Panel C | arbitration2017

Panel C: International Arbitration, Mediation

& Financial Institutions

Chair: Prof. Christos Gortsos

Presentation: “International arbitration for financial institutions”

Professor Dr. Christos Gortsos is Professor of Public Economic Law at the Law School of the National and Kapodistrian University of Athens and Visiting Professor at the European Institute of the University of Saarland. He has also teaching assignments at:

the European Institute of the University of Zürich,
the European Law Academy (Trier, Germany), and
the Panteion University of Athens (Department of International, European and Area Studies).

In addition, he is a Research Partner of the University Research Priority Program (URPP): Financial Market Regulation of the University of Zürich.

He is teaching (mainly) financial regulation, public economic law, central banking law, international and EU monetary and financial Law, as well as law and economics, fields in which he has also published extensively.

Professor Gortsos is inter alia:

Chairman of the Board of Directors of the Hellenic branch of the International Law Association (ILA),
Vice-President of the Faculty Board of the European Law and Governance School (ELGS) of the European Public Law Organisation (EPLO),
Member of the Monetary Committee of the International Law Association (MOCOMILA), and
Research Associate in the European Research Center for Economic and Financial Governance (EURO-CEFG), Leiden University, Delft University of Technology and Erasmus University Rotterdam.

During the period 2006-2009 he was a Member of the “Panel of Experts in Financial Services” of the Committee on Economic and Monetary Affairs of the European Parliament, and in 2014 a Member of the Task Force of the Center of European Policy Studies (CEPS) on “ECB Banking Supervision and Beyond”.

Apart from his academic career, Professor Gortsos is a member of the Athens Bar Association (admitted at the Hellenic Supreme Court). From July 2000 until February 2017 he has been the Secretary General of the Hellenic Bank Association.

"Mediation Process and Insolvency Framework - Practical Application"

Mr. Marios Pelekanos

Mr. Marios Pelekanos has been a successful and experienced banking professional for about 16 yeas bringing on board deep functional know-how. He has served in a number of reputable financial institutions holding vital, and senior positions from time to time, a real investment in knowledge as regards retail, corporate and both local and international banking. The past two years he has been very active as an advisor for debt restructuring. He is an Associate of The London Institute of Banking & Finance and is the Founder and Managing Director of M. Pelekanos Financial Advisors and Insolvency Practitioners Ltd.

The firm is offering financial consultancy services to businesses and individuals. Amongst other, all services covered under the Insolvency Framework, Banking Intermediation services, Setting up and Administration of Investment Funds/Cyprus Investment Firms etc.

Accreditations, Memberships and Licenses

Insolvency Practitioner (License No. 247)
Certified Manager – Institute of Certified Professional Managers (USA)
BSc Hons in Financial Services (University of Manchester)
Associate of The London Institute of Banking & Finance
Certified Person - Advanced Level. No: CN3588 (Cyprus Securities & Exchange Commission)
Approved ASP Compliance Officer (Cyprus Securities & Exchange Commission)
Member of the CCCI
Officially registered as Mediator with the:
- Cyprus Chamber of Commerce and Industry (CCCI)
- Cyprus Ministry of Justice
- Financial Ombudsman of the Republic of Cyprus
Councilor - Strovolos Municipality (Δημοτικός Σύμβουλος Στροβόλου)

Abstract

Analysis and assessment of the methodologies implemented in the past in Cyprus to resolve disputes between financial institutions and borrowers; effectiveness of the past practises, i.e. arbitration and legal proceedings, vs the effectiveness of the tools and mechanisms available nowadays. Why the introduction of the Mediation process and the Insolvency Framework, and the amendment of the Law related to the foreclosure of mortgaged property have proven to be a game changer and how the two ‘rivals’ can now quickly agree and implement viable restructurings. The importance of “having someone in the middle” and what should be expected next; ongoing discussions between the stakeholders to agree on a new legislation related to loan guarantors, introduction of a new arbitration framework, upcoming amendments to the Insolvency Framework. Why it is of huge importance for Cyprus to significantly decrease the Non-Performing Loan Ratio of the Banking System via the implementation of quick, permanent and viable solutions.

"Presentation of ICLAIM"

Prof. Stéphanie Laulhé Shaelou

Professor Laulhé Shaelou has been actively involved in teaching, research and knowledge transfer in Cyprus and Europe for the past fifteen years. Based in Cyprus for most of her career but with experience in prestigious universities in Europe, her teaching, research and practical experience focus primarily on multiple aspects of EU law. French born and educated (University of Paris), she then went on to do her LLM and PhD in the UK (University of Leicester) in the broad area of EU law. She is currently a Professor of European Law and Reform and Head of the School of Law at UCLan Cyprus. She is involved in teaching several EU-law related modules on the LLM, in particular EU Constitutional Law and Governance and EU Economic and Financial Governance. She is the Director of Studies for several PhD students/research scholars at the School of Law working on the various dimensions of the financial crisis including dispute resolution, and was a Senior Research Fellow at the Lancashire Law School, UCLan UK from 2013 to 2016.

Her research currently deals inter alia with EU economic governance, the financial crisis and its legal implications in Cyprus. She is the Module Leader and Academic Coordinator of a Jean Monnet Module at the Law School of UCLan Cyprus under the Erasmus+ programme 2014-2020 entitled “The Law of Financial and Economic Governance in the EU” (2014-2017). The Jean Monnet Module supports research undertaken in the field of EU economic and financial governance, including dispute resolution, and has already successfully organised a series of events where eminent academics and practitioners from all over Europe were invited to participate to teaching, debating and research activities with students, professionals and the wider community in Cyprus. A series of activities for the third and last year of the project is currently unfolding. For more information, see http://www.uclancyprus.ac.cy/en/research/jean-monnet-module/. She was also the lead author for the Cyprus Report on the EU Banking Union for the 2016 Congress of the International Federation of European Law and has been involved in consultancy work around EU financial crisis related instruments and dispute resolution.

ICLAIM

In February 2017 she established the Interdisciplinary Centre for Law, Alternative and Innovative Methods (‘ICLAIM’), a non-for profit organisation dedicated to law in the real world. ICLAIM aims at working on socio-legal issues and disputes arising in a transnational and interdisciplinary context, at all levels of the legal order and multi-level governance (international, European and national), utilising alternative and innovative methods. In particular, ICLAIM is concerned with the creation, application, implementation and enforcement of law; and with the settlement, mediation, negotiation, arbitration, resolution and other forms of dispute resolution. Through the marketisation of outputs and the securing of external funding to conduct its activities in Cyprus and beyond, ICLAIM is a vehicle for responsible research, innovation and enterprise in the aforementioned fields through educational training; vocational training; engagement with the legal profession, the industry and the public; and social entrepreneurship and service to the community. The initial outreach activity of ICLAIM consists in a Conflict Management and Mediation Skills training to be held at UCLan Cyprus on 5-7 July 2017. The Founding Members/Directors of ICLAIM are Prof. Stéphanie Laulhé Shaelou and Dr. Lida Pitsillidou, Lecturer, School of Law, UCLan Cyprus. The company secretary is Dr. Nevi Agapiou, Lecturer, School of Law, UCLan Cyprus. Resident members of ICLAIM are credited with local, regional and global initiatives focusing on very diverse fields of the law in the real world, through alternative and innovative methods. They work very closely with internationally respected and distinguished researchers and academics as well as key industry partners and professionals, including in the public sector, in Cyprus, Europe and the wider region. Professionals are welcome to contact ICLAIM with their own ideas to be developed in partnership with ICLAIM (http://www.iclaimcentre.org/).

"Bank depositors and the option of international arbitration"

Ms. Despina Christofi

Ms Despina Christofi holds a Bachelor of Laws degree with honours from the University of Leicester (2013) and was awarded her LLM in International Commercial Law from the University of Glasgow in 2014. Being particularly interested in banking law, she focused her research in this area, examining in particular in her dissertation the contribution of banks to the financial crisis of 2007. During her LLM studies, she became increasingly interested in banking law and arbitration, particularly in the light of the last financial crisis in the EU. This stage of her education sparked her interest to continue research in this field by doing a PhD on the financial and banking crisis and dispute resolution in the EU, as a research scholar at the Law School of UCLan Cyprus from November 2014. Her thesis is expected to be submitted in September 2017. She is also a research assistant on the Jean Monnet Module running at the Law School of UCLan Cyprus from 2014 and 2017 and entitled ‘The Law of Financial and Economic Governance in the EU’. One piece of her work has been published as a JMM working paper, with the title ‘Reforms of the banking sector in response to the financial crisis within the EU: Comparative analysis of the UK and of Cyprus’. Despina teaches two LLM modules, International Commercial Litigation and International Commercial Arbitration and assists in the teaching of the LLM compulsory module of Advanced Legal Systems where she focuses on the financial crisis. She is also actively contributing to the professional course on Arbitration offered by the Law School of UCLan Cyprus in collaboration with the Cyprus Arbitration and Mediation Centre.

Abstract

Bankers are said to dislike arbitration, therefore disputes relating to financial transactions are more likely to be litigated than to be settled out of courts. At present, in Anglo-American financial markets, disputes are often solved through arbitration and such an approach is also encouraged in the EU financial markets as well, particularly as a result of the financial crisis.

While litigation is clearly available for bank depositors, arbitration constitutes an available option only if bank deposits qualify as investments and thus their holders can enjoy the dispute resolution method provided by the International Investment legal regime. Local depositors and investors are entitled to any rights provided for by the national banking law, investment law and consumer law. Foreign investors are also entitled to any rights provided for by Bilateral and Multilateral Investment Treaties between the country of their origin and the country of their investment.

‘Investment’ is a word very commonly used, thus it might be assumed that defining the term is straightforward. However, the notion of investment is broad enough and it receives various interpretations in everyday, financial and legal usage. The purpose of this analysis is to extract the essential features of ‘investment’ in order to examine whether bank deposits fulfill the criteria so as to be considered as ‘investments’. Bank depositors could be entitled to the protection offered by investment law and have the option of arbitration available for them, in case they are regarded investors, either under international or EU law.

Initially, a financial and economic definition is given. Moreover, an analysis of the interpretation of investment under international and EU law follows. The purpose of this analysis is to extract the essential features of ‘investment’ in order to examine whether bank deposits fulfill the criteria so as to be considered ‘investments’. Bank depositors could be entitled to the protection offered by investment law, in case they are regarded as investors, either under international or EU law.

“Arbitration and Banking institutions: an overview of the Cyprus case law”

Dr. Chrysthia Papacleovoulou

Dr Chrysthia Papacleovoulou has an LLB from King’s College London and an LLM in Anglo-American Law from City University, which she completed with Commendation. Her interest in company law and international economic law led her to pursue a PhD thesis entitled the “Emerging Global Corporation” at University of London, Birkbeck College. For her PhD studies she was awarded the Ronnie Warrington Studentship and Birkbeck College Research Studentship for the full PhD tuition fees funding.

Chrysthia is a practicing advocate at the Law Chambers Nicos Papacleovoulou LLC and the Spyros Vassiliiou & Associates LLC. Her focus is on Corporate & Commercial Law and the International Trusts & Corporate Structures and Litigation. She is a Qualified Practitioner Member of Society of Trust and Estate Practitioners (STEP) and an Honorary Fellow of the Association of Fellows & Legal Scholars of the Centre of International Legal Studies. She has completed in 2011 the “Short Course on Financial Services and Markets Regulation”, the London School of Economics and in 2016 the PON Global Negotiation for Executives: Program on Negotiation at Harvard Law School.

She has extensive teaching in the fields of business law, company law, trusts, international economic law, international commercial arbitration, contract law, tax law as a scientific collaborator at the Department of Accounting and Finance of the University of Cyprus and the Department of Law at the European University and Frederick University.

Chrysthia has written extensively, by way of articles and book sections, on land law/immovable property law, transfer pricing and tax avoidance, corporate veil, tax litigation, arbitration, consumer protection laws.

In terms of memberships, she is the Treasurer of the Committee of the STEP Cyprus Branch, and Member of the Cyprus Bar Association Committees for Company Law and legislative review.