With over 20 years of experience spanning across 70 jurisdictions, Isavella Korelidou-Evripidou offers an insider’s perspective on the shifts in Regulatory services, brokerage licenses, the introduction of crypto regulations, and the future of e-gaming and betting in the country. Her insights reveal both the challenges and opportunities lying ahead for investors and businesses navigating Cyprus’ financial industry.
Let us overview, sector by sector, some of the most crucial areas of your expertise. What changes can we expect in the field of brokerage licenses in 2024?
Cyprus continues to lead with a significant number of Brokerage companies in Europe, especially those dealing with CFDs. However, due to newer, stricter regulations from European bodies like ESMA, the industry faces challenges. Some countries are increasingly hesitant to work with CFDs due to their high-risk nature. As a Licensed award-winning Service Provider, we attract many investors to Cyprus.
We’re observing a shift in Cyprus, with companies beginning to include or switch to classical brokerage. This transition allows clients to trade on stock markets, a less risky option compared to CFDs. It’s a positive development that broadens the choice for clients seeking reliable brokerage firms.
How about the cryptocurrency field? Are there any significant legislative changes?
Absolutely. This year we have seen the implementation of the MiCA regulation (Regulation 2023/1114), which ratifies the way the Crypto industry should be regulated. This regulation was much needed. While it introduces certain restrictions, it also means that compliant companies can establish greater trust with their clients. Overall, it’s a step forward for the industry.
What’s on the horizon for investment fund licensing?
Cyprus is very attractive to Investment Funds structures, where a new type is potentially arriving in 2024. These new structures are expected to be more appealing to investors, offering innovative investment opportunities. It’s an exciting time, with potential advancements that could significantly enhance the attractiveness and efficiency of investment funds. The future of investment fund licensing is characterized by a dynamic and evolving landscape, shaped by technological advancements, changing investor preferences, and regulatory reforms. Investment fund managers and regulators must adapt to these changes to ensure that the industry remains innovative, competitive, and well-regulated.
Could you share insights on the e-gaming and betting field in Cyprus and any upcoming changes in licensing?
Cyprus has no regulation for e-gaming yet, but fully regulates the Betting, which is very attractive to many investors who want to establish their business on the Island and we assist them with that.
Currently, Cyprus Betting licenses are regulated by the National Betting Authority (NBA), where 2 types of licenses are given: Class A and Class B. Class A requires to have a fully operational office in the Country, where the Class B allows to run the business online.
Another significant addition we’re anticipating is the inclusion of online gaming, which would represent a major development for Cyprus. However, due to a history of unregulated online casinos, the current approach to legislation and regulation is quite stringent.
What activities fall under the category of online gaming?
Online gaming encompasses a wide range of activities that involve playing games over the internet. These activities can be broadly categorized into different types of games, such as multiplayer games, single-player games, and casual games.
What makes Cyprus attractive to EMI businesses, and how does Cyprus compare to competitors like Malta?
Cyprus, a small island country in the Eastern Mediterranean, has emerged as an attractive destination for EMI (Electronic Money Institution) businesses. Cyprus faces competition from other European countries, particularly Malta, which is also an attractive destination for EMI businesses. Cyprus is an attractive destination for EMI businesses due to its regulatory environment, tax incentives, geographic location, skilled workforce, and stable economy. However, it faces competition from countries like Malta, which has a more established FinTech sector and a more favorable tax regime. Both countries offer unique advantages to EMI businesses, and the choice between the two will depend on the specific needs and objectives of each business.
GFSC Global is an award-winning, International Corporate and Legal Services Providers, licensed in the EU and other jurisdictions, with over 20 years of experience in Corporate, Legal, Immigration, Gaming, Financial, Crypto/STO/ICO, Banking and Accounting services. Its main goal is to offer a full range of high quality, tailor-made services to our corporate and physical clients worldwide through our qualified team of professionals.
Our mission is to provide a full package of services as a one-stop-shop solution, including company formation, re-domiciliation, opening of bank accounts, administrative services, immigration, legal support, licensing (Forex/Brokerage, Investment Funds, Crypto, STO/ICO, Betting/Gaming, Payment services/EMIs, Banking) and post-licensing services (Compliance, AML, Reporting, Risk Management, Reporting, Internal, and External Audits).
Our global presence spans over 70 jurisdictions, giving us a nuanced understanding of international legislation and the ability to craft cross-jurisdictional structures for our clients.
Нужно ли составлять Акционерное соглашение, или Устава будет достаточно для надлежащего управления компанией на Кипре? Как защитить права каждого из акционеров? Каковы последствия тупиковой ситуации (deadlock) и какие механизмы можно использовать для разрешения конфликта между акционерами?
Это только некоторые из вопросов, которые задают предприниматели при регистрации компании на Кипре, поиске партнеров и инвесторов, продаже существующих или приобретении новых акций, в ходе повседневной деятельности компании, а также в случае трудностей и конфликтов с другими акционерами.
В этой статье дадим общее представление о природе Акционерного соглашения и Устава кипрской компании, а также подробно рассмотрим основные темы, охватываемые Уставом и Акционерным соглашением, с целью сравнения важности, значения, и актуальности каждой из них.
Прежде всего, хотелось бы обозначить, что учредительный документ Кипрской компании состоит из Меморандума об ассоциации («Меморандум») и Устава («Устав»).
Цель Меморандума – сообщить общественности о целях компании и перечислить лиц, которые подписались на акции, в то время как Устав – это некий набор положений о внутренней организации юридического лица и системе управления им. Таким образом, возможно, Устав играет более важную роль в процессе менеджмента компании.
Акционерное соглашение не является учредительным документом компании и представляет собой некий договор между акционерами. Это соглашение о независимом членстве акционеров, обязывающее их соответствовать конкретным внутренним корпоративным процедурам.
Стандартный Устав обычно регулирует следующие вопросы и полномочия:
• Процесс назначения директоров и распределения управленческих полномочий совета директоров;
• Процесс проведения общих собраний (организация собраний и процесс голосования);
• Выплата дивидендов;
• Присвоение акций;
• Классовые права, закрепленные за разными типами акций;
• Порядок передачи акций;
• Процесс изменения уставного капитала;
• Полномочия и обязанности управляющего директора;
• Полномочия секретаря компании;
• Необходимость бухгалтерского учета и аудита;
• Положения о ликвидации.
Важно заметить, что любые положения Устава, не соответствующие положениям Закона о компаниях, будут считаться недействительными.
Если говорить об акционерном соглашении, нужно помнить, что это гибкий инструмент, который закрепляет договорные отношения между всеми или отдельными акционерами, или между компанией и ее акционерами – всеми или некоторыми из них.
Акционерное соглашение может включать вопросы внутреннего управления, такие как:
• Назначение и увольнение директоров определенными участниками, или предоставление акционерам права назначаться директорами;
• Механизмы разрешения споров, включая использование медиации или арбитража;
• Меры защиты миноритарных акционеров от решений мажоритарных акционеров, по вопросам, наносящим ущерб интересам миноритарных акционеров;
• Способы разрешения тупиковых ситуаций на общем собрании акционеров или на уровне совета директоров;
• Размывание полномочий директоров по принятию решений;
• Возможности введения новой коммерческой деятельности, которую будет осуществлять компания;
• Введение ограничений на продажу или передачу акций;
• Предоставление акционерам определенного контроля над управлением компанией, например, предоставление избранным держателям акций права назначать представителей в Совет директоров или накладывать вето на определенные решения или сделки;
• Ограничения относительно характера и деятельности компании;
• Обязательства в отношении объявления дивидендов;
• Положения, требующее единогласного или мажоритарного согласия акционеров с целью одобрения распространения деятельности компании на новые территории;
• Возложение на акционеров обязанности действовать добросовестно при осуществлении своего права голоса;
• Перечень так называемых «Зарезервированных вопросов» (“Reserved Matters”), которые предназначены исключительно для рассмотрения акционерами;
• Обязательство акционеров не заниматься какой-либо предпринимательской деятельностью, которая конкурирует с деятельностью компании (включая географические и/или временные ограничения).
Таким образом, кроме того, что Акционерное соглашение является очень гибким инструментом, оно может стать отличным механизмом для достижения консенсуса акционеров по обозначенным стратегиям.
В отличие от Устава, Акционерное соглашение не является публичным документом и предполагает гарантии для всех сторон, выходящие за рамки положений Устава. Также, что особенно важно, Акционерное соглашение помогает разрешить тупиковые ситуации и другие сложные вопросы.
Авторы книги Company Law Алан Дигнам и Джон Лоури говорят, что «если акционеры поместят в Устав положение, выходящее за рамки законодательства, оно, вероятно, будет недействительным. Однако, если они поместят то же самое положение в акционерное соглашение за пределами Устава, подписанное всеми или подавляющим большинством акционеров, то такое положение будет иметь силу».
Поэтому грамотно составленное Акционерное соглашение может стать полезным и гибким инструментом защиты интересов каждой из сторон.
Does one really need Shareholders’ agreement, or having a Memorandum and Articles of Association would be enough for proper management of a Cyprus Company? How can the rights of each of the shareholders be protected in a Company? What are the consequences of the deadlock and what mechanisms can one use to resolve a conflict among shareholders? These are some of the questions that are often being asked by the entrepreneurs at the stages of incorporation of the company in Cyprus or at the stage when they seek for partners and investors, or upon sale of existing shares or obtainment of new shares, as well as during daily operation of such a company and upon difficulties or conflicts with the other stakeholders.
This article will give a general understanding of the nature of the Shareholders’ agreement and a Memorandum and Articles of Association of a Cyprus company, look in depth at the main topics covered by each respectively, and attempt to compare the utility of each.
First of all, the constitutional document of the Cyprus Company consists of the Memorandum of Association (the “Memorandum”) and The Articles of Association (the “Articles”).
Generally speaking, the Memorandum simply states to the public about the objects of the company and lists the individuals who want to subscribe for the shares, while the Articles play the role of the regulations of the corporate entity’s internal arrangements and management of the company, and thus, arguably, play a more important role.
Shareholders’ agreement, on the other hand, is not a constitutional document of a Cyprus company and is a contractual arrangement between the members. The purpose of the Shareholders’ agreement is that of an independent membership agreement binding the shareholders to act or vote in a specific manner on internal corporate matters.
If we look at the matters that are governed by the Articles, one could see that usually the Articles contain the following provisions on:
• The process of the appointment of the directors and the allocation of management powers of the board;
• Process of the conduct of general meetings (organisation of meetings and voting);
• The process and methods of payment of dividends;
• The process of allotment of shares;
• Class rights attached to each type of the shares;
• The procedure that one shall follow upon transfer of shares;
• The process of alteration of the share capital;
• Managing director powers and duties;
• The duties of the secretary of the Company;
• Accounts and audit of accounts;
• Winding-up provisions.
Needless to say, any stipulations within the Articles that are inconsistent with the provisions of the Companies Law (CAP 113) will be held invalid.
On the other hand, a Shareholders’ agreement is a flexible contractual instrument, that may secure contractual arrangements between all or certain shareholders, or between the company and all (or certain) shareholders.
Shareholders’ agreement could include internal management and other issues such as:
• The appointment and removal of directors by certain members or entitlement of shareholders to be designated as directors;
• Dispute resolution mechanisms such as submission of contentious issues to mediation or arbitration;
• Minority protection measures whereby minority shareholders are safeguarded against decisions by majority shareholders which are prejudicial to the former’s best interests;
• Means by which deadlock situations might be resolved in general meeting or at board of directors level;
• Dilution of directors decision-making powers;
• The means by which the sanctioning of new business activities to be undertaken by the company would be effected;
• The imposition of restrictions on the sale or transfer of shares;
• Conferring on protected shareholders certain controls over the management of the company e.g. entitling selected members to appoint representatives to the Board or to veto certain decisions or transactions;
• Restrictions as to the nature and business of the company;
• Certain obligations with regard to the declaration of dividends;
• Provision requiring unanimous consent or majority of shareholders for the purpose of approving company’s operations to be extended to new territories;
• The imposition of duties on shareholders to act in good faith pursuant to exercising their voting powers;
• The inclusion of a schedule of so-called “Reserved Matters” which are earmarked exclusively for consideration by the shareholders;
• Shareholders’ undertaking not to engage in any business activities which may be regarded as competing with those of the company (in terms of geographical and/or stipulated time constraints).
Thus, apart from being a very flexible instrument, Shareholders’ agreement, if wisely drafted, could become a great contractual device for achieving common strategies, that would secure consensus of the Shareholders.
Unlike the Articles, the Shareholders’ agreement is not a public document, and it could offer safeguards for all parties above and beyond the provisions in the Articles, and, most importantly, assist in agreeing on provisions solving the deadlock and other issues.
Authors of the Company Law book Alan Dignam & John Lowry say that “if the shareholders place a provision in the Articles that purports to a contract out of statutory provision, it will probably be invalid, however if they place the same provision outside the Articles in the shareholders’ agreement and either all the shareholders or a large majority of them are party to it, the provisions would be effective.“
Therefore, if wisely drafted, Shareholders’ agreement could be a useful and a flexible tool in safeguarding every party’s interests.
The Clinical & Translational Omics Symposium 2023 was held in Protaras on November 4-5th, 2023. It brought together researchers from the fields of Omics, including proteomics, metabolomics, and lipidomics, along with experts in bioinformatics and the application of artificial intelligence. We spoke with one of the leading international experts in the area of clinical proteomics, Dr. Jennifer Van Eyk, Director of Basic Science Research at the Barbra Streisand Women’s Heart Center, USA.
Could you explain, in simple terms, how advancements in clinical proteomics impact medical treatments and patient care?
Lots of people don’t know what proteomics is, but almost everyone does know what their DNA is, and what their genome is.
We look at it like this: the genome, or your DNA, can be thought of almost like the city map. If you had a map showing only the streets, that’s your genome. But, if you add to the map walking people in the streets, and you also have cars coming and going, then this is the proteomics. If you have an accident on one of your highways, then you have first responders come. That’s how your cells respond when you have a disease. So the proteome can be thought of as the living, breathing things, represented on your map as the people in cars, moving around. That’s really how proteins work – they are what brings the ‘city’ alive.
What we’re trying to do in our field is to measure all of that. Of course, we are not able to see everything. Let’s say we’re trying to sit on the rings of Saturn and look down into this room where you and I are sitting, and figure out that I’m wearing glasses and you are not. It gets more complicated if I look today and you’re wearing a blue suit, but tomorrow, you might be wearing a brown one, and we have to be able to track that. That’s why it’s so hard.
If to talk briefly about how proteomics impact medical treatments – well, it’s working on both sides of the problem. It helps to determine if you’re sick, and it absolutely tells you how you’re going to respond to a drug. It will also tell you what your chances of survival are.
For example, you can take a little finger prick of blood and mail it to us. Then, we can tell over time how well you’re progressing. You don’t have to go see your doctor. So it’s not necessary to call human-like diagnostics each time. For you as a consumer, it gives an ability to track your health and your wellness.
How might these advancements influence or benefit businesses in the healthcare sector or related industries?
There are lots of opportunities – from being able to help direct consumers track their health, to reducing the cost within a hospital or the medical system, let’s say, in Cyprus. You can start to see telehealth being an important, still highly regulated, but reducing the cost. It can mean that when you’re doing drug trials, instead of having everyone come in physically, you can do it from home.
It also means that in normal drug trials, often the whole population isn’t represented, instead only a certain demographic is. So now all of a sudden you can reduce that barrier, and have results from even populations that are rare, of different backgrounds, different people who have diabetes for example. They can now be included.
Which modern research or technologies, which 10-15 years ago might have sounded as though they were part of a sci-fi movie, still appear extraordinary even to you, the experienced scientist?
Even what I did in my laboratory two years ago, we do completely differently now. It’s unbelievable how fast it’s moving, and how fast we can do things. For example, we have this great study, it is called Molecular Twin. We know what your DNA looks like. We know the RNA being expressed in a tumor, versus a non-tumor. We know what the proteins look like in the tumor, and the non-tumor. And we also know what it looks like in the blood.
Let’s pretend there is a patient with a cancer. We would be watching what was happening using their blood and other things like that, and then we would follow him over time. Let’s imagine that his molecular phenotype looks very much like this other person who he doesn’t know. That person did okay on this drug and the both did not do well on a different drug. So that’s why it’s called molecularly twin.
We started studies in pancreatic cancer as a trial. Pancreatic cancer normally gets diagnosed very late and there’s not a lot of options for surgery. And we found that we could predict their survival rate based on a profile from their blood. At our hospital, in my guess, within two years, we’ll start using this clinically. And behind it, because it was successful, we’re now doing the same for breast cancer, bladder cancer, in order to get that, and start to build that information.
I always say that the beautiful thing about diagnostics is that every time a physician has to make a decision, or every time a patient himself has to make a decision, we should be able to give quantitative data. That is saying, at least a probability, that it looks like this is what’s going to happen. This is your molecular twin, this is what happened before. Something that allows you not to just guess, which is horrible, but to give you a practical decision, and that’s precision medicine. This is what inspires me the most – it’s challenging and it could change the medicine in terms of helping people.
Jennifer Van Eyk, PhD, is an international leader in the area of clinical proteomics. Her lab has focused on developing technical pipelines for de novo discovery and larger-scale quantitative mass spectrometry methods. This includes multiple reaction monitoring (MRM, also known as SRM) and, most recently, data-independent acquisition. She aims to facilitate the transition of targeted and robust discovery methods into large-scale assessments of healthy populations and clinical-grade assays, focusing on brain and cardiovascular diseases.
Freedom Finance Europe продолжает улучшать условия размещения свободных денежных средств на инвестиционной платформе Freedom24 ─ теперь проценты, которые компания выплачивает на свободный остаток в долларах США и евро, будут привязаны к плавающим ставкам SOFR и EURIBOR. Новые ставки более чем в полтора раза выше предыдущего предложения компании и составляют до 6,4% в евро и до 8,8% в долларах (на 12.01.24).
Обладатели накопительных D-счетов будут получать процент, равный плавающей ставке SOFR на размещения в долларах США и процент, эквивалентный ставке EURIBOR на размещения в евро. На 12 января ставки SOFR и EURIBOR составляли 5,31% и 3,884% соответственно. Ранее D-счет обеспечивал инвесторам доходность на уровне 3% годовых в долларах США и 2,5% в евро. Проценты начисляются ежедневно.
Доходность долгосрочных размещений также выросла и теперь достигает уровня в 1,5 раза выше ставок SOFR и EURIBOR для фиксированного срока в 12 месяцев. Для размещения средств сроком на 3 и 6 месяцев для расчета процентов к величине ставок SOFR и EURIBOR применяются коэффициенты 1,1 и 1,25 соответственно. Кроме этого, для долгосрочных размещений размером более 100 000 евро/долларов США выплачивается бонус от 0,4% до 0,8% годовых в зависимости от валюты и срока размещения. Так, на 12 января максимальная доходность долгосрочного накопительного плана Freedom24 с учетом бонусов составила 8,762% для долларов США и 6,409% для евро. Ранее инвесторы, выбиравшие этот инвестиционный инструмент, получали до 6,12% в долларах США и до 4,21% в евро.
Для обоих инструментов отсутствует ограничение на максимальный размер размещений, что выгодно отличает предложение Freedom24 от аналогичных продуктов на рынке. Минимальная сумма размещения средств для получения процентов составляет 150 долларов США/евро для D-счета и 1 000 долларов США/евро для долгосрочного накопительного плана.
Freedom Finance Europe также изменила размер комиссии за маржинальное кредитование — до 0,049315% в день в тарифе Smart (EUR/USD) и 0,041095% в остальных тарифах по сравнению с предыдущим размером комиссии 0,032877% в день.
Материалы предоставлены компанией Freedom Finance Europe.
Evgeniy Tyapkin, Executive Director of Freedom Finance Europe, discusses the development of the financial sector in Cyprus over the past 10 years and shares his thoughts on what to expect in 2024.
Where did it all start?
I’ve been in Cyprus since 2014, initially leading another brokerage firm, and joined Freedom Finance in 2017. At that time, we were essentially a start-up – just 8-10 people in an office set in a villa. We were learning to work in a completely new country and a new European jurisdiction, trying to meet all the local requirements. On one hand, we were focused on training and compliance. On the other hand, we always had a robust IT team, which, alongside operational activities, created and developed a trading platform, still in use today.
Did you initially plan to develop and maintain the platform yourselves?
Absolutely. We had the expertise for both. Now, we operate two companies. We attract and serve clients through Freedom Finance Europe. And there is Freedom Finance Technologies, which focuses on the development and support of our trading platform, used not just by our group’s companies but also by other professional market participants, including those in Cyprus.
Over these years, there have been both highs and lows. In the Cypriot economy and in the government’s relations with various types of business. How has the attitude of the Cypriot regulator towards your business changed?
It can be asserted that Cyprus is now one of the most regulated jurisdictions among European countries. In an effort to shed its offshore reputation, Cyprus has introduced very serious regulatory measures since 2014. However, as we grew gradually, we consistently integrated these measures into our operations without much stress.
If you were to describe the activity of Freedom Finance Europe in Europe in one sentence, how would it sound?
Freedom Finance Europe is a brokerage firm that provides direct access to international stock markets, where any client can quickly purchase real shares and other securities.
A significant advantage of your company is that you have reached a wide retail market. So, any person, regardless of the amount they have, be it 1,000 or 100,000 euro, can use your platform and trade shares?
You are absolutely right. There are minimal lots on the exchange, but they are usually insignificant, allowing us to execute client orders for almost any amount.
How did you come to this approach?
At the start, we had two main tasks. The first was to create a technological platform, and the second was to establish the corresponding infrastructure. Unlike many companies that do not route client orders to the stock market, we need to have relationships with clearing agents, depositories, exchanges, and prime brokers. For example, we have direct membership on the Athens Stock Exchange, and orders are executed through the Greek bank Piraeus, where clearing and delivery of securities also occur. All this must also comply with legislative requirements, which are constantly becoming stricter.
What is your abmition when it comes to the market share in Europe?
We are just beginning our active growth phase. Our marketing has gained sufficient strength, and our client base is expanding. However, our overal share across Europe is still modest. It is worth mentioning that our clients, which now amount to around 400,000, are serviced by a relatively small team: our platform is designed so intuitively that clients can easily understand everything on their own. Therefore, we won’t have issues with scaling.
Similarly, we won’t have problems complying with legislative norms and rules. We report to more than one regulator and more than once a year. Our primary regulator is the Cyprus Securities and Exchange Commission. We also report to the U.S. Securities and Exchange Commission, where reports are required quarterly.
Additionally, we work with auditors from the “Big Four”, who are also PCAOB-certified. These specialists are authorized to work with public companies.
Are you a public company?
Yes, for four years now. Shares of our holding are traded on the Nasdaq Exchange. It’s important to note that the reporting of a public company is much stricter than that of a private one.
However, your reputation was negatively impacted by a few publications from an American company…
Indeed, there are certain ill-intented practices when fake information is fabricated and delivered in the form of research. When published, the authors count on the market reaction and take short positions in the targeted company. After the research is published and the stock price drops, the position is closed, and money is made that way.
It’s quite common in the U.S. to play the stock market not for a rise, but for a fall. We have responded and dismantled all of the accusations publicly, making it clear that this was a fabricated attack. To be fair, we don’t see a significant impact of these publications on the value of our shares. There was some decline, but then the value returned to approximately the same level as before the publications.
What about the reputational hit?
As of now, we are not facing any difficulties. None of our partners have broken off relations with us. We have always conducted business openly with both counterparts and clients. This was our principle even before we became a public company, and we continue to strictly adhere to it. We inform, warn, explain… Even when we make a mistake, we always talk about it.
I can assume that because of this situation, some might have chosen not to partner with us, but all those who were with us earlier have stayed. Importantly, in our experience, the larger the participant and counterpart we cooperate with, the fewer questions they have.
How challenging is it to work here, in Cyprus, considering the situation with Cypriot banks?
Cypriot banks prefer to do nothing, to refuse everyone, to prohibit everything, just to avoid taking responsibility. But sooner or later, they will have to move out of this state, or they will remain on the sidelines of business. Staying in such a state for a long time is not sustainable as competition doesn’t stand still. Neobanks, which also operate within the law without violating any requirements or rules, are already posing serious competition to traditional banks, and this trend is only going to intensify.
Can you predict the main events of 2024 in various sectors? Let’s start with the regulator. What changes do you foresee here?
I believe the regulator has reached its optimal level in terms of performing its functions, and it will only improve the processes that already exist. For instance, the quality of reporting, which we are already seeing improve.
What about the securities market?
I don’t anticipate any significant changes in the near future. Over the past few years, all companies in this market have achieved an optimal level of compliance with current regulatory requirements. Sanctions do add some complexities, but they are not something that can seriously affect the market. Everyone has learned to operate in these circumstances.
In terms of market dynamics, it’s hard to expect significant growth under current conditions. However, the market never stands still; it’s always moving. This means there are opportunities for profit in trading.
And finally, what’s your forecast for the development of Cyprus? What direction will it take?
Cyprus is a unique place. It has always been fortunate. Just look at the island’s history. Initially, it was an offshore zone, providing the state with earning opportunities. Then, when Cyprus joined the EU, those opportunities disappeared, but new ones emerged, like the IP-Box tax regime. This brought in a lot of talent, a surge in intellectual property creation, and the opportunity to earn royalties. The real estate sector began to grow, along with investment opportunities and residency options... What did this lead to? An influx of investment and funds into the economy, the development of the construction sector and development companies, an increase in demand for labor, and much more. Most likely, this trend will continue in the future, meaning the economy will grow.
What is Cyprus lacking?
Undoubtedly, Cyprus needs digitalisation, e-government, and advanced fintech services. We’ve already started meetings to discuss how we can emulate experience that we’ve accumulated in Kazakhstan, where our holding is among country’s key financial institutions, advancing banking, insurance, brokerage, and e-com businesses in close collaboration with the state’s digital infrastructure. For instance, in Cyprus, it took me 2.5 months to process a mortgage, while in Kazakhstan, it’s done in an hour. Their databases are so well digitized that most official matters are resolved in just minutes.
I would like Cyprus to also become a developed digital country. Of course, this is a challenging and slow task. There isn’t a country in Europe where this issue is fully resolved yet. But that doesn’t mean we shouldn’t move in that direction. And we are ready to help. We have a large team with very serious, long-term experience. We were the first company in Kazakhstan to launch digital credits. Now we even have digital auto loans there. We are ready to share our expertise to create a high-level digital government in Cyprus.
Freedom Finance Europe announces another step in its growth trajectory with the inauguration of 3 new offices in the Netherlands, Austria, and Bulgaria, reflecting the company's commitment to deliver advanced investment solutions to diverse European markets. Following the official launch of Freedom24, Freedom Finance Europe’s investment platform across the EU in 2021, the company has already opened 6 representative offices over this year.
The new office in Amsterdam will focus on developing the Dutch market and serve as the Benelux hub, a region where the company has seen a 162% client growth over the past 12 months.
"We find ourselves in a pivotal phase of growth for Freedom Finance Europe," said Nathan Civile, Head of Representative Office in the Netherlands. "As we navigate this development, our primary objective is to expand our footprint in strategic markets. The Netherlands holds a unique and integral position in our long-term strategy, and the much-anticipated establishment of our Amsterdam office marks a significant step in our efforts to solidify Freedom Finance Europe's enduring presence across the entire Benelux region. I am glad to use my knowledge and experience towards bringing an extensive range of financial products, services, and technologies to an ever-growing client base in the Netherlands and beyond."
The decision to open a branch in Austria is followed by solid growth numbers, with Freedom Finance Europe’s client base seeing a 164% increase just over the last year.
“I am pleased to share our strategic move into the Austrian market," stated Shanna Strauss-Frank, Freedom Finance Europe's spokesperson for the DACH region. “With the opening of our new office in Vienna, we are eager to further intensify our client-centric approach. By tailoring our expertise to meet the unique financial needs of the Austrian market, we aim to strengthen our position as a trusted financial partner in the country."
In this strategic expansion initiative, the Bulgarian representative office is set to reinforce the company’s presence in Southeast Europe.
“I am pleased that Freedom Finance Europe has decided to establish a representative office in Sofia. As we extend our reach to Bulgaria, our goal is to provide our current and prospective clients with transparent, value-focused solutions, showcasing the depth of the company’s mission to make investments available to a broader range of retail clients", said Alexandr Buyukli, Head of Representative Office in Bulgaria.
The new offices signify a step forward in the company's mission to enhance accessibility for investors and establish itself as a trusted financial partner across the European markets. Freedom Finance Europe, which currently operates in 10 EU countries, is committed to further strengthen its market foothold in 2024 by opening representative offices in other international destinations seen as promising for the company’s long-term growth.
Materials are presented by Freedom Finance Europe.
EnergyIntel represents the new generation of companies that not only understand the need for sustainable energy solutions but also lead in their implementation. By offering energy solutions for residential and commercial buildings, as well as investing in large photovoltaic and solar thermal parks, the company is not just a key player in clean energy production but also a catalyst for Cyprus’ energy transition. Their clear path in renewable energy sources is complemented by solutions for electric vehicle charging stations, optimizing green charging consumption.The company has developed innovative standalone charging stations that can be deployed even in remote areas without electricity grids, ensuring a clean and fully aligned electric mobility supply.
It’s worth noting that EnergyIntel’s innovative thermal storage solution, ELECTRON247, received the highest rating in the last 20 years, specifically Category A - Excellent, during its final presentation to European technical assessors.
ELECTRON247 is a solar energy production and storage unit for which EnergyIntel received a €1,000,000 grant in 2020 as part of the Innovate/Restart 2016-2020 program by the National Calls for Innovation Proposals (IDEK). As part of the grant, they are closely monitoring and evaluating the project’s progress until its completion. Over the last 20 years since IDEK’s establishment in 1996, only 2 companies have managed to achieve the highest ratings from European assessors at this level.
EnergyIntel has evolved into a renewable energy technology company, aiming to establish solar energy not just as an alternative energy source but to totally replace energy coming from fossil fuels. Their Research and Development department is the heart of their innovation, with numerous patents (over 85) covering technologies ranging from innovative thermal storage materials to advanced energy conversion methods. The company continues to lead in entrepreneurial innovation, translating not only into significant technological advancements but also into creating economic value, thereby strengthening the competitiveness of the Cypriot economy.
EnergyIntel Group
www.energyintel.com.cy
+357 22 380707
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If you were to ask family office investment professionals to describe the markets in 2023 in one word, many would probably choose “confusing”. It hasn’t been as outright bad as 2022, but it has hardly been enjoyable. Bonds are down again, while almost all equity gains are due to virtually a handful of “big tech” US stocks. Anyway, stocks are up while bonds are down: The US economy must be doing great, right? Well, surprise: it is on the brink of “the most anticipated recession ever”!
The positive stock-bond correlation has vast implications for portfolios. Unlike the previous 30 years, the fixed income part of the portfolio does not currently fulfill its role as a portfolio diversifier and stabilizer. Moreover, the most widespread alternative diversifier, real estate, also looks problematic. Will the confusion come to an end in 2024?
BONDS FOR 2024 BEST ASSET CLASS
We cannot imagine a world where bonds finish 2024 with returns below 7%+. Our reasoning goes as follows:
1) Major central banks are about to stop hiking interest rates (with Japan being an exception). It means that prices of sovereign bonds, such as US Treasuries, will stop falling. The US election year may give the Fed additional incentives to turn “dovish”.
2) Bonds are once again yielding more than inflation.
It means investors receive decent compensation for inflation risk.
3) Still a decent probability of a US recession in 2024. In this scenario, credit spreads widen by 200-300 bps and corporate bonds will be at extremely attractive levels. Our LEON Income Fund RAIF will be able to lock in a 12% yield in high-yield corporate bonds.
ARBITRAGE HEDGE FUNDS FOR 2024 BEST DIVERSIFIER
What asset class can be a risk diversifier besides bonds? We firmly believe that uncorrelated hedge funds should be a core part of the Alternatives allocation of any well-constructed portfolio now. The LEON Global Hedge Fund RAIF is aiming to offer just that allocation prepackaged and ready for inclusion in any equity portfolio. Studies show that adding uncorrelated, high-return, high-risk components to a portfolio improves returns while maintaining the same amount of risk taken. This is particularly true when there is no clear trend in equity markets, which we believe will be the case in 2024.
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| Michael Borisov, CFA Portfolio Manager, Alternative Investments |
Artem Kalinin, CFA |
LEON MFO Investments
Tel.: +357 25 268 120
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Address: 37, Theklas Lisioti,
Gemini House, Office 301,
CY-3030, Limassol, Cyprus
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With a grand celebration spanning an entire week in December, Limassol-based Exness marked its 15-year anniversary. This occasion, titled ‘15 Years of Exceptional Moments’, wasn’t just a celebration of Exness’ achievements and its rise as a greatly prominent global retail broker; it was a tribute to the people who were instrumental in its journey – employees, clients, and partners.
In a grand gesture of appreciation and recognition, Exness flew almost one thousand people who are integral to its success, to Cyprus. The week was packed with extraordinary events, featuring a blend of gala and corporate dinners, island tours, and lively parties.
Attending the events were also prominent figures of Cyprus’ political and social scene. The Minister of Tourism, Kostas Koumis, took the stage at one of the week’s many events, held at Limassol’s City of Dreams, delivering a commendatory speech, acknowledging Exness’ business achievements and thanking the company for what he characterised as one of the biggest events of the past few years.
Central to the celebrations was a series of talks by Exness’ senior managers on the “Future of Exness”. These unveiled Exness’ strategic vision, brand evolution, plans for partnerships, and role in the capital markets. During these talks, Exness’ guests had an exclusive preview of a major announcement coming at the end of January 2024.
These talks showcased that while Exness has an ambitious vision for the future, it remains true to its founding values of innovation and ethical practices. Exness’ commitment to these values is evident in its entire approach to product development. The company, specializing in facilitating access to the financial markets, leverages technology and data science to constantly improve the trading experience for its clients.
But the highlight of the celebration was the climactic Cyberness Party, an unprecedented event for Cyprus, showcasing a stunning display of retro-futurism, and offering attendees an immersive entertainment experience. Taking place at Limassol’s revamped Kolla Factory, the party combined spectacular culinary, musical, and visual experiences, symbolic of the company’s products and milestones. With creativity and innovation at its core, the event was reflective of Exness’ character and ethos. Incredible musical and dance performances were given by international stars Who Made Who, Satori, Alma Linda, Playtronica, Curiosity Media Lab, and Context. Diana Vishneva. The party was also attended by key Cypriot socialites and influencers.
Exness CEO, Petr Valov, commented: “Hosting this celebration in Cyprus and bringing together our partners, clients and key contributors to our success was tremendously moving and surreal. Our anniversary was a great opportunity to come together, celebrate our collective achievements, and share our vision for the future, all on this beautiful island we now call home. We are ready to embark on the next 15 years and a new exciting era for both Exness and Cyprus.”
The blend of technological advancements and ethical practices Exness employs, has propelled the company’s expansion in over 100 countries and its growth from monthly trading volumes of $10 billion in 2010 to nearly $5 trillion in 2023. Its global footprint is supported by a workforce of more than 2000 world-class employees and a network of 119,000 dynamic partners and 600,000 clients worldwide.
Beyond its reputation as a top employer in Cyprus, Exness significantly contributes to Cyprus’ community. The company’s corporate social responsibility focuses on education, the environment, and emergencies. Notable initiatives of the past years include the €1,000,000 donation for COVID relief efforts, a €600,000 contribution to the Department of Forests in Cyprus, and full Cambridge scholarships to top students in science and tech-related fields. As a founding member of Tech Island, Exness is also instrumental in transforming Cyprus into a Mediterranean tech hub, strengthening the competitive advantage of the local economy and workforce.
The 15-year milestone was an exceptional moment for everyone involved in Exness’ success to celebrate and look forward to the future. The celebrations were not just about commemorating past achievements but also about setting the stage for Exness’ future steps. As Exness is poised to enter a new era, it is committed to remaining true to the same principles of tech-driven product development and ethical practices that have been instrumental in its rise to becoming an incredibly prominent global broker.
