Let’s start with the failed rollout in January of the e[1]justice system, with completion now projected for 2025. How did the profession react to this setback and how has it affected your firm’s operations in particular?
The “failed rollout” was not met with surprise or undue consternation because the previous i-justice system was brought back into operation immediately so there was no noticeable effect or downtime as court filings were concerned. The revision of the civil procedure system and court filing system in Cyprus was an overdue and very necessary project for the legal industry and the economy in general. Progress always has its hiccups and, as a practising lawyer, I prefer to focus on the positive, which is that this particular leap was made for the reasons mentioned.
Macroeconomic challenges and geopolitical strife have led to the contraction of the local industry in recent years. How do you assess its present state?
The legal industry, throughout the world and not just in Cyprus, can be characterised as “swings and roundabouts.” – You lose in one area but you gain in another. The significant loss of business arising from the Russian invasion of Ukraine, allied to the sanctions that followed, has been made up by an upturn in local business, notably in the fields of inward foreign investment and significant local merger and acquisition cases, along with a greater service offering, particularly in the areas of financial services and regulatory compliance. This, as well as an increase in alternative dispute resolution services, which is another area in which we are particularly active, has more than made up the difference as far as Ioannides Demetriou LLC is concerned.
Given these challenges, are Cyprus law firms identifying and pursuing new revenue opportunities by tapping into new markets or introducing new service offerings?
Cypriot law firms have always been enterprising when it comes to sourcing work. Firms that have – or can develop or source – expertise in new areas of work will do so and will seek to attract new clients from both the local market and abroad. There are opportunities for law firms in many fields. Development projects are on the rise and inward foreign investment in all fields is at an all-time high. Despite the reputational damage that Cyprus has incurred lately, due to scandals such as the passport debacle, it is still an attractive venue for foreign investors.
Meanwhile, other industries are taking market share from law firms by providing ‘one-stop solutions’ to clients. Do you foresee this trend driving consolidation within the legal sector? Can law firms adapt to this competitive landscape?
It has become clear that clients are demanding ever-increasing expertise from their lawyers. The days of the small law office – where the only “specialisation” was “generalisation” – are nearing their end. Law firms will either have to specialise and limit their offering to their area(s) of specialisation or grow to have a number of specialist lawyers of different expertise at their clients’ disposal – there is no halfway house. We do not view the ‘one-stop shop’ per se as a direct challenge. There will always be a demand for legal expertise and for top lawyers. Such lawyers are not born but are the product of hard work, dedication, support and encouragement and access to cases and resources so that they can reach the very top in their respective fields. All leading law firms invest time and effort in nurturing their promising junior lawyers to become leaders in their fields of practice. The firms that succeed in this will not only survive but will thrive as they will offer a far superior service to that of any ‘one-stop shop’.
The Finance Ministry plans to introduce a single authority to supervise the whole of the professional services sector, as part of broader efforts to improve the country’s image abroad. What are your thoughts on this?
This is actually an EU initiative, not one being taken by the Ministry of Finance alone. Provided that it is well managed, this can only be a good thing as it will force the Cypriot services sector to be on a par with the rest of Europe. Anything that can take us out of our island mentality and open us up to wider scrutiny is very welcome, as far as I am concerned.
Finally, what strategies should be adopted if a substantial rebranding initiative is to be undertaken with the aim of restoring Cyprus’ reputation within the international business community?
We need to see far-reaching investigations away from political influence, speedy and competent prosecutions, and harsh sentences that have a true deterrent effect. Local confidence in the country’s political and legal systems is at an all-time low and, if this is the case, how can we possibly believe that the international community will think any differently? We are kidding ourselves if we believe that the international community has forgotten or will forget in a hurry the scandals that have plagued Cyprus in recent times. They will only be forgotten if Cyprus can demonstrate that it has realised the error of its ways by taking active and concrete steps to eradicate them and punish those involved.