GOLD MAGAZINE ISSUE 44

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5 291295 000577 00001 > ISSUE 44 NOVEMBER 14 - DECEMBER 13, 2014 PRICE 4.95 POWERED BY: THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS LEADERSHIP excellence The recipients of the 2014 KEBE Business Leader Awards CHRISTOS MOUSKIS Chairman, Μuskita Hotels PHIDIAS PILIDES President, Cyprus Chamber of Commerce & Industry (Organiser) ANDREAS DEMETRIOU Country Managing Partner, EY (Main Sponsor) CHRISTOS MAVRELLIS Managing Partner, Chrysses Demetriades & Co LLC

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Transcript of GOLD MAGAZINE ISSUE 44

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ISSUE 44 NOVEmbEr 14 - dEcEmbEr 13, 2014PrIcE €4.95

POwErEd by:

the international investment, finance & professional services magazine of cyprus

LEADERSHIP excellenceThe recipients of the 2014 KEBE Business Leader Awards

Christos MouskisChairman,

Μuskita Hotels 

PhiDiAs PiLiDEsPresident,

Cyprus Chamber of Commerce & Industry

(Organiser)

ANDrEAs DEMEtriouCountry Managing Partner,

EY (Main Sponsor)

Christos MAvrELLis Managing Partner,

Chrysses Demetriades & Co LLC

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LIFESTYLETouch the SkyMinthis HillsLuxury Resort

PLUS MONEY / BUSINESSECONOMYTAX & LEGALLIFESTYLE / OPINION

SHIPPINGThe Tide Is HighFleet Management celebrations

INTERVIEWSGeorge PapanastasiouChristos TheocharidesAndrew Lumley-Holmes

MICHALIS (ALKIS) H. HADJIKYRIACOS

ANDREAS ELEFTHERIADESPresident,

European University Cyprus

PARIS PAPAELLINAS Managing Director,

Costas Papaellinas Organisation

CAPTAIN HEINRICH SCHOELLER

12 PAGES ON

THE AWARDS The Recipients

The Event

Executive Chairman and Managing Director,

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

Chairman,Columbia Shipmanagement 

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The CCCI and IMHthank the sponsors of the

KEBE Business Leader Awards

Main Sponsor

Silver Sponsors

Gold Sponsor

Organisers

ΚΥΠΡΙΑΚΟΕΜΠΟΡΙΚΟ ΚΑΙΒΙΟΜΗΧΑΝΙΚΟΕΠΙΜΕΛΗΤΗΡΙΟ

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

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CHRISTOS MOUSKISChairman

Μuskita HotelsBusiness Leader in the Tourism, Hospitality and Leisure Sector

CAPTAIN HEINRICH SCHOELLERChairman

Columbia ShipmanagementBusiness Leader

in the Shipping Sector

MICHALIS (ALKIS) H. HADJIKYRIACOSExecutive Chairman and Managing Director

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

Business Leader in the Manufacturing Sector

PARIS PAPAELLINASManaging DirectorCostas Papaellinas

OrganisationBusiness Leader in the Commercial Sector

CHRISTOS MAVRELLISManaging Partner

Chrysses Demetriades & Co LLCBusiness Leader in the Financial and Professional Services Sector

ANDREAS ELEFTHERIADESPresident

European University CyprusBusiness Leader

in the Services Sector

GEORGE PARASKEVAIDESEY Honorary Award:Overall Contribution to Entrepreneurship

CONGRATULATIONSTO THE RECIPIENTSOF THE KEBE BUSINESSLEADER AWARDS

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

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

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

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

8 1016

Issue 44November 14- December 13,

2014EDITORIALUP FRONTFIVE MINUTES WITH…

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

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

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

THE ECONOMIC POWER OF MIGRATION By Dr Savvas Savouri 78

+ OPINION

86 {money}

88 {business}

90 {economy}

92 {tax & legal}

94 {lifestyle}

32 72

74

FEATURES 39 | ADMINISTRATIVE SERVICE PROVIDERS

SPECIALADVERTISING SUPPLEMENT

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THE AWARDS

The Recipients

The Event

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EDITORIAL

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

BANKINGHow Spain

restructuredits system

BITCOINThe Future

of the Digital Currency

INTERVIEWSPeter Greenberg

Matthew KiddAlexis Tsielepis

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

POWERED BY:

John Vickers,Chief Editor

[email protected]

Follow the LeaderLeadership and learning are indispensable to each other.

John F. Kennedy

You may have had a feeling of déjà vu on seeing this month’s cover photo. More awards? Well, yes, but these were somewhat different from other business awards that are handed out in Cyprus and elsewhere in that, for a change, they honour in-dividuals rather than companies and organisations. The goal of the KEBE Business

Leader Awards, organised on 31 October by the Cyprus Chamber of Commerce & Industry (KEBE being its Greek acronym) and IMH, is to recognise individual leadership excellence in key sectors of the Cyprus economy. Few would question the choice of leaders selected to receive one of the seven inaugural awards (see pages 24-29 for more details) and the truth is that there is already no shortage of good candidates for the Business Leader Awards in the years to come. The country’s private sector could not thrive without good leaders but what of those who take on the role of leader in other areas? The political leaders, the party leaders, the spiri-tual leaders?

Anyone with a basic knowledge of modern Cypriot history can tell you that great leader-ship has been conspicuous by its absence and some would simply point to the island’s present circumstances as proof of the argument. This is to simplify things, of course, and is a disservice to the few exceptions to the rule – you will be hard pushed today to find anyone who does not recognise the success of President George Vassiliou’s term of office (1988-1993), even if he failed to secure a second five years – but our experience of the last decade is enough to convince us that our leaders have, to a greater or lesser extent, failed us. Would we be able to find seven nominees for the Political Leader Awards? It is very unlikely, even if we were honour someone posthumously. And for every President of the Republic, there are countless “wannabes”, many of them in the House of Representatives who have really been showing their true colours recently and letting everyone see that their populism and self-interest knows no bounds: popu-lism in the way they were willing to jeopardise the disbursement of €350 million by passing bills which they knew were unacceptable to the Troika; self-interest in the way they raised a great fuss about the use of official cars by public officials and then passed legislation entitling “only” 29 officials to use an official car 24 hours a day and another 73 officials eligible to use one for official duties and, in any case, postponing the law’s enforcement until 2016. Among those entitled to a free car are all past Speakers of the House and MPs are not likely to remove such a privilege from their party colleagues...

US media figure Walter Cronkite once said: “We are not educated well enough to perform the necessary act of intelligently selecting our leaders.” At least this suggests that Cyprus is not the only place where that happens.

Fortunately, business leaders are more plentiful here and many of them will be gathering in Limassol for the 5th Limassol Economic Forum on 28 November. Among the speakers is Lord Dobbs of Wylye, better to known to most of us as Michael Dobbs, the author of House of Cards, which has twice been filmed for television. Those who have read the trilogy or seen the BBC adaptation will know that there is a fascinating Cyprus connection with the third book The Final Cut, where Francis Urquhart champions a treaty resolving the Cyprus Problem while secretly working to bring offshore oil deposits under the control of the Turkish Cypriots so that a Turkish-British consortium will have the drilling rights. This was written 20 years ago! Dobbs is clearly a man with the vision required of a great leader. Let’s give him citizenship at once!

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

MANAGING DIRECTOR George Michail

GENERAL MANAGER Daphne Roditou Tang

MEDIA MANAGERElena Leontiou

EDITOR-IN-CHIEF John Vickers

JOURNALISTSEffy Pafitis, Chloe Panayides

CONTRIBUTORS TO THIS ISSUE Persella Ioannides, Dr. Savvas Savouri

ART DIRECTION Anna Theodosiou

SENIOR DESIGNERAlexia Petrou

PHOTOGRAPHY Jo Michaelides

MARKETING EXECUTIVE Kevi Chishios

SALES & BUSINESS DEVELOPMENT EXECUTIVE

Phivos KarayiannisADVERTISING EXECUTIVES

Irene Georgiou, Christopher ConstantinouOPERATIONS MANAGER

Voulla NicolaouSUBSCRIPTIONSMyria Neophytou

PRINTERS Cassoulides Masterprinters

CONTACT5 Aigaleo St., Strovolos 2057, Nicosia, Cyprus

Mailing address: P.O.Box 21185, 1503, Nicosia, Cyprus

Tel: +357 22505555, Fax: +357 22679820e-mail: [email protected]

subscriptions: [email protected]

ISSN 1986 - 3543PUBLISHED BY IMH

Subscribe today for just €90 and get an annual subscription to both Gold & IN Business Call us on (+357) 22505555

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Cover Photography by Jo Michaelides

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Cyprus-based instant messaging smartphone application Viber Inc. is reportedly explor-ing possible partnerships with social-gaming companies, in order to establish a gaming

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

VIBER SEEKS PARTNERSHIPS FOR GAMING PLATFORM PROJECTThe Caramondani Group inaugurated

its new state-of-the-art headquarters last month, in the presence of state

-munity representatives, and associates of

the Minister of Energy, Commerce, Industry

investment in the growth of the Group and an enhancement of its presence and image

headquarters is located in the Industrial Zone at Pera Chorio Nisou and houses the mana-gerial and administrative personnel of most of

-

Caramondani Group’s New Headquarters

UP FRONT

Three Cyprus banks completed the Europe-an Central Bank’s pan-European stress tests with a capital surplus,

while one concluded the exercise with a manageable shortfall. Though capital shortfalls were revealed for Bank of Cyprus, the Cooperative Central Bank (CCB) and Hellenic Bank, the results of the baseline scenario were calculated after taking into account the recapitali-sations already made or announced in 2014, showing that no Cypriot bank needs additional capital, as the meas-ures taken more than cover the capital needs which were calculated through the exercise. According to the ECB results, Cyprus Cooperative Central Bank recorded a surplus of €331 mil-lion, Bank of Cyprus a surplus of €81 million, and RCB a surplus of €112 million. Hellenic Bank, meanwhile, registered a capital shortfall of €176 million but the bank announced further mitigating factors, amounting to €71 million, therefore reducing the overall capital shortfall to €105 million. It will proceed with a rights issue, to cover the capital shortfall that emerged from the exercise. In a press release, the Central Bank of Cyprus described the results as “very positive,” noting that they will be conducive to strengthening general confidence in the country’s credit institutions, which will, in turn, contribute to economic growth.

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

CYPRUS BANKS EMERGEWELL FROMSTRESS TESTS

HL recently beat all the competition to become the first company to use a small drone to make deliveries. Medication and other urgently needed goods will be

regularly delivered to the North Sea island of Juist, in Germany, by a flying delivery drone, nicknamed the Parcelcopter. If the pilot project proves suc-cessful, it will be used for the delivery of parcels to other remote or isolated areas. DHL’s yellow drone is powered by four identical fixed pitch propellers.

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

D

DHL Introduces the Parcelcopter

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25% of The Oval Sold

IRI Hellas Ltd.

tel: +30 210 4294 404 [email protected]

www.register-iri.com

THE MARSHALL ISLANDSCorporate Registry

The leading jurisdiction for:

Property Holdings

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

T hrough its latest competition, -

-ducers an opportunity to showcase

have designed this competition to provide an ideal opportunity for Introducers to put their

-

The Supreme Court reached a unani-mous verdict on October 31, ruling that four foreclosures bills approved by

the House of Representatives were unconstitu-tional. The bills were referred to the Supreme Court by President Nicos Anastasiades.New foreclosures legislation was a precondition for the island’s next tranche of financial aid from its Troika of international lenders. The 6th programme tranche of €433 million was not disbursed in September 2014 as planned, due to the fact that, in the Troika’s view, the four controversial bills essentially prevented banks from taking effective action on non-per-forming loans. Government officials described the court ruling as “a win-win situation,” as Cyprus will now be able to resume its econom-ic adjustment programme. “This is the time for responsibility, consensus and cooperation between the government and political parties, to form a strong and effective framework on insolvency that will safeguard even more vul-nerable groups of the population and the main residence of those who need the protection of the state,” said Deputy Government Spokes-man Victor Papadopoulos.

Less than six months since The Oval was presented to the public for the first time, Cybarco Development

Ltd has already sold 25% of the building. Construction work is progressing as scheduled, according to Cybarco CEO Michalis Hadjipanayiotou. Situated in the heart of Limassol, just 100 metres from the sea, the landmark 16-floor structure scheduled to be completed by the end of 2016. Designed by world renowned architects Atkins, in collaboration with architects WKK and Armeftis & Partners, The Oval will be the tallest commercial building in Cyprus, reaching some 75 metres. Cybarco, a leading Cyprus luxury property developer, is part of the Lanitis Group. Other notable Cybarco projects include Akamas Bay Villas, Sea Gallery Villas and Limassol Marina, the country’s first residential marina project.

FXTM PARTNERS LAUNCHES COMPETITION FOR INTRODUCERS

SUPREME COURT RULES FORECLOSURES BILLS UNCONSTITUTIONAL

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

CIPA InternationalInvestment Awards LunchI

MH and Gold magazine held a celebratory lunch at the Hilton Park Hotel Nicosia on Wednesday October 15 for the recipients of this year’s CIPA International Investment

Awards and the sponsors of the event which took place at the Presidential Palace on 10 September.

UP FRONT

Marios Kapiris, IBM and Marios

PwC, George Michail, IMH

Michail, IMH and Charis Charilaou,

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

UP FRONT

The Women’s International Shipping & Trading As-sociation (WISTA) held its 2014 in Limassol last

month with delegates attending from 35 countries. The theme of the conference was “Shipping Connects”, chosen, as Des-pina Panayiotou Theodossiou,

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

trade associations on their views of performance through and fol-

forward thinking idea of salvage companies participating in ship design, the audience enjoyed and was engaged throughout the event.

WISTA Annual General Meeting and Conference 2014

Alecos Michaelides, Perma-nent Secretary, Ministry of Communications & Works

Marios Demetriades, Minister of Communica-tions & Works

Despina Panayiotou Theodosiou, President of WISTA Cyprus, and Socrates Theodosiou

Karin Orsel, President, WISTA International

Marianna Charalambous, John Tomich, Finn Amund Norbye

WISTA Cyprus Executive CommitteeDelegates from WISTA USA

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Management Consulting People & Change Services

2014 KPMG Compensation and Benefits Survey

Following the successful completion of KPMG’s Compensation and Benefits Survey in 2008, 2009 and 2011, KPMG’s People & Change Practice announces the launch of the 2014 KPMG Compensation and Benefits Survey.

The KPMG Compensation and Benefits Survey is the only large scale compensation survey which provides representative data for the Cyprus labor market. The Survey’s participants are companies of all sizes operating within different sectors of the Cyprus market thus allowing our expert Advisors to tailor the positions analyzed and the information presented within the report to the specific needs of the Cyprus labor market.

Aiming to provide our clients with valuable and significant information which will enable their companies to build a competitive advantage in the labor market, the main objectives of this year’s Survey are the following:

• To present the common policies, practices and strategies of compensation and benefits implemented by a representative sample of companies operating within the Cyprus market;

• To present remuneration and benefits data of 180 generic and industry-specialized positions; and

• To present the impact of the economic crisis on remuneration and benefits data.

We would be honored to have your company participate in the Survey, by providing us with all the required information. All participants shall benefit by participant specific prices for the purchase of the final report and publicity upon the announcement of the Survey’s results.

For more information, please contact us:

George TziortzisBoard MemberHead of Management Consulting

T: 22 209292E: [email protected]

Marios PapalazarouAssociatePeople & Change

T: 22 209107E: [email protected]

www.kpmg.com

©2014 KPM

G Lim

ited, a Cyprus lim

ited liability company and m

ember of the KPM

G netw

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s affiliated with KPM

G International C

ooperative (”KPMG

International”), a Swiss entity. A

ll rights reserved.

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

INTERVIEW

Port duties will generate profits for the Cy-prus Port Authority of approximately €18 million per year, while the State will receive additional revenue from customs duties and the taxation of companies that market their products through the terminal. The project will also generate opportunities for synergies, sharing the infrastructure with other potential developments in the area, such as the LNG terminal. It has also initi-ated the development of specialised labora-tories, and providers of towage and pilotage services that could potentially be useful for future oil and gas projects. Finally, an invest-ment of this size and the significance of the project in the industry around the region positions Cyprus on the map for future for-eign investments and business activities.

How involved is VTTV with Cyprus’ budding energy sector?We feel we have already been of immense service to the island because we have put in place the groundwork for future large-scale energy infrastructure projects, such as the proposed LNG terminal. In addition, our infrastructure – especially the jetty – can be shared with other projects in the area, thus developing economies of scale.

VTTV is one of the largest foreign direct investors in Cyprus. What needs to be done to further enhance Cyprus as a juris-diction, encouraging further investment?Cyprus is strategically located, it is an EU country, and it provides a good financial and tax environment. However, it needs to improve its administrative and regulatory processes so as to provide a faster return on investments to future investors.

What was the impetus behind establishing a presence in Cy-prus?VTTI wanted to

invest in an oil terminal in the Eastern Mediterranean, which is considered a region of great commercial activity for oil products yet does not have adequate facilities to store them. VTT Vasiliko Ltd was founded in 2010 as a subsidiary of VTTI B.V. and the company strategically chose Cyprus for this investment, with the project intended to connect Europe and the Black Sea with mar-kets in the Middle East and Asia.

Why is Cyprus considered to be ideally positioned to support such activities?Cyprus meets a specific set of criteria that makes it an ideal location for this terminal: it has a favourable geographical location, it is a member of the EU and therefore adopts the concept of bonded warehousing, which favours the activities of such terminals; it has deep sea waters close to shore that can accommodate large vessels; it has a modern economy, and offers a very good level of ser-vice with a highly qualified English-speaking workforce.

VTTV is about to begin operations. What has been your strategy in bringing this project to fruition?The terminal is providing a new service to a country that has no experience of this specific industry. As a result, during the development of this project, we faced many challenges which we managed to overcome by developing knowledge, skills and exper-tise. Cyprus has always been mostly tourism-

oriented and there was a general belief that tourism cannot be combined with heavy industry. Therefore, our strategy focused on changing the mentality of the bureaucrats. In addition, current legislation does not always accommodate and benefit an oil terminal. Our goal was not just to overcome these challenges but to also disseminate knowl-edge, establish new conditions for similar future projects and lead the way for the de-velopment of a whole new industry.

What are your plans for the future, once Phase 1 gets under way?Phase 1 will certainly begin operations this month with a storage capacity of 544Km³ of fuel (gasoline, diesel, jet fuel, kerosene, naphtha, MTBE and FAME). We plan to expand the terminal with a Phase 2 that will create 13 tanks of total capacity of 305Km³ for the storage of fuel oil and crude oil and it is expected to be fully operational by the end of 2016.

What will be the benefits to Cyprus as a result of VTTV’s activities?The terminal’s activities will be highly ben-eficial to Cyprus. As this type of terminal is the first of its kind in the Eastern Medi-terranean, Cyprus will become a hub for companies that trade oil products and re-quire storage facilities. This will lead to very positive outcomes for the Cyprus economy. We are talking about the creation of a whole new trading market. New job positions are being created and the local workforce is be-ing enhanced with technical knowledge that did not previously exist in the country. In addition, fuel costs will be reduced due to increased competition in the inland market.

five minutes with...

George PapanastasiouManaging Director, VTT Vasiliko Ltd.

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COVER STORY

LEADERSHIP 12 Pages on the Awards, the Recipients, The Event12 P h A d12 P h A d

excellenceOn Friday 31 October, the inau-

gural KEBE Business Leader Awards ceremony took place at

the Evagoras Lanitis Centre in Limas-sol. The awards, presented by EY, were organised by the Cyprus Chamber of Commerce & Industry and IMH. The

Business Leader Awards honour leadership excellence in Cyprus and those individuals who have contributed to the growth not only of their own

through the implementation of best practices and innovative strategies. A total of 7 Awards were presented in the following categories: Business Leader in the Tourism, Hos-

pitality and Leisure Sector Business Leader in the Manufacturing

Sector Business Leader in the Commercial

Sector Business Leader in the Financial and

Professional Services Sector Business Leader in the Shipping

Sector Business Leader in the Services Sec-

tor EY Honorary Award for Overall Contri-

bution to EntrepreneurshipThe Platinum Sponsor of the awards was EY, the Gold Sponsor was Car-refour Cyprus and the Silver Sponsors were Carob Mill Restaurants and Zivana Loel.The event was streamed live by Cytanet on the InBusinessNews and Gold News websites.

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

Phidias Pilides, Christos Mouskis, Elizabeth Filippouli

Efthyvoulos Paraskevaides, on behalf of the late George Paraskevaides

Andreas Eleftheriades, President, European University Cyprus

Christos Mavrellis, Managing Partner, Chrysses Demetriades & Co LLC

Andreas Demetriou, Christos Mavrellis, Elizabeth Filippouli

George Tsakkistos, Andreas Eleftheriades, Elizabeth Filippouli

Captain Heinrich Schoeller, Thierry Noyer, Elizabeth Filippouli

Christos Mouskis,

Chairman, Muskita

Hotels

Efthyvoulos Paraskevaides,

President Nicos Anastasiades,

Elizabeth Filippouli

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

Managing Director, Costas Papaellinas Organisation

Paris Papaellinas, Harris Georgiades

Captain Heinrich Schoeller, Chairman, Columbia

Shipmanagement

THE

RECIPIENTS

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

IN PICTURESKEBE BUSINESS LEADER AWARDS

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

Kyproula Papachristodoulou, EY

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

George Strouthos and Yiannos Valanides, Laiko Group

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

Akis Kelepeshis, Top Kinisis Travel

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

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

Liakos Theodorou, PwC and Thomas Kazakos, Cyprus Shipping Chamber

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

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Daniel Anastasis, FARMAKAS ASA and Thanasis Mavros, EY

Antonis Astanios, Muskita

Andreas Petsas, Eurobank EFG Cyprus and Nicos Kyriakides, Deloitte

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

Mantovani, Mantovani Plotin Travel

Polys Georgiades, Aretaeio Hospital and Christos Petsides, CCCI

Renos Andreou,

FamilyRestaurants

Andreou Co Ltd -

McDonald’s Cyprus

Eleni Antoniou, Qatar Airways and Chrys-emili Psilogeni Kenevezou, Association of Cyprus Tourist Enterprises

Marios Kasapis and Kikoula Kotsapas, KEAN Soft Drinks

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

Platon Lanitis, Lanitis Group of Companies

Nicolas Tofarides,Tofarco Ltd and Constantinos Ioannou, IMH

Iacovos Hadjivarnavas, Famagusta Chamber of Commerce and Industry

Dinos Lefkaritis, Lefkaritis Group and Christodoulos Angastiniotis, CIPA

IMH Team

Emilios Savvides, Remedica

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

Nebojsa Petrides, Shiseido Hellas SA Cyprus Branch

Dieter Rohdenburg, Intership Navigation Co Ltd

Yiannis Misirlis, Imperio Properties

Stavros Pantzaris, EY

Marios Orphanos,

Cyprus Limited

George Mavroudis and Andreas Matsis, CCCI

Frixos Savvides, Hive Management

Services Ltd and Akis Agapiou,

Chrysses Deme-triades & Co LLC

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

Christos Patsalides, Christos Patsalides LLC and George Pamboridis, Pamboridis LLC

Mariela Pastidou, Carrefour and Alexis Nicolaou, Dias Group

Vassilis Petrides,

Laiko Cosmos Trading

and Thierry Noyer,

Carrefour Cyprus

Christos and Anastasia Mavrellis

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

IN PICTURESKEBE BUSINESS LEADER AWARDS

Christis Hassapis and Charis Pouangare, Bank of Cyprus

President Nicos Anastasiades talks to InBusinessNews journalist Andreas Costouris

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Laiko Cosmos prepared on-the-spotinnovative cocktails

with Zivana Loel as the main alcoholic

ingredient.

arrangements created by

Larnaca-based Cosmea Gardens decorated all

the tables.

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

SPONSORS

OF THE EVENT

THE VENUE:THE EVAGORAS LANITIS CENTRELIMASSOL

Guests were presented with multiple presents from the sponsors:EY offered a Nina Ricci pen, Carrefour offered a quartet of branded cakes, Carob Mill Restaurants offered a bottle of carob syrup, while Laiko Cosmos handed out a bag containing Zivana

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THE LEADERS

Do you agree with the saying “Great leaders are born, not made”? No, this is not true anymore as leaders can nowadays be appropriately educated, trained and self-developed so as to im-prove and master their leadership traits abilities and qualities. Such a statement could only have been relevant many years ago…

What 3 qualities would you describe as essential for someone wishing to be an excellent business leader?To be a visionary strategist, a motivational leader, and a hard, hard frontline worker.

How difficult was it for you to reach the stage where you felt that you knew what good leadership is all about?It was not very hard in my case, as several leadership qualities started “sprouting” out of me during the time of my military service around the age of 19.

Did you make lots of mistakes on the way? Is this inevitable?Oh yes! Quite a number of mistakes…and they are indeed inevitable at the early stages of one’s career. But learning from them makes us wiser and mistakes become rarer with experience.

Did you have a good role model on whom you based your own leadership style or did you react against a poor one?Indeed I did have a role model! My father has been and still is my ideal ex-ample of a successful business leader, and I am still working on certain high stand-ards of character that he possesses which I still aspire to attain…

Is it important for a good leader to be popular with his/her employees? It is important to be loved, admired and respected.

Born in Nicosia in 1957, Michalis (Alkis) H. Hadjikyriacos studied Economics at The London School of Economics and Political Science (University of London) from where

he graduated with honours. He then did his post-graduate studies in Business Administration at The City University Business School, London, where his thesis examined alternative methods of sales force compensation and motivation and their practical ap-plication in industry. He graduated in 1982 with a Marketing MBA. Be-tween 1984 and 2004 he obtained further extensive education, attending numerous educational and professional seminars in Cyprus and abroad on business-related subjects covering administration,

investment management. In 1991 and 1992 he received specialised education in biscuit manufacturing technology in Cambridge, UK. Since 1983 he has been the Executive Chairman, Managing Director and major shareholder of Alkis H.Hadjikyriacos (Frou Frou Biscuits) Public Ltd and its subsidiary companies. In 1995 he founded the investment arm of the group (Frou Frou Investments Ltd), the investment portfolio of which he manages personally. He was a member of the Board of Athena Investment Fund Ltd in1996-97 and of Cosmos Trading Ltd from 2008-2010.

breakfast cereals manufacturing industry under the trade name “Golden Choice”. Today he is a member of the Food Safety Council of the Ministry of Health and Chairman of the CCCI’s Association of Biscuit, Chocolate, Snack and Sugar Confectionery Manufacturers. He is married with four children.

Not every good manager becomes a good leader. Why do you think this is?This is true for all those managers who do not lead by example. And there are many of such a breed amongst us…

Is there an international business leader that you admire?Yes, there are several, amongst whom are Roberto Goizueta, Warren Buffett, Jack Welch and Lee Iacocca.

Is there a specific leadership style that everyone should aspire to or do individual leaders create their own successful style?Leaders should develop leadership qualities that best suit their character. It is important to genuinely be yourself rather than trying to resemble somebody else. There is no “one-size-fits-all” recipe to leadership.

How does it feel to have been selected as the winner of the KEBE Business Leader Award in your particular sector?It feels quite good and motivating in such turbulent times but… at the end of the day what really counts out there is performance. Your results speak for you and nothing else. So we should keep an eye on the ball…and that is the bottom line.

MICHALIS (ALKIS) H. HADJIKYRIACOSExecutive Chairman and Managing Director,

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

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Do you agree with the saying “Great leaders are born, not made”? Like every other man or woman, great leaders are born with certain traits and in the course of their life they develop or acquire qualities which form their overall personality and char-acter. I believe successful leaders cannot be-come so unless their innate characteristics are nurtured in the environment they are raised in, unless they are given the opportunity to prove themselves and unless their skills are honed through education and experience.Therefore, in my view successful leaders are both born and bred.

What 3 qualities would you describe as es-sential for someone wishing to be an excel-lent business leader?I would say that an excellent business leader must have vision, perceptiveness and common sense. Progress is possible because of visionar-ies who dare to dream beyond the limits and limitations of their contemporary world. You cannot accomplish anything that you haven’t first imagined. Being able to take in the world around you and assess and analyze circum-stances accurately is invaluable in business. Finally, to be able to understand complex situations and provide realistic solutions using common sense, contributes enormously to overcoming difficulties and taking full advan-tage of opportunities.

How difficult was it for you to reach the stage where you felt that you knew what good leadership is all about?Even though my educational background in Management helped me in my initial steps, I soon realized that, in reality, you cannot always

go by the book. Because I dived into deep waters at the age of 25, I had to learn to swim quickly! Therefore, I learnt from day one that if one wants things to happen, one needs to be able to manage people successfully. It is important, however, to be fair and consistent with your associates so that people respect and support you; and as the circumstances around us constantly change, one needs to learn how to roll with the times and make changes wherever and whenever necessary.

Did you make lots of mistakes on the way? Is this inevitable?Of course I did! To make mistakes is inevita-ble; to learn from your mistakes is a require-ment. Even though it is disappointing to make mistakes, you need to understand that there is a productive side to making them. The path to success is paved with challenges and one needs to see these challenges and obstacles as opportunities rather than threats.

Did you have a good role model on whom you based your own leadership style or did you react against a poor one?Neither. I believe that each person develops his/her own individual leadership style by capitalizing on the strengths of his/her per-sonality.

Is it important for a good leader to be popular with his/her employees?Popularity is an important aspect of success. To be pleasant, enthusiastic, to be liked and respected by your associates, means that it is more likely that they will be loyal to you and the organisation. They will also make that extra effort which makes all the difference to

the success of an organisation.

Not every good manager becomes a good leader. Why do you think this is? Serving in an organisation from a lower level management post does not require great lead-ership skills. One can be a very good manager without necessarily being a good leader. The higher up you are on the management ladder, the greater the need for leadership skills. It is true that not all good managers have what it takes to become good leaders but then again, not all good leaders are good managers.

Is there an international business leader that you admire?If I had to choose one I would say Bill Gates. His management style, among other things, has focused on the following three philoso-phies which fit in with my way of thinking: (1) Develop a clear vision and stick to it. (2) Create and nurture ‘the correct culture’ and (3) Successful innovation and success may be built on failure.

Is there a specific leadership style that everyone should aspire to or do individual leaders create their own successful style?There isn’t a single formula that works for every leader and every organisation. Each one develops an individual style which is based on a person’s innate characteristics and nurture.

How does it feel to have been selected as the winner of the KEBE Business Leader Award in your particular sector?It is an honour and a privilege. It feels good that others in your field recognize your achievements.

Andreas Eleftheriades, President of the European University Cyprus, is known for his wide range of academic activities. For more than 30 years he has been active,

from various platforms and positions, in drafting and implementing the legal framework of, and bringing improvements to, the Higher Education system in Cyprus. In 1981, upon the completion of his studies in the USA, he returned to Cyprus where he began his career in various senior marketing positions in large insurance companies. At the same time he started teaching at Cyprus College and, from 1983, he un-dertook its reorganisation and overall management. After a journey full of challenges and struggles, he had the good fortune to see his dream come true – the foundation of a private university. Today, following the transformation of Cyprus Col-lege into the European University Cyprus, it has

-other of Andreas Eleftheriades’ major achievements came in 2011 when the university became a full member of Laureate International Universities. He is married with one daughter.

ANDREAS ELEFTHERIADESPresident,

European University Cyprus

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Do you agree with the saying “Great leaders are born, not made”? I believe that the saying should have been the other way round. I believe that people are born gifted but that’s just 20%-30% of the recipe of success. Talent must be accompanied and combined with integrity, persistence, drive, alertness, determination, knowledge, discipline, and much more. These are not qualities that you are born with; they have to be cultivated, taught and practised.

What 3 qualities would you describe as essential for someone wishing to be an excellent business leader? First and foremost an excellent business leader must be a very good listener. I lead a team of almost 400 people and if I am not a good listener then many good (or great) ideas will be lost. An excellent business leader must be knowledgeable because information – and the world – is moving at an unprecedented pace which requires the leader to be committed to following the trends if his team and his company are to have a good chance of staying competitive and prosperous. Last but not least, I would say that an excellent business leader must take calculated risks and trust his instinct. They say that “the higher the risk the higher the profit”. I say that the more calculated the risk, the better chances my organisation has to survive and thrive, both in times of economic meltdown as well as in times of prosperity. Finally, an excellent business leader must, above all, be a good human being.

How difficult was it for you to reach the stage where you felt that you knew what good leadership is all about?I have not yet reached that stage and I am happy about that. Once you feel that you have “arrived”, that is the time that you might need to stop or “depart”. Leadership is endless and no situation is ever exactly the same. I am always prepared to learn more. I recently participated in a 2-day leadership seminar in the mountains with my management team.

Did you make lots of mistakes on the way? Is this inevitable?Yes, of course I made a lot of mistakes and I am happy I did. If you don’t try, you achieve nothing. If you don’t buy a ticket, you cannot win the lottery! The important thing to remember is: “When you lose, don’t lose the lesson.” I feel that I rarely lost the lesson from my mistakes. If you don’t lose the lesson you are a “winner” but if you do, then you’ve lost twice.

Did you have a good role model on whom you based your own leadership style or did you react against a poor one?I don’t really have a role model. Being involved in sports all my life, I have followed the example of many great athletes, i.e. to work hard and never give up. I have also learned to stay modest and composed, despite ephemeral successes. The greatest athletes of all times are those who, in spite of their young age and stardom, have managed to remain humble and modest. The world loves talent but pays off on character.

Is it important for a good leader to be popular with his/her employees?A good leader needs to be popular with his employees but not all his decisions need to be popular with his employees. If you are honest and fair with people, they will accept even unpopular decisions.

Not every good manager becomes a good leader. Why do you think this is? Napoleon Bonaparte said it best “A leader is a dealer in hope.” A leader has an innate quality of being committed to inspiring and directing his “troops” during good or bad times.

Is there an international business leader that you admire?There are so many. A good example for Cyprus is Stelios Haji-Ioannou who, although he was lucky to be brought up in a wealthy family, still “made it” on his own. He still helps Cyprus in times of crisis and has a vision for a reunited island.

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

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

T he Costas Papaellinas Organisation is a leader in the provision of high-quality sales, distribution and support services. It is a pure family business, employing over 300 people,

with the ownership shared between Paris and Thanos Papaellinas and their children. Through successful strategic moves, such as gaining new agencies, buy-ing out related companies, introducing new, innova-tive processes as well as forging business alliances, Managing Director Paris Papaellinas has succeeded in growing the family business twentyfold over the past 25 years.His interests are not restricted to the business world. Previously an international award-winning basketball player, he was appointed Fair Play Ambassador 2011-2013 and honoured by the International Olympic Committee (IOC) in 2012 with its Sport and Social Responsibility Award. He is married with three children.

PARIS PAPAELLINAS Managing Director,

Costas Papaellinas Organisation

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Do you agree with the saying “Great leaders are born, not made”? I would say it’s a combination. You are born with the personality of a leader and the desire to be a leader but the vital skills and knowledge must then be acquired by observ-ing, gaining experience, studying and learn-ing continuously from your mistakes and the mistakes of others, in order to constantly improve your leadership skills.

What 3 qualities would you describe as essential for someone wishing to be an excellent business leader?First, you must have the ability to see change coming – before others do. Second, you need the patience to understand and deal with the people around you – especially your employees and your clients. Third, you need the skills to be able to analyze a situa-tion, to clearly identify the root of any given problem, to assess the options, and also rec-ognize an opportunity when it arises.

How difficult was it for you to reach the stage where you felt that you knew what good leadership is all about?I was fortunate to have grown up with a father who was a very good leader. I learned certain leadership skills intuitively from him. The rest I acquired gradually with experi-ence and by analyzing past decisions and how they had affected my business. Lead-ership skills and qualities must be seen in context. What works in one generation will probably not be valid in the next generation. You have to constantly observe what works and what doesn’t, learn and adjust to the situation. It’s an ongoing process.

Did you make lots of mistakes on the way? Is this inevitable?Of course I made mistakes; fortunately not

many, and not dramatic mistakes. That is because I recognize when I need to discuss an issue with my team, to make a collec-tive decision in order to avoid mistakes. Are mistakes inevitable? You are more likely to make mistakes when decisions have to be made quickly and under pressure. But as a leader, major mistakes are a luxury you can-not afford.

Did you have a good role model on whom you based your own leadership style or did you react against a poor one?Rather than observing great leaders, I pre-fer to follow what successful companies do – in the hospitality and other indus-tries – to learn from their actions. Besides, of course, hotel companies, I observe the long-term strategies of successful retail and airline companies. If you look carefully at companies and brands that seem invincible even across generations and despite intense competition,you will identify common de-nominators, despite operating in different industries. We can learn a lot by watching the ‘winners’.

Is it important for a good leader to be popular with his/her employees? ‘Popular’ is not the correct word. Employ-ees must be able to trust their leader’s judge-ment. A good business leader will always recognize his employees’ efforts and let them know and feel that he is fair, approachable, and that they can count on him in difficult times. Fairness and objective feedback to employees are also essential.

Not every good manager becomes a good leader. Why do you think this is? Managing a department is very different from leading an organisation. Managerial skills are focused, whereas a leader, especially

in small markets like Cyprus, has to be able to see everything from the very small detail to the big picture. Broad and general knowl-edge is not enough. That’s why an excellent field manager might not succeed as a leader.

Is there an international business leader that you admire?I admire people who have changed the world in a meaningful way, or have influenced the way the world sees certain things. Take Steve Jobs, for example. He was the brain behind extraordinary breakthroughs and technologi-cal innovation that has changed the way we communicate, the way we work, even the way we live. Judging by his products, that is good leadership.

Is there a specific leadership style that everyone should aspire to or do individual leaders create their own successful style?It’s not about style. It’s about mobilizing your people towards a common vision and positively energizing your organisation. To that end, I adapt to circumstances, situations and the people I am dealing with. There are times when I am democratic, and other times when I demand immediate compli-ance. On different occasions I act as a coach or a motivator or a pace-setter. At all times, I set high standards for myself and for others to follow. However, my values as a person always remain the same. In that sense I am predictable.

How does it feel to have been selected as the winner of the KEBE Business Leader Award in your particular sector?I’m proud and honoured to be chosen for this first award, among so many other ca-pable leaders in our industry. Beyond that, it’s business as usual, working day by day to learn and improve the business.

C hristos Mouskis is the Executive Chairman of Muskita Hotels, the company that owns the Four Seasons Hotels in Limassol, the Aldiana Resort in Alaminos, the Melia Athens, and

50% of Amathus Limassol. He is also the Chairman of Muskita Holdings, a group with three divisions: Hotels, Aluminium Manufacturing, and Real Estate. After study-ing Business Management and Marketing in the United States, he returned to Cyprus and in 1989 established Muskita Hotels. This was a new division in the family business, under the umbrella of Muskita Holdings. He dedicated himself to the construction and development of the Four Seasons Hotel, with a determination to set new standards of hospitality in Cyprus. The hotel soon began earning industry awards and a reputation that

CHRISTOS MOUSKISChairman,

Μuskita Hotels

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L eading lawyer Christos Mavrellis dealt very

Cyprus shipping industry and subsequently -

Demetriades and later through his own contributions, he played a role in the framing of legislation and policy such as special tax treatment for ship management companies, tax and marine legislation, and policy

As the representative of the Cyprus Bar Association, he was a member of the committee reviewing Cyprus’ tax legislation in 2002.

Christos Mavrellis was an early believer in the advantages that Cyprus possessed and could gain through the right measures and the appropriate taxa-tion regime in the shipping and services sectors and he became one of the “missionaries” promoting this internationally. To this end, he took part in conferences and trade missions to many countries. He was one

the potential arising from the collapse of the Soviet Union and he contributed personally to the success of

the other newly-created independent states.He has received international recognition and was

for many years the Secretary of the International Tax Planning Association. For some years he has been Chairman of the Cyprus Bar Council’s committee on tax planning and he is an active participant in other committees. Moreover, he was appointed by the Government as Deputy Chairman of CIPA. Finally, as

in increasing the size of the Cypriot merchant shipping

economic trajectory.A fter many years of service at sea, Hein-rich Schoeller started his career onshore in Germany but was shortly thereafter transferred to Cyprus to assist in the

-agement company, Hanseatic Shipping Co. Ltd., in 1972.

After the Turkish invasion in 1974, he decided

years. This, in a sense, was the starting point for the creation of the Cyprus shipping industry. In 1978 he incorporated his own venture, Columbia Shipmanagement, which is today one of the largest shipping companies in Cyprus and one of the most renowned third party ship management companies in the world. Many international ship management companies have since followed his example and put down roots in Cyprus, greatly increasing the use of the Cyprus Registry.

located in Limassol, Hamburg and Singapore

Athens. Covering a wide spectrum of activities in various sectors of the ship management industry,

and complete ship management service includ-ing newbuilding supervision, ship operations and consultancy services. Through its strategic network of world-wide located crewing agencies, Columbia

seagoing personnel.Captain Schoeller has received many awards

over the years, including the Maritime Cyprus Award for his contribution to the island’s shipping industry, his contribution to the town of Limassol (from the Mayor), the Tourism Personality Award as well as a special International Maritime Employer Award from the President of the Philippines with which he has been honoured twice.

Columbia has also been the proud recipient of the International Ship Management Company Award for three consecutive years from The Insti-tute of Transport Management UK for its excellence in ship management.

CHRISTOS MAVRELLIS Managing Partner,

Chrysses Demetriades & Co LLC

CAPTAIN HEINRICH SCHOELLERChairman,

Columbia Shipmanagement

Do you agree with the saying “Great leaders are born, not made”? In my opinion, mostly good leaders are made – not born. Of course, to a point it could be in the genes but, in the main, good leaders are made. Leadership is an acquired attribute that begins early in life and continues through life’s experience of education, jobs and life itself, all of which shape a leader’s way of thinking – how to set goals and manage results.

What 3 qualities would you describe as es-sential for someone wishing to be an excel-lent business leader?The three most important traits would be ex-perience, vision and drive.

Is it important for a good leader to be popular with his/her employees?I do not think it is necessary for a good leader to be popular with employees Respect, which is very closely linked with trust, is far more

important. Employees will perform better when they respect and trust their leader rather than when they have a leader who tries to please everyone.

Not every good manager becomes a good leader. Why do you think this is? In my opinion, some managers tend not to look outside of the box whereas a leader does. A good leader mobilizes the team toward a common vision and focuses on end goals, leav-ing the means up to each individual.

Is there a specific leadership style that every-one should aspire to or do individual lead-ers create their own successful style?In my view, a successful leader is not always about being in front. It’s OK to lead from behind the scenes and let others take the credit. Individual leaders have their own style and personality.

How does it feel to have been selected as the winner of the KEBE Business Leader Award in your particular sector?I am very honoured to receive such a pres-tigious award in the maritime field which, I believe, is a new sector in the KEBE Business Leader Awards.

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Professional Services Sector

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Do you think your father would have agreed with the saying “Great leaders are born, not made”? It is difficult to know what my father might have thought about leadership. I feel that he was a natural born leader and this would prompt me to say that leaders are born and I believe they become prominent through hard-ship and in times of difficult circumstances, as in the case of George Paraskevaides.

What 3 qualities essential for someone wishing to be an excellent business leader would you ascribe to your father?Some essential qualities I feel my father had in his business life were the following: Firstly, he had a clear vision of his mission. Secondly, he had absolute commitment above and beyond everything else to succeed in his mission and, thirdly, he had the talent to select the right as-sociates and to motivate them above and be-yond the call of duty to assist him. He had the ability to develop personal relationships with associates and clients alike. In the end what really matters is results. This is where I believe my father achieved what few have managed: results in the most respectable, honourable and principled way by choosing the path of making friends rather than enemies

Did he make lots of mistakes on the way? My father used to say that it is always easy to criticise. Of course, the only ones who do not make mistakes are the ones who do nothing in their lives. I am sure he made his fair share

of mistakes but was always able to turn things around so that all would be well.

Did George Paraskevaides consider it im-portant to be popular with his employees?George Paraskevaides considered all his em-ployees more as associates and co-workers. I feel that he made a conscious effort to be close to as many of the company’s staff as he could, forming a personal relationship and looking out for their personal and family issues. He often gave morale-boosting and motivating speeches at the contract sites to the staff that worked there. Living conditions in the various areas were also important for him. He wanted all the company’s personnel to have the neces-sary facilities including schools, messes, enter-tainment such as a cinema and a high level of cleanliness and hygiene throughout. He would also check this personally and he would not accept anything but the highest standards. It was not so much a question of being popular with the staff. My father was loved and ad-mired by the people that worked with him and who would do their utmost for their boss and their company, which, in turn, looked after them.

Was there an international business leader that he admired?I do not recall my father mentioning anyone in the business sector as his hero. However, there were two persons in history that he thought very highly of: Winston Churchill and Alexan-der the Great.

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

GEORGE PARASKEVAIDES

G eorge Paraskevaides became a benefactor to generations of Cypriots from the day he

Cyprus internationally and since 1946, the contract-ing giant has employed thousands of Cypriots, con-sciously showing its preference for Cypriot materials and services. Following the Turkish invasion it provided jobs to thousands of families and breathed life into the country’s ruined economy. George Paraskevaides was undoubtedly the one who opened up the Arabian Gulf to Cypriot employees and businessmen. He also made the Cyprus Problem known throughout the world, helped by his close friendships with powerful international personalities.

and, with his wife, he established the George & Thelma Paraskevaides Foundation to help needy Cypriots. The Foundation, in cooperation with the Shriners Hospital in Massachusetts, USA, has enabled more than 3,000 children with orthopaedic disorders to be operated on free of charge, while the Paraskevaidion Surgical & Transplant Foundation, which he also founded, has carried out more than 900 kidney transplants. For his generous contribution, George Paraskevaides received the highest honours from heads of state,

-ganisations. He and his wife Thelma had three children Efthyvoulos, Leoni and Christina.The respected businessman and benefactor of Cyprus died in London on 5 December 2007, aged 91.

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CONFERENCE

T he Limassol Econom-ic Forum, now in its 5th year, has become

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

LORD DOBBS A HIGHLIGHTFollowing an introduction by the Forum Chairman, Tony Barber, Europe Editor of the Financial Times, and Official Welcome Addresses by Andreas Christou, Mayor of Limassol, Costas Galatariotis, President of the Limassol Chamber of Commerce and Indus-try, and Thomas Kazakos, Director-General of the Cyprus Shipping Chamber, the Forum will begin with keynote addresses by President Nicos Anastasiades and Finance Minister Har-ris Georgiades.

Next up will be Professor Iain Begg, Profes-sorial Research Fellow, European Institute, London School of Economics and Political Science, Specialist adviser on EU issues for the House of Commons Treasury Select Commit-tee, the House of Lords European Communi-ties Committee and the European Parliament. In his presentation, entitled “Recovery, stagna-tion or relapse: assessing the EU’s economic pros-pects in the aftermath of the crisis”, Prof. Begg will review recent economic developments and reform initiatives and appraise the impact they can be expected to have on growth and em-ployment. It will highlight the emerging risks of, notably, renewed bank fragility in the wake of the ECB stress tests, the divergence of eco-nomic trends among Member States and the volatility of external influences. A discussion of policy issues and challenges will complete the presentation.

Michael Dobbs, now Lord Dobbs of Wylye, will speak on “Political Uncertainty – the Road-block to Economic Recovery”, looking at how

national governments have become uniquely vulnerable as electorates increasingly look not just to traditional opposition parties but to new, alternative political parties and move-ments. This has made it exceedingly difficult for governments to take the measures required to meet the financial crisis and deal with dete-riorating economic circumstances. In a climate where people appear to be demanding govern-ment that is less distant and centralised, politi-cians in national capitals – and particularly in Brussels – must find the means to respond to such demands if they are to create the climate.

Lord Dobbs will be followed by Graham Bishop, a Member of the European Com-mission’s Expert Group, and Special Advisor to the House of Commons Treasury Select Committee and to the House of Lords Euro-pean Communities Committee. In his address entitled “Capital market union in the eurozone”, he will speak about funding an investment-led EU recovery; opening the door further to the euro as a global reserve currency.

Another popular speaker will kick off the af-ternoon session: Henk Potts, Director, Global Research & Investments, Barclays is a regular commentator on Sky News, BBC, Bloomberg, CNBC, Channel 4, CNN and Fox News. His presentation to the Limassol Economic Fo-rum, entitled “Risks and opportunities: What is the outlook for the global markets and what part will Europe play in it in 2015?,” will summarise the economic landscape across the EU, identi-fying areas of weakness and strength. Potts will

WORLD-CLASS SPEAKERSAT THE 5th LIMASSOL ECONOMIC FORUM

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THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS Gold 31

political confrontation?”The Second Panel Discussion (the Eastern

Mediterranean Investors’ Panel) features Christopher Brown, Head of Investment companies Research, JP Morgan Asset Man-agement, UK, Michele Faissola, Head of Asset and Wealth Management at Deutsche Bank, and Notis Mitarachi, Deputy Minis-ter for Development and Competitiveness, Greece. They will identify investment oppor-tunities and analyze global institutional inves-tors’ appetite and expectations of a return on their investments. At the same time they will looking at issues such as what the bullish trend on bonds in Greece and Cyprus means for investors, institutional investors’ appetite for investing in Eastern Mediterranean, in-vestment criteria, expected returns and invest-ment sectors under consideration.

The 5th Limassol Economic Forum is organized by IN Business magazine in associa-tion with the London School of Economics and Political Science and LSE Cyprus Alum-ni. It is sponsored by Andreas Neocleous and Co LLC, Barclays and Deloitte Limited.

discuss what this means for market participants from an investment strategy and asset alloca-tion perspective.

Constantinos Herodotou, Commissioner for Privatizations, Cyprus, will speak on the privatization process in Cyprus, providing a progress update on the island’s privatization programme, remaining obstacles and how to overcome them, the next steps forward and investment opportunities in Greece’s privatiza-tion programme.

This year’s Limassol Economic Forum in-cludes two Panel Discussions. The first features world-class international journalists Tony Barber, Europe Editor of the Financial Times, Eder Florian, Brussels Correspondent of Die Welt, and Jason Karaian, Former European Editor of CFO magazine and Financial Editor of the Economist Intelligence Unit and Senior Europe Correspondent of Quartz. Among the questions they will attempt to answer are: “Is the age of European austerity coming to an end?”, “How long will mass unemployment continue in Europe?”, Is the European banking system fixed?” and “What are the risks of geo-

5

T he man behind “House of Cards”Lord Dobbs of Wylye describes him-self as never having had “a proper job”. Perhaps that’s because he’s spent so much of his life hanging

around all the wrong places at interesting times. He was with Margaret Thatcher when she took

Minister, and was there again with John Major when he was kicked out. In between he got bombed at Brighton, was banished from Che-quers (after a row with Maggie), and in the qui-eter moments wrote a best-selling book called House of Cards, which later became a major television series. One Chief Whip said the book had done for his job “what Dracula has done

series of House of Cards was launched. The

series and available worldwide online. Born in 1948, Michael Dobbs was Chief of

-vative Party, a role which got him dubbed by the media as the party’s “baby-faced hit man”.

up a doctorate in nuclear defence studies. In his restless search for that elusive “proper job”,

programme Despatch Box, been a columnist for The Mail on Sunday and The Express and

Yet it is as an author that he has gained

Francis Urquhart for House of Cards, he went on to write books about Prime Ministers, Kings, conspiracies and the Dalai Lama. He recently

Churchill that has had the critics falling over

of his House of Cards won Emmy awards and was voted one of The Best One Hundred Tele-

-torical novels about Churchill have been best-

Hollywood Reporter recently announced that two studios

-ing his latest thriller character, Harry Jones. He is currently working on a commissioned theatre

spy Guy Burgess. He knows America very well. He lived in

-torate and two Master’s degrees from Tufts

-ies. Michael was also an editor for the Boston Globe throughout Watergate and the end of

resigned. “The rest of the newsroom was drink-ing champagne while I was sweating over the

whether they were celebrating or drowning their sorrows,” he later recalled.

Michael Dobbs has observed politics from within the corridors of power and has the abil-

wit. He was created Baron Dobbs of Wylye in December 2010. Stay updated on the Forum’s Agenda at www.imhbusiness.com | For further information, call IMH on 22505555

President Nicos Anastasiades

Graham Bishop Henk Potts Tony Barber Prof. Iain Begg

Finance Minister Harris Georgiades

Forum Sponsors

Organisers

Supported by

Communication Sponsors

In Association with

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

matters!SIZE

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TECHNOLOGY

IT MAY BE A SMALL COUNTRY BUT, WHEN IT COMES TO TECHNOLOGY,

CYPRUS HAS A GREAT DEAL GOING FOR ITBy John Vickers | Photograph by Jo Michaelides

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS Gold 33

Upon completion of his studies in Production Engineering at the Univer-sity of Warwick, UK, Christos Theocharides,

CEO of AMS (Advanced Management Solutions) was employed as a project en-gineer by Coca-Cola. It was his first job – one that he describes as “very inspiring and interesting” – and things began to get even better when the company decided to implement SAP ERP, the world’s leading Enterprise Resource Planning Software.

“I had always had a passion for comput-ing and technology and I was mesmerized by the power of SAP and the features it provided,” he recalls. Indeed, he was so taken by SAP (in case you’re wonder-ing, it stands for Systeme, Anwendun-gen, Produkte in der Datenverarbeitung, or, translated, Systems, Applications & Prod-

ucts in Data Processing) that he went to work for the firm as a consultant for couple of years before deciding, in 2001, to set up AMS with his partners, which would place SAP at the heart of its activities.

“Our core business revolves around pro-viding the complete service related to the implementation of a major Enterprise Re-source Planning application – whether that be business intelligence, a Customer Rela-tionship Management system or something else,” he explains, “starting from the initial requirements analysis, through to realiza-tion, going live and subsequent support. We almost exclusively implement projects for big companies, which means that they may take from six to nine months. It is never just a technical project but some-times a complete process re-engineering of the company based on the best practices that SAP provides and, in many ways, this is the real value that we are giving.”

Although one of the massive changes that the Internet and smart technology

have brought about is the fact that indi-viduals can now do many things that used to be the exclusive domain of experts, it would seem that in the corporate world, things are still too complex for ordinary people and that’s where a firm like AMS comes in.

“While it is possible for companies to have their own internal competence team, it’s very expensive, it takes a lot of training and it’s a big investment,” says Theocharides. “What we often see is that companies experiencing rapid growth come to the point when they realize that their own bespoke technology can’t keep up with that growth. So they need something based on best practices from much bigger corporations that have already experienced such growth.”

He adds that there is always a risk of cus-tomers asking for something that is actually too complicated for the company and an experienced external consultant knows if something can be maintained easily or if it will end up as a burden on the company. “The trick is to be up-to-date with the lat-est technology, know best practices and be in a position to give the proper advice to each individual customer. It’s important to know the maturity level of the company – how well organized it is, how much of a lag there is between its strategy and the execu-tion of that strategy – and propose what it needs.”

Given the rapid developments in IT,

WE haven’t HAD TO REINVENT THE WHEEL – SOMEONE ELSE is doing that FOR US!

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how have AMS and its focus changed over the past 13 years?

“When we started this business back in 2001, we had the notion that Cyprus was 10 years behind in technology,” the company CEO replies. “That was before the penetra-tion of the Internet, social media, etc. Now-adays we are very close to what’s happening abroad and there is basically no difference between the technology that we are offer-ing our customers in Cyprus and what their counterparts in the most advanced countries around the world are using. So the need for the company to be updated with all the latest technological advances is even more essential today. We’re blessed in that we haven’t had to reinvent the wheel – someone else is doing that for us! Having SAP as our sole partner with its huge human resources taking care of strategy and knowing where technology is going, we simply have to fol-low.

Having a company like SAP as a partner gives us and our customers a real edge over the competition.”

There are many new trends which the company is dealing with these days and which were unknown when AMS was set up.

“A few years ago,” he notes, “we wouldn’t have been in a position to discuss the pro-vision of a real-time business intelligence solution with customers, for example. Tech-nology now enables us to have In-Memory computing which is changing the IT world everywhere. Another area is cloud comput-ing. Today, everybody is looking for simpler and faster solutions and, in this case, there is the advantage that a company doesn’t have to make an initial investment in hardware but, instead, pays a monthly subscription to lease it.”

Perhaps surprisingly, given the present straitened financial circumstances of many

a wise investment you will hopefully get the money back as a dividend. The trick is to know where to invest so that you have an edge over your competitors and the result will show if it was a good or a bad invest-ment. We have never done something that is now considered obsolete. Things are be-ing improved as technology evolves so it’s a matter of upgrading rather than switching to something completely different.

Few companies in Cyprus escaped the effects of the 2013 bailout/bail-in and, for AMS, this meant that many of them were unable or unwilling to move ahead with projects. Many but not all…

“Fortunately, not all sectors were affect-ed,” Theocharides explains. “International companies based in Cyprus or Cypriot-owned structures that have revenues coming from abroad remain in good shape and so we have naturally turned to them for busi-ness On the other hand, the local market has suffered and many firms are still in a bad way.”

Are things looking up 18 months on?It’s not the same for everyone, says The-

ocharides. Different sectors are being influ-enced in different ways. Construction, for example, is not in good shape right now but foreign investment is promising so it really depends on what industry you are working in. “Five of the many sectors that we deal with (Insurance, Education, Healthcare, Banking and Construction) are struggling but others, such as FX, are booming. I believe that we have touched the bottom, we are seeing interest from abroad and new companies are being formed. What is hap-pening now is a process of self-healing or auto-correction. It’s something we need to go through but we shall see growth in the next few years, we’ll emerge stronger and healthier. Thanks to the prospects of natural gas, a whole new industry is going to be cre-ated and that will provide opportunities for everyone.”

For AMS itself, the future looks bright, says its CEO who intends to continue what he calls his “cautious strategy,” thanks to which the company has done very well. “From the very beginning we have been very careful. We purposely did not expand too quickly and we remain very cautious about how we move forward but we do see ourselves working outside Cyprus – we already have some projects in Qatar and our next step will be to undertake more projects abroad. The time is right.”

TECHNOLOGY

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

companies, this has not really taken off in Cyprus yet, according to Christos The-ocharides. People here don’t feel comfort-able with the idea that someone else may have information that they own, he believes. “Eventually this will change but at present there is some resistance.”

The resistance to cloud computing is rather odd in the light of another of The-ocharides’ observations:

“As Cypriots we are very open to new technology and our general technology background is of a very high standard com-pared to that of many other countries. How-ever, it is a fact that, in many areas, we don’t necessarily have the depth of knowledge that we see in bigger countries.”

It seems that in some areas, the popular phrase “small in beautiful” does not apply. Theocharides agrees: “Size does matter and in a small place like Cyprus, all of us have to play many roles and do too many things. For example, you won’t find the budget controller of a company in Cyprus doing only that. Here, the CFO of many SMEs often runs the company whereas you don’t see this abroad. So because of the size of the country, we tend to have a broad-based knowledge but we lack the depth of specific expertise that we find in other countries. Of course, this is another reason why it makes good business sense to use external consult-ants who do possess the required depth of specialist knowledge.”

It is sometimes claimed that technology is now developing so fast that what AMS is recommending to its clients today may be obsolete in 5 years’ time. Is there any truth in this? Christos Theocharides is quick to answer:

“No. Technology is evolving and you keep building on it. Technology gives you an edge and people expect it to provide a return on their investment. So if you make

TECHNOLOGY NOW enables us TO HAVE In-Memory COMPUTING WHICH IS changing THE IT WORLD everywhere

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As is revealed by its key stakeholders’ exclusive interview with Gold, Fleet Management Limited

its 20th anniversary), and will continue to take

By Chloe Panayides

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

SHIPPING

A s I step into the lobby of the Hilton Cyprus, neither the many peo-ple both at work and play, intensely engaged in conversations, nor the bright colours or the rich aroma of cof-fee lingering in the air

manage to draw my full attention. Instead, I fix my gaze upon the banner that sits un-

THE TIDEIS HIGH

“There is a tide in the affairs of men.Which, taken at the flood,

leads on to fortune;Omitted, all the voyage of their life

Is bound in shallows and in miseries.”William Shakespeare,

Julius Caesar, Act 4, Scene 3

assumingly off to the right, signalling that Fleet Management Limited would, that night, be celebrating its 20th anniversary in this very place.

“Welcome!” Sunil Kapoor, Director & General Manger of FML Ship Manage-ment Limited – the Cyprus-based office of the Hong Kong headquartered entity – exclaims with a grin. “As you can see, we’re all set up here for the big night,” he says with a masterful blend of both pride and

humility. Kapoor’s graciousness is a fitting prelude of the meeting to come.

“Let’s make our way over to where Mr. Banga is seated,” Kapoor suggests. “And Mr. Rajvanshy should be along shortly.” Harry S. Banga, of course, is Chairman and CEO of the Caravel Group (of which Fleet is a part), and Kishore S. Rajvanshy the Managing Director of Fleet. Both have just arrived from Hong Kong where they are permanently based to take part in the celebratory activities.

“We actually met with President Nicos Anastasiades last night,” Banga begins. A prime opportunity, I think, to garner in-sight from someone on the periphery; and so I ask him what sort of impression the President had made. With absolute convic-tion, he tells me: “He’s a great leader and he has a sharp vision. He’s brought a lot of stability in just a short year, which is an achievement to be commended.”

Despite being 10,000 miles away, Banga confides that a great affinity is felt with Cyprus, and so there was a serious feel-ing of concern when the economy all but imploded in March 2013. “This concern

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has now dissipated,” Banga says. “We are no longer worried about whether or not Cyprus will move on from this hurdle; it’s now just a question of when.”

The Caravel Group, headquartered in Hong Kong, is a diversified global con-glomerate focused on the trading and logistics of dry bulk raw materials, invest-ment management, and strategic asset ownership. The inception of Fleet was engendered by Banga and Rajvanshy (who, in the most timely manner, has now taken his seat around the coffee table) 20 years ago in 1994.

“It was on our wish list to start a small, in-house ship management company. Lit-tle did we know that it’d grow into a big corporation! But, I’m being hasty,” Banga says in a charmingly self-deprecating man-ner. “Why don’t you take over?” he says, indicating to Rajvanshy.

With a kindly smile, Rajvanshy con-cedes: “Yes, it’s right to say that Fleet was set up out of necessity. The group under which we established ourselves had the intention of buying a lot of ships and, therefore, the need for in-house manage-ment arose.”

But, as fate would have it, the winds changed and tides turned: “As it turned out,” Rajvanshy continues: “the group decided to take on chartered ships due to prevailing market conditions, essentially dissipating Fleet’s function and purpose.”

Not to be discouraged, Banga and Ra-

jvanshy quickly reassessed their options. Rajvanshy confides: “We realised that the key to survival lay in taking on third-party management projects. Slowly but surely, the satisfaction of our clients with the ser-vices we provided spread – mostly via word of mouth – and we grew in tandem.”

As always, I suggest, the virtue of flex-ibility saved the day: “Definitely!” Ra-jvanshy exclaims. “And I actually believe that we evolved beyond our imagination precisely because we responded to the changing conditions, and re-planned our positioning to survive. We were nimble on our feet: that’s for sure!”

Having initially garnered interest from Northern Europe (“mostly from Holland

and the Scandinavian nations,” Banga confirms), the support started coming through in waves, setting Fleet on a jour-ney of growth beyond all expectations. “Of course,” Rajvanshy adds, “that’s when we decided that we needed more offices. We opened manning offices in India, the Philippines, and China, as well as offices in what we deemed to be strategic locations, that is, Singapore, London, and, of course, Cyprus.”

It is pleasing, I note, that these gentle-men – seasoned professionals within the global shipping sphere – should all have

such high opinions of Cyprus’ maritime position.

Without pausing, Rajvanshy responds: “For us – and you’re right, we are seasoned within this sector, completely enveloped in the intricacies of the industry – it is a very, very natural association to pair Cyprus with the term ‘ship management’.

“And,” he clarifies, “this high regard is not prejudiced by personal subjectivity. Cyprus really does feature very highly on the list of top contributors and players in the industry. We were very mindful of this when making the decision to open an of-fice here.”

So what, exactly, I press, sets Cyprus apart from its competitors? “The island’s

location on the cusp of three con-tinents is condu-cive to the needs of ship manage-ment: it’s close to Greece; it has strong ties with German owners,

and its policies are very helpful to business-es involved in ship management. It’s clear that the Government places great emphasis on developing benefits and incentives,” Rajvanshy explains. “And so it was that we found ourselves establishing a presence here seven years ago in 2007.”

Mindful of certain conditions that are said to aggrieve the process of setting up an office in Cyprus, I wonder what their expe-rience, as foreign investors, was like?

All three men smile in unison. “We were actually very lucky – it was a comparatively smooth experience, and easily executed,”

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS Gold 37

WE ARE NO LONGER WORRIED ABOUT WHETHER OR NOT CYPRUS WILL MOVE ON FROM THIS HURDLE; IT’S NOW JUST A QUESTION OF WHEN

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

Kapoor says, as the conver-sation steers into his spe-cific domain.

Rajvanshy elaborates: “We were approached by an operator from the shipping sector who, until then, had been managing his own ships. Now, he wanted to sell, and found himself wonder-ing how most effectively and efficiently he could turn this want into a reality.

“We filled this gap and were able to build on this already existing structure (also making us the only ship management company to be based in Nicosia to some people’s surprise – and we’re proud of it!). We ‘inherited’ 13 ships, which were all, in due course, sold to a Dutch company.”

And this is where, I’m told, Kapoor’s strengths came in handy. “We sent him out with his suitcase in tow,” Banga says, “and had him approach different stakeholders in, for example, Greece and Norway, to help build up the business. Now, the Cyprus office runs 25 ships with 5-6 new ships in the pipeline.”

That’s quite an achievement, I say. “It is. We will have 30 ships under our umbrella in Cyprus very soon. Cyprus is undoubt-edly one of the centres we are most bull-ish on. We envision the future growth of the company to be inextricable with our branches, as opposed to our headquarters in Hong Kong.”

The good implications for Cyprus abound and, Banga reveals: “Cyprus’ growth is firmly on our agenda. It is often discussed in our strategy meetings, and the importance of Cyprus to the international company is one of the reasons why we de-cided to celebrate our anniversary here.”

Kapoor interjects: “We not only hope

but intend to increase our ships and man-power here. Our target is to be managing 50 ships in Cyprus within the next couple of years, which is reflective of 100% growth from today.”

That is quite a growth strategy, I muse, to which Banga stresses that it is not a mere hope; rather it is a solid intention: “Hope won’t get you anywhere: you must be fo-cused and committed, and that is precisely what we are.”

Divulging further reasons why Cyprus is a destination worth further investing in, Kapoor notes that – considering that shipping is a specialty sector – the island supports the recruitment of the right man-power (“we are able to get visas for our staff in a timely manner”), and, furthermore, the Cyprus Shipping Chamber is praised as being unfailingly supportive: “I can’t speak highly enough of the Chamber,” Kapoor says. “It has been there for us from day one.”

Along with cost-effectiveness, I’m told, a superb talent pool, and satisfactory in-frastructure, Cyprus has been serving Fleet very well.

“There was, of course, the issue with financial transfers,” Banga says with ba-thos. “When the crisis erupted, funds were locked. But,” he concedes, “the relevant authorities gave the shipping sector special privileges, and this was very comforting for us, knowing that they not only recognised our challenges, but were responding to them.”

And so it is that we all find ourselves in the Hilton Cyprus (the first time they’ve

granted a full in-terview with the local media, I’m told), on the verge of the evening’s celebrations.

Looking back over the 20 years, what are their impres-sions of the company’s growth and perfor-mance, I wonder? Rajvanshy is positive: “Our growth has been very organic, adding the pieces to our ever-growing puzzle one at a time. We haven’t engaged in a merger, and this is very much a deliberate choice. Today, we manage some 290 ships overall, and are involved in the new building super-vision of approximately 70 ships. There-fore, we are attached to 360 ships in total, with a collective value of $15 billion.”

Banga adds: “Internationally, compared with other players, we are the 4th largest ship management company in terms of size. Considering our age and the way we have grown, this is unique.”

The conviction with which it is stressed that no merger has been engaged in is tell-ing. And, indeed, Banga explains, the reti-cence to engage in a merger is precisely be-cause of a refusal to compromise the com-pany’s culture. “We didn’t want to simply put two cultures together. We wanted to maintain our ‘Fleet’ culture. Merging can be very challenging. Success often hinges on finding people with the same vision and thinking. We are not ruling out mergers in the future, though if we did merge, it would be with a company of the right size similar to Fleet (equal measures), and it would not be engaged with at the cost of our culture.”

Inspired, Kapoor’s observation is the final fitting note to this ballad: “We invest heavily in our people. For us, working with Fleet isn’t just a job; it’s a way of life.”

THE IMPORTANCE OF CYPRUS TO THE INTERNATIONAL COMPANY IS ONE OF THE REASONS WHY WE DECIDED TO CELEBRATE OUR ANNIVERSARY HERE

SHIPPING

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THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS Gold 39

COVER STORY

ADMINISTRATIVE

SERVICEPROVIDERS

ADMINISTRATIVE SERVICE PROVIDERS (FIDUCIARY

COMPANIES) HAVE BEEN AT THE FOREFRONT OF EFFORTS

TO MAKE CYPRUS A REGIONAL CENTRE FOR PROFESSIONAL

AND FINANCIAL/INVESTMENT SERVICES. FOLLOWING THE

ENACTMENT OF THE LAW REGULATING THE SECTOR

IN 2012, BOTH NEW AND ESTABLISHED FIRMS HAVE

BECOME EVEN MORE ACTIVE IN ATTRACTING INVESTORS AND

NEW COMPANIES TO THE ISLAND.ON THE FOLLOWING PAGES, 16 OF

THE LEADING ADMINISTRATIVE SERVICE PROVIDERS PRESENT

THEIR SERVICES, WHILE THE COMPANY CEO/MANAGING

DIRECTOR GIVES HIS VIEWS ON WHAT THE GOVERNMENT AND

THE PRIVATE SECTOR CAN DO IN ORDER TO RESTORE THE SECTOR

TO ITS PRE-CRISIS LEVELS AND ENCOURAGE THE FURTHER

GROWTH OF THE INDUSTRY.

40 Bizserve Consultants Ltd.

42 ConnectedSky Legal &

Corporate

Consultants Ltd

44 Cyproman Services

Ltd. (CPM)

46 Dema Services Ltd.

48 First Names (Cyprus) Ltd

50 Korpus Prava (Cyprus)

52 MMG Trust (Cyprus)

54 Nobel Trust Ltd.

56 Olieserve

58 Orangefield Cyprus Ltd

60 O.T.A. Orphanides

Trust Agency Ltd.

62 Prudens Ltd.

64 Servuspride Ltd

66 Totalserve

Management Ltd.

68 Trident Trust Company

(Cyprus) Ltd.

70 V.M.L. Venture

Management Ltd.

Page 40: GOLD MAGAZINE ISSUE 44

Bizserve Con-sultants Ltd. is a corporate and trustee service group, established in

May 2002. Its select employ-ees and associates compose a strong team able to operate in any business environment and ready to give bespoke solutions to any inquiry. Our clients range from listed multinational corporations to individuals seeking personal trustee services.Bizserve Consultants offers a wide range of services relating to international tax planning.

OUR MAIN SERVICES: Company / Group structuring

and jurisdiction advice Incorporation and administra-

tion of companies in various jurisdictions such as Cyprus, UK, BVI, Seychelles, Panama, Hong Kong, Marshall Islands and many more Incorporation and administra-

tion of branches Trust Formation Availability of shelf companies Provision of registered office and nominees Legal advice on corporate mat-ters Secretarial services Banking Services Permanent Establishment Set Up Virtual office

STEPS TO EXCELLENCERecognition – Reliability – Accreditation In our continuous efforts to de-liver service excellence, we suc-ceeded in obtaining the license to provide Administrative Ser-vices from the Cyprus Securi-ties and Exchange Commission (CySEC). Further to the Law regulating Companies provid-ing Administrative Services and Related Matters of 2012, Bizserve Consultants applied to CySEC in March 2013. Dur-ing its meeting held on 2nd June 2014, the Commission decided by virtue of article 12 of the Law to grant Bizserve Consultants Ltd Authorization to provide Administrative Ser-vices under registration number 66/196.

Furthermore, during the 2nd Annual General Meeting of the Cyprus Fiduciary Associa-tion (CFA) held on 11 June 2014, Bizserve Consultants was elected a member of the Board of Directors. Bizserve Con-sultants is represented by its Managing Director, Mr. Chris Koutouroushis. We consider this as an important accom-plishment as the CFA plays a significant role in developments in the fiduciary sector in Cy-prus. Elected members are able to participate in the decisions and express their opinion on

issues concerning our industry. As a board member we believe we can play an influential role by proposing and/or putting forward new ideas while keep-ing up with the latest develop-ments.

We also maintain our mem-bership of CFA Committees as well as of various other professional organizations, thus having the opportunity to par-ticipate and keep up to speed with news and trends in our industry.

Bizserve Consultants is an active member of the Cyprus Chambers of Commerce and Industry as well as of various bilateral associations.

Personal EngagementIt is our belief that personal in-teraction is the most beneficial and constructive way of serving a client and we build our relations based on that principle. Taking actions such as travelling to vari-ous countries to meet in person with our clients and organizing forums/events are a few of the actions we take towards our goal of meeting our clients’ needs in an effective and direct way.

Our staff are also trained in such a way that personal com-munication is achieved. We recruit among the highest-calibre professionals in the market and provide them with the required

SPECIAL PROMOTIONAL FEATURE

BIZSERVECONSULTANTS LTD.

Chris Koutouroushis - Managing Director

PHOT

OGRA

PHY

BY J

O M

ICH

AELI

DES

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CONTACT INFORMATION: Bizserve Consultants Ltd. Address: 32, Georgiou Griva Digeni Avenue, 1066 Nicosia | P.O. Box 27670, 2432 Nicosia | Tel: (+357) 22375504

Fax: (+357) 22377583 | e-mail: [email protected] | Website: www.bizserve.eu

tools to meet customers’ needs. Bizserve Consultants’ team is made up of qualified lawyers, administrators, bankers, market-ing officers and IT consultants ready to provide professional support to all assigned tasks. We are able to carry out clients’ requests in Greek, English, Rus-sian, Bulgarian and Romanian. We greatly consider the fast pace of business life that our clients follow and we thus ex-ecute requests to the fastest and best possible way.

Restless Enhancement of product offeringBizserve Consultants is always on the lookout for new prod-ucts and services. As a growing company we find it essential to offer better and new prod-ucts and services to meet the demands of our esteemed clientele. We seek new associ-ates both locally and overseas continuously in order to help entrepreneurs develop and launch their new investment ideas. Consequently, we have managed to establish coopera-tion with a number of bank-ing groups, legal firms, ac-countants and auditors, service providers in various jurisdic-tions, investment houses, etc.

Network Economy Our aim is to work all times in such a way as to provide direct and valid information to our clients.

Believing in today’s net-work economy we have found it essential to redesign and launch our new user-friendly website www.bizserve.eu went live in August 2013 and is constantly being upgraded and updated.

By visiting our website, cli-ents are informed in an easy and convenient way about all the services we provide. The menu bar allows them to navigate directly to more specialized pages by using lower levels in the hierarchy. The various links we offer on our website direct clients to the actual sources of the news or to other official websites of governments, official organi-zations and associations.

Our clients also have the opportunity to register for a weekly newsletter. Our sub-scribers are not only informed of the latest news and trends regarding the services we offer and the jurisdictions we rep-resent but are also reminded about important annual ob-ligations.

Finally, we are pioneers via the Live Chat Service on our website at satisfying online visitors with any answers and information required about our products and services. The Live Chat Service allows our online visitors to ask questions while browsing the website. We believe that by providing instant assistance to visitors, we increase their trust, loyalty and satisfaction.

A STEP FURTHER Corporate Social ResponsibilityActions taken in the context of Bizserve Consultants’ responsibility towards its employees, the environment and society show that our culture is structured so as to give equal opportunities to employees in every possible way. We believe that is our duty to protect the environ-ment as well as to donate to charity and help society. Our constant efforts prove that this idea has become part of our culture and it can only continue to grow.

Following the events of March 2013, what can the Government and the private

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

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Charalambos Samir is the founder, CEO and sole share-

holder of ConnectedSky Le-gal & Corporate Consultants Limited (“ConnectedSky”) which, though founded in December 2009, started proper operations in October 2011. ConnectedSky is

regulated by the Cyprus Bar Association under License Number 524 and is consid-ered by the Cyprus Securities and Exchange Commission as an Eligible Person to conduct Fiduciary, Trust and other Administrative Busi-ness under the Law regulat-ing companies providing administrative services and related matters of 2012.

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

ConnectedSky is associ-ated with C. Samir & Co. LLC, a firm of advocates and legal consultants duly incorporated under the laws of the Republic of Cyprus. In May 2014 ConnectedSky, through C. Samir & Co.

LLC, acquired the exclusive rights of SILFA (Staubach International Law Firm Alli-ance) for Cyprus and as such it maintains representative offices in Beijing, Brussels, Budapest, Dubai, London, Lugano, Milan, Moscow, Nicosia, Palma de Mallorca, Prague, Vienna and Warsaw.

AREAS OF PRACTICE ConnectedSky is a global provider of professional ser-vices ranging from corporate, legal, and tax advisory to risk management, assurance and industry inside help, thereby offering effective solutions to the needs of businessmen, corporate bodies and any other institution. Through ConnectedSky’s team of ex-perienced and well-educated professionals, as well as its wide international network, a “one stop shop” package of services and solutions can be offered to local and interna-tional clients. We are proud to say that ConnectedSky offers more than 80 different types of professional services to a cli-entele from over 25 countries and coming from a variety of business and industry back-

SPECIAL PROMOTIONAL FEATURE

CONNECTEDSKY LEGAL & CORPORATE CONSULTANTS LTD

Charalambos Samir - Founder and CEO

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CONTACT INFORMATION: ConnectedSky Legal & Corporate Consultants Limited Address: 12, Igoumenitsas Street, ConnectedSky House, 2027 Strovolos, Nicosia, Cyprus | Tel: (+357) 22258800

Fax: (+357) 22258801 | e-mail: [email protected] | Website: www.connectedsky.com

grounds such as: • Oil & Gas • Power & Utilities • Pharmaceutical & Chemicals • Insurance • Telecommunications • Real Estate and Construc-tion • Banking & Capital Markets • Asset Management • Technology • Electronics & Software • Consumer Products • Government & Public Sector • Media and Entertainment • Biotechnology • Automotive

Moreover, given that each of the above is a multibil-lion industry sector and, as such, likely to be extremely influential as far as the global economy is concerned, there is no doubt that any possible growth or collapse of the world economy is seriously dependent on them. Con-nectedSky justifiably trusts that the recent and future developments within each of these industry sectors will play a vital role, not only in shaping the future world economy but also in the fight

against the current economic crisis.

That is why ConnectedSky has invested in sector-inside analysis so that we can stand up and proudly say that our people have great knowledge and experience and can there-fore assist our clients by pro-viding them with information and advice on crucial issues such as compliance, risk management, strategic tax planning, mergers & acquisi-tions, sales, joint ventures and much more. Consequently, our clients are in a position to fully understand the multiple complex issues that each industry sector hides, giving them the advantage of taking the most profitable and orga-nized decisions. ConnectedSky’s core areas of practice are as follows: Company Formations in

over 60 Jurisdictions Formation of Foundations

and Trusts Provision of International

Tax Planning Services Formation of Cyprus ICIS

& Foreign Funds Provision of Fiduciary,

Trustee and Administrative

Services Opening and Maintenance

of Bank Accounts Worldwide Legal Due Diligence and

Compliance Immigration, Residency

and Citizenship Services International Corporate

Intelligence Services International Debt Collection

Services Information Technology Accounting, Bookkeeping and

VAT Services HR and Payroll Services

“Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry?” Charalambos Samir, Founder & CEO: Twenty months after the events of March 2013, it is obvious that the pre-crisis level of Administrative Services has been severely affected. However, there has indeed been some im-provement with respect to the restoration of Administrative Services, mainly due to the Law Regulating Companies Provid-

ing Administrative Services and Related Matters of 2012.

The main aim of this law is to further regulate the profes-sional services sector, which will ultimately benefit clients and investors who invest in Cyprus or through Cyprus. A better legal framework is now in place, making it compulsory for companies offering professional services to obtain a license either from the Cyprus Securities and Exchange Commission (CySEC) or the Cyprus Bar Association or the Institute of Certified Public Accountants of Cyprus.

In light of the above, it is true that the Government and the private sector must join forces in order to pull Cyprus back from the brink of recession and take all the required steps and adopt such mechanisms that will help restore the level of the island’s providers of Administrative Services, who play a crucial role in regaining investors’ confi-dence. We should never forget that each and every investment in Cyprus or through Cyprus starts and ends with cooperation with an Administrative Services firm.

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Cyproman Services Ltd, which an-nounced the rebranding of

its corporate name to CPM (Corporate Administration Services) on the 12th of November, is a leading inde-pendent service provider in Cyprus, offering a comprehen-sive set of business services to local and international clients since 1996. Over the years, we have grown significantly and expanded the range of services we offer, aiming to best ac-commodate the business needs of today’s market and, above all, the needs of our clientele. Today, CPM is one of the largest providers of Fiduciary and Administration services to a well-diversified international clientele in Cyprus.

As experienced profes-sionals, we appreciate the importance of confidentiality, efficiency and reliability in

today’s demanding interna-tional business environment. Our staff is trained to offer efficient, reliable and prompt business services in Cyprus and other major international jurisdictions. Choosing CPM as your service provider gives you peace of mind, knowing that experts are handling all the details.

CPM currently employs over 70 professionals and staff with offices in Nicosia and Larnaca. To meet the chal-lenges of the international nature of our industry, we have an international team of multi-lingual and highly skilled professionals, encom-passing accountants, lawyers and supporting staff, with ex-tensive industry knowledge in their individual fields, as well as substantial experience in the corporate industry and global finance.

We strive to build and maintain a strong and pro-

active relationship with our clients, based on mutual trust and respect, and are commit-ted to responsiveness, reliabili-ty and customized services and solutions tailored to our cli-ents’ specific needs. Our team is organized in small groups, headed by Senior Managers, in order to ensure highly per-sonalized services and quality support at all times, through the extensive use of advanced technology.

CPM is an Administrative Service Provider authorized by the Cyprus Securities and Exchange Commission, in accordance with the Law Regulating Companies pro-viding Administrative Services and Related Matters (No. 196(I)/2012).

We provide a fully compre-hensive range of services to international and local based clients, encompassing large multinationals, banking in-stitutions and high net worth

individuals. Services include, among others, Fiduciary, Company Administration and Secretarial, Accounting & Bookkeeping, Escrow, Payroll and Fund Administration ser-vices. Moreover, through our associates, we offer Aviation, Yachting and Crew Manage-ment and Administration services.

Our comprehensive Fidu-ciary and Trustee services include the formation of ap-propriate business entities in the most advantageous jurisdictions, the provision of domiciliary, directors and management services, trustee and escrow agent services, as well as any required facility to suit diverse client needs.

We offer full Company Secretarial and Administra-tion services for companies operating in Cyprus and other major jurisdictions, with the objective of ensuring com-pliance with all the relevant

SPECIAL PROMOTIONAL FEATURE

CPM GROUP

CPM Managment team

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statutory obligations. Services include organising directors’ and shareholders’ meetings, preparation of documenta-tion reflecting changes in the structure and composition of a business entity and all the main administrative du-ties needed to ensure that the company operates in ac-cordance with the law and regulations of the chosen jurisdiction.

Our team of highly quali-fied accountants provides day-to-day support in the preparation of accounts in compliance with regulatory reporting obligations. We can offer a wide range of Ac-counting and Bookkeeping services in order to satisfy a variety of clients’ needs, including day-to-day book-keeping, the maintenance of a computerised general ledger, bank account recon-ciliations, the preparation and submission of VAT returns and VIES declarations, the preparation of periodic man-agement accounts and annual unaudited Financial State-ments, as well as the payment

of requisite taxes.We appreciate that the

confidential, accurate and timely operation of a com-pany’s payroll is fundamental to any business. Our team of experienced payroll profes-sionals can help implementing all aspects of your payroll, including processing monthly payroll, the preparation of all necessary forms and reports, the preparation and filing of annual returns, the payment of relevant taxes, contribu-tions, and premiums and assistance in the application process for work permits.

We offer a comprehensive set of Fund Administration Services to a wide range of alternative investment funds and pools of collective invest-ment schemes through the dedicated fund administration company of our group, Cy-profund (CPF). CPF utilizes state-of-the-art technology to offer a complete set of reliable fund administration solutions, built upon professionalism, experience, and compliance with relevant laws and regula-tions.

Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry?Costas Christoforou, Gen-eral Manager: Cyprus still has several comparative advantages for foreign investors over other jurisdictions, despite the blow suffered. To be able to achieve this, both the private sector, as the backbone of the economy, and the Cyprus government need to work together towards the same direction

There is an urgent need to reorganize corporate gover-nance in order to provide tax and other incentives to stimu-late investment. Furthermore, to create opportunities and establish Cyprus as an attrac-tive destination for investment activities, the efficiency of gov-ernment authorities (i.e. the Registrar of Companies and the Inland Revenue Depart-ment) needs to be improved by reducing bureaucracy and simplifying time-consuming

procedures. The Government should also promote reforms to speed up legal procedures for court cases.

Additionally, the revival of entrepreneurship is also necessary to promote the in-ternationalisation of business opportunities in alternative fields, such as Cell Compa-nies (companies with further branches of companies, each of which deals with different businesses but with a common legal entity), Sharia Investment Funds (an investment vehicle fund structured in accordance with Islamic law), etc.

Moreover, through the ef-fective guidance of the supervi-sory authorities, as CySEC, the market’s integrity and investor protection can be ensured by promoting transparency.

Considering the surround-ing economic reality, one perceives that is imperative as never before to make the necessary modifications and take modernisation measures in the public sector, and to create a business climate which is friendly towards potential investors.

CONTACT INFORMATION: CPM GROUPNicosia: 12, Esperidon Street, 4th Floor, CY-1087 | P.O. Box 22096, CY-1517 Nicosia | Tel: (+357) 22474000 | Fax: (+357) 22474808 Larnaca: CY-6016 Larnaca | P.O. BOX 40569, CY-6305 Larnaca | Tel: (+357) 24823420 | Fax: (+357) 24823421 | Website: www.cpm.com.cy

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Dema Services was established in 1998 and is one of the foremost provid-

ers of International Company Services, Trust and Fund Administration. It specialises in the formation of compa-nies in Cyprus and in other jurisdictions and provides nominee, trustee and admin-istration services efficiently and at a reasonable cost. It also provides assistance to those Cyprus companies, and branches of foreign compa-nies, that need an operational office in Cyprus. Further-more, Dema Services provides escrow agent services, advice

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

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

Services of the SeychellessubsidiaryRosebery Ventures Ltd pro-vides the following services from Seychelles:• Set-up of Seychelles, BVI and Nevis companies• Administration of Seychelles, BVI and Nevis companies (nominee trustee and fiduciary services)• Set-up and administration of Nevis and BVI trusts• Set-up and administration of Foundations in Seychelles and Nevis• Set-up and operation of bank accounts• Provision of correspondence address

Services of the Swiss subsidi-aryDema Consultants SA pro-vides the following services:• Set-up and administration of Swiss companies• Set-up and administration of BVI, Nevis and Seychelles companies (nominee, trust and fiduciary services)• Set-up and administration of Trusts in Cyprus, BVI and Nevis

• Set-up of Foundations in Nevis and Seychelles• Set-up and operation of bank accounts in Switzerland• Provision of correspondence address in Switzerland• Wealth structuring and ad-ministration services

Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry?Charis Raftopoulos, Direc-tor:No doubt the events that followed March 2013 have deeply affected our sector and the financial service industry in Cyprus. We, at Dema Services, are spending a lot of time and resources on restoring our business to pre-crisis levels and on bringing new clients, developing new markets and introducing new systems.The Government, the Central Bank and the House of Repre-sentatives must work together and introduce the reforms we have all been suggesting for years. They could make a start by appointing the right people to the right posts, people who will carry Cyprus forward, peo-ple who know and understand what it takes to be able to state that Cyprus is ‘’open for busi-ness’’.The Government could also take more radical measures, for example, introducing privatisa-tion of certain departments such as the Office of the Regis-trar of Companies, from which it will be able to collect even more fees.

SPECIAL PROMOTIONAL FEATURE

DEMA SERVICES LTD.

CONTACT INFORMATION: Dema Services Ltd.Address: 8 Stassinos Avenue, 2nd

Cyprus | Tel: +357 22751555 | Fax: +357 22452054 | e-mail: [email protected] | Website: www.demaservices.com

(L-R): Stalo Antoniou, Andriana Pias-Hawarian,

Charis Raftopoulos, Andreas Constantinides

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CONTACT INFORMATIONConnectedSky Legal & Corporate Consultants Limited

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

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First Names Group may be a new name in the global trust and corporate

services sector but we’ve been around for more than 30 years. Formerly IFG Trust and Corporate Group, we broke away from IFG Group Plc in 2012 in a management

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

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

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

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

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

Company Incorporation and ManagementWe provide centralised and co-ordinated management and administration of companies incorporated in a wide variety of jurisdictions with regular reporting tailored to client’s individual requirements. Our directors and senior staff will be directors of client compa-nies, adding real substance. We also provide all secretarial, administration, banking and accounting related services.

• Transaction support ser-vicesOur experienced accountants and in-house lawyers are well suited to provide support on a

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

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

spread across multiple strategic locations.We’re proud of the service we offer. And we’re proud of the people who make it happen: our First Names.First Names Group is all about the people who have made us what we are. Most professional services organisations recognise that it’s their people who make the difference; at First Names Group we have taken this a step further by embedding that philosophy into the brand itself.Our name symbolizes the value we place on relationships; being on First Name terms with clients and colleagues is a privilege we both value and enjoy. It is people who are at the heart of our success, from the experienced professionals within our company to the clients and intermediaries who repeatedly put their trust in us. The name also represents our commitment to being the ‘First Name’ in the services we offer, in existing and new markets.

“Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry?”Christos Michael, Manag-ing Director: Most of the competitive advantages of

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

CONTACT INFORMATION: First Names (Cyprus) LimitedAddress: Chapo Central, 3rd Floor, | 20, Spyros Kyprianou Avenue, 1075 Nicosia, Cyprus | Tel: (+357) 22749000

Direct Line: (+357) 22749155 | Mobile: (+357) 99685867 | e-mail: | Website:

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Korpus Prava (Cyprus), located in Limassol, is a part of the global Korpus Prava

structure based in Russia, Hong Kong, Latvia and Malta. Our client portfolio includes enterprises in telecommunica-tions, mass media, oil and gas, food processing, agriculture, transport, development and construction, IT, etc.As evidence of the fruitful and confidential relations with our clients, 70% of our company’s clients have been working with us for more than three years, and after receiving specific ser-vices (tax, legal consultations), many of them order even more

complex services from our law-yers who successfully protect their interests.

KORPUS PRAVA (CYPRUS), PROVIDES HIGH-QUALITY SERVICES IN THE FOLLOWING AREAS: Corporate law Tax law Legal support of business

projectsThe company gives special at-tention to improving existing procedures for lawyers and consultants and conducts regu-lar training for our specialists. This gives us an opportunity to steadily develop existing aspects and master new trends in our professional activities.

ADVANTAGES OF THE SERVICES OF KORPUS PRAVAHigh professional standardsThe experts of Korpus Prava develop business solutions for various areas and provide profes-sional services that meet national and international standards.Our employees are fluent in various languages, including English, Greek, Latvian and Russian, which allows them to promptly and freely communi-cate with clients, solve current issues, cooperate with financial establishments and state authori-ties.

Solutions that work and meeting clients’ expectationsWe do not merely sell services, we develop solutions that work.The offices of Korpus Prava are well integrated into the com-mon corporate structure and this enables the Company to carry out complex international projects, secure compliance with the principles of prompt com-munication, the timely exchange of information and a well organ-ised system of document flow.

Personalized approachThe experts of the Company take into consideration the characteristics and the interests of each client and carefully plan all the stages of the project – tax and legal opinion, registration of companies within the group, transactions analysis, etc.We work directly with the cli-ent, take part in the talks with his/her partners, and stand by the client’s side at every stage from consulting to the comple-tion of the project.

Strict privacy and security guaranteeThe clients of the Company can rest assured of secure, precise

and well planned business solu-tions as well as a high level of confidentiality.

Open Mind AdvisingOur activities are based on the key principles that define the approach to client work: Open mind High standards and respon-

sibility Long-term cooperation The use of innovative tools

and quality control Striving for innovation and

perfectionKorpus Prava exercises a com-prehensive approach which aims to increase the efficiency of clients’ business and reduce risks.Our experts comply with the principles of honest cooperation and transparency in client rela-tions.

Following the events of March 2013, what can the Govern-ment and the private sector do in order to restore the Admin-istrative Services sector to its pre-crisis levels and to encour-age the further growth of the industry?Artem Paleev, Managing Part-ner: The main competitive advan-tages of Cyprus as an IFC were its effective, smart and client-ori-ented banking, the large number of Double Tax Treaties (DTTs) and the lowest corporate tax rate in the EU. The fundamentals are still the same today – DTTs and quite low taxation. The banks are the problem. We have to solve the liquidity problems of banks, open up the market to foreign banks in Cyprus, start financing business and change the reputa-tion of Cypriot banks among members of the EU’s professional community.

SPECIAL PROMOTIONAL FEATURE

KORPUS PRAVA(CYPRUS)

CONTACT INFORMATION: Korpus Prava (Cyprus) Address: Tel: (+357) 25582848 | Fax: (+357) 25582868

e-mail: [email protected] | Website: www.korpusprava.com

Artem Paleev,Managing Partner

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CONTACT INFORMATIONConnectedSky Legal & Corporate Consultants Limited

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

www.korpusprava.com

Moscow, Russia

Valletta, Malta

Riga, Latvia

Novosibirsk, Russia

Limassol, CyprusHong Kong, PRC

TAX

International Tax Planning

VAT & Indirect Taxes

Transfer Pricing

Tax Audit & Advise

Tax Disputes

Financial Services & Funds

Corporate

Custom & Excise

International Trade

PRIVATE WEALTH

Individual Tax Planning

Wealth Management

Real Estate

Legal Protection

Investments

Accounts and Operations

LAW

Trade & Investments

Banking & Finance

M&A & Due Diligence

Corporate & Commercial

Competition & Antitrust

Intellectual Property

Litigation

Restructuring & Insolvency

FIDUCIARY & TRUST

Incorporation & Administration

Hedge Funds Formation

Corporate Services

Trust & Asset Management

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HISTORYThe Morgan & Morgan Group (MMG) was originally established as a law firm in 1923. Over the years it has grown exponentially to be-come one of the largest law firms in Central America.

Concurrent with the devel-opment of the law firm, MMG has also established a successful trust business. The Group has opened its own proprietary of-fices not only in the Caribbean (BVI, Bahamas, Belize) but in both Europe and Asia. MMG has opened and operated fully fledged offices in all the major financial centres on these two continents and had a presence for over 30 years in cities like London, Zurich and Geneva.

THE PRESENTMMG is active on three con-tinents through its wholly owned offices in 20 different cities, including Singapore and

Shanghai. All of these offices employ professional staff and offer a multitude of legal, fidu-ciary and financial services to their clients.

Attesting to MMG’s strength in the financial sec-tor is the establishment of its own bank. MMG Bank (www.mmgbank.com) is a boutique private bank with a banking licence in both Panama and the Bahamas. The bank offers tailored-made services to both new and existing clients of the Group.

THE FUTUREThe headquarters in Panama are now housed in our new, propri-etary tower, the MMG Tower (www.mmgtower.com). This state-of-the-art, environmentally friendly sky scrapper accommo-dates our staff locally. The tower is located in Costa del Este, one of the most prestigious locations in Panama City, with breathtak-

ing views of both the Pacific Ocean and the city’s skyline.

The office in Zürich has been most successful in establishing MMG Wealth. MMG Wealth offers integrated investment solutions, wealth planning and investment advisory services. We also provide real estate in-vestments, direct private equity and art advisory services. These services are complemented by our renowned research capabili-ties and backed not only by the other members of MMG Zurich but also by the global reach of the Morgan & Morgan Group.

THE CYPRUS OFFICEThe office in Cyprus com-menced its operations in July 2011. It provides a multijuris-dictional and interdisciplinary approach to problem solving. Amongst others, we offer: Company incorporation and

administration Establishment of Trusts and

Foundations Provision of corporate and

physical directors and trustees, company secretaries, nominee shareholders, registered offices and telephone/facsimile facilities Opening and operating of bank

accounts Accounting and bookkeeping Tax, VAT and VIES compli-

ance Audit and legal engagements

(with independent audit and law firms)

Servicing both professional intermediaries and private clients, we focus on corporate structuring and succession planning. The office is staffed with qualified professionals with a wealth of experience in fiduciary, account-ing, audit, finance and IT. The members of the management team, in addition to advising

clients, are often invited to attend conferences and lecture on a vari-ety of topics.

In April 2014, we were suc-cessful in our licence application to the Cyprus Securities and Ex-change Commission. The office is now a licenced fiduciary firm, resonating the transparency and accountability with which we are servicing our clients.

Following the events of March 2013, what can the Govern-ment and the private sector do in order to restore the Admin-istrative Services sector to its pre-crisis levels and to encour-age the further growth of the industry?Pericles Spyrou, Managing Di-rector: We have been pleasantly surprised by the fact that business continues to grow in spite of the recent challenges, both locally and abroad. Cyprus has weath-ered the storm and remains an attractive international business hub with a sound reputation. We hope that the recent events in Cyprus will prod both the public and the private sector to continue their efforts to that effect. The Government should persevere in its efforts to reform the public services and to attract inward investment. The incentives for citizenship, the modernization of the trust law and the licensing of administrative services provid-ers are an eloquent example of initiatives that have been taken to safeguard Cyprus’ reputa-tion. We, as the private sector, should continue our promotion of the competitive advantages of Cyprus. Our island still has an enviable tax regime, a sound and simple legal system and a long established tradition of offering international services. Why not continue to do so?

SPECIAL PROMOTIONAL FEATURE

MMG TRUST CYPRUS

CONTACT INFORMATION: MMG TRUST CYPRUS Contact Person: Pericles Spyrou | Address:

Tel: Fax: e-mail: [email protected] | Website: www.mmgtrust.com.cy

Pericles Spyrou - Managing Director

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CONTACT INFORMATIONConnectedSky Legal & Corporate Consultants Limited

Address: Tel:Fax: e-mail: Website:

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Nobel Trust Ltd is by design a boutique fiduciary firm which provides

corporate administration and business consulting services in a client-centred manner, apply-ing commercial acumen and servicing clients› needs with the highest level of professionalism and efficiency. The standing and quality of our client base is testament to the fact that our chosen business model is the one increasingly favoured by clients.

We operate as a one-stop-shop whereby tailor-made solutions are provided to support our clients’ demanding and multi-disciplinary business needs.

Our philosophy is outstanding achievement in all areas of our operations, aiming at exceeding our clients’ expectations hence creating lasting relationships of trust within a confidential and

regulated environment. In line with international and local legislation and best practices, Nobel Trust Ltd is regulated as an Administrative Services Provider by the Cyprus Securi-ties and Exchange Commission (licence number 84/196).

Our dedicated and experienced team consists of in-house industry professionals and ex-ternal associates including tax advisers, lawyers, accountants, economists, auditors and finan-cial services professionals who are trained and developed so as to meet the constantly evolving needs of this dynamic and con-tinually changing industry. During 2012 our firm was amongst the very first fiduciary firms in Cyprus to be awarded the highly acclaimed «Inves-tors In People» accreditation, demonstrating its continued commitment to training and empowering its employees, supporting a company-wide culture of learning and creat-

ing a caring, professional and high-performance environment that delivers the ultimate value to clients.

SUPPORT SERVICESOur core services are compre-hensive and cover the main business needs of clients, start-ing from the incorporation of an entity, assisting with its daily running, operation and compliance including, where a client so desires, the structured end of the business cycle and the eventual entity dissolution. Each client is assigned to a Re-lationship Manager who serves as the main point of contact of the client in relation to the various departments within our firm, our external associ-ates, government authorities and departments and other third parties. The Relationship Manager is dedicated to ensur-ing that all client needs and compliance requirements are completed efficiently.

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

Company Management servicesWe offer ongoing administration of companies and management services. We undertake to act on behalf of our clients as trustees or nominees as requested. We provide access to or recom-mend professionals with the appropriate qualifications to undertake the role of the profes-sional director and/or company secretary. Members of our team are holders of the Diploma in Company Direction from the Institute of Directors in the UK, qualified chartered/certified ac-countants, qualified lawyers, ex-perienced economists, company secretaries and have knowledge on the provision of investment and ancillary services in accord-ance with Cyprus laws.

Legal Secretarial servicesLegal secretarial services are es-sential for keeping a company in good standing in accordance with applicable laws. In this respect, we offer services of at-tendance at board meetings and minute drafting, preparation

SPECIAL PROMOTIONAL FEATURE

NOBEL TRUST LTD

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CONTACT INFORMATION: Nobel Trust Ltd. Address: Tel:

Fax: e-mail: [email protected] | Website: www.nobeltrust.com

of written resolutions of the directors and resolutions of the shareholders, drafting AGM/EGM documentation, drafting of POAs, preparation and filing of notifications to the Registrar of Companies and any other ad-hoc filing as and if required.

Financial Management, Tax and VAT compliance servicesWe undertake bookkeeping services, preparation of account-ing records and preparation of unaudited financial statements. As part of the overall financial management services we un-dertake tax compliance work, including VAT, VIES and Intrastat filings. Additionally, we offer payroll services which includes payroll processing, payroll preparation and payroll management.

Banking servicesOur team can handle the entire process of selecting a bank and establishing a bank account with a bank in Cyprus or in any other reputable jurisdiction. Our banking team undertakes the day-to-day management and administration of bank ac-counts including bank transfer preparation and execution, on-line banking, credit/debit card application, monitoring of bank account movements and provi-sion of up-to-date information to clients. In addition, we can assist with the arrangement of credit facilities and private

wealth management services.

Fund Administration servicesTaking into consideration the recent enactment of the Alter-native Investment Funds Law and the Alternative Investment Fund Managers Law, which create an opportunity for Cy-prus to be established as a fully regulated and reputable funds jurisdiction, we have dedicated substantial time and resources to develop a team to undertake the establishment and ongoing administration of funds.Our services include incorporation of the appropriate entity, draft-ing the M&A, application to CySEC for approval and fol-lowing through the process, assistance with the Information Memorandum as well as all necessary legal, secretarial and accounting support.

OTHER SERVICESEscrow: Our team can provide assistance in the drafting of escrow agreements and may also arrange for acting as escrow agents to secure financial obliga-tions arising from commercial and international activities, such as acquisitions, cross-border trading transactions and inter-national construction projects.Business Centre: Our clients can enjoy the benefits of having a recognised, fully functioning office without moving from their present location. Services

include but are not limited to office space, secretarial attend-ance, telephone, fax and Inter-net lines.

ADVISORY SERVICESLegal servicesThrough our affiliated law firm Ioannides Demetriou LLC, we can assist with the provision of legal services on all commercial contentious and non-conten-tious matters. We can further assist with Listings on the Cy-prus Stock Exchange with the law firm acting as the Nomi-nated Advisor (‘NOMAD’).

Tax Advisory and Business consulting servicesOur team of experts, in association with Ioannides Demetriou LLC, may provide a range of tax and VAT advice including but not limited to tax structure optimization and the selection of appropriate vehicles, advice on Cyprus tax implications and Double Tax Treaty application, obtaining “tax rulings” or lodging recourses with the Supreme Court for the annulment of assessments, and negotiating with the Cyprus tax/VAT authorities. We also provide sound and effective advice on the establishment of substance and proper corporate governance. In all our activities, we demonstrate a thorough understanding of business and we consistently

provide proactive consulting and support to our clients.

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

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Olieserve is a young, dynamic company offering administration, corporate and

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

power of team spirit and, thus, pay a lot of attention to cultivat-ing a positive and encouraging company culture. Our mul-tinational team of young and experienced professionals is at all times ready and fully equipped to serve the best interests of our clients.Olieserve’s motto, which you can see on our logo, is “Hon-esty, Decency, Trust”, and it goes right to the core values of our company. Mutual trust and respect is what we aim for and this is what we have always been able to achieve in the business relationship with our clients.

WHAT WE DOWe provide a full range of cor-

porate services including but not limited to: Company formation Fiduciary services Accounting services Bank account opening all over

the world Virtual office Legal advice Full spectrum of ‘substance

package’ And many more

‘A PACKAGEJUST FOR YOU’A phrase you could associate with Olieserve is ‘quality not quantity’. Numbers are mean-ingless and serve only to detach you from the client and their needs; customer satisfaction is our primary target.We bring the very best premium quality services at the fairest pric-es, always trying to lead the way in innovation. We try to avoid generic packages and, instead, build tailor- made ones to suit the particular needs of each cli-ent. In a very competitive market and on the back of a global reces-sion, we have proved ourselves more than worthy, as we have experienced a steady expansion over the last year and all the signs lead us to believe that the coming year will bring even more success to both us and our clients!

BE OUR PARTNEROlieserve is always looking for new prospects and partnership opportunities around the world as well as in Cyprus. We try to build long-term relationships with our partners that may also be called friendships. We have two fixed partnership schemes available at all times and several limited-time promotions com-ing live this month. Please feel free to check our

website for more information. Alternatively, if after reading this short article on Olieserve, you already have a strong feel-ing that we are just what you need, please contact us directly to discuss future cooperation opportunities. Olieserve is al-ways at your disposal. We look forward to hearing from you soon!

Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry?Natalia Rudakova, Managing Director: After the events of early 2013, when the govern-ment choose to “stab in the back” those foreign and local investors who had put their trust in Cyprus, it bought about the need to really think how to build a positive aware-ness of Cyprus in places outside the island. I believe the only way to do this is for the govern-ment and every single player in the market to cooperate. Very few people in the business world know about Cyprus and, if they do, they usually have only the bad image and nega-tive things in mind.Before we can ask investors to come back and before we invest big sums of money on market-ing, there must be a hard look and a big internal clean-up. Recent events have highlighted many of the internal issues and brought to light problems within; they cannot and should not be hidden anymore. Until these issues are resolved Cyprus will struggle to attract new investors.

SPECIAL PROMOTIONAL FEATURE

OLIESERVE

CONTACT INFORMATION: Olieserve Address: Tel:

Skype: e-mail: Website:

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CONTACT INFORMATIONConnectedSky Legal & Corporate Consultants Limited

Address: Tel:Fax: e-mail: Website:

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Orangefield is an inde-pendent global service provider of a wide range

of management, administra-tive and trust services to private and corporate clients as well as private equity, hedge and real estate funds all over the world. At present, we have offices in 29 financial centres including London, New York, Luxem-bourg, Amsterdam, Hong Kong, Shanghai and Singapore.The Cyprus office of the Or-angefield Group was established with a view to providing quality corporate services in Cyprus with unmatched efficiency to inter-national groups and financial institutions globally. Our team consists of professionals who serve clients at a multi-national level. We are diligent and up-to-date when it comes to the latest legal matters and accounting standards. We aim to provide personalised and high-quality services, giving our clients a ‘one-stop’ service for any busi-ness activities that they wish to perform in Cyprus.

FUND SERVICESOrangefield Group is specialised

in fund administration services and currently administers in-ternational funds of around €30 billion with some of the most advanced software in the market. The Group has passed on its advanced know-how to Orangefield Cyprus by installing up-to-date software and train-ing our workforce in innovative procedures. Orangefield Cyprus has become a member of the Cyprus Investment Funds As-sociation (CIFA). We position ourselves as a long-term and trusted partner that fully sup-ports our clients’needs in fund administration and depositary services. Over the years, Or-angefield has established strong working partnerships with lead-ing financial firms, including investment banks, private equity firms, management companies and custodians. We specialise in hedge funds, private equity funds and real estate funds.

CORPORATE SERVICES Orangefield provides a wide range of corporate services around the globe. We operate in an entrepreneurial environment so our clients always come first.

Our personal approach in the day-to-day business of our clients is guaranteed by providing them with a single contact person for all their activities worldwide.

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

Following the events of March 2013, what can the Govern-ment and the private sector do in order to restore the Admin-istrative Services sector to its pre-crisis levels and to encour-age the further growth of the industry?Constantinos Economides, Managing Director: In the wake of recent developments and the financial turmoil, we believe that it is time for Cy-

SPECIAL PROMOTIONAL FEATURE

ORANGEFIELD CYPRUS LTD

CONTACT INFORMATION: Orangefield Cyprus Ltd Address:

Tel: Direct Line: Mobile: e-mail: Website:

(L-R): Yiota Charalambous, Ioanna Georgiou, Paola Ioannou, Maria Karekla, Eva

Shammas Chell, Constantinos Economides, Laura Michael, Mary Trimithiotou

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

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CONTACT INFORMATIONConnectedSky Legal & Corporate Consultants Limited

Address: Tel:Fax: e-mail: Website:

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There is no doubt that the events of March 2013 were catastrophic, not only for the

administrative services sector but for the Cypriot economy as a whole. Like many others, our international clients and we ourselves suffered the consequences of the bail-in, which took us all by complete surprise. The unjust decision taken by our banks and the

Troika to freeze fixed deposits and current operating ac-counts were very damaging and will have lasting detri-mental consequences to Cy-prus’s international reputation as a strong financial haven, something which we worked so hard over many years to achieve.

The great understanding, trust and confidence shown towards O.T.A. Orphanides Trust Agency Limited by our

loyal international clients, helped us overcome the effects of the economic meLimited own fairly quickly. In fact, dur-ing the second half of 2013, thanks to our dedicated team of professionals, we managed to boost our sales and main-tained our profitability at the same levels as that of previous years.

By employing additional professional staff and through restructuring and reorganizing our team, we were able to perform stronger in 2014. At the same time, we established full data transparency and we maintained a good balance between privacy and confi-dentiality while ensuring full compliance.

Increased local regulation by CySEC, as well as the demands of the Troika and international regulation, have obliged us to request and constantly de-mand updated and thorough information from our clients. O.T.A. Orphanides Trust Agency Limited has a principle of choosing reputable clients, wealthy individuals, sufficiently experienced in the internation-al business environment who fully comply with European Commission requirements and have proper Due Diligence

Documents in place .Our efforts were fully re-

warded when we obtained our License from CySEC.

O.T.A. has managed to build trusting relationships based on confidentiality. Our expert, client-focused approach has earned us a strong clientele of world class corporates and High Net Worth Individuals and repu-table intermediaries. O.T.A. has invested in international business trips, visiting existing and prospective clients, and attending business forums globally to promote our local administrative services.

This has led us to believe that wealthy investors see themselves as international citizens who are able to enjoy the benefits of multiple juris-dictions and who demand that their broader needs be satis-fied. The main requirements of these investors are tax ef-ficiency, effective skills, trust, speedy service, reliability, transparency, confidence and versatility. In addition, they expect to encounter minimum bureaucracy in government departments, ease of telecom-munications and transport, as well as stable and healthy financial and legal systems.

SPECIAL PROMOTIONAL FEATURE

O.T.A. ORPHANIDES TRUST AGENCY LIMITED

Costas Orphanides - Managing Director

REPORT OF THE MANAGING DIRECTOR

«

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

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Our international contacts have informed us that, even under the present stringent economic conditions in the EU, globally and following the financial meLimited own in the USA five years ago, there are still thousands of investors worth billions and tens of thousands of investors worth millions who are very much interested in increasing their after-tax profit through the use of efficient and legal tax structures.

Cyprus Administrative Services and other related professional bodies such as the Cyprus Bar Association and the Institute of Certified Public Accountants of Cy-prus, are more than capable of fulfilling all of the aforemen-

tioned needs of international investors in order to encour-age the further growth of this industry.

Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry? Costas Orphanides, Manag-ing Director: The Govern-ment and the private sector can assist Cypriot Adminis-trative Services and related professionals in attracting High Net Worth interna-tional investors in the follow-ing ways: - By jointly sponsoring inter-

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

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

CONTACT INFORMATION: O.T.A. ORPHANIDES TRUST AGENCY LIMITEDAddress: Tel: Fax:

e-mail: Website:

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T he members of our team of professional advisors have extensive experience in their

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

Specifically, the services we provide include the following:

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

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

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

BANKING Our team may assist clients to open and/or operate bank accounts with reputable financial institutions in various business centres including Cyprus, London, Greece, Hong Kong, Luxembourg, Singapore and Dubai, always in compliance with our company’s and the respective banking institution’s anti-money laundering procedures.

TRUSTS, AND TRUSTEE SERVICES Prudens maintains a team of experts specialising in all aspects of Trust formation and related services. We are in a position to set up or assist in the set-up and the administration of a variety of trusts in an impartial and non-conflicting manner always within the expressed terms of the Trust instrument.

TAX ADVISORY AND GROUP STRUCTURING SERVICEOur professional advisors are able to offer corporate and personal tax advice from an income tax to inheritance tax perspective. When providing

personal tax advice, we consider it fundamental that we fully understand what clients want to achieve and ensure that they pay only the tax that they have to, thus safeguarding family wealth for future generations.Our tax advisory services include VAT planning and administration whilst complying with all the relevant EU and individual EU member state tax regulations.

Following the events of March 2013, what can the Govern-ment and the private sector do in order to restore the Admin-istrative Services sector to its pre-crisis levels and to encour-age the further growth of the industry?Antis Kaplanis, CEO: The events of March 2013 have criti-cally damaged people’s image of Cyprus which is the sine qua non of a jurisdiction which wants to portray itself as a financial centre, with a stable economic and polit-ical environment in which people can transact their business in a safe and unencumbered manner. The process of restoring the sec-tor to its pre-crisis level cannot be anything but a long and arduous process which should be based on creating the feeling that the system may be relied upon once more. This can only achieved if both the the private and the public sector work together to remove all potential uncertain-ties. We need to choose those long-term goals that make sense and signal to the world that we are seriously committed to an environment of stability for all matters that may affect directly or indirectly the sector’s clients such as bank strength, tax is-sues, elimination of unnecessary bureaucracy, and speed of the judicial system.

SPECIAL PROMOTIONAL FEATURE

PRUDENS LTD.

CONTACT INFORMATION: Prudens Ltd. Address: Tel: Fax:

e-mail: Website:

Antis Kaplanis, CEO

WE ARE AN INDEPENDENT PROVIDER OF FIDUCIARY, ACCOUNTING AND ADVISO-RY SERVICES.

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CONTACT INFORMATIONConnectedSky Legal & Corporate Consultants Limited

Address: Tel:Fax: e-mail: Website:

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Servuspride Ltd., founded by Costas Tsirides & Co. LLC, started its operations in summer 2010

with a focus on corporate clients investing into the Russian and CIS markets. Since then, Servus-pride Ltd. has managed to main-tain and develop a large portfolio of corporate clients, mostly well-known and recognized Rus-sian and Ukrainian industrial and financial conglomerates.Servuspride Lid. offers special advice on the registration of com-panies in Cyprus as well as on the registration of entities worldwide and ensures continuous support for clients with a full range of corporate management services. Servuspride Ltd. employs an experienced team of in-house experts who associate closely with independent professionals specializing in various fields of

tax, legal services and business. Our specialists do their utmost to find and implement the most effective solutions using international agreements and other legislation. Servuspride Ltd. provides advice and consultancy services on all matters related to offshore business and International Business Com-panies which are either resident in Cyprus (provided that its manage-ment and control is in Cyprus) or non-resident (if it is managed and controlled from

outside the island). Using its wide experience and its association with reputable profes-sionals, our company is able to offer the following: Company Incorporation &

Registration “Shelf” Companies Nominee Services Company Secretary Registered Office and Mail

Service Maintenance of Statutory

Records Bookkeeping and Audit

INTERNATIONAL TRUSTSServuspride Ltd. renders expert advice in respect of incorporation of trusts in Cyprus and in other jurisdictions. In accordance with the provisions of the Trust Deed, our company can manage the Trust which may comprise cash, bank deposits, shares, real

estate and other property.

MANAGEMENT, BANK ACCOUNTS & SECRETARIALServuspride Ltd.’s management and staff are highly qualified and experienced in providing man-agement services to suit every client’s needs and requirements. A bank account is an important attribute with regard to any company and Servuspride Ltd. takes upon itself, in col-laboration with the most reliable banks in Cyprus, to provide the preparation of all necessary documentation, bank account opening, support of corporate and personal accounts, Internet banking arrangements, acquisi-tion of credit/debit banking cards and closing of accounts. Servuspride Ltd. renders nomi-nee services for the convenience and anonymity of our clients including nominee directors and nominee shareholders, In addi-tion, our company can provide a physical address and mail service to simplify clients’ business activity. Servuspride Ltd. provides a number of other services in-cluding assistance in speedily obtaining different documents from the Registrar of Compa-nies, corporate due diligence, assistance in the legalization and certification of documents, ar-rangements in regard to opening an office in Cyprus, liquidation or winding up procedures, com-munication on corporate issues with the tax authorities, etc.

Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further

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

SPECIAL PROMOTIONAL FEATURE

SERVUSPRIDE LTD.

CONTACT INFORMATION: Servuspride Ltd Address: Tel: Mobile:

Fax: e-mail: Website:

Irina Loutchina Skittides - Managing Partner

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CONTACT INFORMATIONConnectedSky Legal & Corporate Consultants Limited

Address: Tel:Fax: e-mail: Website:

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CONTACT INFORMATIONConnectedSky Legal & Corporate Consultants Limited

Address: Tel:Fax: e-mail: Website:

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Trident Trust is a leading independ-ent provider of corporate, trust and fund services

to the financial services sector worldwide with an extended and successful track record of more than 35 years of providing our services to major financial institutions and professional intermediar-ies worldwide. Our practical, cost-effective and professional support enables institutions and advisors to focus on their asset management and advisory activities, while we take care of the day-to-day administration of the entities (companies, trusts and foun-dations) established by their clients.

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

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

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

OUR CYPRUS OFFICETrident Trust Company (Cyprus) Limited was estab-lished in 1996. Regulated by the Cyprus Securities and Exchange Commission, today we are one of the leading pro-viders of administration and fiduciary services in the local financial services industry. The majority of our more than 50 employees are profes-sionally qualified. We offer our services across a wide range of jurisdictions, principally to law firms, ac-countants and tax advisors, as well as financial institutions and large international organi-sations. Our services include:• Incorporation & Adminis-tration of Cyprus Companies • Administration of Offshore Companies • Establishment & Adminis-tration of Trusts • Registered Office & Secre-tarial Services • Nominee Shareholder Ser-vices • Directorship (Resident & Non-resident) • Bank Account Opening, Administration & Signatories • Accounting, Bookkeeping & VAT Services • Escrow Agent Services• Compliance Services

SPECIAL PROMOTIONAL FEATURE

TRIDENT TRUST COMPANY (CYPRUS) LTDPROVIDING CONFIDENCE THROUGH PERFORMANCE

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

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

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

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

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

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

THE TRIDENT TRUST SOLUTIONIn today’s changing financial environment many institu-tions which currently offer corporate and fiduciary ad-ministration services as part of their product offering are reconsidering this element of their business model. Their reasons include both internal and external factors such as avoidance of conflict of interest, focus on core competence, cost saving, and enhanced regulatory require-ments.

Trident Trust, as a “niche operator”, emerges as the obvious choice for managing the corporate element of their structures, and any ancillary services within our field of expertise, because of:

• Experience - we have been successfully servicing the corporate requirements of our clients for over 17 years in Cyprus and more than 35 years globally.• Global Footprint – with a geographic reach that is one of the widest in our industry, we offer clients one-stop access to a range of jurisdictions that few can match. • Pricing - we price our ser-vices fairly and transparently. • Independence - we are an independent organisation, free of conflicts of interest and able to provide an unbiased and impartial service.• Professionalism - our staff combine professional qualifi-cations with extensive practi-cal experience.• Staff Continuity - our high level of staff retention means clients can expect to build long-lasting relationships with dedicated teams who will un-derstand their needs and their business. • Standards - we adhere to the highest compliance stand-ards.

“Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels

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

CONTACT INFORMATION: Trident Trust Company (Cyprus) LtdAddress: Tel:

Fax: e-mail: Website:

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

fiduciary service providers is our ability to efficiently and effectively identify our clients’ specific business needs and solve/avoid any problems they may face through our wealth of experience and vast network of contacts.V.M.L has excel-lent cooperation with other professionals that offer com-plementary services and also with all government bodies and authorities, thus enabling our clients to depend on us for a full range of services.

OUR PROFILEOur firm employs a diverse set of professionals who are set apart in both their qualifica-tion and experience. They are the core of our operation and, for this reason, we are determined to maintain the highest of standards. The firm

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

Corporate: Our firm has established a team of highly experienced legal profession-als who are set to deal with a range of legal matters both do-mestic and international. They have expertise in drafting and negotiating a wide variety of Corporate and Commercial agreements which cover a vast range of business transactions, including but not limited to:- Joint Ventures - Merger and Acquisitions- Agency - Share sale and purchase- Corporate Financing trans-actions

Finance: The finance team is made up of individuals who have experience in deal-ing with today’s demanding business markets. They un-derstand the needs of all types of businesses from simple bookkeeping requirements to

SPECIAL PROMOTIONAL FEATURE

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the provision of tax planning advice of complex multi-jurisdictional structures. Our tax advisors use their knowl-edge of available tax schemes and mechanisms, in line with both Cyprus and Internation-al Tax legislation, to enable our clients to take advantage of any available tax benefits, thus minimising their tax liability and exposure.Our approach is always per-sonal, whether we are dealing with a single businessman or a multinational cooperation. We pride ourselves on pos-sessing the attitude, character and communication skills necessary to assist clients in achieving their desired objec-tive.

OUR SERVICESOur firm’s areas of expertise relate to wealth management which involves international and local tax planning, asset and risk management, ac-counting, corporate, trustee and fiduciary services, as well as banking in Cyprus and abroad.

CorporateProviding advice and legal

guidance on potential trans-actions and other corporate matters

Arranging for legal opinions or other legal work where necessary

Attending meetings and negotiating transactions on behalf of the client

Reviewing transactions to ensure compliance with tax, VAT, legal, statutory and re-porting requirements

Carrying out company searches and legal Due Dili-gence

Corporate compliance and governance matters

Preparation of general cor-porate documents

Company Administration Secretarial functionsWe provide constant cor-porate secretarial support and compliance services to the Companies under our administration, ensuring that they are in conformity with the regulations of the Cyprus Companies Law Cap 113 and any other relevant jurisdictional Law. These ser-vices are provided in a diligent manner and on a continuous basis throughout the client relationship. These functions may include the preparation of minutes of meetings of the Directors and Sharehold-ers, updating the Registrar of Companies, reserving and protecting the company’s records, the preparation of the Annual General Meeting of the Company and maintain-ing statutory registers.

We also offer advice and services related to the estab-lishment and administration of Cyprus Investment funds. We collaborate with a range of licensed financial consultants and external parties (e.g. cus-todian banks, audit firms), to provide a fully rounded “one stop shop” service that full fills all the requirements for the set up and running of a Fund.

FinanceOur finance department can

assist clients with the full financial administration of their companies. This in-cludes maintaining account-ing records, liaising with auditors, the preparation and review of tax and VAT re-turns, payroll and more.Apart from the standard financial services required for the administration of a Cyprus company, VML also offers restructuring and busi-ness turnaround for loss mak-ing companies.

Taxation ServicesFurthermore our finance de-partment offers the following tax-related services:

Provision of tax advice with regards to prospective transactions

Tax structuring (both in-ternational and in Cyprus)

Negotiations with the Tax Authorities on our client’s behalf

Securing Tax Rulings with the Tax Authorities to ensure the tax treatment of key mat-ters is agreed with the Tax Authorities in advance

Obtaining Tax Residency and Tax Clearance Certifi-cates

Submission of all relevant tax returns

Provision of personal tax advice.

Our aim is to be able to pro-vide a complete service which accommodates all clients’ needs through accessibility to various business institutions, authorities and bodies, both national and international,

providing the basis for a fully rounded service.

Following the events of March 2013, what can the Government and the private sector do in order to restore the Administrative Services sector to its pre-crisis levels and to encourage the further growth of the industry?Andreas Orphanides, Managing Director: The aftermath of March 2013 revealed that the sector needed to strengthen its regulative basis to attract further trust in its capabilities. It cannot, however do this alone; it requires the Government authorities to update their systems and implement certain standards that will accommodate clients’ business needs, simplify procedures and minimize bureaucracy. It must also set transparent rules within the industry to illuminate the abuse of clients’ trust by individual firms which may tarnish the industry as a whole.

It must be noted that the attraction of investors to Cy-prus may be due to the “whole package” concept. The Gov-ernment must recognize this and assist investors, who may want to use Cyprus to fa-cilitate their business ventures and also their personal endeav-ours. The administrative firms, being the first point of contact with the client, must broaden their services and collabora-tions with other institutions to be able to offer clients assis-tance across a broad spectrum of services.

CONTACT INFORMATION: V.M.L Venture Management LimitedAddress: 48, Akropoleos Avenue, | 2012 Strovolos, Nicosia, Cyprus | Tel: (+357) 22777711 | Fax: (+357) 22773383

e-mail: [email protected] | Website: www.vml.com.cy

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By John Vickers

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

Gold: During the good times, su-permarkets compete with one another on promotion in order to gain custom-

ers. During times of crisis, this is still the case but do you view the “promotion war” in a different light?Michalis Panayides: Social and economic/financial developments in recent years have significantly affected consumers’ behaviour and the way they view supermarket pric-ing. It is true that the “promotion” war is changing according to the particular needs of the times. In the past, and more precise-ly during what we might call the “good old days”, it could be said that the “promotion

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

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

sumer to truly benefit through substantial support and help in order to cope with the prevailing economic/financial conditions by offering core products at low and af-fordable prices.

Gold: Obviously, the better your promo-tions are, the more customers you are likely to have. How do you decide how far you can go before you start to affect the company’s profits?M.P.: It is only natural that the more fre-quent and wide-ranging our promotions are – covering all our products – the more customers we will gain. As a result of the financial crisis, however, Cypriot consum-ers have assumed a new profile: they shop around, they are more demanding where their purchases are concerned, they seek out the best prices, they are in touch with the market and are generally more cautious

RETAILING

CARREFOUR

THE RESCUE!

CORPORATE SOCIAL

RESPONSIBILITY IS ONE OF THE MAIN PILLARS

OF OUR COMPANY’S STRATEGY

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and better-informed. Recognising all this, our strategy is to offer consumers the best prices for core products; our main criterion is not profitability but rather to satisfy our customers’ needs and to strengthen our relationship of trust with them. Moreover, I would note that, as the leaders in retail trading in Cyprus and due to our negotiat-ing power, we are in a position to offer the best prices and promotions. Furthermore, being a Carrefour franchisee enables us to deliver quality private label items to our consumers at low prices and this can re-ally make a difference to every consumer’s basket.

Gold: Over and above the issue of price, how much importance does Carrefour Cyprus give to issues related to its Cor-porate Social Responsibility? M.P.: Corporate Social Responsibility is one of the main pillars of our company’s strategy. Through targeted actions which truly make an impact, we are able to give something back to society, to our fellow citizens and to the environment. From the very first years of our operations as Carre-four Cyprus, we were one of the first com-panies to sense the need to actively support society and specifically those in need. In this light, we have successfully designed and implemented a series of actions in the context of our comprehensive corporate social responsibility plan.

Gold: You also make a point of main-taining good industrial relations.M.P.: Our staff are at the centre of all deci-sions taken by Carrefour Cyprus. We pro-vide 1,178 people with equal opportunities for development and training.

Gold: Carrefour Cyprus has also made a point of supporting local producers and suppliers.M.P.: One of the company’s longstanding corporate strategic initiatives is to support local production and supply. Through the promotion of domestically grown products, we are actively supporting the growth of the local economy whilst upholding the local labour market. Some 90% of the per-ishable items we offer in our stores come from local suppliers and producers, while 100 % of our bakery and butchery goods are produced in Cyprus. Additionally, 100% of the fruit and vegetables we sell are

purchased from local suppliers, of which 50% are also local producers.

Gold: What about environmental issues, which many companies are incorporat-ing into their CSR activities these days?M.P.: Environmental protection is part of our everyday life. Carrefour Cyprus, partic-ipates in a variety of relevant activities and initiatives and implements environmentally friendly practices, always guided by the principles of sustainable development. Fur-thermore, we are focused on reducing our carbon footprint, on proper waste manage-ment, recycling materials and applying the criteria of environmental responsibility including the use of reusable and biode-gradable grocery bags.

Gold: There has been a lot of support for vulnerable social groups over the past 18 months...M.P.: Carrefour Cyprus places special emphasis on supporting vulnerable social groups in all the communities where we are active. In this framework, we are stead-fast and consistent in our implementation of the Breakfast Initiative (“Progevmati-zomen”) for needy schoolchildren. We ac-tively support on a daily basis 3,077 needy pupils in the Limassol, Paphos and Larnaca districts. At the same time, we support the work of various foundations and schools through donations and the provision of foodstuffs. Two indicative examples are the Alkionides charity and the Margarita Liasi-dou Foundation.

Gold: You have been very active regard-ing schools and schoolchildren particu-larly with last year’s Breakfast initiative. Will this continue in the 2014 - 2015 academic year?M.P.: Yes. In 2013, we started the initia-tive to provide breakfast to 2,100 needy pupils in the Limassol district, with the valuable contribution of the Holy Bishop-ric of Limassol and the Limassol School Board, and this has continued for the third consecutive school year. In 2014, we have also provided daily breakfast to 460 pupils in the Paphos district, taking the total number to 2,560. Keeping our promise to support pupils in need during the current school year, we have extended the pro-gramme further to include 517 in the Lar-naca district. At present, 3,077 pupils are

receiving a daily breakfast and we estimate that over the past three years, more than 900,000 meals have been offered.Our aim and commitment as Carrefour Cyprus is to stand by every pupil who needs us during the 2014-2015 school year in the Limassol, Paphos and Larnaca districts.

Gold: At the start of the new academic year, when you would normally expect to make substantial profits on school mate-rials such as schoolbags, uniforms, etc., you actually discounted these items. Was this a difficult decision from a business point of view?M.P.: It is true that school items are among our most important and bestselling prod-ucts. Nevertheless, we remain true to our values to uphold and support vulnerable groups in society and, within the broader context of our Corporate Social Responsi-bility, we decided to provide special offers on school materials and school uniforms. During the past few years, we have donated 5% of our total sales from school items in Cyprus to needy pupils in the Limassol and Paphos districts. Additionally, we have offered 25% discount on a wide range of school items in an effort to make them af-fordable to all pupils.

Gold: Such initiatives would have been unthinkable and unnecessary three years ago. Was it easy for Carrefour Cyprus to adopt this new strategy?M.P.: Carrefour Cyprus has always been guided by the principle of offering the best prices to benefit its customers. In today’s difficult financial circumstances, we feel obliged, as the largest retail group in Cyprus, to adopt actions which give back to society and in particular to those of our fellow citi-zens who are truly in need.

AS A RESULT OF THE FINANCIAL

CRISIS, CYPRIOT CONSUMERS

HAVE ASSUMED A NEW PROFILE

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A

WEALTH MANAGEMENT

FROM LONDON TO LIMASSOL, CALLING AT HONG KONG AND MOSCOW…

Andrew Lumley-Holmes describes himself as an international in dependent financial adviser and there is good reason for the first word. He arrived in Cyprus in July, having spent the previous six and a half years living and working in Mos-cow and Hong Kong.

“Travel is one of my great passions,” he says, “and, in a way, living and working abroad and immersing myself in local culture is an exten-sion of that. Hong Kong is a perfect hub for anyone who wants to travel all over Asia and I took the opportunity to do that by going to Thailand, Vietnam, Cambodia, Malaysia, Indonesia, China, Korea, Japan. I spent almost five years there and it was a really good time.”

Lumley-Holmes grew up in York, UK, studied Business and Economics at the Uni-versity of Leeds and got his first job, trading European investment-grade debts with Bank of America in London. “I did that for two years and nine months, by which time I had decided that sitting in front of a bank of four computer screens for 14 hours a day was not me!” He then moved to HSBC Private Bank-ing which, he says, gave him the best of both worlds: “I still had the asset management side, and the maths and economics which I enjoy, but in addition there was face-to-face contact with clients and I wasn’t stuck in the office all day. Meeting new people is an interesting and personal way to do business and that side of the job is probably the part that I enjoy the most.”

He was there for just over three years, until early 2008 when he was offered the opportu-nity to go to Hong Kong with UBS Private Banking. “I saw it as one of those opportunities that don’t come along every day so I decided to give it a try,” he recalls.“Hong Kong is a great city and, in a strange way, it reminded me of England – all the street signs are in English, everyone speaks the language – so adapting to it was relatively straightforward or, at least, a lot

easier than it might have been.”In Hong Kong, he was doing similar work

to that in his previous post, though it was sometimes rather more complex, dealing with international expatriates owning multi-jurisdictional assets, managing clients’ invest-ment portfolios and providing financial advice to High Net Worth Individuals. On the other hand, it was even more interesting and, of course, he was able to do a great deal of travel-ling. After two years he left UBS to work as a Senior Consultant with York Capital Solutions & Alliance Group, still based in Hong Kong.

Why the move?“I had always worked for banks and while

being with HSBC and UBS gave me a certain level of independence, it was never true inde-pendence. There were always targets to put a certain amount of money into the banks’ own managed funds, for example. Outside them, I was free to offer clients a fuller, truly independent service – particularly High Net Worth Individuals – with access to solutions or tax structures that may not have been available through the private banks.”

Despite the travel opportunities and the job satisfaction, Andrew Lumley-Holmes could see that things were changing in Hong Kong, particularly in the private wealth management sector as more and more of the business was becoming more Mandarin-based and thus required additional language skills, a lot more family trusts were being managed from China

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

By John VickersPhotograph by Jo Michaelides

and, in many ways it was becoming a very different market from the one he had entered almost five years earlier. “It’s completely dif-ferent now,” he says, “so I think I got out at a good time.”

His next stop was Moscow, a move not entirely unconnected with the fact that he had been dating a Russian woman in Hong Kong for more than two years and had been learning the language. “If I hadn’t got that knowledge of the language, it would have been very dif-ficult,” he admits, “so that made the transition somewhat easier for me than it might be for others. My fluency in Russian was reasonable, though when doing business we would still have a translator there to make sure there are no misunderstandings with clients.”

While the most obvious change was the weather (“From 34 degrees and 96% humid-ity, I found myself having to get used to tem-peratures of 30 below zero in winter”), there were others too.

“It’s a very different culture doing business in Moscow and it can be a hard lesson to learn at first,” he says. “In Hong Kong and London, there is a great deal of emphasis on getting on well and having a good rapport with clients. In Russia, you still build relationships but at the initial stages, at least, it’s all about the business, what you can do for them and how you’re going to do it.”

Lumley-Holmes spent almost two years in the Russian capital but various issues that arose

EMENT

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easier than it might have been.”In Hong Kong, he was doing similar work

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haelides

and, in many ways it was becoming a very different market from the one he had entered almost five years earlier. “It’s completely dif-ffferent now,” he says, “so I think I got out at a good time.”

His next stop was Moscow, a move not

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there during the first six months of the year made him look positively on an offer from his present employer, Finsbury Private Wealth Management.

“To be fair, I wasn’t actually looking to leave Moscow when Finsbury came along,” he explains, “but business confidence was falling and a large part of my market (mainly expats) was growing very jittery. A large number of major companies have left Moscow in the last six months and about a quarter of my clients have left too.”

This, combined with the fact that Finsbury basically allowed him to base himself wherever he chose and that it is fully regulated by the FCA in the UK with MiFID passports into all EEA states and full local licensing outside Europe, made it too good an opportunity to turn down.“The beauty of being in a regulated business is that it protects us as managers and it protects our clients,” he says. “For much of the last 30-40 years the international market has been fairly unregulated – there have been some cowboys around and, unfortunately, there are still a few around today – so regulation is essen-tial to ensure trust.”

So, with the world at his feet, why did Andrew choose Cyprus as his next place of residence?

“Being here makes perfect sense: my exist-ing client base is in London, Hong Kong and Moscow. I can go to Hong Kong a couple of times a year, we’re four hours from both Mos-cow and London, everyone speaks English, my fiancée is Russian, there is a sizeable Russian community in Cyprus, and I think there will be a lot of opportunity to take on new clients here.”

Logically, Russians will be one of his major client bases in Cyprus, though he notes that Finsbury can deal with anyone: “The main part of the business is wealth management and asset management, tax and trust solutions, wherever they may be.”

There is obviously a huge responsibil-ity involved in looking after other people’s

sectors of interest, types of assets, etc. “In the end it’s a continuous process of invest, review, invest, review, etc. It’s that simple. You just have to keep on top of where you are investing and when.”

There has been a lot of talk in the UK and elsewhere about clamping down on what is at present legitimate tax avoidance by big corpo-rations and wealthy individuals too. How does Andrew Lumley-Holmes view the situation?

“It has the potential to be very serious for British expats who still have income or assets in the UK in particular,” he says. “The UK government needs to increase tax revenue and the easiest way to do it to target those who are taking money out of the UK and those using legitimate tax avoidance strategies. They are trying to change the rules on what it means to be non-resident. That could mean a huge fall in income for a foreign-based person receiv-ing a pension from the UK who is made to pay tax on the full amount rather than having an allowance. But in the end,” he points out, “the answer is to change the law. The British government can’t complain when people are taking advantage of what is a completely legal situation.”

As a jurisdiction, Cyprus a great deal going for it, he says, noting that one of the biggest benefits of being licensed here is the ability to get into other EU countries through the Cypriot regulatory framework. “If you are a Moscow-based brokerage or finance company, why wouldn’t you come to Cyprus?”

Having lived in three countries before arriv-ing in Cyprus this year, does Lumley-Holmes envisage finally settling down long-term?

“If you’d asked me 8 years ago what I would be doing in the future I couldn’t have imag-ined leaving London so I’ve stopped trying to predict the future!” he admits with a smile. “My intention at this moment is to base myself here long-term. Cyprus is very convenient for my business and I love the lifestyle but, this early into my stay, I wouldn’t want to put a number on the years that I’ll be here. We’ll just have to wait and see.”

WEALTH MANAGEMENT

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

WHILE WE HAVE CLIENTS WHO HAVE $50 MILLION

WITH US, THERE ARE OTHERS WITH JUST

$25,000

EVERYBODY CAN BENEFIT FROM GOOD QUALITY FINANCIAL ADVICE

money, particular when millions of euros or dollars may be invested and it is something that Lumley-Holmes always has in the back of his mind. “I tend to take the line that if I would not recommend something to a family member, I wouldn’t recommend it to a client either,” he says, noting that a key element of maintaining the required quality of service lies in keeping in touch with clients, ensuring that they understand what’s happening with their money or their investment and keeping them constantly updated about what’s going on and why a particular decision has been taken. “In the end you get used to the idea of responsibil-ity and you tend to forget how huge the sums are in many instances. When I started out with Bank of America, my team’s portfolio was close to $400 million…”

That said, he is keen to point out that wealth or asset management is not the exclu-sive domain of millionaires and billionaires. “We deal with everybody,” he clarifies, “from young professionals of 26-27 who are just start-ing a career and want to invest some money, to the professional sport stars and athletes whose money and investments we manage. Finsbury Sport looks after English Premiership footballers and top golfers, for example, and they are multi-millionaires. But while we have clients who have $50 million with us, there are others with just $25,000. Everyone can benefit from good quality financial advice and, although we do very different things for them, we don’t distinguish between them, however much money they have.”

At a time when banks are not giving a worthwhile interest rate, does he still recom-mend that clients have cash as part of their portfolio?

“Everybody should have cash as part of their portfolio,” he replies without hesitation. “The level you require within your total assets de-pends on your circumstances. People who are working should look to have six months to one year’s salary in cash and those who are retired should have 2-3 years’ income in cash. This is fairly standard advice.”

Given that today’s markets are very volatile and all kinds of events can affect company share values, it can’t be easy is it to decide where to invest a client’s money. Fortunately, he says, Finsbury has a risk management team based in Switzerland which does the bulk of the work in terms of looking at underlying valuations of stocks or bonds or different as-sets that he may wish to invest in, as well as at

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OPINION

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

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

info: Dr. Savvas Savouri is a Partner and Chief Economist of Toscafund.

R ecent events in Ukraine have been politics being led by economics. When the EU was flourishing economically, it proved a magnet towards which Ukraine swung

politically. Then as the EU’s finances faltered, Ukraine’s political pendulum swung towards Russia which, having been practically insolvent in 1998, had by 2013 strengthened significantly. The political pendulum in Kiev has not so much swung back towards the EU but rather been forcefully wrenched in that direction.

The reality is that Ukraine is now a pseudo EU state and, as such, possesses considerable threats. After all, its sharply weaker currency has made its farms and factories a great deal more competitive. Crucially, what is unfolding across Ukraine is undermining the economy of Poland, a country which, on falling into recession, would strike a huge blow to the EU’s “singular economic model’, and threaten its very existence, unless it is comprehensively revised.

Already troubling economic matters across the Continent will worsen, and Germany will not be immune. Rising unemployment will spur on ever more extreme political groups; worsening economics and unwelcoming political attitudes will quite simply spur on those who are mobile enough to escape Continental Europe to do just that.

For fleeing Europeans keen to find somewhere to settle, Great Britain’s ever expanding economy will seem a tantalising destination. And to turn away these – for the most part – human and fi-nancial capital rich evacuees could only serve to send Britain down the same economic hole into which mainland Europe is sinking.

The reality is that Europeans have evacuated en masse in the past, including from across the Brit-ish Isles. And where they have arrived has gone on to economically thrive.

For all Argentina’s recent economic travails, a century ago it was one of the world’s elite. It

was, in fact, the 10th wealthiest nation per capita, making European émigrés to Argentina more prosperous on average than those they had left behind in what was to become a terribly war-torn continent. The best example of what immigra-tion can quickly do is the United States. In 1830 it boasted a population of 12 million. By 1850 it was home to 23 million and in 1880 to 50 mil-lion. The population of the United States would exceed 75 million at the beginning of the 20th century. This three-fold increase in population was almost entirely due to mass immigration from across the Atlantic. European migrants increased the population of the US by a staggering 12% each year between 1860 and 1910. Those enter-ing the US came from all corners of Europe, and were drawn across all its religions.

Since welcoming Europeans the United States has seen migrants settle there from all over the world and is now home to a population of 320 million. The US boasts the world’s largest sover-eign GDP and a currency which is the numeraire of most resources and the prominent store of global wealth. None of this economic success could have been possible but for immigration, each new wave of arrivals acting to generally en-rich the last. Indeed, a casual inspection of the constituents of the current S&P100 or roll-call of stocks in the Dow Jones Industrial Average re-veals a raft of corporate giants with leading global brands whose founders were, in most cases, reluc-tant migrants from Europe.

And as it struggles to find markets to sell its goods and services, Europe is once again reverting to exporting in ever growing numbers its prime-age labour. Be in no doubt, wherever these peri-patetic Europeans settle, economic activity and entrepreneurial endeavour will be lifted. They are off to Africa and they are off to South America. They are migrating to Asia. Closer to home, as long as Great Britain operates within the EU’s Single Labour Market, many are certain to use its freedom of movement to settle there.

By Savvas Savouri

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

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

LUXURY LIVING

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

the sky

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THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS Gold 81

DESIGN:

“We set out to understand the local vernacular so that we could develop a modern interpretation of traditional architecture.” – Rob Steul, Principal, Europe, Woods Bagot

CONCEPT:

The idea that residents should

live a healthy, peaceful, and active lifestyle was critical to

the master plan. – Rob Steul,

Principal, Europe, Woods Bagot

he car moves along with a hum, the road winding mysteriously, leading me to ever higher ground and into depths of open space and rolling moun-tains. The radio cuts out. Now I know I am enter-

ing remote territory: in fact, some 5 million square metres of remote territory, belonging to the hallmark Paphos-based developer Pafilia. It is here that the luxurious lifestyle resort, Min-this Hills, is being nurtured, bringing to life a whole new concept of island living.

I recall the legend: away from civilisation, alone in thoughts and spirit, a monastery lay in the Tsada valley where two mountains meet. As the crusaders swept through the land in the Middle Ages, the monastery was brought to its knees, left as ashes and dust.

Soon after, a monk stumbled upon the only remnant: the monastery’s cross, shrouded

beneath wild growing mint, and was inspired to rebuild the religious abode. The so-called Minthis Cross still stands amongst the grounds today, lending its name to the resort taking shape around it.

“The overall development will only cover 3% of the total land area (which is a part of the EU’s natural protected, Natura 2000), leaving the remainder as undisturbed nature, rich in indigenous plants, and an important habitat for many local wildlife species,” Demetris Ashiotis, Executive Director, Pafilia explains, as we take our seat in the chic clubhouse over-looking the lush green golf course, bright blue skies seemingly within reach.

“The Cypriot landscape is precious, and is a key element in economic and social enhance-ment. That’s why we are incredibly concen-trated on safeguarding it. Our development will be qualitative not quantitative.”

I can see that, I think. The large glass win-dow panes, warm wooden beams, and distinct

Tstone walls comprising the clubhouse (at once inspiring of both rusticity and modernity) is a mere shadow against the backdrop of the mountains sprawling out from all directions as far as the eye can see.

“Minthis Hills’ design is classified as ‘sus-tainable development’,” Ashiotis continues. “We’ve worked tirelessly to ensure we integrate the project with the landscape, building into its natural contours, and optimally managing water resources. We already have our own herb garden, and have provisions to further develop this, growing olive trees and grape vines to produce our own olive oil and wine: a real organic plantation!”

Our mint tea arrives, harvested fresh from the herb garden: perfect timing.

So what comprises Minthis Hills, I wonder? “Minthis Hills is one of the most exclusive and luxurious resorts in the Eastern Mediterrane-an,” Ashiotis says with pride, “It has set a new standard for living and leisure in Cyprus. It is

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

KEY FACTS:Minthis Hills is situated in Tsada village, in the highlands of Paphos. It is a mere 10 minutes from Paphos town, 40 minutes from Limassol, and 1h 30 minutes from both Nico-sia and Larnaca Airport.The Minthis Hills team comprises:

World leading engineer and design consultants (who contributed to the London Olympics, and Dubai’s famed Burj Khalifa) Atkins, as the

Global design studio, Woods Bagot,

And the Church of Cyprus, serving

Residential Units:Minimum plot: 1,290m²Maximum plot: 2,700m²Houses span 150m²-308m²

Golf Course:18 holes, par 71, 5843 metresOriginally designed by Donald Steel in 1994, recently renovated by Mackenzie & EbertFairways: Challenging & undulating with plenty of strategic optionsLakes: 2Driving range: 16 baysGolf buggies, clubs, manual & elec-tric trolley rental availableGolf lessons: Tuesday to SundaySignature hole: The 13th hole has been transformed into an island green. A par three without bunkers or fairway, and just 135m from its elevated tee to green, it’s described as being an “all or nothing” shot.

Clubhouse & Restaurant:The Clubhouse, some 2,000m², is the social heart of the resort. It is home to a concierge service, a pro-shop, conference facilities and business centre, a cocktail bar, res-taurant, changing facilities, residen-

storage.The restaurant, in particular, has received high acclaim, with the Min-this Hills culinary team having been trained by the Alain Ducasse Train-ing Center in France. And, indeed,

food that is alive with French-Cy-priot fusion qualities, from the duck wrapped in cumin-infused tortilla with a mango sauce, to the halloumi

leaves, and the homemade carob ice cream encased in a chocolate shell.Chef Marios Karayiannis is also available for private parties held by residents as part of the concierge service.

an unmatched venue, and is placing Cyprus on the world map for refined living and experiences. Plans for the project consist of a champion-ship 18-hole golf course, deluxe detached villas, cluster villas, a boutique hotel of only 50 rooms, a village square with commercial facilities, a spa and health club, a tennis academy, nature trails, mountain bike paths, and equestrian facilities, as well as many other facilities that residents will be able to enjoy.”

Weddings and christenings are hugely popu-lar, I am told, with advanced bookings meaning that only two Saturdays are available for such events next year, as are corporate events held at the Clubhouse’s conference rooms.

Ashiotis confirms that the golf course – de-signed by world renowned golf course architects, Mackenzie & Ebert – is already functional (the many budding golfers I see availing themselves of it under the morning sun is proof enough), along with the resort’s core infrastructure having been completed. Moreover, 25 villas are already under construction, with eight now finished (all have been sold). “We actually have plans for some 600 villas clustered into neighbourhoods, so we still have a way to go!” Ashiotis reveals. “Phase II of Minthis Hills will see the spa brought to life, along with the village square and another neighbourhood of villas.”

The project currently employs over 180 people and, to date, a total of €45 million has been invested. “The total investment over the next years will be over €400 million,” Ashi-otis confirms, “thus contributing to the revival of financial activity in Cyprus, and supporting many local related businesses.”

LUXURY LIVING

VILLAS:

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

GOLF COURSE:

“There are few places in the world of golf where you can play in such beautiful surroundings as Minthis Hills, with the Troodos Mountains as a backdrop and the course tucked away in a valley.” – Tom Mackenzie, Mackenzie & Ebert

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

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presents

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{November 14 – December 13, 2014}

ISSUE

44

94 Santa, Baby!As the holiday season approaches, we compile our Christmas lists.

98 A Day In The LifeMelina Pyrgou

92 {tax&legal}

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

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

94

MONEY: The Rich: From Slaves to Super-Yachts: A 2,000-Year HistoryBy John Kampfner 87

BUSINESS: How Google Works By Eric Schmidt and Jonathan Rosenberg 89

TAX & LEGAL: International Law By Malcolm N. Shaw 93

LIFESTYLE: Sapiens: A Brief History of Humankind By Yuval Noah Harari  97

+ BOOK REVIEWS

86 {money}

88 {business}

90 {economy}

90 Skill Set NeededHow to make Cyprus a Strong Funds Jurisdiction

88 Significant Shifts Things are changing in the family business sector

94 {lifestyle}le}

rari 

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES OF CYPRUS Gold 85

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Repos (Repurchase Agreements) may be defined as the sale of a security coupled with an agreement to repurchase it at a higher price at a

fixed future date. However, in practical terms, the sale is not a real sale, but a loan, collateral-ized by the security.

As such, a repo is translated into receiving financing against collateral which could be fixed income or equities alike. The liquidity and the credit risk of the underlying instrument determine the financing which can be sourced against it, also known as the “haircut”. The annualized financing rate is fixed irrespective of the underlying collateral type and it is usually set by the financial institution willing to undertake the repo

transaction. As an example, US treasuries

carry an ‘AAA’ S&P rating and trade with very narrow spreads; the bid and ask

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

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

repurchase agreement

{MONEY}

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

TIGHTENING REGULATORY CHANGES

HAVE MADE THE

REPO BUSINESS LESS ATTRACTIVE FOR BANKS

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credit ratings. Tightening regulatory changes have made the repo business less attractive for banks. During the subprime crisis of 2007-08, numerous banks cut credit lines with each other amid a sentiment of high risk aversion, which resulted in a credit crunch. Consequently, financial regulators had to adjust regulatory measures so that they could have more control of liquidity. Adjustments of two particular ratios – the net stable funding ratio (proportion of long-term assets funded by long-term funding) and the supplementary leverage ratio (measures ability to meet financing obligations) – made it less attractive for banks to engage in repo activity as it became much less attractive and possible to own short-term debt. This may trigger further settlement issues as lower liquidity and less available short-term debt make it difficult to get hold of sought-after, more liquid paper which can lead to failed trades. Although this undermines the Fed’s goals of financial stability, regulators consider the financial system stronger overall once the constituent players are less reliant on short-term funding like repos.

Due to the above dynamics, the Fed formed a foothold in the repo business equipped with a portfolio of more than $4.3 trillion bonds purchased while enacting its Quantitative Easing (QE) monetary policy operations. It utilizes reverse repo operations (RRP) to raise short-term financing from money market funds, a trade which in a more flexible era was enacted much more so by banks. The growing presence of the Fed in repos indicates its intention to formulate new methods to regulate short-term interest rates once it starts tapering its QE. Once monetary policy is reversed and short-term rates are hiked, the Fed may utilize RRP to squeeze cash out of the financial markets. By controlling the short-term loans of Treasuries on its huge balance sheet, it may manage the liquidity pumped back into the capital markets,

especially as banks’ current role in the repo market is less significant.

Moreover, as banks shift to longer-term financing, non-bank entities such as hedge funds and in particular REITS (Real Estate Investment Trusts) are gaining market share in the $4.2 trillion market. Such players turn to repos to boost returns, given the current economic environment of low rates. By using more borrowed money or leverage, REITS and hedge funds can take larger positions to optimize returns, a strategy which works in stable markets; of course, if the market reverses, leveraged positions translate into

larger losses. Lastly, repo financing is

also playing a new role in the marketing of Collateralized Loan Obligations (CLOs) which are bonds backed by loans to companies. They consist of tranches whereby highly rated senior slices offer lower yields versus the riskiest slices. As investors are in pursuit of higher yields, they either invest in the riskier slices or invest in the most senior slices by leveraging the respective position. Banks are involved in the latter by offering repo financing to buyers of the more senior tranches. The current, stricter banking regulatory

environment, in which banks can’t hold CLOs as assets “on-balance sheet”, encourages lending against them and making returns in this manner.

The main risk associated with conducting repo transactions relates to collateral management following sharp financial market swings. For instance, in a repo transaction where the dealer borrows money against collateral, a sharp market downswing in the underlying position would translate into market value losses below the secured haircut i.e. the borrower’s position not being collateralized enough. The dealer would face then face a margin call. The opposite would occur in the instance of a reverse repo situation.

The main benefit of such transactions is

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

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS Gold 87

THE RICH: FROM SLAVES TO SUPER-YACHTS: A 2,000-YEAR HISTORYBY JOHN KAMPFNER (LITTLE, BROWN, 2014)

R.R.P. £25.00 (£17.00 FROM AMAZON.CO.UK)

S tarting with the Romans and Ancient Egypt and culminat-ing with the oligarchies of modern Russia and China, it

compares and contrasts the rich and powerful down the ages and around the world. What unites them? Have the same instincts of entrepreneur-ship, ambition, vanity, greed and philanthropy applied throughout? As contemporary politicians, econo-mists and the public wrestle with the inequities of our time – including the parallel world inhabited by the ultra-wealthy at a time of broader hardship – this book synthesises thousands of years of human behaviour and asks the question: Is the develop-ment of the globalised super-rich over the past twenty years anything new? Kampfner shows the rich have been with us since the start of time, exhibiting similar tendencies across all ages. The stories he tells make the book an easy read and one that carries a series of punchy messages. While he is obviously critical where he has to be, this is a fascinating history of how economic elites from ancient Egypt to the present day have gained and spent their money.

TH OM SLAVES

BOOK REVIEW

HE RICH FROHE RICH FRO

BBBORRRE

info: Persella Ioannides is Executive Director and Head of Investment Advice at MeritKapital. [email protected] (+357) 25857900

REVERSE Repo (RRP)exactly the same operation but the swap is performed from the perspective of the buyer rather than the seller. As the labeling of the direction of the repo is seen from the side of the dealer, typically, if the dealer borrows money it’s a repo while if the dealer lends money it’s a reverse repo.

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family businesses

{BUSINESS}

F amily businesses must adapt faster, innovate sooner and become more professional in the way they run their operations if they are to remain suc-cessful. These are

just some of the findings of the latest PwC survey of 2,378 family business executives in more than 40 countries worldwide.

The report – titled Up close and profes-

run their operations.”In general, family businesses are in rea-

sonably good shape, with 65% reporting growth in the last 12 months, and 70% expecting to grow steadily over the next five years. 15% are seeking aggressive growth, compared to 12% in 2012. Growth am-bitions are particularly strong in China (57%), the Middle East (40%) and India (40%).

However, the number of respondents apprehensive about their ability to recruit skilled staff in the next 12 months has risen from 43% in 2012 to 49% today. And the proportion citing the general economic situation as a key challenge in the coming year has risen slightly from 60% in 2012 to 63% in 2014.

Family businesses have become much more hard-headed since the 2012 survey. The most important priorities they cite are to remain in business and to improve prof-itability. Next come the factors that will make this happen, with the ‘heart’ issues of family and community coming much lower.

Two years ago, 70% of those questioned felt a strong sense of responsibility to sup-port community initiatives; that number is down to 59% this year. Says Steinbrecher: “When we look at the interviews in detail, it’s clear that many family businesses feel they have ‘done their bit’ to support the community during the recession by pro-tecting jobs.”

This year’s survey shows that 68% of family businesses are exporting, with over-seas sales accounting for about a quarter of turnover for all respondents. Around three quarters of those surveyed expect to be ex-porting within the next five years, and pre-dict this will account for over a third of all

THINGS ARE CHANGING IN THE FAMILY BUSINESS SECTOR

sional: the family factor – is PwC’s seventh survey of family businesses globally, this year covering more companies and markets than ever before.

Overall, this year’s survey indicates that, despite a tough economic environment, with pressures around skills shortages, in-novation and governance, family firms re-main dynamic and resilient. Indeed, family businesses account for 70%-90% of GDP globally, and are an effective barometer of the health of the economy.

One eye-catching finding from this year’s survey is that the need to profes-sionalise the business is gaining ground as a key concern for family firms, driven by an almost perfect storm of competitive pressure, rising costs and global mega-trends. It scarcely registered in 2012, but this year 40% of respondents agree this is a key challenge over the next five years. And it must be accompanied by an equally rigorous approach to professionalising the family.

Says Henrik Steinbrecher (left), Network Middle Market Leader: “It’s clear that there are new challenges; the economy is a colder and harder place for the family firm, competition is more intense, price pressure is growing, and the speed of change con-tinues to accelerate. In this climate, family businesses accept they will have to adapt

faster, innovate earlier, and become far more professional in the way they

ONLY 16% OF FAMILY FIRMS HAVE A

SUCCESSION PLAN THAT HAS BEEN DISCUSSED

AND DOCUMENTED

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THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS Gold 89

sales. The most internationally ambitious are those pushing for aggressive growth, with a turnover of $100m+, and based in the manufacturing and agriculture sectors. Geographically, the most ambitious are those in Eastern Europe, the BRIC coun-tries, and the ‘MINT’ quartet of Mexico, Indonesia, Nigeria and Turkey.

But few businesses expect to be export-ing to a significantly larger number of countries than they do now, with most tending to stick to neighbouring coun-tries or those with the same language and similar culture. “This suggests that they lack either the skills or confidence to break into new regions – many would probably need to hire in outside talent to bridge that gap, and they may well be missing out on new sources of growth as a result,” says Steinbrecher

In this year’s PwC Global CEO Survey, 81% of those questioned cited technologi-cal advances as one of the top three global trends most likely to transform their busi-ness over the next five years. And family businesses similarly recognise the growing impact of digital technologies, with 79% placing this in the top three trends.

A high 72% of family business respon-dents accept they will have to adapt the way they operate externally, and organise themselves internally, to exploit the full opportunities of digital and avoid being overtaken by more advanced competitors. The highest scores for understanding the commercial potential of digital are the growth markets of Romania (80%), China (77%), and Kenya, India and Malaysia all at 69%. The lowest scores came from Ireland (45%), the UK (45%) and Canada (38%).

So what does ‘professionalising the business’ mean for the family firm? It’s about giving structure and discipline to the vision and energy so often exhibited by the entrepreneurial family business. This helps them innovate better, diversify more effectively, export more and grow faster. But getting the business on a professional footing is not in itself enough; it has to be accompanied by an equally rigorous approach to professionalising the family.

This means, for example, putting processes in place to govern how the family interacts with the business – including establishing an infrastructure for decision-making and formal channels for communication. These will be essential during times of tension or conflict. It’s about protecting the fam-ily’s interests, and safeguarding the firm’s survival.

Nowhere is this professional approach more critical than when it comes to the all-important issue of succession. Far too many family businesses have still not fully grasped this potentially destructive issue. 53% say they have succession plans in place for some if not all senior roles, but only 30% of these ‘plans’ are properly docu-mented. Only 16% of family firms have a succession plan that has been discussed and documented. The moment of transi-tion has always had the potential to sink the family firm, and a number of factors are now coming together to make the suc-cession process more hazardous than it has ever been before.

There is a longer gap between genera-tions, as people have children later, and in many cases there is a significant commu-nications gap between those running the business now and those who expect – or are expected – to take over. Too many firms are either not planning for succession at all, or are managing it as a personal issue between two individuals, rather than as a process which requires the same rigour and objectivity as any other aspect of business decision-making. The result, all too often, is escalating tensions and a family conflict that can precipitate the demise of the whole company. As one of the interviewees said, “Family businesses generally fail for family reasons”

Warns Steinbrecher: “A plan that is not written down is not a plan; it’s just an idea. And this is an issue family firms must address with the same commitment and energy as they are devoting to professional-ising other aspects of the business. Because without it, the whole enterprise is at stake.”

The 2014 PwC family business sur-vey covers family companies with a sales turnover of US$5 million-US$1billion in

over 40 countries. Interviews with top executives in 2,848 companies took place between 29 April and 29 August.

The full report on the findings of the family business survey, Up close and profes-sional: the family factor, can be downloaded at www.pwc.com/familybusinesssurvey .

FAMILY BUSINESSES GENERALLY FAIL FOR FAMILY REASONS

HOW GOOGLE WORKS BY ERIC SCHMIDT AND JONATHAN ROSENBERG (JOHN

MURRAY, 2014)

R.R.P. £25.00 (£17.00 FROM AMAZON.CO.UK)

G oogle Executive Chairman Eric Schmidt and former SVP of Products Jonathan Rosenberg came to Google

over a decade ago as proven technology executives. At the time, the company was already well-known for doing things

were going to succeed, they realized they would have to relearn everything they thought they knew about manage-ment and business. As Rosenberg says,

secret sauce: how Google innovates and how it empowers employees to succeed.” Covering topics including cor-porate culture, strategy, talent, decision-making, communication, innovation and dealing with disruption, it illustrates man-agement maxims with numerous insider anecdotes from Google’s history. The

of the Internet, mobile, and cloud com-puting has shifted the balance of power from companies to consumers. The com-panies that will thrive in this ever-chang-ing landscape, they say, will be those that create superior products and attract a new breed of multifaceted employees. This is an entertaining look at a company we all use but few of us know.

HOW GOOGLE W

BOOK REVIEW

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funds

Despite the current financial cri-sis and recession, one industry that stands out, is resilient and growing is Financial Services. Despite the reputational dam-

age that Cyprus suffered following the events of March 2013, many of the benefits that made Cyprus an attractive investment destina-tion are still in place: the strategic location, the fact that it is an EU member state and thus fully aligned with the EU legislative framework with regard to financial supervision, a highly skilled and educated workforce providing financial and professional services, as well as a “benevolent” tax system (despite the recent enforced increase, the island still has the lowest corporate tax rate in the EU at 12.5%, zero capital gains tax, and no withholding tax on dividends and interest distributed, as well as double tax treaties with around 50 countries).

An exciting and promising area within the financial services spectrum is the funds industry. Significant progress to develop and promote the sector has been made in recent years by the regulators and the government au-thorities, as well as the private sector. However, more needs to be done and one important area that could provide a competitive advantage concerns making sure that industry partici-pants and service providers have the necessary skill set in order to make Cyprus a strong funds jurisdiction. If we want to administer and also manage funds that register with the Cyprus Securities and Exchange Commission (Cy-SEC), both general and specialized knowledge is paramount for industry participants.

To my mind, they should have a clear un-derstanding of the principles of finance – the concept of the time value of money, risk and return, the structure of the global funds indus-

SKILL SET NEEDEDtry and industry participants, the various asset classes, the way risk is measured and managed, and the valuation of different types of securi-ties, among others. Another area that they should study relates to the concept of ethics in financial services. This has become increasingly important these days across the globe, given the recent financial crises that we have experienced. They should also possess a basic knowledge of economics (at micro and macro level), an understanding and use of statistical techniques (that includes the ability to use computer pro-grammes to analyze data), as well as the main accounting principles (reading financial state-ments, and constructing the relevant financial ratios). Beyond these basic concepts, they should possess more specialized knowledge. One area relates to the field of portfolio/asset/wealth management. They should understand how a portfolio of various asset classes and se-curities is constructed, and how its performance is measured. Another area relates to the admin-istration and structuring of the fund, as well as issues related to compliance requirements, anti-money laundering regulations, financial reporting, taxation and legal procedures.

In terms of qualifications, market partici-pants should obtain the relevant licences from CySEC (currently there are two exams offered – basic and advanced). These licences are for individuals engaged in the reception, transmis-sion, and execution of client orders but also for those that deal on a proprietary basis, manage portfolios, offer investment advice, underwrite financial instruments, and perform the activi-ties of collective portfolio management and risk management for collective investment schemes (either UCITS or AIFs).

Academic qualifications are also important, such as relevant Undergraduate and Postgradu-

{ECONOMY}

ate degrees. At CIIM, we recently introduced a Masters in Financial Services that aims to ad-dress the specific needs of the industry and pro-vide candidates with the skill set necessary to succeed in their careers. Apart from academic degrees, it’s also important to have professional qualifications. The Certificates offered by the Chartered Institute of Securities and Invest-ments (CISI) are such appropriate qualifica-tions. CISI is the largest and most widely re-spected professional body for those who work in the securities and investment industry in the UK and in a growing number of financial centres globally. Another excellent professional qualification is the Chartered Financial Analyst (CFA), probably the most respected and rec-ognized investment designation in the world. The CFA Society of Cyprus, although still small, is growing fast and is, I believe, another professional body that can play a vital role in promoting the fund industry in Cyprus. The Executive Education Department of CIIM also offers preparatory seminars for a number of CISI Certificates, a specialized course on Fund Management and an Advanced Certifi-cate in Fund Administration.

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

By George Theocharides

HOW TO MAKE CYPRUS A STRONG FUNDS JURISDICTION

ONE INDUSTRY THAT STANDS OUT, IS RESILIENT

AND GROWING IS FINANCIAL SERVICES

info: George Theocharides is Associate Professor of Finance and Director of MSc in Financial Services at the Cyprus International Institute of Management (CIIM).

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CYPRUS

For further information contact: IMH, 5 Aigaleo Str., 2057 Strovolos, P.O.Box 21185, 1503, Nicosia, CyprusTel. +357 22505555 Fax. +357 22679820, E-mail: [email protected], website: www.imhbusiness.com

The Challenges and the Future

Thursday 4 December 2014 | Hilton Park Hotel | Nicosia

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

Key Themes•The Challenges and the Future of European Banking•The Challenges of Restoring Trust in Order to Rebuild the Banking Industry•Regulation, Compliance and Corporate Governance: Trends and Challenges•Banking in Europe: The current status, the trends, the challenges and the future in Spain, Ireland and Greece•Dealing with the Problem of Real Estate Collaterals in Banks•Retail Investment in Europe: An Outlook

Supported by

In Association with OrganizersCommunication Sponsors

George AppiosManaging Director andChief Executive Officer,Piraeus Bank Cyprus

Marios CleridesGeneral Manager,

Cooperative Central BankLtd

George GeorgiouManaging Director, Alpha

Bank Cyprus Ltd

Michalis LouisChief Executive Officer,

Eurobank Cyprus

Marinos YannopoulosChief Executive Officer,

Hellenic Bank PublicCompany Ltd

Kirill ZimarinChief Executive Officer,

RCB Bank Ltd, Presidentof the Association ofInternational Banks

(Cyprus)

Banking in Cyprus – The CEOs’ ViewThe CEOs of the most prevalent banks discuss the current status and the future of banking in Cyprus.

in Europe and Cyprus Banking

Sponsors

Page 92: GOLD MAGAZINE ISSUE 44

RESOLVING PROBLEMS

A

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

{TAX&LEGAL}

WILLIAM MCLAUGHLIN, Char-tered Arbitrator, identified the most

important requirements for an Interna-tional effective Arbitration Centre as the following:1. A good Legal system 2. Modern legislation for International and Domestic Arbitration.3. Well-trained Arbitrators 4. Strong support by the judiciary5. An Arbitration Centre which will pro-vide the following:

Rules Appointing bodyAdministrative services Proper websiteProper marketingBuilding

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

arbitration

ROBERT WHITENER, principal associ-ate in Freshfields, addressed the common factors that drive parties to international agreements to select a particular seat and arbitral institution as the following:1. Adoption of the New York Convention 2. Local law friendly towards Arbitration 3. A friendly approach towards the arbi-tration process by local courts 4. Well-trained Arbitrators5. An arbitration venue easily accessible to courts6. Logistical matters dealt with easilyA crucial question posed to Robert Whit-ener was this: “Since Cyprus has a good legal system, a good International Arbitra-tion Act, and has adopted the New York convention, why is it not selected as a country for International Arbitration?” His answer was caustic. He noted that, even if one obtains an arbitration Award in Cyprus, the other party can appeal it and the courts will take 2-3 years to re-solve the appeal.ALEXANDER G FESSAS, Managing Counsel of ICC, analysed the require-ments of an Arbitration Hub and what is needed to put Cyprus on the Interna-

THE MAIN PROBLEMS ARE THE OVERWORKED COURTS

LEADING TO DELAYS AND THE LACK OF A COMMERCIAL COURT

WITH SPECIALISED JUDGES FOR ARBITRAL ISSUES

CAN CYPRUS EVENTUALLY BECOME A REGIONAL INTERNATIONAL DISPUTE RESOLUTION CENTRE?

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THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS Gold 93

tional Arbitration map. Fessas examined what happens in other arbitration hubs in the world, what they provide and why they are selected. In his view, the most impor-tant requirements for setting up an Interna-tional Arbitration Centre are:1. Neutrality2. Accessibility3. Convenience 4. Time and Cost for travel 5. Facilities and infrastructure 6. MoneyHowever, he stressed, the most important issue on which Cyprus has to decide is the market which needs to be targeted if the country is to choose which direction to follow.ARTEM DOUDKO gave a high-level overview of the latest developments in the world of arbitration in the CEE region and the latest changes to arbitration laws in various jurisdictions, together with their new arbitration rules and institutions.MARCOS DRACOS, Barrister and CE-DRAC secretary, said that the Cyprus busi-ness community (local and international) needs commercial arbitration. However, even though the Cypriot Arbitration Com-munity satisfies the basic needs, there are limitations. Dracos emphasised that the main problems are the overworked courts leading to delays and the lack of a commer-cial court with specialised judges for arbitral issues. He said that what is really needed is a satisfactory legal framework, support by the courts, and competent arbitrators and institutions to support and promote com-mercial arbitration. COSTAS TSIRIDES, lawyer and director of the Cyprus Arbitration and Mediation Centre, traced the history of arbitration in Cyprus, noting the persistent problems emanating from the domestic arbitration act (Cap 4) and the lack of Rules. These can, of course, be adopted by the parties themselves through agreement and there are several Arbitration Rules which can be adapted to suit the proceedings, William McLaughlin stated.ANDREW DEMETRIOU, lawyer and Chartered Arbitrator, vice chairman of CIArb Cyprus, also stressed the problems caused by the out-of-date domestic arbi-tration act and emphasised that there is no rational reason why Cap 4 cannot be

replaced by a more modern arbitration law in line with the international Commercial Arbitration Law 101/1987 which follows the UNCITRAL Model International Arbi-tration Law.GEORGE EROTOCRITOU, Supreme Court Judge, stated that the courts in Cyprus fully support arbitration and are extremely careful not to interfere with the wishes of parties who resort to arbitration. The courts use their powers solely to as-sist and facilitate the whole process, he said, adding that, should the need arise to intervene, the courts do not hesitate to do so in order to prevent abuse of the arbitral process and to safeguard the integrity of the legal framework of arbitration.MICHAEL STEPHENS, President of CIArb, emphasised the work done by the institute for almost 100 years and its promotion of ADR through education and training programmes making CIArb a global leader in the development of ADR practitioners.The conference concluded that the first steps needed towards making it possible for Cyprus to become a Regional international Arbitration Centre are these:

1. Reform the domestic arbitration act along the lines of the international act that already exists in Cyprus2. Arbitral awards should be appealed at the Supreme court3. Trained justices should resolve the appeals4. Decide on the target market for the Cy-prus Centre

THE COURTS IN CYPRUS

FULLY SUPPORT ARBITRATION AND ARE EXTREMELY CAREFUL NOT TO INTERFERE WITH THE WISHES OF PARTIES WHO

RESORT TO ARBITRATION

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

INTERNATIONAL LAW BY MALCOLM N. SHAW

(CAMBRIDGE UNIVERSITY PRESS, 2014)

R.R.P. £39.99 (£34.63 FROM AMAZON.CO.UK)

T-

-

-

BOOK REVIEW

NTERNATION

BBORR

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luxury christmas gifts

{LIFESTYLE}

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

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

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THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS Gold 95

Τhe origin of gift giving at Christmas time goes back, of course, to the

birth of Christ when three kings (or three wise men) from the East followed a star which led them to a stable in Bethlehem. The Bible tells how they brought gifts gold, frankincense and myrrh in honour of the new-born baby within.Since then, times may have changed (and there is not a great deal of demand for frankincense and myrrh these days) but the tradition of Christmas gifts re-mains.

Shops began placing Christ-mas-themed adverts in newspa-pers as far back as 1820, with Santa Claus making an appear-ance in adverts some 20 years later. By 1867, America’s famed Macy’s department store in New York City began staying open until midnight on Christmas Eve, allowing last-minute shop-pers to make their purchases.

Today, Christmas is a bona fide gift-giving bonanza.

Santa Claus, Father Christ-mas, Kris Kringle, Saint Nicho-las, or Saint Basil: call him what you will, the benevolent figure to which many a child has prayed for his or her Christmas present dreams to come true now reigns supreme, invigorat-ing retailers as he goes.

This year, the US National Retail Federation is projecting that Americans alone will spend more than $600 billion on bringing their Christmas to full life, trimmings and all.

Is this extravagance or a well-earned luxury? You decide, as you consider our picks from this season’s most lavish of designer goods.

SHOPS BEGAN PLACING CHRISTMAS-THEMED ADVERTS IN NEWSPAPERS AS FAR BACK AS 1820 WITH SANTA CLAUS

MAKING AN APPEARANCE IN ADVERTS SOME 20 YEARS LATER

For him…1. TATEOSSIAN

SQUARE DECO CUFFLINKS IN 18K ROSE GOLD WITH BLACK DIAMONDS

Stand out at any corporate event that may come your way this holiday

with these Tateossian square deco cufflinks. A classic design interpreted in an unusual way, they feature black diamonds hand-set along the four corners of an 18ct square gold base with hand-twisted gold wire running along the edge. They feature the signature Tateossian 750 whaleback clasp.Established in 1990, Tateos-sian has built a reputation as one of the world’s leading jew-ellery and accessories brands, constantly reflecting and rein-terpreting trends in fashion.

4. BILLIONAIRE BUTTONED

SILK TIE

Opulence and refinement combine in

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

5. ALEXANDER MCQUEEN

TARTAN SKULL PASHMINA

Exemplary of Alexander McQueen’s

gothic-inspired DNA, this luxury pash-mina has been crafted from a soft blend of wool and silk. Combin-ing classic tartan with the fashion house’s avant-garde signature skull, the featherweight scarf may be worn loosely draped at the neck for a timeless look.

2. BRIONI CASHMERE COAT

This Italian high-end fashion house has been going strong for almost 70

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

3. PANERAI RADIOMIR 1940

CHRONOGRAPH ORO BIANCO

R etro charm incarnate, Panerai’s 2014 Radiomir edition is both aestheti-

cally stunning and mechanically sound. The chronograph move-ment is hand-wound and feeds a ‘bi-compax’ dial, with the watch supported by a personalised alliga-tor strap and 18ct polished white gold adjust-able buckle. But be warned: described as a ‘unique’ edition, only 100 will be made and, as you can see from the price, they don’t come cheap.

y gterpreting trends in fashion.

(€2,950)

O K

Sorate

BRIONI

(€50,680)

(€6,100) (€180)

(€410)

SKIING BECAME A POPULAR

RECREATIONAL ACTIVITY

AND SPORT IN THE

MID-1800S. AND NOTHING, IT SEEMS, HAS

MANAGED TO REDUCE THIS FEVER

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

luxury christmas gifts

4. OSCAR DE LA RENTA: MARBLED

TWEED & CHANTILLY LACE CROPPED JACKET

H onour the recently de-ceased Oscar de la Renta, and invest in one of the

fashion house’s new arrivals: the marbled tweed and Chantilly lace cropped jacket. Designed in New York and tailored in Italy using time-honoured techniques, this may be worn by day or night in enhancing any outfit.

5. STELLA MCCARTNEY MARBLED PLEXIGLAS

CLUTCH (€1,710)

S tella McCartney’s delicate black and ivory marbled clutch is crafted out of plexiglas and features a match-

ing clasp closure. The gold frame adds a luxurious finish perfect for evening. Add this masterfully designed clutch to your formalwear and special occasion attire, and you’ll be dressed to impress come New Year’s Eve.

For her…1. ALEXANDER

MCQUEEN BLOOMING SKULL SILK CHIFFON SCARF

A signature look, Alexander McQueen skull

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

2. ANNOUSHKA DREAM CATCHER CUFF

A nnoushka Ducas MBE – founder of her epony-

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

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

3. GEORG JENSEN VIVIANNA BANGLE

WATCH

E ffortless elegance fuses with func-tionality in Georg

Jensen’s Vivianna watch. A smooth, stainless steel bangle complete with a mir-rored dial and contempo-rary, numberless design, this timeless piece was originally designed in 1969, and has

endured in popularity ever since. An iconic

piece for all outfits.

W(€460)

(€19,150)

(€1,720)

(€2,060)

(€1,710)

Rocking Around

the Christmas

tree

No item better conjures images of Victorian family life than the vener-able rocking horse.

“Rocking horses have a lot of nostalgic value,” says Dean Failey of Christie’s New York. “They re-mind people of a pleasant time, if not in their own lives, of an age that was gentler and slower and kinder.”

Despite its popularity, the origin of the rocking horse remains a mystery and a point of contention. Some believe the child’s toy to date back to Ancient Egypt; other historians cite mediaeval manu-scripts containing references to toy horses.

Irrespective of its origins, the rocking horse’s prowess as a be-loved childhood toy peaked in the late 19th and early 20th centuries. According to Paul Fraser Collect-

ibles, the most coveted rocking horse brand is FH Ayres, cour-tesy of London-maker Frederick Henry, whose distinctive horses can achieve as much as £20,000 if in good condition.

However, the most-sought-after Ayres horses (such as a swivel-headed model made in 1887) are naturally very rare and seldom come up for auction. In addition to Ayres, G&J Lines Brothers and J Collins & Sons are prestigious mak-ers whose horses command high prices.

David Kiss, a partner at the Rocking Horse Workshop in Hod-net, Shropshire, believes that toys built to last are hard to beat in the rush of Christmas gift-giving. “Rocking horses have certainly passed the test of time and have

been a childhood favourite for more than a century. They are not

-ture and a great decoration.”

A good quality horse, Kiss notes, may set you back some £1,500. “It sounds a lot of money,” he notes, “But it should outlast you as a family heirloom that will grow in value. Compare this with a computer you could buy for the same money that is obsolete and worthless in a few years.” Signs of quality include elegant carving and a good quality top plate that holds the swinging bar, as well as glass eyes and real horsehair. Investors looking to buy a rocking horse can pick up decent horses in need of work for less than £1,000, but it will cost £5,000 or more for a top-class thoroughbred model.

THIS YEAR, AMERICANS ALONE WILL SPEND MORE

THAN $600 BILLION ON CHRISTMAS. IS THIS

EXTRAVAGANCE OR A WELL-EARNED LUXURY?

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THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS Gold 97

SAPIENS: A BRIEF HISTORY OF HUMANKIND BY YUVAL NOAH HARARI (HARVILL SECKER, 2014)

R.R.P. £25.00 (£11.00 FROM AMAZON.CO.UK)

One hundred thousand years ago, at least six human species inhabited the earth. Today there is just one.

Homo sapiens. How did our species succeed in the battle for dominance? Why did our foraging ancestors come together to create cities and king-doms? How did we come to believe in gods, nations and human rights; to trust money, books and laws; and to be enslaved by bureaucracy, timetables and consumerism? And what will our world be like in the mil-lennia to come? Dr Yuval Noah Harari spans the whole of human history,

earth to the radical – and sometimes devastating – breakthroughs of the

Revolutions. Drawing on insights from biology, anthropology, palaeontology and economics, he explores how the currents of history have shaped our human societies, the animals and plants around us, and even our personalities. Bold, wide-ranging and provocative, Sapiens challenges ev-erything we thought we knew about being human. It is a lucid, illuminating and brilliantly written single-volume history of our species.

BOOK REVIEW

1. BRIC’S AFRICA 82CM SPINNER TROLLEY

Ideal for the so-phisticated travel,

this four-wheel Bric’s Africa spin-ner trolley boasts a retractable handle and 360-degree spinner wheels for swift movement on the go. Em-bossed with a sleek crocodile print on the leather exte-rior, the interior is lavishly spacious, complete with a front compartment for travel documents and accessories. Skiing holiday? Tropical getaway? You’re all set. Available in three colours: blue, brown, and red.

2. CORAVIN 1000

SYSTEM

A ground-breaking

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

3. S.T. DUPONT HUMPHREY BOGART

ELYSÉE BALLPOINT PEN

In 1973, S.T. Dupont started a revolution with

the launch of the first luxury ballpoint pen. It was functional and technical but also very

personal. S.T. Du-pont has evolved

the art of writ-ing ever since, most recently

with its Elysée Ball-point Pen. Directly in-spired by the suit worn by Humphrey Bogart

in the stellar movie classic, Casablanca, this is an exquisite writing instrument, presented, no less, in a themed box.

4. LUXURY TURNTABLE: ONEDOF (€115,000)

OneDof is a fundamentally rein-vented turntable designed by NASA award- winning aero-

space engineer Aleks Bakman. A music lover’s dream, the turntable is the first in history with self-centering in all direc-tions, a non- resonant platter bearing based on smart fluid technology. The innovative bearing also eliminates acous-tic distortion. The final touch? It’s plated in 24ct gold.

5. PURLING: OLIVIA PILLING CHESS SET

Boasting 32 professional grade triple-weighted Staunton pieces and a

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

All for One and One for All!TROLLEY

(€2,230)

(€345)

(€830)

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

(€115,000)

(€2,550)

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

“I live in Nicosia with my partner and two children and during the week I get up at exactly 6.20am, though I do some catching up over the weekend. We have breakfast every morning and then I take the kids to school before arriving at the office around 7.30am. This is the only part of my day which can be described as routine! Once I start work, nothing is regular but that’s a good thing in many ways.

My mother was responsible for me becoming a lawyer. As a girl, my dream was either to become a sports trainer or an interior designer but I was discouraged from doing both. She couldn’t see how I would eventually be able to make ends meet if I tried to take up either as a profession, and law was something that she had wanted to do herself and my grandparents wouldn’t let her. In those days, it wasn’t con-sidered “a girl’s thing”. So she “guided” me into doing it but I still have a passion for inte-rior design. I’m always reading design magazines and at home they complain that I’m always moving the furniture round, changing and adding things. And it’s true!

I studied law at the Univer-sity of Keele and then became

A Day in the Life

Melina Pyrgou

enjoy the theatre and, especial-ly, concerts. I love music and I hear lots of different styles so one day it may be Pink Floyd coming from my son’s room and the next it’s the more pop sounds that my daughter likes. I also enjoy singers such as An-drea Bocelli, and Cesaria Evora and I often download albums of the music I listened to when I was younger so recently it was Dire Straits and Fleetwood Mac.

I go to the gym, though not as regularly as I would like, and I enjoy walking and cycling. I love watching sport too. I’m an APOEL fan and I some-times go to matches with my daughter.

I do a lot of travelling for work but we also go on holi-day. I am always happy to go back to the classic choices – London, Paris, Athens – and I love Geneva.

I am always telling my chil-dren that they should eventu-ally do something that they love. They are going to spend so many years working and it’s much easier to do something you enjoy. My son has more or less decided on law but I keep telling him to keep an open mind. My daughter is sure that it’s not for her but she’s only 13 and she has plenty of time to change her mind. I think the fact that both their parents are lawyers acts as enough pres-sure.

It takes an effort to get the work/life balance right. Some-times you succeed, sometimes you fail and it really tips on the wrong side – work! – but all in all I feel very satisfied with my life.”

Geneva, my homefrom home

My favourite classic rock

The Director of Pyrgou Vakis Law Firm, on why she became a lawyer (despite a passion for interior design), why she stopped watching the TV news and how she spends her free time.

a barrister in London before returning to Cyprus and doing my training. I later obtained a scholarship from the Swiss government and spent a year in Geneva doing Environmental Law and in 2008 I decided to set up my own firm. I must ad-mit to having regrets about my choice of career from time to time – especially when trying to balance my roles as professional and parent. Working mothers experience a lot of guilt!

The hardest part of the job is maintaining a high level of responsibility to my clients, en-suring that I give them the best possible service and present them with viable, efficient and correct solutions. But it’s not all bad. I enjoy having the op-portunity to meet people from all over the world – we have a lot of international clients and associates – and the fact that I travel a lot, to make new acquaintances and develop the business outside Cyprus. After 22 years of practising law, this is actually the most challenging and interesting part for me.

After lunch I can never be sure if I’m going to finish early or late but, whatever the time, I don’t take work home. I don’t watch much TV at all and I stopped watching the news last March. I don’t feel that I’m

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

I enjoy bookslike this one

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