative Investments. Recent trends indicate a swift to emerging markets to fuel growth and Fund managers are looking for new hubs for their investments. The transitional Fund centres might not be the solution to the new era since they bring the â&#x20AC;&#x153;stigmaâ&#x20AC;? of previous failure. Cyprus is becoming a growing investment fund centre in Europe and an ideal location for establishing and servicing Funds. The prompt response to regulatory GHYHORSPHQWV DQG LWV VWURQJ Ä&#x;QDQFLDO VHUYLFHV VHFWRU DUH fundamental pillars of the islandâ&#x20AC;&#x2122;s future in this sector. 7KH FRXQWU\ LV EHQHÄ&#x;WLQJ IURP WKH PRGHUQL]DWLRQ RI WKH

Funds framework, as well as from investorsâ&#x20AC;&#x2122; appetite for EU regulated jurisdictions. Also, from tax perspective the country signed more than 50 double tax treaties ZKLFK SXWV WKH LVODQG LQ D YHU\ EHQHÄ&#x;FLDO SRVLWLRQ IRU WD[ HIÄ&#x;FLHQW VWUXFWXUHV Cyprus offers both EU-regulated Undertakings of Collective Investments in Transferable Securities (UCITS) and non UCITS funds. The new AIF law introduces a number of options, such as retail funds which can further be listed and traded on a stock exchange, segregation of assets and liabilities within the same AIF with the establishment of separate compartments etc. Cyprus has also transformed the European directive that regulates Alternative Investment Fund Managers into national law. One of the cornerstones of the Law is the introduction of a â&#x20AC;&#x153;single market frameworkâ&#x20AC;? to regulate the offer or placing or shares/units in an AIF.

3ULFHZDWHUKRXVH&RRSHUV/WG PwC Central, 43 Demostheni Severi Avenue,CY-1080 Nicosia P O Box 21612, CY-1591 Nicosia, Cyprus T:+357-22555 000, F:+357-22555 001 78 | GOLD | The Business Magazine of Cyprus

www.pwc.com.cy

Our services Licensing application to the Regulator Choosing the right form of your AIF - We examine the alternative forms that the fund can take so that it meets your requirements. Preparation of the application package - We can prepare the full application package that needs to be submitted to the Regulator. During this process, our experienced team will advise you on how better to structure your operations and will assist with the preparation of all the necessary documents to be included in the application package. Follow-up of the processing of the application - We can assist you in replying to any queries or providing DGGLWLRQDO FODULÄ&#x;FDWLRQV DV UHTXHVWHG E\ WKH &\SUXV Securities and Exchange Commission during their examination of the application. 'LUHFW DQG ,QGLUHFW 7D[ VHUYLFHV Tax effectiveness - We provide a comprehensive set of Direct and Indirect Tax compliance and advisory servicHV 7KLV HQVXUHV WKDW WKH IXQG LV VHW XS LQ D WD[ HIÄ&#x;FLHQW manner and is compliant with all tax requirements in Cyprus and abroad. Our services cover both corporate and individual taxes. Legal support Incorporation of the entity - We provide assistance and support with the incorporation of the entity to be licensed as an AIF, including the drafting of the constitutional documents.

Ongoing legal support - We provide legal support both during the fundâ&#x20AC;&#x2122;s application process and operation (e.g. preparation of agreements). $GPLQLVWUDWLRQ VHUYLFHV Provision of ongoing administration services - We have developed systems and procedures to ensure that our IXQG DGPLQLVWUDWLRQ LV H[HFXWHG LQ DQ HIÄ&#x;FLHQW DQG FRVW effective manner. Our services include: x Fund Accounting , Management Reporting and Net $VVHW 9DOXDWLRQV LQFOXGLQJ SUHSDUDWLRQ RI Ä&#x;QDQFLDO statements in accordance with International Financial Reporting Standards, cash management, etc. x Unitholder Dealing and Registration including processing share transfers, subscriptions and redemptions, ensuring the fund is administered within the terms of the offering memorandum and Cyprus Securities and Exchange Commission requirements. x Compliance and Regulatory reporting. x Statutory and Secretarial Services, including provision of boardroom facilities and statutory secretary, completion of statutory returns, etc. $VVXUDQFH VHUYLFHV Annual audit and interim reviews â&#x20AC;&#x201C; We provide on-going services with respect to annual statutory audit of WKH ,)56 Ä&#x;QDQFLDO VWDWHPHQWV DV ZHOO DV LQWHULP UHYLHZ VKRXOG \RX ZLVK WR SUHSDUH LQWHULP Ä&#x;QDQFLDO VWDWHPHQWV on a quarterly and half yearly basis.

Our Team PwC has a multi-disciplinary team of specialists who can assist you in all aspects of setting up an AIF, the licensing process and the ongoing maintenance of the Fund. Our dedicated Funds team has a wide and in-depth knowledge of the local Laws and requirements and, coupled with their international Financial Services experience, can assist you with any challenges you face in setting up and maintaining an AIF and obtaining the relevant licenses. Our expert tax team has extensive experience in advising on tax planning and international tax structuring and can support you in such matters when setting up the AIF.

9DUQDYDV 1 1LFRODRX Partner, Indirect Tax Services varnavas.nicolaou@cy.pwc.com

0DULRV &KDUDODPELGHV Director Assurance and Advisory marios.charalambides@cy.pwc.com

&KDUDODPERV 6HUJLRX Director, Tax Advisory charalambos.sergiou@cy.pwc.com

Maria Athienitou Senior Manager, Consulting maria.athienitou@cy.pwc.com

Panayiotis Panayides Director, Advocate S.A. Evangelou & Co LLC panayiotis.panayides@cy.pwclegal.com www.goldnews.com.cy | GOLD | 79

special promotional feature

COMPANIES INVOLVED

IN THE INVESTMENT

FUNDS SECTOR

TREPPIDES FUND SERVICES LTD

reppides Fund Services Ltd was established in 2012 with a mandate to provide the highest level of professional services, including fund formation, licensing, accounting, administration and advisory. The firm has the ability to support complex investment structures and meet the strict operational and reporting needs of fund managers. Having established a worldwide network of associates, Treppides Fund Services Ltd is able to cover various fund structures such as UCITS funds, hedge funds, private equity funds, real estate funds and others. Treppides Funds Services Ltd considers its biggest asset to be its multi-discipline team which consists of a blend of experienced lawyers, qualified accountants, MBA holders and other professionally qualified administrative staff. Having the experience, as well as access to state-of-the- art software, the team was quickly able to establish the firm as a leading service provider, both

in the number of Funds and assets under administration in Cyprus. TREPPIDES FUND SERVICES LTD SUPPORTS, AMONG OTHERS, THE FOLLOWING SERVICES: • Investor subscription and redemption management, and maintenance of the Shareholder Register • Investor reporting and communication • Portfolio position and cash reconciliations • Calculation of Net Asset Valuation Maintenance of the Fund Accounting Ledger • Preparation of financial statements • Investment restriction compliance monitoring • Ongoing monitoring of investors (KYC & AML) • Assistance with Regulatory reporting where applicable • FATCA Compliance Since its inception, Treppides Fund Services Ltd has made significant investments in technology infrastructure and in partnerships with global players of the financial services industry. The Company is using Prospero Fund Management, a superior solution that can support various fund structures and offer complete fund administration. Prospero has introduced full transaction automation in the firms’ op-

Andreas Yiasemides, Director at Treppides Fund Ltd

erations, so as to enable professionals to fully address all risks and checks pertaining to each Fund. The Company has also acquired the Bloomberg Terminal and Data License, an integrated platform that streams together, among others, price data, financials, news, and trading data. A leading fund service provider and a founding member of the Cyprus Investment Funds Association (CIFA), Treppides Fund Services Ltd is playing an active role in the development of the funds industry in Cyprus. Over the last three years, it has secured participation in work groups which streamline developments in the legislation.

CONTACT INFORMATION: TREPPIDES FUND SERVICES LTD

Mr. Andreas Yiasemides, Director at Treppides Fund Services Ltd says: “We believe that Cyprus fund sector will evolve in the coming years. Cyprus has established an attractive tax and legal function for Funds and Fund Managers. In order to accommodate this rapid expansion of the market, Treppides Fund Services, as a leading service provider, has invested in technology, created strategic alliances with associates around the globe and keeps investing in human capital. As a company, we remain committed to delivering high quality services and maintaining our upward trend as a leading Fund Administrator.”

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| ACAMS |

82 | GOLD | The Business Business Magazi Magazine ine in ne o off Cy C Cyprus yp pru pr us

A NEW CHAPTER

BEGINS... G

REGORY DELLAS, CHAIR OF THE ACAMS CYPRUS CHAPTER, EXPLAINS THE PURPOSE OF THE NEWLY FOUNDED ORGANISATION AND HOW IT WILL HELP THE ISLAND’S INSTITUTIONS DEAL MORE EFFECTIVELY WITH ANTI-MONEY LAUNDERING ISSUES.

By John Vickers | Photo by Andreas Loucaides

ACAMS (the Association of Certified Anti-Money Laundering Specialists) is the largest international membership organisation for AML Compliance professionals. It has members all over the world (about 50% in the US where it was originally set up) and it offers its members a forum for quality training, networking and exchanging ideas on financial crime prevention. In November 2015, the ACAMS Cyprus Chapter was launched. It followed an initiative by Gregory Dellas, Manager, AML Risk Management at Bank of Cyprus. “I had always wanted a point of reference, somewhere I could turn to for knowledge and resources to help me do my job,” he says, “and that is what made me approach ACAMS and bring it to Cyprus. Anti-money laundering (AML) is a huge issue that requires a lot of critical thinking and professionals need access to the proper resources, to exchange ideas and discuss their issues with people who have gone through similar experiences.” Given the claims of money-laundering in

Cyprus that were flying around in 2013, it would appear that this has come a bit late but Dellas does not agree with this assessment. “Personally, I believe that the money laundering accusations were unfounded and unfair,” he explains, “because Cyprus had very robust laws in place and the later audits confirmed this. However, in addition to the fact that laws and regulations are constantly evolving, the compliance profession has changed a lot over the past three years too. We are now using a more risk-based approach and working to create a culture of AML compliance in all sectors. So I wouldn’t say we’re late in setting up this ACAMS Chapter. What happened in 2013 gave us push in

the right direction. Now is the right time for this.” Cyprus is, in fact, one of the first countries in Europe to have its own ACAMS Chapter and, says Dellas, the response to its setting up has been huge. “We already have 50 members and we’ve had lots of people wanting to join – first they have to join ACAMS and we assist them in that. ACAMS has already begun offering courses through the European Institute of Management & Finance (EIMF).” Professional AML training and qualifications are what ACAMS is all about and, says Gregory Dellas, the Certified Anti-Money Laundering Specialist (CAMS) credential is the ‘gold standard’, recognized internationally by financial institutions, governments and regulators as a serious commitment to protecting the financial system against money laundering. “CAMS certification ensures that those working in this area are properly trained and knowledgeable” he explains. The local Chapter will also provide a local forum where professionals can exchange ideas and share knowledge in order to become better equipped for dealing with dayto-day issues in order to protect themselves, their institutions, their clients and the country. “The ACAMS Cyprus

Compliance is not a business preventer but a business

PROTECTOR AND ENABLER

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| ACAMS |

Chapter is made up of volunteers who wish to enhance their knowledge through networking, organising local training sessions and holding round table discussions on specialized matters. We need to understand what is relevant to Cyprus and understand how best to deal with the financial crime risks that threaten the stability of the financial system,” Dellas says. “Sanctions compliance and terrorist financing, for example, are areas in which

us from a banking background are familiar with the rules of due diligence and the KYC (Know Your Client) approach. Today, ethical behaviour is the key, not accepting deposits from just anyone.” When it comes to anti-money laundering issues, Dellas insists, Cyprus is actually stricter than most of its EU counterparts and, in many ways, more advanced. He gives some examples: “According to the 4th AML Directive, tax evasion will

things work well, one that has a good name and reputation. Cyprus has a lot of advantages, including good tax laws that attract a lot of businesses to the island. As an EU member state we follow the EU directives which are already quite strict and, as mentioned before, in some areas our laws are even stricter still. So we have a very robust regulatory framework here and the way our professionals deal with issues

CAMS CERTIFICATION ENSURES THAT THOSE WORKING IN THIS AREA ARE PROPERLY TRAINED AND

KNOWLEDGEABLE

we have to enhance our own specialist knowledge in Cyprus,” he goes on, “and the Chapter welcomes those wishing to do so, no matter which industry they come from. Training and personal development are key issues across the whole of the business arena.” In the wake of the 2013 banking and economic crises, he believes that the island’s financial institutions now giving AML the attention that it deserves. “AML has always been a key concern of financial institutions in Cyprus, especially of the banks,” he tells Gold. “What has changed is the move away from the ‘tick box’ approach towards a ‘culture of compliance’ and doing the right thing, which means doing things ethically and protecting the system. Contrary to what some people believe, compliance is not a business preventer but a business protector and enabler. We want to help legitimate business go through the system.” While this may sound like nothing more than admirable theory, Dellas maintains that the banks in Cyprus are turning away potential clients much more frequently than people realize: “Not only do we say no to potential clients, we’re doing it every day. Those of 84 | GOLD | The Business Magazine of Cyprus

be a predicate offence (meaning that it falls under the AML umbrella) as from 2017 but here it has been viewed as such since the end of 2013. Furthermore, the threshold for identifying the beneficial owners behind a legal entity is 25% throughout Europe whereas in Cyprus it’s 10%. This means that if there are 10 beneficial owners of a company in Europe (with no-one holding 25% or more), there is no requirement to identify them whereas here we would need to perform due diligence on everyone holding 10% or more, or otherwise controlling the company. Another provision of the Directive, regarding the treatment of local Politically Exposed Persons (PEPs) has been in force in Cyprus since 2013.” So how does Cyprus compare with its competitors in the professional and financial services sector when it comes to attracting investments? Extremely well, says Gregory Dellas, especially when compared with non-EU jurisdictions but, equally, with its EU counterparts. “The bigger organisations want to associate themselves with a place that is transparent,” he explains, “where

of transparency and compliance these days is making us even better.” No-one is under the illusion that money-laundering can be totally eradicated, says Dellas. “As long as there is crime in the world, fraudsters will always be looking for ways to get their money through the system. Our job is to keep abreast of what’s happening and preventing it. This is where CAMSS certification comes in and ensures that those working in this area are properly trained and knowledgeable.” The ACAMS Cyprus Chapter has already held two events with expert speakers from abroad and, following the Annual ACAMS European conference in May, which several Cypriot members will be attending, it will organise a couple of round table discussions on major issues from the conference. “We are very happy with requests for membership as well as the increased interest from all over Cyprus, given the short time we’ve been around, and we are very active,” says the Chair. “We intend to remain active so as to promote best practices for the profession and, by extension, to restore and then maintain our country’s reputation.”

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Can compliance help you compete?

| MATCHMAKING |

IS IN THE

AIR

Maria Christodoulou can be contacted at hello@selectivematches.com or www.selectivematches.com

In todayâ&#x20AC;&#x2122;s society where career success is paramount, professionals often have a hidden checklist of their aspirations and achievements relating to education, career, finances, buying a home, professional networking, etc. But what about love & relationships? Last year, Maria Christodoulou launched Selective Matches in an effort to help those whose work/life balance is tipped so far towards work that they fail to dedicate time and effort to finding a life partner. By Tina Adamidou 86 | GOLD | The Business Magazine of Cyprus

n the race to become people that have ‘success’ written all over them – meaning a fast car, an impressive home, regular holidays and a bank balance to support them – many professionals spend so much time scurrying around to maintain their image that their social lives do not even get a look in. By the time they hit their mid-30s, all the status symbols may be in place but there is nobody to share them with. For some, this is a perfectly acceptable lifestyle, which keeps them free of that dreaded word ‘commitment’. Others may crave to tick “relationship” on their checklist but worry that a potential partner might be after their money or hoping to further their own career. Not wishing to resort to the old-fashioned matchmaking techniques of friends and families, many such professionals act as if everything in their lives is wonderful whereas, in reality, they are lonely and experiencing something which they interpret as something that is quite unfamiliar to them in a professional context: failure. Women, in particular those of a high educational standard, tend to be financially independent and less reliant on their families. Many men are intimidated by successful professional women; the traditional male role of ‘provider’ is no longer required and, in some instances the ‘hunter’ is now the ‘hunted’! Many women earn more money than their potential male partners, an issue that may also cause strain as some men find it difficult to accept such a situation. So what can be done to help these lonely professionals? Enter a modern-day Fairy Godmother in the guise of Maria Christodoulou, founder of Selective Matches, an island-wide personal matchmaking and coaching service, who also writes an online blog that caters specifically to the 30+ successful professional, offering tips and advice on ways to find ‘the right one’. “In today’s society, it is proving extremely difficult for singles to meet potential partners, with very few quality options available,” she says. “My mission was to create a much-needed quality, professional, trustworthy and accessible dating service here in Cyprus for local and international professionals – men and women – who may be new to the dating scene or aren’t satisfied with other methods. We save them time, money and energy by making sure they don’t waste them on

MANY MEN ARE INTIMIDATED BY SUCCESSFUL PROFESSIONAL WOMEN disappointing dates with people they turn out to have nothing in common with.” Already successful in the field of hospitality and human resource management, she decided to open her own business in Cyprus, specialising in what she saw as an important but missing area. “I decided this was the perfect time to start my dream business and provide a much-needed valuable and ethical service,” she explains. After taking a number of specialised courses at one of London’s leading coaching academies, she returned to her homeland in 2011. Four years later, she finally went ahead with a low-key launch of Selective Matches. “I believe in letting results speak for themselves rather than resorting to flashy advertising,” she says, adding that she has chosen “to allow the business to grow organically and let my clients speak for my work”. So how does this modern matchmaker work? First of all, she places great significance on the personal touch, meaning that she meets all her clients and learns about them in order to be able to introduce them to the most suitable like-minded singles. “I meet all members personally before accepting to help them,” she explains. “They need to be relationship-minded and to present themselves in a universally appealing way, with regard to attitude, intelligence, communication, positivity and confidence, as well as having good values, energy and intentions. If they don’t present themselves this way, they won’t be an enjoyable date and they will struggle to meet someone they like. In such cases, I provide non-judgemental supportive feedback and coaching to help them become relationship-ready.” They also need to have realistic expectations and be open-minded, she says and, once she feels they are ready, she arranges a one-to-one meeting to learn about them in depth, discovering the essence of who they are, discussing their relationship goals, values and any non-negotiable standards for a partner. “I base my matches on my understanding that the two people have compatible personalities and physical attributes, shared

values and life goals, and also on my instinct, having got to know them as individuals.” Once the screening process is complete, Maria then proposes a potential match by providing an overview of the person she has in mind – past/present/future goals and personality type – and eventually showing them a photo. This is all done in person. “Nothing is e-mailed or conducted online,” she explains, “in order to maintain confidentiality. I go through the same process with both parties. If they agree to get together, they start with a low-pressure drinks meet-up to gauge whether they connect and appeal to each other. If they do, it’s up to them to take things forward.” Whatever the outcome, Maria receives feedback from each client, which helps her in refining the selection process for future dates. So how would she describe her success rate so far? “The business was only launched in the middle of last year so, at this stage, people are connecting and dating. The numbers are growing as more and more emotionally mature singles are realising that, while using a service like this doesn’t mean they can’t find dates on their own, it screens out the unsuitable ones, thereby saving them time, money and energy. And I am confident that it won’t be too long before I find myself attending my clients’ weddings!” In July, Limassol hosts the iDate 2016 Dating Industry Conference, which looks into topics such as industry standards and ethics, as well as providing a meeting place for international dating service owners from Europe and elsewhere. Maria Christodoulou describes this as “a great opportunity to show that Cyprus has a professional presence in the industry. And don’t forget that matchmaking is in our roots!” She is also looking for clients in other countries as she expands her Cyprus-based business, with plans to develop an international membership base initially within the UK and Dubai. At present, men can take out a 6-month or annual membership with a money back guarantee, while for women her services are free. All are guaranteed four to ten dates, depending on requirements and timeframes, but Maria recognises that, while she can help people, there are no magic solutions to the problem of finding a suitable partner. She recommends, moreover, that people take their time over such an important issue. So, what have they got to lose? It may well be that a fairytale ending awaits and that professional checklist is finally completed. www.goldnews.com.cy | GOLD | 87

COLLECTION

THE WORLD 88 | GOLD | The Business Magazine of Cyprus

It all began during a geology lecture in the 1960s, when Angelos Tsirides was still in his second year at university in London. The professor had introduced him to the wonderful world of fossils, and the result was instant fascination. “My interest was not so much in the fossils themselves but in the fact that life and animals had existed on the planet for billions of years before the appearance of the human species,” he explains. At a point in time when it was very difficult to find information regarding these matters, Tsirides felt that the further back in time he went in his search for fossils, the easier it would be to find answers to his questions about the existence of God. “It seemed unbelievable to me that life had existed for so long without the presence of humans,” he says.

“In the 80s, I made my “I h early 80s first purchases of some of the most interesting pieces of fossils and minerals, as well as a small meteorite, belonging to two elderly geologists in London,” Tsirides vividly recalls, “and, due to my excitement, I bought so many that I could hardly carry them!” Although he currently owns over a thousand specimens, he continues to add more to his collection, depending on the availability and price of museum pieces of fossils. “The last specimens I bought include a complete tarbosaurus skeleton over six metres long and a 69kg campo meteorite, both of which are expected to arrive in Cyprus within a few weeks.” When asked about his favourite item in this vast collection, he

THE FOUNDER OF THE TRSIRIDES FOUNDATION AND TSIRCON GROUP, ANGELOS TISIRIDES, TALKS TO GOLD ABOUT HIS VAST COLLECTION OF FOSSILS AND MINERALS. By Artemis Constantinidou

admits, admits “Asking me this question is like asking a parent which of his children he loves best! It is a very difficult question to answer. I like some because they look beautiful and others because of their rarity. I think the ones I enjoy the most are the ones that can startle whoever lays eyes on them.” As regards the restoration of fossils, this is done by specialist laboratories which, unfortunately, do not exist in Cyprus. “I can do minor repairs myself but for any serious restoration work required, I am constantly in contact with specialists such as the French paleontologist François Escuillié,” Tsirides notes. Most of the items in his collection have been bought while travelling abroad on fossil and

This collection has helped me analyse life better and get to know the roots of my existence

OF FOSSILS

www.goldnews.com.cy | GOLD | 89

COLLECTION

It seemed unbelievable to t me that life had existed for h so s long without the presence of humans

mineral hunting expeditions. Tsirides reveals that there are three factors that he takes into account before deciding on the next item that will become part of his collection. “Firstly, I consider the cost; secondly, whether the quality is suitable for a museum and, thirdly, how much visitors will appreciate it once it has been placed in a museum.” Establishing a natural history museum in Cyprus has been Angelos Tsirides’ vision for the past 15 years, in the hope that other people will benefit from his collection. “This collection has helped me analyse life better and get to know the roots of my existence. It will make people

more sensitive to animals, who were our predecessors, and to nature since life on the planet was nearly rendered extinct.” “I am very happy to share this vision with so many people who have given me the encouragement and motivation to continue and not give up, even after all the disappointment and obstacles I have experienced so far in trying to fulfil my dream of establishing a natural history museum in Cyprus,” he says. As with most collections, the value of fossils, minerals, precious or semi-precious

90 | GOLD | The Business Magazine of Cyprus

stones increases over time and the value of the collection today is much higher than the sum of each item’s original purchase price, Tsirides points out, and for this reason, he considers it an investment and does not feel so guilty about spending large sums of money on it! “I would only consider selling the collection if, after all my efforts, I am not successful in hosting it in a modern natural history museum in Cyprus,” he concludes. Part of the collection is currently on show exhibited

at 120A+B Strovolos Avenue in Nicosia (Tel. 22312676, 99526029) while the bigger pieces are exhibited once a year, every second week of October, at the Tsircon premises located next to Leroy Merlin in Nicosia.

BOOK SHELF

BOOKS of the month 1

Survival means not leaving things to the central banks alone

Former Fed chief Bernanke shows how the US economy was saved

Counterintuitive ideas that may change your future if you implement them

The mind is a muscle that needs training to reach its full potential

GET SMART! By Brian Tracy (TarchePerigee, 2016) R.R.P. ÂŁ16.17 (ÂŁ14.80 FROM AMAZON.CO.UK)

Donâ&#x20AC;&#x2122;t let the rather ridiculous subtitle (â&#x20AC;&#x153;How to think and act like the most successful and highest-paid people in every fieldâ&#x20AC;?) put you off. Tracyâ&#x20AC;&#x2122;s latest book is actually all about brain training and changing negative thinking patterns/habits so as to achieve maximum potential. â&#x20AC;&#x153;Your mind is like a muscle...you must place demands on it, the same as lifting weights for muscle building,â&#x20AC;? he says before explaining exactly how.

In a world where we are constantly connected, itâ&#x20AC;&#x2122;s those with the best â&#x20AC;&#x153;people skillsâ&#x20AC;? who win the day, says Kerpen. The book, which has generously been described as being like How to Win Friends and Influence People for todayâ&#x20AC;&#x2122;s world, reveals the eleven accessible people skills that will get you more of what you want at work, at home and in life, once you possess them.

Following the financial crisis, central banks were handed responsibility for the fate of the global economy. Lifting the veil on the inner workings of central banks, El-Erian, one of the worldâ&#x20AC;&#x2122;s most influential economic thinkers, explains why they cannot save us this time around and why collaboration between central bankers, policymakers and business leaders is essential. Required reading for anyone interested in the future.

Bernanke was appointed Chairman of the Federal Reserve just before the 2007 housing bubble burst and set off a domino effect that would bring the global financial system to the brink of meltdown. He describes ultimately successful efforts to keep the US economy afloat, revealing how the creativity and decisiveness of a few key leaders prevented an economic collapse of unimaginable scale.

Pasrichaâ&#x20AC;&#x2122;s formula for a happy life is â&#x20AC;&#x153;Want Nothing + Do Anything = Have Everythingâ&#x20AC;?. If that sounds counterintuitive, wait until you read the book, which will teach you things like â&#x20AC;&#x153;Why success doesnâ&#x20AC;&#x2122;t lead to happinessâ&#x20AC;?, â&#x20AC;&#x153;Why multitasking is a mythâ&#x20AC;? and â&#x20AC;&#x153;How eliminating options leads to more choiceâ&#x20AC;?. He says he can change how you think about your career, relationships, family and, indeed, your happiness.

THE COURAGE TO ACT By Ben S. Bernanke (W. W. Norton & Company, 2015) R.R.P. ÂŁ22.99 (ÂŁ17.99 FROM AMAZON.CO.UK)

In our connected world, those with â&#x20AC;&#x153;people skillsâ&#x20AC;? will come out on top

THE HAPPINESS EQUATION By Neil Pasricha (G.P. 3XWQDPÂˇV 6RQV

R.R.P. ÂŁ18.98 (ÂŁ16.59 FROM AMAZON.CO.UK)

THE ONLY GAME IN TOWN By Mohamed A. El-Erian (Yale University Press, 2016) R.R.P. ÂŁ18.99 (ÂŁ15.19 FROM AMAZON.CO.UK)

THE ART OF PEOPLE By Dave Kerpen (Portfolio Penguin, 2016) R.R.P. ÂŁ14.99 (ÂŁ13.48 FROM AMAZON.CO.UK)

www.goldnews.com.cy | GOLD | 91

Lunc Lunch with PHILIP VAN DALSEN

THE CEO OF MTN CYPRUS TALKS ABOUT HIS LOVE OF ‘OLD MUSIC’, VOICES HIS OPINION ON HOW THE TELECOMMUNICATIONS INDUSTRY IS EVOLVING AND SUGGESTS THAT THE GOVERNMENT SHOULD BE DOING MORE TO EDUCATE PEOPLE ABOUT NEW TECHNOLOGY.

Gold

By John Vickers

GIORNO TUTTO IL TICA , ROMANlli karides St. a P ra o g a 13, Ev kavitos, Nicosia Ly

CHICKEN LEMONIC E (2) R H WIT ALAD VILLAGE S WINE (2) F O S S GLA ATER W L MINERA ) (2 E E F F CO TOTAL

was beginning to think that my plans to have lunch with Philip van Dalsen were jinxed after we were forced to postpone our meeting not once but twice. The first time he had returned feeling unwell from one of his frequent trips to Amsterdam, where his family lives, and a week later he had been forced to change his flight plans following strike action by Greek air traffic controllers, which not only meant no lunch for us but a seemingly interminable journey for him due to difficult flight connections. “Connections to and from Cyprus are getting more and more

92 | GOLD | The Business Magazine of Cyprus

difficult all the time,” he tells mee when we finally get together at Tutto Il Giorno Romantica (for those of you who may have begun to suspect that I must own shares in the place, which has been the venue for the last three of these lunches, I must point out that that my guests are the ones who choose the restaurant. This one just happens to be very popular with a lot of people!). He mentioned the fact that a high-profile visitor to the island, seated next to him on the plane a week earlier, was not at all amused by the somewhat tortuous journey he was obliged to take. Philip is actually not one to

€22.00 €8.00 €10.00 €2.50 €0.00 €42.50

complain. Easy-going and quietly spoken, he deals with things in a resigned but calm manner and, most of the time, he is extremely positive and cheerful. So what has he be doing since we last met, I ask, to which he beams and replies, “Building the business and going to concerts!” I know that, like me, van Dalsen is a huge fan of rock music and, in particular, of the big names from the ‘60s and ‘70s. The last time we talked about his music collection, he was enthusing about the 1974 concert by Crosby, Stills, Nash & Young that had finally been released

on CD. This time, he has an even more exciting announcement for me: “I finally got to see Paul McCartney!” The MTN head is genuinely thrilled. “I was really close to the stage and to see an ex-Beatle is really something!” he says. “Those guys were where it all started and he may be over 70 now but he was amazing.” I confess that McCartney has been one of my musical idols since I was a teenager and I’ve never had the chance to see him perform live. On the other hand, I can still make Philip van Dalsen a little envious of the fact that, being older than him, I grew up with The Beatles and their music. We chat about the fact that next year will mark the 50th anniversary of “Sgt. Pepper’s Lonely Hearts Club Band”, (“the greatest album in history,” he says and I don’t disagree), which his 12-year-old son now enjoys. His other recent music-related highlights include sharing a beer with Neil Finn and exchanging tweets with David Crosby. We could spend the entire lunchtime discussing the concert but, once we’ve ordered the chicken in lemon sauce with rice and a glass of white wine, I purposely steer the conversation to business matters, in part to resist the temptation to get on a plane and go to a good concert somewhere. “Well, as I said earlier, you’ll have a problem getting out of Cyprus first!” he says with a laugh when I mention this. Tighter regulation is a major issue for MTN and, indeed, all telecommunications providers throughout

the European Union, as the idea of a much more consolidated market with far fewer players continues to gain support in political circles. The European Commission is doing this by lowering various charges, such as mobile termination rates (MTRs) and abolishing those for international roaming. “This will have a huge impact on operators’ revenues,” he explains, “at a time when we are having to invest in networks. Brussels has a vision of every household having either fibre-to-the-home (FTTH) or mobile broadband and so the regulators are also insisting on a lot of things. Things are changing all the time and the golden era of when telecommunications companies made

their money from voice calls and SMS is long gone.” This is, of course, partly due to the non-traditional competitors that have entered the market, such as WhatsApp, and are putting so much pressure on the old model that it is no longer viable. MTN has already become involved in

ITC and there are other related areas that the company intends to become active in so as to adapt to the new situation. “It’s time to be looking at the Internet of Things, smart home, and so on, with third parties. The alternative, quite honestly, apart from ceasing to exist, is to maybe merge with a competitor or take it over. That’s what’s happening everywhere. It’s all about finding new revenue streams.” This is precisely what led MTN to acquire IBS, one of the early providers of Cloud solutions on the island, a year ago and van Dalsen is very pleased with the results so far. “It’s going well and the thing that I like personally is that IBS can operate outside

TO SEE AN EX-BEATLE IS REALLY SOMETHING! www.goldnews.com.cy | GOLD | 93

| LUNCH WITH GOLD |

Cyprus too so we’re trying to make it international.” There is a strange thing about Cyprus and technology, van Dalsen tells me. On the one hand, there is a perception that the country is very fast to adopt new technology and yet a recent survey came up with the astonishing revelation that 60% of Cypriots still don’t have an e-mail address. “Not only that,” he says, warming to the subject, “there are hundreds of thousands of people who have a smartphone and don’t have a clue what to do with it. It’s a mini-computer with so many uses but they have not been educated to make the most of what it has to offer. This should definitely be a task for the Government. If it wants companies like MTN to roll out broadband services to the ‘last house in the last village’, it should at least show that people want it and will know how to use it.” All the operators in Cyprus have other problems, including considerable difficulty in obtaining building permits to erect base stations and towers, even though everyone wants perfect mobile coverage. “You wouldn’t believe how many municipalities go to court to prevent it. This is also a Government responsibility in my view. Full coverage requires a certain amount of building; it’s very simple and yet it can sometimes take two or three years to get building permission. And then someone might take the operator to court so it’s problematic.” The MTN head is pleased with how the economy is moving and, in addition to the positive indicators and statistics, he says that he also sees it in people’s increased spending power. “In 2013 there was a tremendous collapse in the amount of money spent on mobile phones, etc., but today it has probably never been easier to get new customers, which is a good sign for Cyprus and not just for us. The economy is definitely

94 | GOLD | The Business Magazine of Cyprus

back on track and I hope people don’t repeat the mistakes of before.” The conversation turns to the island’s location, which may be very close to the Middle East but, says Philip, few people here seem to realise just how close we are and he is often surprised by the widely-shared attitude of Cypriots who don’t seem interested in what is happening in other countries that are so near. “People are very inward-looking, perhaps because Cyprus is now an EU member state, and they are much more interested in what’s happening in the next village than in another country 20 minutes away. Of course, I’m very happy that this is seen as a stable place in a troubled region but that makes it even more important to make sure that we have the best telecommunications infrastructure, we tell people about it and we persuade more companies to come here

to see them in concert if I was invited. I haven’t seen Bruce Springsteen live, so maybe that’s one I should make a point of going to later this year.” I assure him that, having seen Springsteen live on two occasions, he is not one to be missed, particularly as he’s currently performing “The River” in its entirety as well as a selection of classic tracks spanning his whole career. Meanwhile, van Dalsen has decided that top of his list of acts still to be seen in concert are Fleetwood Mac, whom he missed last year. However, he wouldn’t go to see Crosby, Stills & Nash again because, he says, they are just not what they were, Stephen Stills in particular. “I still have a picture of how great they were back in the ‘70s and I don’t want to be disappointed.” As we continue reminiscing about all things musical, Philip recalls one of his earliest childhood memories of a family trip in a car when “Hey Jude” came on the radio

THE GOLDEN ERA OF WHEN TELECOMMUNICATIONS COMPANIES MADE THEIR MONEY FROM VOICE CALLS AND SMS IS LONG GONE to take advantage of our excellence.” Two cappuccinos are duly ordered and we return to the subject of music. Having seen Paul McCartney, is there anyone left that Philip would still like to see in concert? “Most of them are already dead!” he jokes before noting, “Seriously, we’ve lost some good people this year: David Bowie, Glenn Frey of the Eagles, George Martin, a truly great producer...all gone unfortunately. My problem is that I’m a little bit stuck in the old music so, although I like newer bands such as Coldplay, who really make nice music, I’d probably only go

and everyone – his three brothers, sister and parents – were all singing along with the wordless, long closing chorus. “I was in the back, lying across the others’ legs and singing too. I was about three years old. And it’s always been a special song for me for that reason. Every time I hear it I still remember that trip” Work beckons so we leave the restaurant, now full of admiration for Bob Dylan’s “Blonde on Blonde” album, a song from which Philip van Dalsen had listened to not once but twice that same morning. “Music,” he muses. “Where would we be without it?” Where indeed!

WHAT’S

THINGS

to do POP MUSIC TONY CHRISTIE All the hits, including ‘Avenues and Alleyways’, I Did What I Did for Maria’ and, of course, ‘Is This the Way to Amarillo?’ performed live with a 5-piece band. Supporting him is comedy PISSOURI AMPHITHEATRE, impressionist Paul BurlPISSOURI TUESDAY, ing from BritMAY 10, ain’s Got Talent. 6.30PM

JAZZ MUSIC BENJAMIN FAUGLOIRE PROJECT he acclaimed French THE jazz trio (piano, SHOE double bass, drums) FACTORY, with three albums to its NICOSIA WEDNESDAY name comes to Cyprus 20 APRIL, thanks to the Pharos Arts 8.30PM Foundation.

NIKOS MAKROPOULOS

Live Easter Monday performance by the popular Greek singer. Plan Be, Nicosia 1SRHE] 1E] TQ ã TQ

GREEK MUSIC ELEONORA ZOUGANELI Greek singer Eleonora Zouganeli,, whose last album was released 4 month ago, gives two live performances in Nicosia RED MUSIC STAGE, NICOSIA WEDNESDAY, M APRIL 20, 9.00PM THURSDAY, APRIL 21, 9.00PM

ORFEAS PERIDIS & LIZETA KALIMERI Popular for over 20 years, the two art- DOWNTOWN LIVE, NICOSIA ists perform songs FRIDAY, from their own APRIL 22, 10.00PM albums as well as duets. SADAHZINIA & B. D. FOXMOOR Sadahzinia, viewed by many as Greece’s first female rapper, is back with her former Active Member partner B.D.Foxmoor, who performed solo in Larnaca in December. Savino Live, Larnaca Monday, April 25, 10.00pm

VASSILIS PAPACONSTANTINOU The ever-popular veteran Greek rock star returns to Cyprus. Downtown Live, Nicosia Saturday, May 7, 10.00pm MARIA ELENA KYRIAKOU he Cypriot winner of Greece’s The Voice and last year’s Greek Eurovision entry continues her monthly performances at Café la Mode.

CAFÉ LA MODE DASOUPOLIS, NICOSIA WEDNESDAY 4 MAY, 9.00PM CAFÉ LA MODE LIMASSOL FRIDAY 6 MAY, 9.00PM

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WHAT’S

CLASSICAL MUSIC ENTRE GUITARRA Y VOZ uitarist Sotiris Kasparides, ARTE MUSIC soprano Annie ACADEMY, Trillidou Santi NICOSIA and pianist TUESDAY, APRIL 19, 8.30PM Ioanna PetTECHNOPOLIS 20, temeridou PAPHOS Pavlou present SATURDAY, 20th and 21st APRIL 23, century Spanish, 8.00PM Latin American and modern classical works.

FROM BIZET TO HADJIDAKIS ebecca Savvidou-Trimikliniotou (soprano), Manolis Neofytou (piano) and Nicos Pittas (violin) in a broad programme of music. Municipal Theatre, Larnaca Monday, April 18, 8.30pm

MUNICIPAL THEATRE, LARNACA WEDNESDAY, APRIL 20, 8.30PM

SOUND OF VIENNA orks by Mozart, Brahms and Strauss by piano duo Elina Linchevskaya and Zbynek Maruska.

FESTIVAL STREET LIFE FESTIVAL 2016 he popular annual all-day event in Limassol’s historical centre is now in its 9th year. Live bands, DJs, graffiti artists, dancers, street performers, handicrafts, food & drink and more make for a great day out.. Saripolou St. & Athenon St., Limassol Saturday, May 7, 9.00am-9.00pm

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EROS AND THANATOS II peratic arias by Mascagani, Mozart, Verdi and Puccini performed by Anoki von Arx (soprano MUNICIPAL sfogato) and Marios Andreou THEATRE, LARNACA (tenor), acFRIDAY, companied by APRIL 22, Annini Tsiouti 8.30PM (piano).

PALLAS THEATRE, MUSICAL JOURNEYS ytus MiecNICOSIA SATURDAY, znikowski (cello) APRIL 23, and Nicolas Costantinou 7.30PM

(piano) perform works by women composers for the two instruments.

THEATRE

WOE FROM WIT art of the Russian Theatre Screenings season, this 19th century comedy by A.S. Griboyedov stars Sergey Garmash, Elena Plaksina, Shamil Khamatov, Darya Belousova, Vladislav Vetrov, Alexander Berda and others. Russian with Greek subtitles.

96 | GOLD | The Business Magazine of Cyprus

ALIKI A LIKI AND NESTOR N TOR NES TELOGLOU – COLLECTORS AND COLLECTING n exhibition dedicated to the two founders of the Teloglion Fine Arts Foundation in Thessaloniki, featuring works by Greek artists as well as to personal items belonging to the couple. A.G. Leventis Gallery, Nicosia Until September

LONDON TO NICOSIA: ART, EXPRESSION AND CONNECTION LOUKIA & ritish CypriMICHAEL ot painters ZAMPELAS Renos Lavithis ART MUSEUM, NICOSIA and Andrea TyrUNTIL imos, painter and APRIL 30 printmaker Despina Symeou and photographer Robert Kyprianou bridge the gap between the Cypriot art communities here and in England.

B RIALTO THEATRE, LIMASSOL TUESDAY, APRIL 26, 7.00PM

CINEMA Cyprus Film Days International Festival

he 14th Festival, with screenings in Limassol and Nicosia, features films made in 2015 and screened at major festivals over the past year.

Rialto Theatre, Limassol Sunday, %TVMP Ä&#x2020; TQ PARI PA PARISIENNE RISI SIEN ENNE NE (Danielle A Arbid Arbid, France)

Rialto Theatre, Limassol Sunday, %TVMP TQ

OUR EVERYDAY LIFE (Ines Tanovic, Bosnia-Herzegovina/Slovenia/Croatia) Rialto Theatre, Limassol Tuesday, April 19, 8.00pm SON OF SAUL (Laszlo Nemes, Hungary) Rialto Theatre, Limassol Tuesday, April 19, 10.00pm ZENA PALACE, NICOSIA TUESDAY, %46-0 Ä&#x2020; 41

MELLOW MUD (Renars Vimba, Latvia)

THE LOBSTER (Yorgos Lanthimos, ZENA Ireland/UK/Greece/ PALACE, NICOSIA France/Netherlands/ USA)

TUESDAY, %46-0 41

SMAC (Elias Demetriou, Greece) Rialto Theatre, Limassol Wednesday, April 20, 8.00pm L LET THEM COME (Salem Brahimi, F France/Algeria) R Rialto Theatre, Limassol W Wednesday, April 20, 10.00pm

AS A S I OPEN MY M EYES E (Leyla Bouzid, France/ Tunisia/Belgium)

ALL THE BEST (Snjezana Tribuson, Croatia/Slovenia) Zena Palace, Nicosia Sunday, April 17, 8.00pm THE GULLS (Ella Manzheeva, Russia) Zena Palace, Nicosia Sunday, April 17, 10.00pm LOSERS (Ivaylo Hristov, Bulgaria) Zena Palace, Nicosia Monday, April 18, 8.00pm Lâ&#x20AC;&#x2122;AVENIR (Mia Hansen-Love, France/ Germany) Zena Palace, Nicosia, Monday, April 18, 10.00pm

P PARISIENNE (Danielle Arbid, France) Z Zena Palace, Nicosia Wednesday, April 20, 8.00pm

Rialto Theatre, Limassol Sunday, %TVMP Ä&#x2020; TQ ON N ((Yuval Yuval Delshad, BABA JOON Israel) MELLOW MUD (Renars Vimba, Latvia) Rialto Theatre, Limassol Friday, April 22, 10.00pm ZENA PALACE, NICOSIA FRIDAY, APRIL , Ä&#x2020; 41

SMAC (Elias Demetriou, Greece)

BODY (Malgorzata Szumowska, Poland) Zena Palace, Nicosia Friday, April 22, 10.00pm INTERRUPTION (Georgios Zois, Greece/France/Croatia/Italy/Bosnia-Herzegovina) Rialto Theatre, Limassol Saturday, April 23, 8.00pm AN (Naomi Kawase, Japan/France/Germany) Rialto Theatre, Limassol m Saturday, April 23, 10.00pm Zena Palace, Nicosia Saturday, %TVMP Ä Ä&#x2020; TQ

EM COME LET THEM (Salem Brahimi, France/ Algeria)

SON OF SAUL (Laszlo Nemes, Hungary) Zena Zena Palace, Nicosia BABA JOON (Yuval DelPalace, Nicosia Saturday, April 23, 10.00pm shad, Israel) Wednesday, %TVMP 20:00 - THE GULLS TQ (Ella Manzheeva, Russia) Rialto Theatre, Limassol Thursday, April 21, 8.00pm 22:00 â&#x20AC;&#x201C; BODY (Malgorzata Szumowska, Poland) Rialto Theatre, Limassol Thursday, April 21, 10.00pm INTERRUPTION (Georgios Zois, Greece/France/Croatia/Italy/Bosnia-Herzegovina) Zena Palace, Nicosia Thursday, April 21, 8.00pm AS I OPEN MY EYES (Leyla Bouzid, France/Tunisia/Belgium)

ZENA PALACE, NICOSIA THURSDAY, APRIL , . PM

N EW TESTAMENT TESTAMEN T NT THE BRAND NE NEW (Jaco Van Dormael, Belgium/France/ Luxembourg) Rialto Theatre, Limassol Sunday, April 24, 6.00pm AWARDS CEREMONY & CLOSE OF FESTIVAL

Rialto Theatre, Limassol Sunday, %TVMP Ä&#x2020; TQ

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Eleana Spyris

“I usually get up around 6.30am but I’m not a ‘morning person’ so and I try and exercise for a bit and, if I have time, do a little meditation. That half an hour helps me come to work feeling more relaxed and ready to concentrate. I never know how my day is going to turn out because urgent things tend to come up all the time. As an in-house legal advisor, I have to answer a lot of departmental enquiries about all kinds of things. There’s much more involved than just Insurance Law. When I was younger, I enjoyed getting into discussions with grown-ups and arguing points, and everyone used to say I would make a good lawyer. I was actually torn between Law and English Literature as

A DAY IN THE LIFE

8LI 0IKEP %HZMWSV 'SQTPEMRGI 3JÁGIV SJ EuroLife Ltd talks about her love of good movies and travel, and why she decided to re-read the entire series of... Harry Potter novels.

my field of study because I had always loved reading and I still do. I like the idea of continuous learning and I may eventually study for another degree. In the end, I studied Law at the University of Sheffield and I also did a Masters in International Relations and another in International Law in Bristol. When I came back to Cyprus, I worked for a local law firm, mainly on Intellectual Property issues and Competition Law for six years, then I joined Bank of Cyprus and eventually moved to Eurolife. I try to leave work around 5pm and 6pm at the latest. If I am able to, I like to go home and read. I love the feeling of losing myself in a good book. Lately I enjoyed two novels

by Jonas Jonasson (The Girl Who Saved the King of Sweden and The Hundred-Year-Old Man Who Climbed Out of the Window and Disappeared) which were both light and interesting, as was An Abundance of Katherines by John Green. I also enjoyed Dear Life by Alice Munro and I’ve also just finished re-reading the entire Harry Potter series. I have a nephew who is too young to read the books himself and so I’ve been telling him the story. I really enjoy going to the cinema and I wish we had a better choice of movies here. The last one I saw was Superman v Batman: Dawn of Justice, which was OK but I would love to see more foreign language films like the French comedy Qu’estce qu’on a fait au Bon Dieu? (Serial (Bad) Weddings), which I found very funny and much more enjoyable than most Hollywood comedies. I still play piano and I enjoy listening to film scores. I like to have something on in the background when I’m working and it’s often a soundtrack. I don’t have a particular favourite artist, apart from Alanis Morissette who was a favourite when I was younger. I’m very loyal and I still like her now! I play tennis twice a week and and I like cycling too but I’m

not the kind of person to go to the gym. I love travelling and I wish I could do more of it. I recently re-read The last place the whole series I went to was Cuba and that was a really nice trip. In the end it doesn’t matter where you go: when you I loved this French comedy travel anywhere, near or far, your horizons expand, you soak up culture, you get a different Still my perspective favourite singer and learn something new. Right now, my priority is to have a good work/life balance. I would like to be able to spend an hour a day just writing or reading, for example. Of course, I am now at an age when I need to be thinking about children, which may well put an end to my free time! Despite what my friends say, I want to believe that it’s possible to do things for yourself while having a family. Time will tell!”

WHEN YOU TRAVEL ANYWHERE, NEAR OR FAR, YOUR HORIZONS EXPAND,

YOU SOAK UP CULTURE, YOU GET A DIFFERENT PERSPECTIVE AND LEARN SOMETHING NEW 98 | GOLD | The Business Magazine of Cyprus

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