INSIGHTS


Key Changes Under the New Markets in Financial Instruments Directive (MIFID II)

Following the serious economic crisis of 2008, the European Commission (EC) considered as being necessary the recast of MIFID I and the introduction of an amended version of it, the MIFID II. The MIFID II along with the Markets in Financial Instruments Regulation (MIFIR) constitutes the new legislative framework regulating the trading of financial instruments across the EU and the operation of financial institutions providing financial services within the European Union (EU). MIFID II will be implemented from 3 January, 2018 and its main objectives are the attainment of a greater degree of harmonisation by establishing “a single rulebook applicable to all financial institutions within the internal market”; the significant increase of investor protection; the minimisation of the risks of a disorderly market; the increased efficiency of financial markets and the decrease of superfluous costs for the participants. Moreover, the new MIFID II aspires to encourage competition across the EU financial markets and introduce reinforced supervisory authorities ensuring compliance with the relevant legislative regulations. The purpose of the present publication is to briefly explain what are the key changes MIFID II is about to bring and how these changes will contribute to the realisation of its objectives.

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Obtaining a Legal Entity Identifier (LEI) in compliance with MiFID II

In light of the implementation of the Markets in Financial Instruments Directive 2014/65/EU (MiFID II) and the accompanying Markets in Financial Instruments Regulations 600/2014/EU (MiFIR), in an effort to achieve further transparency and improvement of the functioning of the internal market of the European Union, all entities that must comply with the transaction reporting obligations under MiFID II should apply and acquire their own Legal Entity Identifier (LEI). Such obligation is paramount for the relevant entities, as the reporting of reference data of the transactions under MiFID has already begun and entities who do not obtain their LEI will not be able to trade on behalf of their clients and/or otherwise transact with relevant parties as of the 3rd of January 2018. This publication provides further information on the nature of the LEI, its purpose and effect, the reported information, details on who must obtain a LEI and information on obtaining a LEI by Cypriot entities.  

 

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Damages for loss of goodwill in the context of eviction of tenants from a property subject to Cyprus Rent Control

A tenant occupying a property which is subject to the Cyprus Rent (Control) Laws of 1983, as amended (the “Law”) may, under certain circumstances, claim damages for loss of goodwill in the event of a successful eviction by court order. This publication examines the legal and practical considerations in connection to the said subject matter and specifically discusses: all preliminary considerations, the conditions for eviction, the statutory prescribed compensation, the possibility of damages for loss of commercial value (goodwill),  the requisite legal elements in order to qualify for such compensation, as these arise from applicable case law,  and other practical considerations to be taken into account in the context of a possible out-of-court settlement, such as the length of eviction proceedings in Rent Control Court.

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Key Benefits and corresponding Obligations arising from the General Data Protection Regulation (GDPR)

The European Commission, with a view to further safeguard and protect European citizens’ privacy and personal data in relation to transactions that take place within the European Union (“EU”), has adopted on the 27 April 2016 the General Data Protection Regulation (“GDPR”). The GDPR is expected to take effect from 25 May 2018 and will become directly applicable to all EU Member States, thus replacing the Data Protection Directive of 1995 (Directive 95/46/EC) and becoming binding and directly enforceable in all member states. The purpose of the present publication is to briefly present an overview on the key changes that the new GPRD is about to bring and describe the most significant rights the GDPR provides to EU citizens and the corresponding obligations to organizations which control or process personal data.

 

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Cyprus Tax Residency Now in 60 Days

Up until recently, in order for a person to qualify as a Cyprus tax resident, he had to spend at least 183 days of the calendar year in Cyprus. This is no longer the case as the parliament passed a bill on the 14th of July, 2017 pursuant to which any person that remains in Cyprus for at least 60 days during the tax year can qualify as a Cyprus tax resident provided that certain conditions and criteria are met.

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Effective Techniques for Negotiating Commercial Agreements

 It is no understatement that negotiation is a skill and an art form especially for the multi-issue level negotiation required in the context of commercial agreements.  Effective negotiation can be the difference between a great deal and very bad one. Below is a handful of negotiation techniques that, when properly applied, can facilitate a better negotiated outcome, both in the context of commercial agreement but also in every day negotiations.

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The Importance of Shareholders' Agreements in Startups

While starup founders are consumed by passion for their idea and matters of operation they often neglect to adequately manage the affairs between them which inevitably brings them substantial hardship when it really matters. With Cyprus’ new tax incentives to support new and innovative businesses, announcements for “visa starups” and “spinoff universities” and the establishment of startup incubators by respectable organisations in the island, it could be said that Cyprus is making its way into becoming an entrpreneurial startup hub, to benefit local and foreign enterpreuneurs but also to attract venture capital and other investors. It is thus quite relevant to address the topic of the importance of shareholders’ agreements in connection with Cyprus companies under which such startups customarily operate.

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Effective Practices for Protection Against Bad Tenants

One of the primary concerns of any rental property owner is non-paying or otherwise defaulting tenants. You can have the perfect tenancy agreement with ironclad provisions for protection in case of default but enforcement is a different story. It can take years to enforce, if at all, especially considering lengthy court proceedings and protections afforded by rent control laws in Cyprus, often exploited by defaulting tenants in bad faith. Below are some practical and effective practices for protection:

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Essential Terms & Conditions for your Website or Online Business

Whether you are an entrepreneur with an innovative product or service or a traditional business keeping up with current trends it is no understatement that the website is one of the most vital components of today’s business, perhaps even more that the store or the office. Having the right terms and conditions might not seem as the first priority, but it is an essential element to safeguard your interests, protect yourself from liability and generally set the rules of use, thus indicating your professionalism and credibility. Irrespective of your website’s purpose, whether that be marketing, informational, social networking, subscription based service or an e-store, the following are some essential elements that should be incorporated in the terms & conditions:

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Cyprus Passports Now With a €2 Million Investment

On the 14th of September, the Cabinet approved new criteria for the naturalization by exception programme which grants fast track Cyprus citizenship to individuals investing in Cyprus. The revised criteria, inter alia, now introduce a requirement for an individual investment of €2 million provided that the investor owns a residence of at least € 500.000 and abolish the collective investment of €12 million

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