Natasa Zervou: We cannot build a reliable international image through superficial marketing and surface-level approaches

“The Government needs to take meaningful action to address and resolve issues as they arise, it must be adaptable to change, and seriously consider red flags the moment they appear,” Natasa Zervou, Partner - Administrative & Constitutional at George Z. Georgiou & Associates LLC suggests.

In an interview on the current state of the legal sector, she underlines this means a reliable international image cannot be built “through superficial marketing and surface-level approaches.”

Among other things, Zervou also shares her opinion on the plans for a single supervisory authority for the professional services sector and the e-justice system, as well as how the legal industry is handling contemporary challenges.

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 cannot build a reliable international image through superficial marketing and surface-level approaches. The Government needs to take meaningful action to address and resolve issues as they arise, it must be adaptable to change, and seriously consider red flags the moment they appear. More importantly, we need to act quickly on implementing significant and drastic changes in the public sector that is currently bogged down by bureaucracy and endless procedures. We don’t have the luxury of time to first change the culture of the public sector – which, of course, should be the aim in the long run – and then introduce reforms. Moreover, investment is needed to create a reliable court and arbitration system in Cyprus. There are many talented professionals in the legal field who are held back by the lack of infrastructure. It's time to make bold moves and enact real change.

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?

The Supreme Court recently issued a judgment, overturning a disciplinary decision by the Disciplinary Body of the Cyprus Bar Association which had imposed a fine on a law firm under the provisions of the Prevention and Suppression of Money Laundering Activities Law. The Supreme Court’s decision was based on the fact that the Disciplinary Body acted simultaneously as examiner, prosecution and judge. We believe that this judgment will spark new discussions on supervision and we anticipate that changes in the regulatory framework will be imminent.

Let's move on to the failed rollout in January of the e-justice system. How did the profession react to this setback and how has it affected your firm's operations in particular?

The failure in implementing the e-justice system led to significant issues during its operational period. To say that lawyers were scrambling like headless chickens would be an understatement! Prior to the implementation of e-justice, within a short period of time, lawyers and administrative staff had been required to become familiar with i-justice system (admittedly a much more straightforward, practical and user-friendly system). Moreover, when e-justice was introduced, lawyers were also engaged in adapting to the new Civil Procedure rules, which drastically changed both the legal system in Cyprus and its philosophy. At GZG, we endeavour to be ahead of the curve and do our best to ensure that all staff members are trained and prepared in good time. Unfortunately, the manner in which the e-justice system was launched with very little warning was, undeniably a challenge that even the best and well-equipped firms couldn’t handle. The uncertainty surrounding the new projected completion date (2025) also makes it challenging to plan for the future, as we’re now unsure when, or if, the anticipated benefits will materialise. It is fortunate that the Government’s initial approach – to insist on its implementation until all matters were resolved in practice – changed. The damage created was not only financial but also reputational, with regard to the ability of the Cyprus legal system to function properly, and psychological for all those individuals who had to deal with a very stressful situation.

Macroeconomic challenges and geopolitical strife have led to the contraction of the local industry in recent years. How do you assess its present state?

We are currently navigating a highly uncertain geopolitical environment, which has undoubtedly impacted the local industry and continues to cause turmoil. Unfortunately, the challenges we face are not just due to external factors beyond our control; they also stem from internal issues. Recent developments with large- scale projects have highlighted the public sector’s inability to foster an attractive investment environment for Cyprus. This, coupled with years of political favouritism and a rigid bureaucratic system, is rather discouraging. At GZG, we invest heavily in promoting not only our firm at an international level but also Cyprus as a reliable business hub. Our team is committed to attracting new clients and creating new opportunities in various markets and industries. It's disheartening to acknowledge that we are in a Sisyphus-like situation, where the task feels endless and futile, yet we remain hopeful and continue to strive forward with our efforts in the expectation that things will eventually improve.

Given these challenges, are Cyprus law firms identifying and pursuing new revenue opportunities by tapping into new markets or introducing new service offerings?

The key is the ability to adapt and to recognise our strengths and areas where we can improve further. There is no one-size-fits-all solution. For instance, a boutique law firm shouldn’t aim to compete with the broad range of services offered by a large firm with many lawyers specialising in different areas; instead, it should leverage its advantage of being more flexible and with lower operating costs. However, regardless of a law firm's size, creating new revenue opportunities requires a sterling reputation, a commitment to delivering top-quality services, continuous improvement and ongoing employee training and education, including that of both legal and non-legal staff.

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?

Law firms should focus on offering bespoke services that are specifically tailored to each client’s unique needs. They should also create a network of professionals and consultants with whom they can collaborate on a client’s request. Most importantly, they should focus on what they can do best, which is to provide top- notch quality legal services.

This interview first appeared in the August edition of GOLD magazine. Click here to view it.