GOLD Magazine Issue 59 -Pages 1 to 10

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Gold ISSUE 59 FEBRuary 21, 2016 PRICE €3.00

Gold ISSUE 59 | february 21,

t h e

b u s i n e s s

ACCOUNTANCY ICPAC at 55 Kyriakos Iordanou on the challenges

m a g a z i n e

INNOVATION Investing in the Future with the MIC Cyprus

o f

c y p r u s

PEOPLE

Andrea Antoniou Michalis Papadopoulos Anastasia Papadopoulou

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

2016 | ensuring compliance

presents

ENSURING

COMPLIANCE What it means, why it’s needed Elias Neocleous

Michalis Loizou

We support you to create the value you are looking for by providing specialised solutions based on quality. Together we build relationships based on trust and we say things as they are, to assist you to deal with issues that tomorrow will prove important. We adapt our expertise and the power of our global network to your specific needs helping you make the difference.

COMPLIANCE OFFICER, A. Neocleous Trust Company Ltd

Andrew Demetriou

Director, Ioannides Demetriou LLC

Michael M. Antoniades

Marios Skandalis

Director, Compliance Division, Bank of Cyprus

Board Member, KPMG

Eleftherios Philippou

Risk & reputation leader, Deloitte Ltd

Pantelis Christofides

Partner, Head, Corporate and Commercial Department, Andreas Neocleous & Co. LLC

Partner, L. Papaphilippou & Co LLC

Andreas Theodosiou director, AMF Global

Eleana Spyris

LEGAL ADVISOR/ COMPLIANCE OFFICER, EuroLife Ltd

Andreas Andreou Vice-Chairman, Cyprus Securities and Exchange Commission

Gabriel Onisiforou Board Member, EY Cyprus

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34 | GOLD | The Business Magazine of Cyprus @2016 FXTM

ISSUE 59 FEBRUARY 21, 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

CONTENTS 8 | BUSINESS BRIEFING

Economic & Business Highlights of the past month.

COVER

STORY

30 | Ensuring Compliance

Leading compliance professionals from a variety of industries explain how they ensure that they and their clients comply with today’s complex regulatory requirements.

14 | MY WAY

Evangelia Eliadou’s management style.

12 | FIVE MINUTES WITH… Andrea Antoniou

13 | THEY SAID WHAT?

A selection of memorable quotes from Cypriots in the public eye.

OPINION 76 | Lessons from Greece

By Dr. George Theocharides

FEATURES 14 | IN Business Awards 2015

Four pages of photos from the event.

SPECIAL PROMOTIONAL FEATURE 1 47 |

Compliance

Thirteen leading firms outline what compliance means to them and how they ensure that it plays a key role in their culture and operations.

18 | Investing in the Future

The Microsoft Innovation Center in Nicosia.

22 | ICPAC at 55

74

Interview with General Manager Kyriakos Iordanou

18

66 | Command the Horizon

ONE: The tallest seafront residential tower in the Mediterranean.

C

70 | Preserving Capital

ă

Interview with Rashid Mohamed, Investment Specialist Global Credit, BNP Paribas

55

77 |

emerging markets likely to hold investors’ attention in 2016 The 2016 Outlook compiled by the K2 team at Franklin Templeton Solutions

74 | Ancoria Pension Plan

A new pension plan for I\ZPULZZ HPTZ [V ÄSS H NHW PU the market.

100 | IN GOOD COMPANY Exchanging views on life as an employee at Windsor Brokers 103 | BOOKSHELF Five of the best new business titles.

104 | MY COLLECTION Christodoulos Angastiniotis and ‘The Quality of Old’

4 | GOLD | The Business Magazine of Cyprus

Car+

Eight leading automotive companies present their products, services and latest models.

108

71 | Economic activity in

SPECIAL PROMOTIONAL FEATURE 2

108 | LUNCH WITH GOLD Michalis Papadopoulos, Head of Corporate Communications at CYTA 111 | BUSINESS CLASS Dieter Rohdenburg, CEO of Intership Navigation Co Ltd 112 | WHAT’S ON Gold’s guide to the best cultural events of the coming month.

114 | A DAY IN THE LIFE Anastasia Papadopoulou

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| EDITORIAL |

Rules and Regulations

PUBLISHED BY IMH ISSN 1986 - 3543

I

MANAGING DIRECTOR

George Michail

GENERAL MANAGER

Daphne Roditou Tang

n 2013, when the Global Forum on Transparency and Exchange of Information for Tax Purposes evaluated Cyprus as ‘non-compliant’, the race was on to amend gaps in the system and restore the island’s reputation. Last October, the island’s supplementary report on the changes made to its legal framework and practices was approved by the Global Forum, which reclassified Cyprus as ‘Largely Compliant’ The pressing need for the country’s infrastructure, legal framework, tax system and professional services to be officially recognised as being of the highest standards forced the tax authorities, accounting and legal firms to take action. They proved, and not for the first time, that when it is considered absolutely essential, they can work together and get things done.

Corporate and regulatory compliance are still seen by many firms around the world as a major headache – and not entirely without reason. But in today’s global financial environment, regulated entities no longer have any choice in the matter: they either comply or face crippling fines and, ultimately, loss of licence. For this month’s cover story (page 26), we spoke to Compliance Officers and other representatives of leading firms in a variety of regulated areas (banking, legal, Forex, accounting, fiduciary, etc.), as well as to the Cyprus Securities and Exchange Commission, to find out how much importance they give to the compliance issue. The conclusion? An incredible amount. To quote one of the experts featured (Eleftherios Philippou, Deloitte), “We cannot speak of good corporate governance if there are no strong compliance systems in place.” Another point to emerge from our discussions on the subject is that almost everyone we spoke to recognises that a singular lack of compliance played a major role in the collapse of the island’s banking system and economy three years ago. Once again, being forced to change things brought out the best in both the public sector and the business community but doubts are already being expressed about what the future holds, once the Troika is out of the picture. This is also one of the points taken up

by Kyriakos Iordanou, General Manager of the Institute of Certified Public Accountants of Cyprus (ICPAC) in a wide-ranging interview (page 22). However, as we try to look forward with optimism, we also feature the ‘futuristic’ Microsoft Innovation Center Cyprus (page 18) and take a look at a new building that will soon claim the impressive title of tallest seafront residential tower in the Mediterranean (page 66). Add to this our regular features that give you insight into the thoughts and ideas of people like lawyer Anastasia Papadopoulou and Cyta’s Head of Corporate Communications, Michalis Papadopoulos, plus a rare view of CIPA Chairman Christodoulos Angastiniotis’ fascinating collection of John Vickers, vintage radios and other equipment, and you’ll find plenty of variety in this month’s issue.

Chief Editor Next month, another milestone: Issue No. 60! Don’t miss it. john@imhbusiness.com

6 | GOLD | The Business Magazine of Cyprus

MEDIA MANAGER

Elena Leontiou

EDITOR-IN-CHIEF

John Vickers

JOURNALISTS

Effy Pafitis, Artemis Constantinidou CONTRIBUTORS TO THIS ISSUE

Maria Pilidou, George Theocharides, Peter Vincent PHOTOGRAPHY

Jo Michaelides, Emma Louise Charalambous ART DIRECTION

Anna Theodosiou

SENIOR DESIGNER

Alexia Petrou

PHOTOGRAPHY

Jo Michaelides, Harris Kyprianou MARKETING EXECUTIVE

Kevi Chishios

SALES MANAGER

Irene Georgiou

SALES EXECUTIVE

Stavros Epifaniou

OPERATIONS MANAGER

Voulla Nicolaou

SUBSCRIPTIONS

Myria Neophytou PRINTERS

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

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Leading ding in eeaaad ading adin i g Corporate rporat rpor rrp porat ate te Adviser d i dviser vise vi v serr of tthe Year he h Y Yea ear Yeea earr Southh East E t Europe E oop Euro ope pe p

info@eurofast.eu | www.eurofast.eu

Eurofast: Your Regional Business Advisory team Who we are Eurofast is a regional business advisory organisation operating in South East Europe and East Mediterranean offering various professional services including M&A and Transactional Advisory, Business Restructuring & Insolvency, Market Entry Services, Banking and Financial Services, Outsourced Payroll and Employment Solutions, Citizenship & Residency Services, Corporate Services, Transfer Pricing, International Tax, Tax Planning & Tax Compliance, and Accounting.

We Specialise in M&A & Transactional Advisory We, take pride in our dedicated team of professionals, specialising in M&A and transactional work in our offices, throughout South East Europe and East Mediterranean. Eurofast has over 28 years of experience working with global businesses and leading institutions. Over the years we have performed a successfully significant number of local and international M&A transactions in the region. We have a 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 process to closure and post integration.

Our Network We are uniquely positioned as one stop shop for investors looking to enter South East Europe and Eastern Mediterranean. We have 21 fully fledged offices in Athens, Thessaloniki, Nicosia, Sofia, Bucharest, Belgrade, Podgorica, Tirana, Skopje, Zagreb, Pristina, Banja Luka, Sarajevo, Cairo, Alexandria, Tbilisi, Beirut, Erbil, Moscow, Kiev and Tehran.

quality or service. Our portfolio includes a number of high net worth individuals and clients engaged in every sector of the economy, which proves the range of our abilities.

Our competitive advantage stems from our ability to serve our clients promptly, efficiently and effectively. Every Eurofast office consists of teams ranging from 15-60 professionals with diverse backgrounds and experience including tax, legal, M&A, payroll, accounting, audit and consulting.

Our credentials Our clients, global brands and leading institutions, operating in the manufacturing, retail, airlines and professional services sector, are the vivid evidence that Eurofast is your trusted business advisor in South East Europe and East Mediterranean.

We have achieved worldwide market recognition for our exceptional advice, capabilities and innovation. We have been acknowledged as a leader in Tax in Cyprus for the past 8 years. We have been ranked top Tax Advisors and announced “Cyprus Tax firm of the Year” by International Tax Review which is a true recognition for the valued client work we deliver every day. In 2014, Eurofast was also recognized for its expertise in M&A. For 2015 we were acknowledged by Acquisition International as ‘Leading Corporate Adviser of the Year – South East Europe’ for our work done in the Region.

Our competitive advantage We seek to delight our clients, by being proactive. Our aim is to create client enthusiasm by giving even more value to our clients, whether measured by price, performance,

Eurofast is Taxand Cyprus.

For more information on Eurofast, its offices and its service portfolio, please visit www.eurofast.eu.

100 | GOLD | The Business Magazine of Cyprus

BUSINESS BRIEFING EDUCATION

APPOINTMENTS

ICAEW GRADUATION

ICAEWâ&#x20AC;&#x2122;s graduation event on 28 January celebrated the achievements of 135 ACA graduates with V]LY N\LZ[Z PU H[[LUKHUJL 0*(,> 7YLZPKLU[ (UKYL^ 9H[JSPÉ&#x2C6;L [VSK [OL NYHK\H[LZ! ¸)` WHZZPUN your exams, youâ&#x20AC;&#x2122;ve opened up the door to a very exciting career. The ACA is internationally-recVNUPZLK HUK ^L ^PSS VÉ&#x2C6;LY `V\ H UL[^VYR HUK VUNVPUN WYVMLZZPVUHS Z\WWVY[ ^OLYL]LY `V\Y JHYLLY [HRLZ `V\ š *`WY\Z ^HZ [OL Ă&#x201E;YZ[ JV\U[Y` V\[ZPKL [OL <2 ^OLYL (*( Z[\KLU[Z ^LYL HISL [V Z[\K` HUK THYRLK [OL Ă&#x201E;YZ[ Z[LW [V^HYKZ THRPUN P[ H [Y\S` PU[LYUH[PVUHS X\HSPĂ&#x201E;JH[PVU THRPUN P[ H RL` PU[LYnational market for ICAEW. The successful graduates will now go on to complete their practical ^VYR L_WLYPLUJL YLX\PYLTLU[Z H[ ^OPJO WVPU[ [OL` ^PSS IL HISL [V ILJVTL M\SS 0*(,> TLTILYZ HUK call themselves ICAEW Chartered Accountants.

M TOURIS

RICS CYPRUS

RICS Cyprus has appointed a new Board of Directors, the Chairman of which is Pavlos Loizou, Partner, Resolute Asset Management for Greece and Cyprus.

IN THE NEWS

CYPRUS UNION OF SHIPOWNERS

The Cyprus Union of Shipowners has reappointed Polys L. Haji-Ioannou as Honorary President. Andreas Hadjiyiannis was named President of the Executive Committee.

CTO aims for 2.9 million visitors

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he Cyprus Tourism Organisation (CTO) aims to increase tourist arrivals to 2.9 million in 2016, representing a rise from 6% to 7% in both tourist arrivals and revenue over last year. During a discussion of the CTOâ&#x20AC;&#x2122;s budget, CTO Chairman Angelos Loizou also told the House Finance Committee that the appointment of an Under-Secretary for Tourism would allow the CTO to focus on the promotion of the industry while the appointee would focus on the political aspects.

Casino shortlist due

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he government will soon have a shortlist of three bids for the creation of a casino resort in Cyprus. The Permanent Secretary of the Ministry of Energy, Commerce, Industry & Tourism, Stelios Himonas, told MPs. During the first phase of the process eight bids were submitted. Media reports suggest that the three most likely shortlisted bidders are: Hard Rock, Northfieldâ&#x20AC;&#x2122; Sun International, and Bouygues.

The plan is to issue the licence within 2016 and have the casino resort ready in approximately two yearsâ&#x20AC;&#x2122; time.

8 | GOLD | The Business Magazine of Cyprus

HALLOUMI

OBJECTIONS The Ministry of Agriculture,

Rural Development & Environment has received nine objections to Cyprusâ&#x20AC;&#x2122; request to patent Halloumi cheese as an exclusive product of the island. The objections are from companies in the UK, Australia, New Zealand, Turkey, the UAE and the US. If no compromise is reached, the European Commission will rule on whether Cyprus can patent the cheese as an EU Protected Designation of Origin (PDO). Last year, the Commission published the application for the registration of the name Halloumi / Hellim (in Greek and Turkish) as the protected name for the traditional cheese produced throughout Cyprus.

IFA UKRAINE

Christodoulos Damianou, Executive Director of Eurofast Global Ltd, has been elected as a Member of the Board of IFA Ukraine for 2016-2017.

ECHR

The Council of Europe Parliamentary Assembly has elected Cypriot Family Court Judge Georgios A. Serghides as a judge at the European Court of Human Rights.

BAKER TILLY SOUTH EAST EUROPE

Neofytos Neofytou has joined Baker Tillyâ&#x20AC;&#x2122;s South East Europe team as a Senior Tax Consultant for Cyprus, Greece, Romania, Bulgaria and Moldova.

VISITORS

VYTENIS ANDRIUKAITIS

HRH THE PRINCESS ROYAL

KYRIAKOS MITSOTAKIS

he European Union Commissioner for Health and Food Safety, Vytenis Andriukaitis, paid a two-day visit to Cyprus on 11-12 February. After his first meeting with Health Minister George Pamboridis, Andriukaitis said that he was happy to be in Cyprus at what he called “this crucial moment” as efforts are being made to establish a National Health Service.

“We see Cyprus’ steps as a good example for other EU countries,” he told the Minister, while acknowledging the difficulties involved.

he Princess Royal (Princess Anne) visited British Forces Cyprus and the United Nations in Nicosia, where she spent time with British troops serving on the island on 4 February. The Princess inspected a Guard of Honour and toured the ‘Green Line’ which divides Nicosia. She also met British Forces personnel based at RAF Akrotiri, who are supporting operations over Iraq and Syria, spending time with members of various Corps and Regiments of which she is Colonel-in-Chief.

uring a visit to Nicosia in January, the newly elected leader of Greece’s New Democracy party, Kyriakos Mitsotakis, praised the performance of the Cypriot economy, noting that the island is on course to exit the Memorandum signed with the Troika in 2013.

Mitsotakis, the son of the former Greek Prime Minister Constantinos Mitsotakis, underlined the need for Turkey to honour its commitments to the European Union on limiting and controlling the influx of immigrants from its territory to Greece.

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CYPRUS, TWO-YEAR BG GROUP ISRAEL, GREECE SIGNS BLOCK EXTENSION FOR TRILATERAL ENI-KOGAS 12 DEAL SUMMIT

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resident Anastasiades and the Prime Ministers of Israel and Greece, Benjamin Netanyahu and Alexis Tsipras, met in Nicosia last month and agreed to strengthen cooperation in [OL ÄLSKZ VM LULYN` [V\YPZT YLZLHYJO HUK [LJOUVSogy, environment, water management, combating terrorism, and migration. The main focus is on the energy sector, in particular natural gas, as well as projects such as the EuroAsia Interconnector for electricity and the EastMed Pipeline.

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G Group has taken a 35% holding in Block 12 of Cyprus’ Exclusive Economic Zone (EEZ), which includes the Aphrodite gas discovery. An agreement to [OPZ LɈLJ[ ^HZ ZPNULK VU 1HU\HY` <: based Noble Energy remains the main operator of Aphrodite with a 35% share, while ). HJX\PYLZ HUV[OLY ^P[O +LSLR .YV\W YL[HPUPUN [OL YLTHPUPUN ¶ ZWSP[ LX\HSS` between Delek Drilling and Avner Oil.

€650,000

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`WY\Z HUK [OL ,UP 2VNHZ JVUZVY[P\T have signed a two-year extension of the initial exploration in Cyprus’ Exclusive Economic Zone (EEZ). ¸;OPZ KL]LSVWTLU[ PZ LZWLJPHSS` PTWVY[HU[ HZ P[ YLHɉYTZ HUK HK]HUJLZ *`WY\Z» energy prospects during a period in which the international oil and gas industry is experiencing challenging conditions” a press release notes.

The consortium will conclude studies in order to identify prospects necessary to complete its drilling obligations.

THE AMOUNT THAT THE GOVERNMENT EXPECTS TO SAVE BY OUTSOURCING PART OF THE SECURITY OPERATION AT CYPRUS’ TWO INTERNATIONAL AIRPORTS TO THE PRIVATE SECTOR AND THUS REDUCING THE NUMBER OF POLICE OFFICERS WHO CURRENTLY CARRY OUT CHECKS ON PASSENGERS. www.goldnews.com.cy | GOLD | 9

BUSINESS BRIEFING

AIR TRAVEL Ryanair

Ryanair launched its new LarnacaBrussels route on January 18. It ^PSS VWLYH[L ÅPNO[Z [^PJL ^LLRS` VU Monday and Friday. Hermes Airports’ *,6 >LZ 7VY[LY JVTTLU[LK ¸>L are delighted to see Ryanair returning to Larnaca Airport and strengthening its presence in Cyprus. Through strategic planning and branding, the Larnaca-Brussels route could become one of the favourite routes for business and leisure purposes for thousands of travellers, both Cypriots and CentralEuropeans.”

Emirates

Emirates launches its new daily Larnaca-Athens service on 1 March HUK PZ J\YYLU[S` VɈLYPUN ZWLJPHS promotional return fares starting from €129 in Economy Class.

It will depart Larnaca at 11.50am, arriving in Athens at 1.35pm. ;OL YL[\YU ÅPNO[ ^PSS SLH]L ([OLUZ at 4.15pm, arriving in Larnaca at 6.00pm.From 27 March 2016, the Larnaca-Athens service will IL H]HPSHISL Ä]L [PTLZ H ^LLR VU Sunday, Tuesday, Thursday, Friday and Saturday.

Cobalt Air

Cobalt Air, a new Cyprusbased airline, has secured an \UZWLJPÄLK HTV\U[ VM JHWP[HS MYVT H /VUN 2VUN IHZLK investor, airline chairman Gregory Diacou revealed this TVU[O ¸;OPZ IYVHKLUZ V\Y investor base to include both Cypriot and Chinese capital and is a major boost to our plan to launch operations [OPZ `LHY HZ *`WY\Z» UL^ ÅHN carrier,” he said in an interview.

Cobalt plans to launch budget operations later this spring.

Tus Airways

Tus Airways made its inaugural ÅPNO[Z [V ;LS (]P] HUK /HPMH VU February 14. The company aims to connect Cyprus with neighbouring countries, including Greece, Egypt, Israel, Lebanon and Jordan. The airline’s initial [HYNL[ PZ [V VɈLY ÅPNO[Z [V H [V[HS of 16 destinations. Tus Airways will eventually operate seven ^LLRS` ÅPNO[Z IL[^LLU 3HYUHJH and Tel Aviv and between Larnaca and Haifa. One-way fares to Tel Aviv start at €69.

AWARDS

ETIHAD AIRWAYS

EUROFAST

Eurofast Global was named Leading Corporate Adviser of the Year in South East Europe at this year’s Acquisition International Awards. The awards mark excellence in all areas of corporate business consulting and are voted for by a global network of expert professionals, advisers, clients, peers and industry insiders.

MTN

Etihad Airways, the national airline of the United Arab Emirates, won two leading global financial accolades the same week: the 2015 Corporate Recognition Award for Innovation and Excellence from the financial publication Treasury Management International and the Emerging Europe Middle East and Africa Bond of the Year from the International Financing Review (IFR).

MTN has been awarded with the Silver Accreditation by Investors In People, the UK’s leading accreditation for business improvement through people management. The award is for MTN’s excellent people management, its commitment to realizing the potential of its human resources and its creation of a work culture conducive to teamwork.

10 | GOLD | The Business Magazine of Cyprus

ANDREAS NEOCLEOUS & CO LLC

Andreas Neocleous & Co LLC was runner-up for the Mediterranean Law Firm of the Year award at last month’s 2016 Citywealth International Financial Centre Awards in London. The prominent Cypriot law firm competed against firms from across the whole Mediterranean region, including Gibraltar (from where the overall winner came) and Malta.