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CHANGE IS COMING

ow was your 2019? As the year draws to a close, we all, inevitably, take a look back and assess our business, our position, our achievements or shortcomings and our plans for the year ahead. Could we have done something better, performed more efficiently? The answer is always going to be and should always be, yes. Admittedly, some of the bigger questions have already been answered; we now have a fair idea of who let the dogs out, we know that video killed the radio star but the main question that Elaine McCormack, (senior risk consultant KPMG Isle of Man) gets asked is; “Is regulation ruining the eGaming industry?” Elaine’s article, page 28, highlights how regulation is actually changing the industry for the better due to an, across-the-board approach to rules, technological advances and a shift in compliance culture. Recent panel discussions drew attention to the fact that regulatory changes have succeeded in strengthening player protection and simultaneously levelling the playing field. The “industry is seeing evidence that these regulations are there to enhance business and customer enjoyment, particularly because everybody is playing to the same rules.” There is still work to be done but the increasing desire for a collaborative approach is driving the industry forward towards a shared end goal, where, “others look and aspire to be like.” Ted Pepper, Managing Director SMP eGaming, echoes these sentiments on collaboration in his article on page 31, “Don’t Fear Change.” He says, “A considerable amount has changed in the last ten years and as much again will change in the next ten. What we know, however, is that the Island is a safe, secure, and above all, a flexible and open-minded jurisdiction, so it should continue to flourish come what may.” Perhaps, you may be asking yourselves another question; how can I improve my productivity in 2020? How can I do things differently? Tim Harford’s article on page 22 suggests that we all fall into one of two camps; the type of people who map out their days in minute detail (time-boxing) or the ones who go with the flow and can’t stand the idea of planning ahead. Harford offers tips on prioritising and setting deadlines to reach a happy medium but even he admits that, “everyone is different, and every job is different.” Another way to keep track of an ever-evolving business landscape is to tighten up the auditing process. The changing face, and indeed price, of auditing is highlighted on page 34. Accountancy prowess will no longer cut the mustard. There is now an expectation that audit teams have a greater depth of skills and technical expertise on everything from tax specialism to property valuation. Of course, it is not just the business that should come under scrutiny, employee reviews are an area that could benefit from an overhaul too. Elizabeth Uviebinene explores this idea further in her article on page 14 when she claims that annual performance reviews do a disservice to workers and firms. The reality in most companies is that performance reviews are still closely tied into promotion and pay, so they play an outsized role. We need to find some other objective measures to assess people fairly — and make sure rewards are distributed in as fair a way as possible. What younger workers want is useful, real-time feedback from their line managers. Steve Redford Publisher

CONTENTS UPDATE

3 6 10 11

WELCOME BUSINESS NEWS SURE 5G STEP

500 DAYS OF GDPR

WALK THE WALK AND TALK THE TALK - FOUNDED

INCOME TAX DEADLINES BAKERTILLY

TISE - GOOD CORPORATE GOVERNANCE

WHEN IT COMES TO PRODUCTIVITY HACKS, ARE YOU AN ARNIE OR AN ELON?

APPOINTMENTS

ANNUAL PERFORMANCE REVIEWS DO A DISSERVICE TO WORKERS AND FIRMS

ON THE AGENDA...

BRAND VOICE

34 36

AUDIT: SHIFTING EXPECTATIONS – KPMG IOM

SUCCESS IN SOUTH AFRICA – CAPITAL INTERNATIONAL

IOD - IOM

FEATURE - EGAMING

REGULATION & THE EGAMING INDUSTRY

30 CONNECTING BUSINESSES

DON’T’ FEAR CHANGE

40 42 44 46

WELCOME MESSAGE

AUTUMN LUNCH WINE TASTING SOCIAL EVENT EVENTS

OUT OF OFFICE

48 50

ELAINE MCCORMACK TREK

BUSINESS BOOKS OF 2019 5

update news

TAX MATTERS EXPLAINED BY PwC ISLE OF MAN

nternational tax matters, private client issues, economic substance and indirect tax developments were among the topics explored at a tax update, hosted by PwC Isle of Man. The Niarbyl Suite at the Comis Hotel welcomed more than 140 guests to the breakfast gathering as the PwC team and officials from the Isle of Man Government delivered presentations to update clients across a range of areas. Kevin Cowley, a Tax Partner with PwC, opened proceedings with a presentation on international tax matters, highlighting the challenges arising from taxation of the digital economy and the ongoing work and aims of the OECD (Organisation for Economic

Cooperation and Development). Tax Director Andrew Cardwell then delivered an insightful private client update focusing on inheritance tax for both Manx residents and domiciled individuals, on UK residential property, UK real estate and share incentive schemes. Paul Martin, Deputy Assessor of the Treasury’s Income Tax Division, then presented an overview of the Isle of Man economic substance regulations, a brief history and an assessment of the recently introduced legislation and what changes are to come. He was followed by Sandra Skuska, Collector of Customs and Excise, who teamed up with PwC Tax Director

Phil Morris to discuss indirect tax developments, exploring the recent review of the yacht and aircraft structures, Brexit and the current position of the Island’s revenue sharing arrangement. Kevin explained: ‘It was an extremely broad agenda reflecting the significant rate of change to the tax landscape both in the IoM and further afield. It was very encouraging to see such a large attendance at the event. ‘A number of important and complex tax developments were considered and dealing with the consequences of these changes can be involved. We continue to work with our clients to update them and help them to manage their tax affairs and obligations.’

Chamber now has instant messaging online community

he Island’s biggest business network has introduced a new way for members to keep in touch, and to share information about the latest news and events. Isle of Man Chamber of Commerce now has its own ‘IOM Chamber Community’ on Slack, a cloud-based, instant messaging platform which is also used by many other leading organisations including media giants Fox and the BBC, and global brands such as IBM, Vodafone, and Trivago. Rebecca George, CEO Isle of Man Chamber of Commerce, said: “We were very keen to create a user friendly but feature rich platform which members could use for multiple tasks. After thorough research, and testing similar apps which are widely used by business networks, we decided to set up an ‘IoM Chamber Community’ on the Slack platform. It allows our members to ask questions, share ideas, request mentorship, and share events. It also has sector specific channels for members to discuss industry specific

issues – but that’s just a few of its uses and we’re sure that we and our members will find many more ways to utilise its functionality. We plan to expand the community with a view to it becoming an even more effective source of assistance, and a reference tool. Slack is an additional service which complements Chamber’s existing communication and news channels – so members will still receive email updates and our newsletter, and www.iomchamber.org.im will continue to be updated with the latest news and events information.” Isle of Man Chamber of Commerce members have received an email invitation to join the ‘IoM Chamber Community’ on the Slack platform. It only takes a few clicks to join. Slack is easy to use and doesn’t have to be linked to your social media accounts. You can use it via your desktop at work and/or your mobile – and you have the option of switching off notifications outside working hours. If you would like any further information please contact Isle of Man Chamber of Commerce. ON THE AGENDA...

Manx beef and lamb now at Tesco

sle of Man Meats lamb and beef are now available at the Tesco store in Douglas. Shoppers can choose from a range of products, including whole and half shoulders of Manx lamb, whole and half legs of Manx lamb, Manx beef roasting joints, and Manx beef carvery joints. Plans are already in progress to introduce more Isle of Man Meats products to the Tesco range in the future. To celebrate the launch chef Maciej Mierzejewski visited the Douglas store to cook up delicious Manx lamb and beef recipes for shoppers to try. On a bright but chilly November afternoon, a hearty, warming, stew proved to be a big hit with lots of shoppers tucking in – and then adding Isle of Man Meats beef or lamb to their shopping lists as they headed into the store!

Isle of Man Meats Chairman Tim Baker MHK described the Tesco deal as a ‘huge vote of confidence in the business’ and a ‘game changer’ for Isle of Man Meats and the Island’s red meat producers. He added: “This is a very significant achievement for Isle of Man Meats and has been achieved after many months of hard work by our team to meet the high standards demanded by Tesco and their customers. As one of the biggest food retailers on the Island, the Tesco partnership is also a massive step forward for the Island’s farming community.” Isle of Man Meats thanks DEFA for support provided as part of the Food Matters Strategy which has played an important role in securing the Tesco

partnership. In the last 18 months Isle of Man Meats has invested in recruiting highly experienced and skilled staff, improved its technical capabilities, and achieved widely recognised industry accreditations. Chief Minister Howard Quayle MHK said: “The food retail industry on the Island is worth in excess of £160million per year, with supermarkets accounting for over 80% of this. A key aim of the Isle of Man Government’s Food Matters strategy is to enhance the market share through local partnerships between producers and retailers, growing the industry. This collaboration between the farming community, Isle of Man Meats and Tesco, is a major achievement which builds our Island’s food security and sustainability.”

Agenda banner.pdf 2 20/02/2019 15:50:11

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update news

SIMCOCKS TRAINEE ADVOCATE WINS GEORGE JOHNSON PRIZE

mily Johnson, Trainee Advocate at Simcocks, has been awarded the George Johnson Law Prize 2019. The prize was established in 1943 in memory of George Sayle Johnson, a former President of the Isle of Man Law Society, with the objective of encouraging the study of law. The winning essay was on the subject of legal aid, entitled, “Does the system

of legal aid in the Isle of Man require reform and if so in which respects?” Emily joined the firm earlier this year and is due to qualify later this month. She is the second member of the current Simcocks team to win the George Johnson Law Prize in recent years, joining Kevin O’Loughlin who won in 2015 with “Is Insolvency Different?”. The prize was presented to Emily by

Deemster Corlett at the IOM Law Society in the presence of her colleagues. Phil Games, CEO of Simcocks Advocates commented: “I was delighted to attend the presentation of this esteemed award. We’re enormously proud of Emily, who we already know to be a very talented person and who has great potential to be an outstanding advocate.”

ESTERA CROWNED BEST EMPLOYER – CAREER PROGRESSION IN CITYWEALTH FUTURE LEADERS AWARDS

stera, a leading, global fiduciary provider, wins gold for ‘Best Employer – Career Progression’ in Citywealth’s Future Leaders Awards. This award recognises excellence across the board as well as significant growth in Estera’s business and investment in people, premises, and systems. Group Chief Executive Officer at Estera, Farah Ballands commented “With more than 550 professionals working in 11 jurisdictions across multiple service lines in a growing, fast-paced business, it could be easy to lose sight of the individual. But our success has been built on the efforts of every one of those people – and we are committed to their future development, helping them achieve their goals in tandem with our own.” Farah continues, “We are proud to have built a culture where learning and development is encouraged, hard work is rewarded, and career ambitions are achieved. We actively support the ongoing training and professional development of all our people.”

Estera is a global business with a reputation for being commercially minded and client focused as well as committed to its people and its local communities, demonstrated through its company-wide CSR programme and significant annual charitable donations. Estera’s teams of highly-qualified experts have wide-ranging experience in corporate administration, funds administration and services, private client and trusts, and regulatory oversight. On 19 July it was announced that Inflexion Private Equity will acquire Estera, subject to regulatory approval. Following completion, Estera will be merged with Inflexion’s existing portfolio company, Ocorian, to form a global corporate service and fund administration leader of significant scale. The combined business will be a major global player with offices in 18 key offshore and onshore jurisdictions, over 1,250 employees and which will serve over 8,000 clients. ON THE AGENDA...

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updatenews - feature update

Sure first to launch 5G trial in the Isle of Man

ure will be the first telecoms operator to bring world leading 5G technology to the Isle of Man with the creation of a trial 5G mobile network. Sure has invited hundreds of consumers and businesses in the trial locations to take part and assess 5G for free in order to evaluate how it can benefit the lives of islanders and local businesses. The local telecoms provider, which is already recognised as having the best network in the Isle of Man according to a Q4 2017 survey by Systemics Group, started trialling the technology on 15 November, running through to 2020. The trial will take place in Douglas covering areas within and around Tromode, Woodbourne Road and the Central Business District to assess how people will use the transformational technology. Numerous households and businesses have been contacted directly with details of the trial and those who choose to participate will be given a free 5G router for their home or business. They will be asked to provide feedback on their experience via a series of online surveys to help understand the value of 5G for

consumers and businesses and to test the feasibility of providing enhanced broadband services via 5G in the island. 5G is the transformational next generation of mobile technology providing much faster data speeds, greater network capacity, improved connections, better coverage and lower latency. Sure believes that 5G’s potential is best described as ‘fibre in the air’ as 5G will look to replicate the speeds and reliability of fibre broadband without the need for cables. The leap from today’s fixed and mobile technology is significant; 5G is 20-40 times faster than the broadband most people currently use at home and work. The additional capacity available with 5G will enable the connection of the rapidly increasing number of digital devices used in the home, on the move and at work. “5G is the future which offers the opportunity to connect communities in ways we’ve never seen before so we’re excited to be launching this comprehensive trial to assess the different ways consumers and businesses will want to use this ground breaking technology,” said Mike Phillips, chief executive of Sure in the Isle of Man.

“At Sure customers are at the heart of everything we do. We want 5G to benefit everyone in the Isle of Man so it’s very important for us that our community can trial this latest technology and give feedback on their experience so we can develop a network that is truly impactful and beneficial to their daily lives. “This investment firmly positions the island at the forefront of next generation mobile services which will shape the future of 5G on island and will include testing the feasibility of providing enhanced ultrahighspeed broadband services via 5G in the island. “Our innovative 5G trial, and the raft of benefits it will bring, is closely aligned with the island’s strategic aims and many of the Isle of Man Government’s initiatives including the National Telecommunications strategy. “We want to launch a considered, ubiquitous 5G network that is aligned with the strategy and that also addresses the island’s wider digital needs. Sure fully supports the strategy and we intend to work closely with Government, the Communications Commission and local industry to deliver new services that ON THE AGENDA...

Department for Enterprise seeks local organisations to take part in 2020 Step Programme he Department for Enterprise is seeking host organisations to take part in the 2020 Step Programme, which matches undergraduates with local private, public and third sector organisations to complete paid project-based placements. The 2020 programme will begin on 29th June 2020 and run for a fixed, eight-week period, with the final event to be held on 21st August 2020. This year, students completed an array of projects ranging from policy and procedure reviews and website improvements to environmental audits, sector reviews and research, before presenting their work at the 2019 Step Final. The programme offers significant benefits to organisations as it aims to bring talented individuals studying at UCM or off-Island universities, together with organisations that are seeking additional, skilled resource. Whilst the programme offers support for shortterm projects, it can also be seen as a

benefit the island via this exciting new technology which directly supports innovation in our economy in an increasingly digital future.” Sure is continuing to invest in the Isle of Man and is extending its dedicated business fibre network and has just launched a new Cloud Voice service aimed at small and medium-sized businesses. Deb Byron, Chair of the Isle of Man Chamber of Commerce Digital Committee, said: “Sure’s innovative 5G trial is an important step forward in transforming telecommunications on the Island and achieving a world class infrastructure to support the business community and residents. The Chamber Digital Committee worked closely with Government on defining the Island’s Telecommunications Strategy so it’s exciting to have an early 5G trial which will enable us to develop the technology and get us closer to achieving a fullyconnected island.”

valuable method of graduate or part-time recruitment or the chance to trial the viability of a new position. The Department’s Enterprise Support Team administers the programme which simplifies the recruitment process for the organisation. Students are paid £256 a week by the organisation. To streamline the process, the Department pays students weekly and organisations are invoiced for the total cost at the end of the programme. Organisations that would like to take part must complete an application form available from www.dfe.im/step. A set project, a suitable place of work, and appropriate supervisory and management arrangements must be put in place by the organisation and detailed in the application form.

- enterprisesupport@gov.im Contact: Email Tel - 01624 687333

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update - income tax deadlines

David Shefford, Head of Bu

Now, for tomorrow

Income Tax Deadlines

Baker Tilly Isle of Man, founded in 1979, is one of the largest providers of accounting, assurance, fiduciary andbeing retirement made to UK tax legislation, of Isleand of Man and UK tax returns to The January deadlines for payment of audit particularly in relation to the ownership providing comprehensive advice on client Isle of Man personal Income Tax liabilities solutions services in the Isle of Man. of UK residential property. Our wealth specific issues. and the submission of UK Income Tax

pictured: David Shefford

Our services at Baker Tilly i

of experience both locally and through Speaking about the services provided, returns is now fast approaching. Baker TillyLLC Isle are of Man LLC is a at Audit, Assurance, and at Baker The company a wide the Baker Tilly International network has Louise Mellor,Accounting Tax Manager Tilly provides Tilly IsleBaker of Man experienced member firm of Institute ofin both Book Keeping, Compliance of in company, trust,that pension meant we are well placed to ensure • Isle of ManTax LLC said: “Inand recentrange times, providing assistance tothe individuals Chartered Accountants in England VATto management andassistance administration and thatadvisory our clients are kept informed of all addition the providing with these areas, ensuring stress free and timely Planning, • and Wales. services, as as all aspects developments and can ensure that annual tax returns, we have experienced a well relevant compliance. Baker Tilly Isle of Man LLC Payroll. luxury asset management, they have adequate time and information• significant change in the type ofofservices deal with a wide range of tax compliance We are a leading firm of Chartered Baker Tilly Isle of Man Fiduciaries are thereforetowell placed in their affairs continue to be ensure that required by our clients. This hasand largely and planning issues which range from the • Accountants and business Limited provides all other services understanding most industries andefficiently as possible.” managed as tax been driven by the numerous changes completion and submission of all manner advisors providing a full range and is licensed by the Isle of of auditing and general practice Man Financial Services Authority accounting services to a diverse as a company and trust service Chris Quinn, Associate Baker Tillyprovider. Isle of ItMan LLC said: portfolio of local and of international is also registered clients. The services offered as a professional retirement include, but are not limited to, benefits scheme administrator.

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associated regulatory compliance requirements.

Speaking about the services provided, Chris Quinn, Associate of Baker Tilly Isle of Man LLC said:

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If you would like any furthe

“Baker Tilly Isle of Man really is very well placed to handle all financial and fiduciary Baker Tilly Isle of Man really is aspects to any individual or company looking very well placed to handle all financial and fiduciary aspects to for a service provider here on the Isle of Man. any individual or company looking for a Since I joined company years ago, we’ve service provider here the on the Isle of 14 Man. Since I joinedgrown the company 14 years ago, into an outfit of 50 plus staff that we’ve grown into an outfit of 50 plus staff havetechnical the technical expertise and know how to that have the expertise and know how to handle almost any type of query. handle almost any type of query”.

Chris Quinn

chris.quinn@bake

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Licensed by the Isle of Ma

pictured: Chris Quinn

Baker Tilly Isle of Man Fiduciaries Limited and the members of which are separate and indep

If you would like any further information please contact either Chris Quinn, chris.quinn@bakertillyiom.com or Louise Mellor, louise.mellor@bakertillyiom.com t: +44 (0)1624 693900 | f: +44 (0)1624 693901 | e: info@bakertillyiom.com

www.bakertilly.im Licenced by the Isle of Man Services Authority

Baker Tilly Isle of Man, founded in 1979, is one of the largest providers of accounting, audit and assurance, fiduciary and retirement solutions services in the Isle of Man. Baker Tilly Isle of Man LLC is a member firm of the Institute of Chartered Accountants in England and Wales. We are a leading firm of Chartered

Accountants and business advisors providing a full range of auditing and general practice accounting and taxation services to a diverse portfolio of local and international clients. The services offered include, but are not limited to, Audit, Assurance, Accounting and Book Keeping, Tax Compliance and Planning, VAT management and Payroll.

Baker Tilly Isle of Man Fiduciaries Limited and Baker Tilly Isle of Man LLC, both trading as Baker Tilly Isle of Man, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities.

ON THE AGENDA...

update - TISE isle of man

arolyn Gelling, Head of Isle of Man Office, The International Stock Exchange Group, explores how transparency and good corporate governance is demanded, and reinforced, by a stock exchange listing, especially in the context of green and sustainable investments. Both in the Isle of Man and across the UK, I often come into contact with business owners or their advisers who are considering accessing the capital markets as a route to fundraising, whether simply for working capital or to take their company to the next stage of its development, for example via M&A activity. What I always suggest is that Executive and non-Executive teams give early consideration to the listing rules, which include adhering to both general principles and specific listing requirements. A company wishing to list on TISE must appoint a listing sponsor, which is responsible for helping the company with the listing application process, such as demonstrating that the company meets the minimum conditions of listing, completion of the listing document, disclosure requirements and responsibility statements. The sponsor is also required to assist the company in meeting its continuing obligations post admission, which include notifications to the market. As such, the listing rules not only demand, but also reinforce, transparency and good corporate governance. Attracting investors This makes (both primary and secondary market) investment in listed companies more attractive for investors. Indeed, when I am talking to companies about listing, I can point to the benefit of attracting more and quality capital by virtue of adhering to the standards of transparency and good governance. However, it does not diminish the fact that this is the more ethical way to do business in any case and that, aside from the immediate financial benefits that listing may bring, companies should be aiming for the highest standards of good governance as it, in turn, promotes longterm sustainability. ESG On the note of sustainability, of course, allied to this is the growing focus on corporate Environmental, Social and Governance (ESG) attitudes, policies and practice. On the one hand, governments, regulators and supra-national bodies are beginning to impose standards on the corporate world; on the other, a new (millennial) generation of investors CONNECTING BUSINESSES

Promoting good corporate governance with a (sustainable) listing By Carolyn Gelling, Head of Isle of Man Office, The International Stock Exchange Group

is providing the catalyst to demands for better regard to ESG factors which are feeding their way through, often via institutional investors and asset managers, to investee companies. This means that both investee companies and institutional investors face increased demands (one way or the other) to demonstrate their ESG credentials. However, while this remains in its infancy and relatively immature, standards continue to be varied and as such, it remains difficult to draw conclusions on what constitutes a ‘reputable’ investment. Consequently, there is still demand for more general ‘products’ with badges which clearly articulate the merits of an investment. A TISE product At TISE, we have built on our core listing offering, with the transparency and good corporate governance that entails, to also offer a specific product for green and sustainable investments. We have launched a green market segment, TISE GREEN, to encourage greater flows of capital into investments which protect or enhance the environment. TISE GREEN is open to investments – bonds, funds and trading companies – from any jurisdiction. Any investment must first be admitted to TISE’s Official List but beyond the usual fees for listing, there is no additional charge for the subsequent entry to, and presence on, TISE GREEN. An appropriate third-party needs to provide verification both initially, and annually, that the investment meets an internationally recognised standard of green finance. We have been delighted to welcome our first investments onto TISE GREEN. Faro Energy, which specialises in solar energy projects in Latin America and other emerging markets, has had four bonds successfully admitted to TISE’s Official List and subsequently approved to enter TISE GREEN. The bonds are certified green bonds under the Climate Bonds Initiative (CBI) Climate Bond Standard & Certification Scheme, with the proceeds intended to be used to finance solar energy projects in Brazil.

financially but that they are conducting their business affairs in a more broadly positive manner. Today, investors demand more authenticity and in any case, leadership teams need to recognise that they should conduct themselves in this way because it is the right thing to do. The standards of transparency and good corporate governance demanded, and reinforced, by a listing can assist in this process. This is especially the case when the exchange listing is accompanied by a position on a specific segment which has further in built standards of transparency and governance that enable companies to demonstrate the credibility of their green, sustainable or impactful credentials to investors. Carolyn Gelling is Head of the Isle of Man Office of The International Stock Exchange Group. Address: Merchants House, 24 North Quay, Douglas, Isle of Man, IM1 4LE Phone: +44 (0) 1624 675907 Twitter: @tisegroup Email: carolyn.gelling@tisegroup.com Web: www.tisegroup.com

Conclusion Leadership teams need to be aware that investors are increasingly demanding that companies not only perform well

update - workplace feature

Annual performance reviews do a disservice to workers and firms Younger workers want useful, real-time feedback from their line managers By Elizabeth Uviebinene (FT.com)

ON THE AGENDA...

“Any feedback from you will be appreciated.”

nother year nears its end, and another annual performance review season draws near. Your manager is probably busy gathering feedback about your work and highs and lows of 2019.

If you have ever left your end-of-year performance review confused, blindsided or even surprised by how well or not well you are (apparently) doing, then your company doesn’t have an effective feedback culture in place. For many of us, these dreaded annual reviews are characterised by anxiety, stress and — in some cases — relief. Yearly reviews are hugely outdated. Performance appraisals date back to the first world war. Why are they still plaguing our modern offices? With so much talk of companies putting their employees at the heart of their business, it seems odd that so many of them are still wedded to these yearly “highlight reels” that do little to motivate or inspire people. A survey by the Society for Human Resource Management, a professional organisation, found that 95 per cent of employees say they are dissatisfied with their employers appraisal process. The reality in most companies is that performance reviews are still closely tied into promotion and pay, so they play an outsized role. We need to find some other objective measures to assess people fairly — and make sure rewards are distributed in as fair a way as possible. Too many organisations approach performance assessments in an arbitrary and inconsistent way. This opens the door to discrimination and bias and therefore to missed opportunities, unequal pay and career stagnation, which can disproportionately affect women and minorities. Black Facebook staff recently described their experiences of racism in an anonymous letter in which they accused managers of only focusing on negative feedback in reviews. In one employee’s case, a manager actively sought out criticisms from the employee’s colleagues. This all contributes to a toxic workplace. As does not ensuring that men CONNECTING BUSINESSES

Too many organisations approach performance assessments in an arbitrary and inconsistent way. This opens the door to discrimination and bias and therefore to missed opportunities, unequal pay and career stagnation, which can disproportionately affect women and minorities.

and women receive equal treatment. A Harvard study shows that men tend to get more helpful feedback during performance reviews. Sixty per cent of men compared to only 40 per cent of women have their feedback tied to business outcomes. Women also tend to receive vaguer comments (meaning they are not tied to concrete performance measures, for example: “positive stakeholder feedback”). The yearly performance review does not suit millennial and Gen Z workers whose commitment to self improvement means we prefer real-time feedback throughout the year. We value ongoing conversations so that we can make

frequent incremental adjustments. This is tied to a desire to feel challenged, develop faster in our careers and find meaning in our work. It also fits with our digital habits, which are driven by instant likes and comments on social media posts. Alarmingly, a PwC report revealed that only 12 per cent of millennial women are satisfied with the quality and frequency of feedback they receive. The Harvard study among others show that women’s reviews are more likely to include critical language focused on their personality or communication style and use words and phrases such as “assertive”, “bossy”, “abrasive” or “watch your tone”. For one of my reviews, I spent days trawling through my past year’s work, making an inventory of all my accomplishments and measuring them against objectives, only to find my manager only wanted to focus on my personality, not my performance. It was an uncomfortable and ineffective review. Annual reviews should be futureoriented and provide guidance about what someone needs to improve on or do differently to get them to the next level. This allows us to take ownership of our learning development and helps keep motivation to perform high throughout the year. The current approach to performance reviews is unsuited to workers of all ages — not just millennials. According to a McKinsey study, some companies do not have clear and specific performance criteria before reviews begin. Improving the review process would not just give us a better way to track our progress but would also help companies to improve their performance as they would be able to support and develop their staff better. It is vital that managers learn how to give feedback that works — a feedback session should not be a moment you dread. Nor should it leave you baffled or demotivated. However performance management evolves, with an increasingly diverse generation entering the workplace, let’s ensure that people are put at the heart of these conversations. Then what we create will be accurate, inspiring and effective. Although there is not yet any objectively agreed upon or widely used alternative approach to performance reviews, you should nevertheless come to the annual meeting prepared. Have a list of your accomplishments and evidence of your contributions to hand. But if the meeting does not go to plan, advocate for yourself, direct the conversation towards the future and be ready to suggest your next performance goals. As the saying goes, “if it ain’t broke, don’t fix it”. But since backwards-looking and overly critical yearly reviews are clearly a broken way to assess people at work, we must fix it — and fast.

opinion - kpmg isle of man

500 Days of GDPR are you compliant? By Bryan Beesley, Senior Manager and Head of Data Privacy, KPMG LLC

he 25th May 2018 saw the instruction of the revised General Data Privacy Regulation, more commonly known to us all as GDPR but, 500 days later, where are we now and how has it impacted the way we approach business here on the Isle of Man?

There was a huge surge of policy writing, training and changes the closer we got to the 25th May 2018. Some firms completely destroyed substantial contact databases which had been built up over many years, whilst other firms did the bare minimum to scrape through what they perceived to be the requirement of the new legislation. It seems fair to say that the majority of firms now are continuing life as was, albeit having made some slight communication changes, and it is worrying that GDPR is seemingly viewed as a one-off event rather than an ongoing requirement. How confident would you feel if the Information Commissioner turned up at your door and asked to do a spot inspection (something that is starting to occur more frequently now)? Over the past 500 days, our data privacy team have been working with a number of firms on their GDPR policies and therefore wanted to pick out some key situations we have seen that should be regularly considered to keep yourself compliant.

ON THE AGENDA...

n Segregation of work areas from client areas When I visit clients it often amazes me, how much client data, or access to client data, is available with minimal effort. If somebody can gain access to a client area without any form of security then you could be in breach of GDPR. Having basic identity and access controls might not be enough. There are many firms who implement a proxy-pass system but then ignore that there is a lift or uncontrolled access straight into client areas, and more fundamentally the common activity of tailgating. n Update your data flow / data mapping to meet updated regulations Have there been other applicable regulatory changes and amendments since GDPR came into effect? If so every firm should have amended data flows and data mapping as a minimum - this is in addition to the annual data policy reviews which everybody should undertake as part of its review. n Multi-jurisdictional policies The island, by its very nature, has a plethora of firms who have offices in multiple jurisdictions. It is therefore imperative that firms have multijurisdictional policies in place rather than just set policies for each jurisdiction. For example, data records in the Isle of Man are legally required to be held for 7 years whereas in other jurisdictions outside of the EU, whilst still compliant with GDPR, may legally require documents to be held for 9 years resulting in additional wording in contracts and policies. n The boardroom Is privacy (and cyber risk) a regular item on your board agenda? My experience is that it is an afterthought or only added when there has been a problem. It needs to be a regular item and discussed, documented and actioned monthly. The time you have to bring it onto the agenda, due to an issue, clearly shows that it is too late. The above are just five key areas we see but there are many more, common themes such as the way technology is being used outside of the workplace (i.e. use of VPNs), external email checkers (so that there is a check in place before an email is sent externally), policies that must be in place if you have CCTV, Data Protection Officer requirements and how they interact with the Board and wider business, and so on. GDPR isn’t going away and there has definitely been a “grace period” over these past 500 days. If there is one thing for certain it’s that there is no excuse for firms not to be compliant over the next 500 days. CONNECTING BUSINESSES

of man start up grind update updateisle - feature

Founded plugs Isle of Man startup founders into Silicon Valley’s Startup Grind community

start-up venture walking the walk and talking the talk; Founded, co-founded by Katie Nicholson, John Garland, and Alex Wilson launched the Isle of Man’s Startup Grind chapter on Tuesday 12th November. At a fireside chat event with two of the senior team of one of the fastest growing e-gaming firms on the Isle of Man, and one of the UK’s leading lottery betting providers, Annexio; Business Founder Tom Brodie and Director John Spellman shared their startup journey and we got a glimpse inside the internal workings of not only a successful business but a 12-year strong business partnership. So, what’s the secret of Annexio’s success?

ON THE AGENDA...

Katie Nicholson: Tell us about where the idea for Annexio came from and how it all started? Tom Brodie: I was in Australia when I first got came up with the idea of what became Annexio. We got involved in a wine distribution business that unfortunately failed after 18-months. It was such an amazing lifestyle business but it was massively competitive and ultimately, we could never make any money out of it. And then, where I was living in Sydney, I saw an advert in a shop saying we’re looking for people to join our lottery syndicate and that concept sat with me for a good few days. I formed the opinion if you could do that online, you have a business there so I repurposed the wine system and that continues to form that backbone of what Annexio runs on today. We launched Annexio as a lottery syndicate business and it became a successful business very quickly but we closed that down because of the regulatory risks at the end of 2010 and that’s when Annexio was born – we acquired a gaming license and changed the business into a pure betting business and I approached John to be an investor. Katie Nicholson: John, what was it about Tom that ticked your boxes from an investment side? John Spellman: One of the factors which makes me invest is the people themselves. If you’ve got a common understanding and you can work with the person it’s a really big influencing factor. Tom asked me whether I could help Annexio get past the regulatory issues but at the time there was no money to be paid; so it was a case that I did the work for free with the ability to take a measured risk to push it over the line. The idea was great and I was happy to back Tom’s idea. Katie Nicholson: At what point on the startup journey is it appropriate to start paying yourself? Tom Brodie: These days, we get approached by other people wanting to start businesses and it’s always it’s always a contentious issue when someone shows you a business plan and day one, they’re going to take £100,000 out and not putting anything in. When we started Annexio, i was a genuinely commitment to making it work and I said to John, if you invest, I’ll do whatever it takes to make it work. We didn’t rasie a lot of money in the early days; we had less than £100,000 to pay for the license fees and other costs. I didn’t take anything out of the business in the first year and I leant on myself for everyday expenses. Only when we started making a comfortable profitable situation where we didn’t need to reinvest to keep the lights on I started paying myself. If you are looking to raise cash, you’ve CONNECTING BUSINESSES

update isle of man start up grind got to see it from the investors point of view. People don’t want to invest in your business just so you can take a salary for the next 12 months. John Spellman: There a number of people who started within the business who sacrificed their salaries for shares because they believed in the concept and those people have received many times back the amount they actually chose to invest at that point. You’ve got to have skin the game. The number of business cases that we receive, and I always flick to the last page, and is how you’re going to get paid back and almost every single time that page is missing from the deck. This is a joint commitment to make money at the end of it. Katie Nicholson: So, you did a great campaign with Keith Lemon last year. How did that come about and what did that campaign bring to Annexio? Tom Brodie: Our online marketing guys were really making it happen and we felt to take the next step we needed to get the brand on TV. In the gaming space, advertising is tightly regulated on what you can and can’t say so we needed a personality to bring life to our adverts and Keith Lemon is an extremely popular character. We surveyed our customer base and he resonates well with the audience. We approached him and he had an existing relationship with SkyBet at the time which was coming to an end. When I sat down with Keith he said I’ll do the ad but only if I can write it. Which was perfect for us. The TV campaign was a great platform to launching the LottoGo. com brand; they helped drive our player recruitment and establish the LottoGo brand Katie Nicholson: Would you say that the regulatory challenges have been the biggest obstacle you’ve had to navigate through as a company? Tom Brodie: Even now as an established business we still face pressure from all side. This year there have been more regulatory changes in the UK not only for us but also the people who carry our adverts and that’s slowed our growth this year. We’ve had to go back to the drawing board; we’ve had to change find new way of marketing and the last three months the businesses is growing again and moving forward. We’ve had to get busy trying to find new solutions, coming up with new ideas. To keep the business successful. Don’t be afraid to change the business model if you’ve seen good opportunities elsewhere. John Spellman: Sometimes you’ve got to call time on something and if something changes, you move on. There

ON THE AGENDA...

are no sacred cows if you want to be an entrepreneur. The ability to actually make that change is a very, very, very important part of it, because you could run out of money very easily chasing a pipe dream. Katie Nicholson: If you had one piece of advice for first time founders, what would that be? John Spellman: One, work with people that you enjoy working with. Two, if there’s a financial commitment, make sure it’s within your reach. Three, you’ve got to take risks. If you’re not prepared to take risk, you’re not the right person to be an entrepreneur. Fourthly, do things that you enjoy. You never will do well on doing something that you don’t enjoy doing. Continent 8 Technologies is the exclusive sponsor of the Isle of Man’s Startup Grind chapter which connects entrepreneurs here on the Island to a global community of two million of their peers in over 600 other chapters and 125 countries. Startup Grind is the world’s biggest independent startup community and has helped millions of entrepreneurs build their businesses, connect with strategic partners, and secure funding. Roberta Castle, Account Director, Continent 8 Technologies, said: “As the exclusive sponsor of the Isle of Man’s Startup Grind chapter, Continent 8 Technologies is delighted that the inaugural event was so successful. Thanks to the hard work and enthusiasm of the Founded team, and the support from Annexio and everyone who attended the first event, this is a great start to the Isle of Man chapter’s story. The Startup Grind ethos of successful entrepreneurs giving something back to help the next generation of startups is one that Continent 8 wholeheartedly endorses, and we’re looking forward to seeing the chapter go from strength to strength in 2020.” Startup Grind began in California’s Silicon Valley and each chapter organises events featuring successful local founders, innovators, educators and investors who share lessons learned on the road to building highly successful commercial companies and startup enterprises.

The next Startup Grind Isle of Man event, hosted by Founded, will take place at the Courthouse Club on Tuesday 28th January 2020. For more information, please register an interest via www.startupgrind.com/isle-of-man/. Founded will launch a range of support services tailored to meet startup and scaleup business requirements in January 2020. For more information please visit www.founded.im or email hello@founded.im.

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update - workplace feature

When it comes to productivity hacks, are you an Arnie or an Elon? Some believe every minute must be planned, others prefer to keep commitments minimal By Tim Harford FT.com

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eturning from holiday with a head full of good intentions, I have become aware of a philosophical schism in the world of productivity hacks. In one corner, Arnold Schwarzenegger. In the other, Elon Musk and the “timeboxers”. (I swear, I am not making this up.) The philosophical divide is over a simple question: how much should you schedule blocks of time in your calendar? Mr Schwarzenegger reportedly kept his diary clear as a film star, and even tried to do so when he was governor of California. “Appointments are always a no-no. Planning ahead is a no-no,” he once said. Visitors had to treat the Governator like a walk-in restaurant — show up and hope for the best. The opposite approach is timeboxing: timeboxers advocate transferring the entire “To Do” list to a calendar. Need to do some laundry? Set aside time on the calendar. Have a column to write? Block out the necessary hours. Want to chill out on Instagram? Put it in the calendar. Not getting enough sleep? You guessed it: calendar. Since any productivity hack needs a celebrity endorsement, timeboxers claim (on thin evidence, it seems to me) that the technology entrepreneur Elon Musk uses the technique. Most of us have to compromise a little more with the rest of the human race than do either Mr Musk or Mr Schwarzenegger. Yet the divide is real: schedule as much as possible, or as little as you can get away with? We must all decide if every minute of productivity or rest should be planned in advance, or whether it’s better to be more flexible. Timeboxing originated as a collaborative technique for software developers, and in that context it may work well. Yet, as a personal productivity tool, it seems infantilising. Calendars work for time-specific commitments, such as flights or nights at the opera; everything else should go on a to-do list, a much more flexible way of keeping track of commitments. I do not want to dismiss those who claim timeboxing works for them. I’m just not persuaded. Some say timeboxing helps them avoid being overwhelmed by a long list of tasks; I say prioritise. Timeboxers note Parkinson’s law: work expands to fill the time allocated. I say, set deadlines. More recently, I’ve seen timeboxing praised as a strategy for avoiding distractions. Nir Eyal, the author of Hooked, says that timeboxing helps him confine Facebook and YouTube to narrow slivers of the day. If that works for you, fine; I suspect it’s more

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“structuring time for social media, walking the dog, prepping for dinner, might make you feel more comfortable. If you’re like me, though, you plan as little as you can get by with”.

productive to have a more fundamental rethink of your relationship to social media. David Allen, author of the cult book Getting Things Done, reckons that timeboxing is a psychological crutch. We all need to feel on top of the commitments we’ve made to others and to ourselves, and it’s not easy. For those of us who feel we’re losing our grip, he tells me, “structuring time for social media, walking the dog, prepping for dinner, might make you feel more comfortable. If you’re like me, though, you plan as little as you can get by with”. A friend from a management training firm, agrees. People like blocking out time because it feels like they can “grab control of the situation”, he says. At the end of the week, however, what if everything has changed? I agree with both of them. Commitments do not become easier to manage simply because you decide in advance when it is all going to happen. Life has a habit of producing surprises: the boss has an urgent task; the car won’t start; an old friend texts to tell you she is on a flying visit from Australia. The most inevitable surprise of all is that everything always takes longer than you think it will. Still, that is just my opinion. If a serious study of the rival techniques exists, I have yet to find it. One relevant experiment was conducted nearly 40 years ago by the psychologists Daniel Kirschenbaum, Laura Humphrey, and Sheldon Malett. They recruited undergraduates and gave them some basic productivity tips. One group was counselled to plan their goals and activities in broad monthly blocks. Another group was instead advised to plan their activities and set their goals on a daily basis. Neither approach is precisely analogous to timeboxing, but the daily schedule is similar because students would draw up detailed plans. These plans backfired disastrously: day after day, the daily planners would fall short of their intentions and soon became demotivated, spending less time on studying and falling behind over the course of the academic year. The more amorphous monthly planners proved far more successful, presumably because they had more flexibility to adapt to events, as well as wasting less time fiddling around with their calendars. A plan that is too specific soon lies in tatters. It is clear that some people have made timeboxing work for them. Everyone is different, and every job is different. For me, however, my To Do list is long, and my diary is as clear as I can keep it. And if Arnie is on my side, so much the better.

appointments - movers & shakers

SIMCOCKS TRAINEES CALLED TO THE BAR

Stephen Smyth (right) congratulates Gary Crittenden who has taken over the role of Isle of Man Chamber of Commerce Construction Sector Lead.

Isle of Man Chamber of Commerce has a new Construction Sector Lead.

ary Crittenden, who is Project Director at Stewart Clague Services, has taken over the role from Stephen Smyth, General Manager at Island Aggregates Limited. During his time as Construction Sector Lead, Stephen was involved in the process to merge Isle of Man Chamber of Commerce’s Construction Committee with the Island’s Construction Forum, a move which has strengthened the collective voice of the industry. Stephen (who prior to the merger in 2018 was Chair of Chamber’s Construction Committee) became Chamber’s first Construction Sector Lead, and Gary Crittenden is the immediate past Chair of the Construction Forum Stephen Smyth congratulated Gary on his appointment and commented: “We’ve worked hard in recent years to provide an effective industry voice on areas such as planning, procurement, education, skills, and the potential impact of Brexit. Chamber also provides the opportunity to discuss wider issues faced by all Island businesses with those representing other sectors. Further streamlining and strengthening within

the construction industry is in the offing, but the link to Chamber will remain a vital one. Having dealt with Gary on the various industry bodies and in our respective businesses for a number of years, I know he will be an excellent Sector Lead.” Gary Crittenden said he was delighted to have been appointed and added: “I would like to thank Stephen for his hard work and dedication whilst Sector Lead, and in particular his role in bringing the Chamber of Commerce and Construction Forum together. I am looking forward to working with the other sector leads and being part of a team that is passionate about strengthening the local economy, as well as focusing on developing one voice for construction with the Isle of Man Construction Federation.” The Construction Forum meets at 8am on the last Friday of each month at the Construction Federation, Village Walk, Onchan. The next meeting is on November 29 and anyone working in construction, or with an interest in the industry, is welcome to attend.

imcocks is pleased to announce the admission of Emily Johnson and Faye Devlin to the Isle of Man Bar. They were sworn in as Isle of Man advocates by the Island’s Chief Justice, His Honour Deemster Corlett on 21 November 2019. Faye joined Simcocks in August 2017 having achieved a Distinction in her Legal Practice Course at the University of Law in Leeds. Prior to that she completed a Graduate Diploma in Law at the University in Law at Chester, where she received a Distinction and obtained the highest grade in Criminal Law and the highest overall mark for her year group. Since joining the firm, she has received a wide range of training and gained valuable experience across the Corporate and Commercial and Private Client departments. Her current role focuses on Family Law, Wills and Estates. Emily joined the firm in May 2019, having passed the Manx Bar exams on her first sitting last year. She achieved her Graduate Diploma in Law and her Bar Professional Training Course via distance and part time study while she worked, accumulating more than five years’ experience in law by the time she joined Simcocks. At Manchester Metropolitan University, Emily gained the Dean’s Award for top performing student in Advanced Civil Practice, Civil Litigation, Opinion Writing & Professional Ethics. She has recently been awarded the George Johnson Law Prize 2019 for her article on legal aid. Emily works within the Dispute Resolution team at Simcocks, focusing mainly on personal injury cases, and property and will disputes. Phil Games, CEO of Simcocks commented on the commissions: “Everyone at Simcocks is extremely proud of Faye’s and Emily’s achievements and we look forward to being a part of their continued development. They are both outstanding individuals and I have no doubt they both have successful careers ahead as Advocates. I’m delighted that these legal stars of the future are finding their feet within the Simcocks team.”

ON THE AGENDA...

M&P Legal Strengthens Legal Team

&P Legal has announced significant additions to its litigation and commercial teams with the dual appointments of Advocate Michael Mudge and Solicitor Josh Quinn. Michael Mudge has joined M&P Legal from another firm in the Isle of Man where he qualified as a Manx Advocate in 2017. He has general legal experience and will now focus on commercial work while continuing to undertake dispute resolution covering a wide range of civil and commercial matters. He graduated from Sheffield Hallam University in 2010 with a degree in History before completing a Master’s degree in Law at the University of Sheffield in 2012. Michael has particular interest in human rights law, which he studied in Florence, Italy at the Summer School Academy of European Law. Josh Quinn is a former pupil of King William’s College who graduated from Durham University in 2010 with a degree in Environmental Geosciences before training to be a lawyer and taking up work

in England. He qualified as a solicitor in England in 2015 rising to associate partner level with a focus on general practice and agricultural law. Josh gained higher rights of audience as a Solicitor Advocate and then in 2017 he returned to the Isle of Man and began retraining as a Manx Advocate at Appleby before moving to the litigation department of M&P Legal where he is conducting a broad range of dispute and employment law work. The firm’s managing director John Aycock has welcomed the additions and explained that the two new lawyers are very good fits for M&P Legal. He stated: “Being a small to medium size

enterprise, M&P Legal is able to be quite nimble in both servicing current client needs and adapting to the various phases of work and trends that come and go from time to time. We are stocked with lawyers who are very bright and versatile and Michael and Josh fit in very well with this template. There is considerable opportunity within this firm for lawyers to expand their horizons and carve out their reputations; I have no doubt that both Michael and Josh will grasp those opportunities with both hands. M&P Legal is very pleased to have attracted new lawyers of this calibre.”

INTELLIGENT AND INSIGHTFUL OFFSHORE LEGAL ADVICE AND SERVICES. To learn more about our legal expertise, please contact: Appleby Isle of Man +44 (0) 1624 647 647 iom@applebyglobal.com

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appointments - movers & shakers

New Senior Appointments at Knox House Trust

nox House Trust Limited is pleased to announce the appointment of a new Managing Director. Knox House Trust (KHT) is delighted to announce that Patrick McCarrick has been appointed Managing Director (MD). He will lead the award-winning Isle of Man Trust and Corporate Service Provider as it embarks on exciting plans to expand into new international jurisdictions. His appointment has not only been welcomed by the Knox House Trust management team, but also by the management of the wider Knox group of companies that KHT is part of. Patrick has over 26 years of financial services experience and joined the business in 2016 as Head of Risk & Compliance. He was appointed to the KHT Board in 2018, and has been involved with the strategic growth of the business, including the development of services in the Far East. Commenting on his new role, Patrick said: “My appointment comes at an exciting time for KHT, and I am delighted to lead the business into its next phase. Having explored the opportunities that exist in other regions, I am confident that KHT, together with the wider group, offers both clients and advisers a compelling proposition that enables us to differentiate ourselves. Following a strategic review of the business, we have strengthened the team with a number of key promotions and new appointments that focus on core business areas. I very much look forward to working collectively with the team and to the opportunities that lie ahead.” Patrick takes over the role from Anthony Page, who, as one of the Founding Directors of KHT, has played a pivotal role in the growth and development of the business since its

L-R Arthur Lancaster (Chairman), Voirrey Coole (Director – Private Clients & Operations), James Porter (Director – Marine & Aviation) and Tim Eve (Director). Front Row Seated from Left to Right: Patrick McCarrick (Managing Director) and Anthony Page (Director – Family Office).

inception. Anthony remains on the Board of Directors, but will focus his attention on Family Office client relations. Further strengthening the Senior Team at KHT is the appointment to the Board of Voirrey Coole. Voirrey has over 20 years of experience within the fiduciary services industry. Originally joining KHT in 2013, she later returned in 2017 to head up the Private Client and Operations side of the business. Voirrey also undertakes the company secretarial responsibilities for KHT. Deputy Chairman of the Knox group of companies and KHT Board Member,

Tim Eve said: “The client’s needs remain the driving force behind what we do, and these changes support that ethos. We are excited for the coming months as the significant plans Anthony and Patrick have helped to shape come to fruition. Business is ever-changing and we work hard to regularly review our business models to ensure we continue to evolve with the times and remain an attractive proposition to a diverse audience.” Further promotions within the KHT business include; Richard Kides (Head of Risk & Compliance), Tarryn Boland-Porter (Manager - Marine & Aviation) and Becca Blane (Manager - Private Clients).

Simon Nicholas appointed to JA board

PMG partner Simon Nicholas has been appointed to the board of Manx educational charity Junior Achievement (JA). Mr Nicholas said: ‘I’m proud to have been invited to join the board of Junior Achievement Isle of Man, a Manx charity with a reach and scale helping to prepare young people to become the next generation of entrepreneurs and succeed in a global economy. ‘KPMG is deeply committed to investing in the community and enjoys a long-standing relationship with Junior

Achievement, with a good number of our employees, myself included, volunteering to work in classrooms and deliver JA programmes that have the power to inspire and equip young people with the skills they will need when they enter an increasingly competitive jobs market. ‘I look forward to working with Sue, my fellow board members and the JA team and contributing to the long-term success of Junior Achievement.’ ON THE AGENDA...

Is your business looking for extraordinary graduates to join their force?

feature - egaming

Is regulation ruining the eGaming industry? This is a question I am often asked and one I can understand given the pace of regulatory change we are seeing at present. 28

ON THE AGENDA...

By Elaine McCormack, Senior Manager, Risk Consulting, KPMG LLC

ust recently, KPMG celebrated its 10th Isle of Man eGaming Summit where I was again privileged to be asked to sit on the panel dealing with risk, regulation and compliance. The topic for the panel was ‘Collaboration’ and during the discussion three specific areas really struck a chord, particularly around regulation and how it is changing the industry for the better.

Level playing field Recent regulatory changes have not only strengthened player protection but have also been good for the industry as a whole by creating a more level playing field. The changes are intended to generate a mentality whereby everybody is focused towards the same goals and outcomes, which is really important. There has been a lot of very public regulatory action over the last few years, and some may see this as the regulators trying to flex their muscles. But industry is also now seeing evidence that these regulations are there to enhance business and customer enjoyment, particularly because everybody is playing to the same rules. Embracing technology We continually strive for a safer industry, but it isn’t always easy. Firms gather an awful lot of data about their customers as part of their onboarding processes. The challenge is how that data is used on an ongoing basis to help and support customers if, and when, they need it. There are also some fantastic tools available to help customers gamble responsibly but customers aren’t always aware of them. It’s unfortunate that a lot of these technological advances only rear CONNECTING BUSINESSES

There is a perception that the gaming industry is not as mature as some of the other more traditional financial services industries, and that it looks to those industries when it comes to implementing some best practices.

their heads when customers realise they have a problem and it may be too late, whereas if they were prompted earlier, then it could really help solve many issues the industry is facing when talking about responsible gambling. There is a perception that the gaming industry is not as mature as some of the other more traditional financial services industries, and that it looks to those industries when it comes to implementing some best practices. All industries can always learn from each other, and it’s been interesting to see that the Financial Conduct Authority in particular have been very vocal recently about what financial services firms can learn from the gaming industry. They cited the gaming industry’s investment in technology, and the use of it, to help become more proactive when it

comes to responsibility and collaboration with customers. The ideal is for firms to use the data they collect to prompt customers when there may potentially be a problem. Imagine a world whereby the operator actually gets in touch with their customers when there are indications there may be an issue. That prompt may just be the nudge the customer needs to recognise that there is a problem. Changing of the guard Changes within a business on the back of regulatory change are implemented with the assistance of compliance departments. Historically (and this isn’t limited to the gambling industry), compliance has often been seen as the “business prevention division” within a company but it is encouraging to see this perception slowly changing over the past few years. Within a lot of businesses, departments can be very siloed, each with their own agenda. Thankfully that is also changing but there’s still a lot to do. Compliance, historically, was an afterthought for some companies however latterly they’ve been pulled to the forefront, and it’s becoming standard practice for compliance to sit right across the whole organisation. This allows involvement from a really early starting point so, no matter what the business is planning, whether it be new features, new games, new markets etc, now there is compliance involvement at the start of a project. It is here that potential pitfalls and considerations can be discussed and addressed from the outset rather than a day before launch, which could save so much heartache going forward. Businesses never like spending money on departments that are going to cost them money but firms are now realising the true value of a good compliance department on protecting their business. Firms are always judged on their culture and how they treat their most at-risk customers. Many are now realising that when they get this right the whole perception of their business and brand is impacted positively. Regulation definitely isn’t ruining the industry, it is actually trying to enhance the industry and make it a safer and fairer place in which to operate. There is still work to do, media stigma to break and more investment needed in technology but the increasing desire for a collaborative approach, where everyone is striving for the same end goal, will enable the industry to grow and its reputation to flourish. It can become an industry to which others look and aspire to be like.

feature - egaming

The number of deals has increased year-on-year, and the value of deals has grown as well.

ON THE AGENDA...

A Don’t

Fear Change

By: Ted Pepper

Ted Pepper, Managing Director of SMP eGaming, describes the opportunities for the Isle of Man in a maturing eGaming market.

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lot has changed since 2001 when the Isle of Man introduced pioneering online gambling legislation to both protect customers and enable profitable growth. Over that time, eGaming as a global market has matured substantially, in no small part due to the efforts and influence of Manx regulators and innovators. As we look at where we have come from and where we are going as a jurisdiction, we must welcome these changes, not fear them.

I was recently able to enjoy Simon French’s presentation to the KPMG Summit on consolidation within the industry. It happened to be the morning after the Flutter-Stars merger was announced and Simon used it as a key example to underline the rapid evolution it represents as they join to form an online gambling powerhouse worth £15bn. Ten years ago, the online gambling market was worth €25bn and the top three operators accounted for just 7% of the market share. Today, the market has risen to €48bn, and the top three operators have a combined market share of 20%, soon to rise to 24% with the completion of the Flutter-Stars deal. Developing business goals, technological changes, markets opening and closing, diversifying service offerings, changing regulations, and evolving expectations: everything is shifting. In response, now we are facing changes in ownership, direction, and positioning. Yet none of this should come as any surprise. Simon called it three years ago: in his presentation he pulled up a slide from 2016 that stated, among other things, ‘consolidation is inevitable’ and ‘the industry would crunch down to 2-3 large global players’. Though not unexpected, the impact of consolidation has been dramatic, and it looks to be a trend that won’t be slowing down any time soon. The number of deals has increased year-onyear, and the value of deals has grown as well. Consolidation is only natural. As Lyle Wraxall, CEO of Digital Isle of Man,

feature - egaming

highlighted in his talk at the Summit, all industries follow a similar course over time, experiencing the same lifecycle of introduction, growth, maturity, and eventually either decline or reinvention. The 2000s were the market’s era of rapid growth, and the 2010s were its period of relative stability, but they were never going to last forever. This period of maturity was always on the cards. Consolidation is a key sign of this maturity for many reasons, as it allows reduction of costs, achieving increased global presence, development of more proprietary systems and products, and the reduction (or at least balancing) of risks. Whatever the motivation for these consolidations, we shouldn’t worry. While for a jurisdiction like ours it may be easy to look backwards and ruminate on times when new licensees popped up every day, it’s important to remember that the consolidation that comes with a mature market doesn’t mean the end – it just means different opportunities. A maturing market doesn’t mean we should stop innovating. When we founded our eGaming division in 2009, we were focused on securing licences for small, entrepreneurial businesses and incubating them through their early growth phase. We still do that, as the pipeline of new licensing leads on-island is as strong as ever and there is always room for new products to make an impact, but we’d be mad to be solely focused on that today. Instead, over the last few years, we have built products and services that are multi-jurisdictional and aimed at helping larger, more operationally self-sufficient businesses stay on top of their increasingly complex regulatory commitments. By way of example, over the last three years, we purpose-built an online training platform specifically tailored to the gaming market. It’s intentionally designed as a long-term subscription service to help ingrain a culture of compliance

and responsibility and to drive iterative improvements within client organisations. Over the last year, we’ve taken that further and substantially expanded our consultancy service for large operators with Compliance 365, a perpetual compliance support solution. Neither of these would have gained traction in the early days of the market, but today the demand is enormous. We have evolved, just as operators and regulators have evolved. As an industry, we need to be agnostic about our stage in the market. Yes, there might be fewer licensees around after all this consolidation, but those that remain will have ever more need (and budget) for the sorts of technical and professional services the Isle of Man is so experienced in. This opens new markets for the Island: our team of gaming experts, including 35+ employees based

on the Isle of Man, is providing services internationally to major global operators, not just those licensed here. This is a case study in how the expertise built up in the local cluster can be much more focused on ‘exporting’ services than it could be when the industry was less mature. So, while our services can’t be backwards-looking if we wish to continue to succeed in this sector, we do need to remember what has brought us success to date as we innovate. Collaboration is what got the Island to where it is on the global eGaming stage, and it’s what will keep us going into the future. The Isle of Man Government’s regulators and promotional agencies, and particularly key figures such as Steve Brennan at the GSC, have always embraced the evolving nature of eGaming. They have invested in making the Island ON THE AGENDA...

introduction of software supplier licences and digital-asset licensing. These efforts have presented new opportunities for businesses and providers to step into the market, as well as utilising local expertise to contribute to the Isle of Man’s digital and services export sector. Of course, the future is uncertain; a considerable amount has changed in the last ten years and as much again will change in the next ten. What we know, however, is that the Island is a safe, secure, and above all, a flexible and open-minded jurisdiction, so it should continue to flourish come what may. As an island, we must continue to collaborate with other jurisdictions and overseas regulators. As individual businesses, we can support that by changing in step with the demands of the market, spotting and responding to the different opportunities that a mature market can bring.

Collaboration is what got the Island to where it is on the global eGaming stage, and it’s what will keep us going into the future. CONNECTING BUSINESSES

a place where businesses feel comfortable to trial their ideas, engage with the regulator, and communicate what they and their players need. They have supported the operator-focused services delivered through CSPs, legislated quickly, and presented a flexible and open-minded approach to the industry: all of which comes together to form a support network that offers stability in an ever-changing regulatory environment. All the while, they learn from the industry and retain a personable and progressive approach to engaging with the market. That collaborative mentality between operators, service providers, the GSC, and Digital Isle of Man, is what we need to thrive in this maturing space. We have recently seen the benefits of it in new areas of investment, such as the Digital Agency’s promotion of AI and esports and the GSC’s

The Isle of Man gaming sector will continue to be successful in a mature market – it will just look a little different to the past. So remember, don’t fear change; embrace it.

brand voice- KPMG isle of man

Audit: shifting F

By: Simon Nicholas and Edward Houghton, KPMG Audit LLC

ollowing well publicised business failures such as BHS, Carillion and Patisserie Valerie there is a marked shift in the public profile of audits, expectations surrounding audit quality and the role auditors play in the financial condition of businesses.

ON THE AGENDA...

expectations It has recently become clear that auditing standards and the profession have not kept pace with the latest expectation that society now has on the level of assurance an audit should provide. Indeed in a number of cases the Big 4 firms have sought to extend the scope aspects of assurance but this has not been universally accepted by the market. The words in the audit opinion are not consistent with the public’s understanding of an audit and as a result there has been a significant erosion of trust in the profession, our work and the assurance an audit opinion provides. This trust must be restored and the work performed as part of an audit has to evolve to greater meet the needs of users of financial statements. It is vital that the profession addresses whether an audit now meets the needs of the users, is free from all perceived conflicts and can be effectively supervised by a regulator.

CONNECTING BUSINESSES

‘The Expectation Gap’ Arguably auditing standards have not been enhanced enough as a result of the issues seen during the financial crisis where there was a gap between what the profession and the public, via the media, thought an audit represented – in particular on the forward looking aspects of an audit such as going concern. Going concern as it currently stands relates to the ability and intent of a company to continue trading in the near future – this is not an opinion on the viability of a company’s business model and financial statements do not address all of the risk factors that will impact the future success of the company. Yet public sentiment would suggest that an audit should address this area in order to meet their needs. Whilst the audit regulators and standard setters seek to address the ‘expectation gap’, audit firms have been

Inevitably all of this translates into the increased cost of an audit, a trend which has been observed in the UK for the past couple of years.

brand voice- KPMG isle of man

Audit teams need to evolve from primarily comprising accountants to increased use of deep specialists in tax, investment valuations, property valuations, actuaries and IT and cyber on an audit.

told to invest significantly in areas where the profession faces scrutiny and for audit to go deeper and further. This includes a need for auditors to invest heavily in specialist resources and technology solutions to enable the provision of greater assurance, for example through advanced data analytics tools providing the ability to analyse thousands of transactions to find the needle in the haystack and understand unusual transactions. In the past, the profession has relied on hiring the best graduates and developing its people through world class training, primarily in accountancy. However, there is now the expectation that audit teams have such a depth of skills and technical expertise that audit teams need to evolve from primarily comprising accountants to increased use of deep specialists in tax, investment valuation, property valuation, actuaries and IT and cyber on an audit. This is in order to provide comfort that the key risks are fully understood and the audit assurance provided is to a greater level of precision. Whilst this does create additional work, if executed well there will be benefits to clients as the specialists are in a unique position to be able to deliver greater insight on peer benchmarking, best practices and industry insights. As a result locally we have continued to build our specialist teams in these areas, not only to advise clients directly, but also involving these specialists in the audits we complete to ensure robust challenge and high quality conclusions. Inevitably all of this translates into the increased cost of an audit, a trend which has been observed in the UK for the past couple of years.

Regulatory expectations The spectre of regulatory oversight looms large over the audit sector, with increased frequency of reviews, time spent and depth of challenge a matter of routine â&#x20AC;&#x201C; not just where failure has occurred. Regulator expectations of both management and auditors has never been higher. There have been a number of high profile instances of record sanctions in the UK for management, businesses and auditors in recent years where noncompliance has been identified. The need for the highest levels of professional scepticism, independent challenge and consideration of contradictory evidence throughout represents a high hurdle. This is not to say that professional scepticism hasnâ&#x20AC;&#x2122;t always been a key pillar that an audit is built on, but that pillar just got wider and the depth of expected inspection deeper. Following this increase in regulator supervision, audit firms have been told to better document outright compliance with the relevant standards and justify house interpretations of the rules.

Conflicts The underlying principle of auditor independence has never wavered, but the perception of conflicts of interest, how these are identified, considered and safeguarded against has continued to evolve. There is the clear desire to ensure that an audit, given the trust and reliance placed on it by stakeholders, is seen as truly independent. To ensure there is no perception that independence is not at the heart of the audit, structural change is being proposed in the UK to ensure that audits are in no way linked to, or subsidised by, wider consulting relationships. Any perceived threat to audit quality, independent challenge of management and robust conclusions must be eradicated. KPMG in the UK has been a first mover in this regard in ensuring absolute clarity over independence by ceasing to provide advisory services where they act as auditor on their largest listed clients. It is possible that this may not be deemed to go far enough with the current debate exploring the complete separation of the management of audit practices.

ON THE AGENDA...

The bar has been raised significantly, resulting in a transformation of audit execution in order to comply and retain audit registrations. Put simply, this environment is driving a step change for auditors demanding a greater quality of assurance and an evolution of audit techniques and the skillsets of those involved in the audit, no matter what the cost. With audit fees in the UK already rising in double digit percentages and various on-going reviews of the audit market, the pace of change impacting the profession and its clients shows no signs of slowing down.

CONNECTING BUSINESSES

It is vital that the profession addresses whether an audit now meets the needs of the users, is free from all perceived conflicts and can be effectively supervised by a regulator.

BRand VOICE - capital international Isle of Man team celebrating at the Awards for Excellence

Success in South Africa Cape Town team participating in the African Centurion walking race

Competing in the Sani2C mountain bike race in South Africa

CEO Greg Ellison ON THE AGENDA...

Capital International Group recognised at the Awards for Excellence As this year’s winner of ‘International Business of the Year’ at the Awards for Excellence, there has never been a more opportune time to reflect on our journey from small Manx investment firm serving a domestic market to a company competing across the globe.

tarting off in a small Castletown office in 1996 with just a handful of staff, it took a while for the business to get going. Like other start-ups there were many ups and downs in those early days including times when the future looked bleak. But the founders were determined to succeed and believed in what they were doing. Slowly but surely new clients came on board and a certain amount of momentum started to build. By 2009 the headcount had reached about 60 and we needed to expand. The following year, the business moved from Castletown into our current Douglas headquarters which today house over 120 employees. Having expanded further over the last five years, we now have four offices in total: two here on the island, one in Cape Town and another smaller office in Johannesburg which was opened earlier this year. The expansion into a new continent was devised after discovering a gap in the market in South Africa. At the time, the majority of South African investment providers focused on opportunities within the country, denying clients access to regulated opportunities internationally during a period of economic and political instability. Alternatively, any offshore business was serviced by subsidiaries of South African institutions rather than

truly offshore entities. Having recognised the limitations South African investors were facing via many fly in visits over a number of years, in 2014 the Group created a one-stop-shop, open architecture platform providing a gateway for advisers and clients in South Africa to a world of offshore investments. The offshore platform is headquartered in the Isle of Man, so is truly outside of South Africa, and is complemented by our regulated presence and teams in Cape Town and Johannesburg. This means we are able to give South African investors local support and comfort which is important for those seeking to place their assets in a distant part of the world. Setting up in South Africa, whilst proving a huge success for the Group, meant overcoming some logistical challenges. To grow without a known brand, to hire people to join a new business they hadn’t heard of and to break through existing networks and relationships in a space dominated by large South African companies has been tough. Between 2014 and 2016, we relied on organic growth as clients quickly grew to value and trust our offerings. These first few years were spent flying key staff to and from the Isle of Man to help establish networks and a new line of business. In

a demonstration of commitment to the company, the Group’s Chairman, Anthony Long, moved to Cape Town with his family to build the brand and establish our culture in this new and exciting market. We knew that in order to succeed without a brand presence, we had to offer the best possible service to financial advisors and investment managers in the country. We took the following measures to build our reputation: n Accounts open within 72 hours of the correctly completed paperwork being received, significantly beating the industry average. n An on the ground team with a frequent presence at industry conferences, roadshows and seminars. n Heavy investment in our technology and our people with very low staff turnover so that relationships can flourish over years. n Relationship staff in the South African offices are required to pass a financial advisory and intermediary qualification: the RE5. This ensures that our people can relate to our advisors and deliver services that meet their needs and their clients’ needs. Despite facing numerous challenges along the way, taking the leap and expanding into the South African Market has proven to be a tremendous success for the Group. The South African side of the business now accounts for almost 60% of our platform business revenues and has helped the Group achieve a 96% increase in profits over the last 3 years. With plans to target new jurisdictions, expand our international presence and launch the island’s first new corporate bank in over 30 years, to say the next few years are going to be busy for us would be an understatement. However, one thing will never change and that is our passion to provide our clients with the best service experience and we continue to work hard every day to achieve that. Information in this article does not constitute investment advice or an offer or an invitation by or on behalf of any company within the Capital International Group of companies to buy or sell any product or security. Clients should always seek professional advice before taking any action. Regulated activities are carried out on behalf of Capital International Group by its licensed member companies. All licenced by either the Isle of Man Financial Services Authority or the Financial Sector Conduct Authority in South Africa.

For further information please visit www.capital-iom.com CONNECTING BUSINESSES

IoD - iom welcome

DEAR MEMBERS,

Welcome

to the 13th edition of Agenda.

he days are finally shorter and evenings colder, but it hasn’t slowed down the heated pace of activity being kept while reshaping and expanding the Institute of Directors for our members. At the helm we now have a new Director General, Jon Geldart, a fellow director who I had the pleasure of working with briefly when we discussed a new Value Proposition for members in the UK. And we couldn’t have picked a better leader! Jon is approachable, knowledgeable and above all passionate about giving our members what they want and need. We are in the process of finalising plans for Jon’s visit to the Isle of Man, and I hope that many of you get the chance to meet him in person, here and maybe later off island. Another exciting IoD visit in the near future is by International Councillor Rick Denton who will be joining us for the Christmas Mingle at our HQ the Claremont on 10th December. Together with IoD Jersey, Guernsey and the Isle of Man, Rick will help pave the way by expanding our international franchise membership, first with the Crown Dependencies but then later to include other countries with directors interested in joining the worldwide network. This is of course done in parallel and in line with the decentralisation plans being rolled out in the UK. We are all part of the same institute reaching out to talented leaders interested in sharing knowledge, expanding their network and learning new skills through our suite of director courses. Pall Mall will of course still be a central hub for many members, but we hope that the benefits of being part of the restructured IoD can also be felt closer to home. Our partnership with the North West will continue for the foreseeable future, and as part of this arrangement we are once again accepting applications for the Director of the Year Awards 2020, to be held in Manchester on 14th May. Please take a moment and nominate a candidate by contacting either Rachel McKenna, myself or putting their name down here: iodawards.com/northwest. We want another winner like we had this year; congratulations once again to Paul Kerruish and The Fynoderee Distillery! Thank you to all our sponsors, hosts and guest speakers who have attended our many lunches and evening events. We have had a very busy autumn, so I won’t list them individually. It is thanks to the combined effort of everyone involved that we continue to offer such a nice range of activities, in addition to our normal IoD courses. And on that positive note, may I wish you all a very happy festive season full of fun, new opportunities and shared memories! Lesh yeearreeyn share - with best wishes,

Jennifer Houghton Chairman Institute of Directors Isle of Man

ON THE AGENDA...

iod-iom committee members IoD - iom committee members IoD - iom committee members

meet your institute of directors - isle of man IOd-iom committee members committee members

iod-iom committee members IoD - iom committee members JENNIFER HOUGHTON

DAWN WEBB TREASURER

PAM WATSON SECRETARY

(Dawn Webb Advisory Limited)

(Lloyds Bank International)

meet your institute of directors - isle of man CHAIRMAN IOd-iom committee members committee members

CLIVE PARRISH

DEB BYRON

CLAIRE MILNE

(CDP Associates)

(Hansard International)

(Appleby)

JENNIFER HOUGHTON

CHAIRMAN

RUSSELL KELLY

DAWN WEBB TREASURER

PAM WATSON SECRETARY

(Dawn Webb Advisory Limited)

(Lloyds Bank International)

(KPMG Isle of Man)

Institute of Directors - Isle of Man The Claremont 18-22 Loch Promenade Douglas Isle of Man IM1 2LX

Isle of Man Member Benefits JADE ZORAB

PHAEDRA BIRD

(SMP Partners)

(Crowe Clark Whitehill LLC)

PETER REID

(Lloyds Bank International)

CLIVE PARRISH

DEB BYRON

CLAIRE MILNE

(CDP Associates)

(Hansard International)

(Appleby)

SALLY BOLTON (Corlett Bolton & Co)

ALICE MARTIN

(Isle of Man Government)

JADE ZORAB

PHAEDRA BIRD

(SMP Partners)

(Crowe Clark Whitehill LLC)

MARK WATERHOUSE (Isle of Man Financial Services Authority)

PETER REID

(Lloyds Bank International)

QUICK LOOK n Discounted entry to Rendezvous Lounge at the IOM Airport n Discounted VIP Business Travel and Airport Transfers with K&B Carriage n Discounts on Leisure and Business Travel with Richmond Travel and MannLink Travel n Discounts on selected training courses with TLC Additional Benefits for all members

n Access to our local HQ

and Business Hub and locations throughout the UK

ANNEMILLS MILLS ANNE

(Hospice Isleof ofMan Man) Hospice Isle

SALLY BOLTON

CONNECTING BUSINESSES

(Corlett Bolton & Co)

CONNECTING BUSINESSES

SUE PRESKEY PRESKEY SUE (Financial Services Financial Services Consultant) Consultant

ALICE MARTIN

(Isle of Man Government)

CAROLYN GELLING

(TISE Isle of Man)

n IoD Car Rental, provided by Hertz www.iod.com/ carrentalÂ www.iod.com/regions

MARK WATERHOUSE (Isle of Man Financial Services Authority)

iod-iom Autumn Lunch

IoD Isle of Man Autumn Lunch with Lisa Francis

n Thursday 24th October, the IoD Isle of Man Branch held the Autumn Prestige Lunch at the Claremont Hotel. The event, kindly sponsored by Barclays and represented on the day by Simon Scott and Stuart Nelson was well attended by members and guests. We were delighted that Chief Minister Howard Quayle MHK, Minister Laurence Skelly MHK and Mrs Daphne Caine MHK were able to join. The Committee also welcomed Brian Hall to the event. Brian sits on the IoD Council and is the current Chair of IoD West Midlands. Due to a last minute change of speaker we were joined by Lisa Francis CEO for the UK Private Bank & Crown Dependencies at Barclays. Lisa spoke engagingly about the benefits of diversity and inclusion. Lisa reflected on her career to date, from her extensive experience in growth strategy

to her on-going role as mentor and coach, guiding all levels of seniority to achieve their goals. Chair, Jennifer Houghton noted: “I am pleased that we held another successful IoD Autumn Lunch. Lisa really brought home why diversity and inclusion is so important to effective boards.” The lunch ended with a raffle to support local charity The Manx Heart Foundation. All funds raised by the charity remain on the Isle of Man and are used to support the Cardiac and Coronary Care Units at Nobles Hospital, the Cardiac Rehabilitation Programme and the Isle of Man Ambulance Service. Over £600 was raised for the charity and we thank all guests for their generous contribution. Plans for the Spring Lunch are underway and we look forward to sharing details soon.

ON THE AGENDA...

CONNECTING BUSINESSES

iod-iom social event

Local charity Graih

IoD Isle of Man Wine Tasting at Wine Down

he IoD Isle of Man Committee hosted an exclusive wine tasting evening on Thursday 7th November. The event held at Wine Down, was attended by 40 IoD members and guests. The host for the evening Anne Berry, provided a tempting five course taster menu with accompanying wines. To add a twist to the evening, guests were given the opportunity to take part in a quiz, putting their wine expertise to the test! Our sponsor for the evening HSBC kindly provided a sparkling drinks reception and was represented by Jaime Amoedo and Mark Avery. The evening also raised awareness for local charity Graih. Graih, a Manx word meaning ‘love’, provide an invaluable support to those in need, offering emergency overnight shelter and on-going support for homeless men and women on the Island. The raffle raised an amazing £400 for the charity. The IoD Isle of Man Executive Officer, Rachel McKenna had great pleasure in presenting the cheque to Erica Irwin, centre manager. Our final event for 2019, is the Christmas Mingle for IoD members on Tuesday 10th December at the Claremont Hotel. The Committee look forward to welcoming you. For further information on the event and to book please visit - www. iod.com/events-community/regions/isleof-man/events

ON THE AGENDA...

A celebration of leadership talent, success and achievement

APPLY NOW The IoD North West & Isle of Man Director of the Year Awards represents the pinnacle of business leadership and excellence. Applications are now open for our 2020 awards and we encourage you all to apply.

Apply at: iodawards.com/northwest

CATEGORIES CATEGORIES CATEGORIES CATEGORIES Public Sector Public Sector Public Sector Third Sector Third Sector Public Sector Third Sector Start-Up Start-Up Third Sector Start-Up Young Young Start-Up Young Small-Medium Business Small-Medium Business Young Small-Medium Business Large Business Large Business Small-Medium Business Large Business Large Business

Social Value and Sustainability Impact Social Value and Sustainability Impact Social Value and Sustainability Impact Family Business Family Business Social Value and Sustainability Impact Family Business Equality, Diversity && Inclusion Equality, Diversity Inclusion Family Business Equality, Diversity & Inclusion Innovation Innovation Equality, Diversity & Inclusion Innovation International International Innovation International Non-Executive Non-Executive International Non-Executive Non-Executive

Deadline: Deadline: Deadline: Friday 17January FridayDeadline: 17January2020 2020 Friday 17January 2020 Friday 17January 2020

"In"In this time of of great change forfor this time great change "In this time of great change for business and society, enterprising society, enterprising "Inbusiness this timeand of great change for business and society, enterprising and responsible leadership has and responsible leadership has business and society, enterprising and responsible leadership has never been more important. These never been more important. and responsible leadership has These never morethat important. These areare thebeen qualities thethe Director that Director never the beenqualities more important. These are the qualities thatembody." the Director of of the Year Awards the Year Awards embody." are the qualities that the Director of the Year Awards embody." of the Year Awards embody." Charlotte Valeur Charlotte Valeur Charlotte Valeur Chair, Institute of Directors Chair, Institute Charlotte Valeur of Directors Chair, Institute of Directors Chair, Institute of Directors

Apply Applyat: at: Apply at: Apply at: iodawards.com/northwest iodawards.com/northwest iodawards.com/northwest iodawards.com/northwest Headline partner Headline partner Headline partner Headline partner

Sponsors Sponsors Sponsors Sponsors

Iod - iom events

IoD Isle of Man (Net) Event IoD Isle of Man – 2020 Events

We have an exciting start to the New Year lined up! More details and events to be added, so please do keep an eye on the website or contact Rachel McKenna rachel.mckenna@iod.com

IoD Isle of Man Evening Seminar – Director & Officer Professional Indemnity with Aon

DATE: 21st January 2020 TIME: Registration from 5:30pm – 7pm LOCATION: The Claremont PRICE: Members FOC, Non members

£12.50 per person

IoD Isle of Man – ‘A Message for the Boardroom’ with Dr Henrietta Ewart (Director of Public Health) Anita Imberger (Lead for Mental Health), Lauren McLachlen (Lead for Workplace Health and Wellbeing) and Luke Adebiyi (Capital International Group)

LAUNCH EVENT DATE: 25th February 2020 TIME: 12:15pm – 2:00pm LOCATION: Wine Down PRICE: £15 member/non member

IoD Isle of Man Breakfast Seminar with Irini Newby Simcocks DATE: 3rd March 2020 TIME: Breakfast meeting LOCATION: The Claremont PRICE: Members FOC, Non members

£12.50 per person

IoD Isle of Man International Ladies Day – speaker to be confirmed. DATE: 6th March 2020 TIME: 12:15pm – 2:00pm LOCATION: Thai Thai PRICE: £15 member/non member

DATE: 6th February 2020 TIME: Registration from 5:30pm – 7pm LOCATION: The Claremont PRICE: Members FOC, Non members

£12.50 per person

ON THE AGENDA...

capital-iom.com

INVESTMENT SPECIALISTS Managing risk to drive performance.

Call +44 (0) 1624 654 200 or Email info@capital-iom.com to find out more. Create tomorrow... Start today.

Regulated activities are carried out on behalf of Capital International Group by its licensed member companies. Capital International Limited, CIB Limited, Capital Treasury Services Limited and Capital Financial Markets Limited are all licensed by the Isle of Man Financial Services Authority. Capital International Limited is a member of the London Stock Exchange. Registered Address: Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG. CILSA Investments (PTY) Ltd (FSP No. 44894) and CILSA Solutions (PTY) Ltd (FSP No. 6650), t/a Capital International SA are licenced by the Financial Sector Conduct Authority in South Africa as Financial Service Providers. Registered Address: Office NG101A, Great Westerford, 240 Main Road, Rondebosch 7700, South Africa. All subsidiary companies across both jurisdictions are represented under the Capital International Group brand.

update - feature out of office - Elaine McCormack

laine McCormack, Risk Consulting Senior Manager at KPMG Isle of Man recently joined a group of 17 trekkers from the Isle of Man to take on a 6 day trek in the Vietnam jungle to raise money for Junior Achievement Isle of Man. She shares her trek diary….

Day one Up at 6am, we left our comfy beds and warm shower behind at the hotel in Hanoi and took on a 4 hour coach journey to Pu Luong. Getting out of Hanoi was crazy, so many motorbikes and torrential rain made for an interesting start to the journey. After a couple of stops along the way we finally made it to our first homestay – a wooden house on stilts in the middle of a little village. The area was more touristy than I thought it would be, but still very authentic and basic, although did have electricity and wifi which we weren’t expecting. We were shown our room, which was communal with individual mattresses on the floor, which would make our first night together rather interesting! A quick unpack before lunch (which was lots of little plates of lovely food), and then we headed out on our first gentle walk. The scenery was amazing, and there were so many animals along the way. We are amazed at the number of dogs (who we decided should all be called Dave as there were far too many to remember real names!) The initial walk lasted about 3 hours and we returned to the homestay and ready for dinner at 7pm. Dinner was similar to lunch – with some additional green vegetables that smelled like horse

stables. We didn’t eat much of those! A quick stroll around the village after tea, mosquito nets up, and an early night for most of us in preparation for a much tougher day tomorrow. Day two It was certainly different sleeping in a room alongside 17 other strangers! With a combination of the bamboo floor shaking every time someone got up in the middle of the night, the insects and the noisiest cockerels crowing pretty much non-stop since 3am, you get 18 very tired trekkers about to set out for the day. Today’s walk was tough - way tougher than I thought it would be. The first part was uphill via a stony track that seemed to last forever, then further uphill continuously for the next couple of hours. It was extremely hot today (30 degrees celsius) so we stopped at regular intervals to ensure we got some shade and water. After such a strenuous morning, lunch was a welcome break with lots of sticky rice, fish, peanuts and pork at a lovely little homestay. The afternoon trek was shorter but much hotter by now. We eventually make it to the 2nd homestay about 4.15pm, to ‘enjoy’ a freezing cold shower! After dinner this evening the homestay had arranged for a local dance ON THE AGENDA...

performance for us of traditional dances from the village. At the end of the show the girls got us up to dance over bamboo poles which was great fun. We decided to teach them how to do the cha cha slide, I’m not sure whether they think that is a traditional dance from the Isle of Man! Day three Morning group stretches complete we set off about 8.30am today. It’s another hot day, and lots of road walking today which was really tough on the feet. After about 3 ½ hours, we stopped for a packed lunch of little parcels wrapped up in banana leaves which turn out to be chicken, pork, egg, tomato and sticky rice. After lunch, we had a 10 minute bus transfer and then a small trek over to a river. We got into small rickety boats for a 15 minute ride down the river. At times we questioned whether the boats were going to make it, but the amazing scenery helped to take our minds off it. We then trekked along the riverbank and had to cross through a river ourselves, which meant the boots came off! The water on our feet was so cooling – just what they needed after another hot day. Every time we ask our guide how much further to go, we are told ‘about 4k more’ so never really know how far we end up walking. As we head to our homestay we pass a school coming out at the end of their day. Some of the children walk with us towards our homestay. We hand out sweets and stickers and they are so grateful and happy. Tonight’s homestay is much more rural and the shower temperature has increased to ‘lukewarm’ – unlike dinner which is stone cold and a real disappointment for us all after a long day of walking. Feeling very tired with little energy with not much sleep over the last couple of days. Remind me again why I’m doing this? Day four Happy Hop Tu Naa! Next door to our homestay was a little nursery with very young children waving over to us while we were having breakfast. We asked our guide if he could speak to the teachers and arrange for us to visit the children, as we have lots of pens and pads that the staff at KPMG had kindly contributed towards us bringing over for our visit. To the group’s delight the teachers agreed to us visiting. The children are tiny, aged about 3-4 and there’s a group of about 20 in the class we visit. They sat in a circle and welcomed us with a song as we entered the classroom. Myself and Simon Nicholas (also from KPMG) CONNECTING BUSINESSES

handed out the pens and paper and spent some time with the children; we gave them postcards of the Isle of Man and a Manx Flag. It was actually a really emotional experience, the children and teachers were so grateful and I think it really cheered the group up after a couple of tough days. The trek today was another tough, long day. Not so sunny, but the humidity was fierce. We climbed for what seemed like an eternity during the morning with a few little stops on the way. I struggled this morning and was one of the back markers for most of the way. We had a packed lunch again - more sticky rice, nuts and chicken drumsticks (there’s a bit of a pattern developing!). The toilets at this stop were genuinely the worst I have ever been to, and the less said about those the better! The afternoon was much cooler, and although my achilles and back of knee hurt, I didn’t struggle as much as the morning. We finished the day with a climb up lots of steep steps to a beautiful cave before heading over to the homestay. Pleased to report dinner was much better this evening! Day five Beef noodle soup for breakfast today which was very different! It poured down all day and we all got soaked, even in our waterproofs. We walked through very different terrain today, lots of overgrown jungle, slipping and sliding up and down clay paths. How I managed to stay on my feet I will never know, but it was great fun. We had to stop every so often to check for leeches on our boots and clothes, there were lots of them around. Then we walked through a local market village to our lunch stop. Today wasn’t as tough as, due to the rain, we were going at a slower pace, but this morning was probably my favourite of the whole trek. Lots of road walking again in the afternoon though, which was very hard going on the knees and achilles. Back at the homestay, my ankles were completely swollen and legs covered in a rash and bruises, so icepacks and raised legs were the order of the evening.

Dinner was more rice and pork – what I would give for a cheese sandwich right now! Day six Up at 6am ready for our last day of walking. We set off early this morning with a view to finishing the last 8k by 11am, so we could get back to Hanoi before the rush hour (and also so the men could watch the Rugby World Cup Final!). Rained again today, and the clay slopes were treacherous. We walked through lots of forest up and down the most ridiculously steep slopes, there’s not many people that managed to stay on their feet. A couple of very hard falls in the group, but luckily no serious injuries. The last half of the trek was on road. The pace quickened, there were less photo stops and we were all much quieter. You could tell we wanted to get back on the bus as soon as possible and get out of the rain. We finished in good time and were all ecstatic that we’d finally made it – now just to get to Hanoi on a bus with the combined smells of us all in a confined space for the next 4 ½ hours! We finally made it back to the hotel after a few near misses with crazy traffic on the road back, and it was so nice just to have a hot shower and lie down on a comfy bed. I felt like we’d been on I’m A Celebrity, and we’d just left the jungle! Final thoughts Hands down, this has got to be one of the best experiences of my life, and I think that goes for so many of us within the group too. This pushed a lot of us outside our comfort zone, but the experiences we shared and the friends we made along the way will last with us for a lifetime. It was great to be able to share this with such an amazing group of people, in a fantastically welcoming country, and raise some very valuable funds for Junior Achievement which I know will be put to good use within our local community. Would I do it again? Absolutely, although I might just need to catch up on some sleep first.

out of office

Business Books of 2019 Must-read titles

Anxious Times: Medicine and Modernity in NineteenthCentury Britain, by Amelia Bonea, Melissa Dickson, Sally Shuttleworth and Jennifer Wallis, University of Pittsburgh Press, RRP£35. This group of academics makes the fascinating case that the stress and anxiety of the Victorians — provoked by changes in technology (notably the telegraph), work and culture — foreshadowed our own age’s problems with burnout and disruption.

Zucked: Waking Up to the Facebook Catastrophe, by Roger McNamee, HarperCollins, RRP£16.99/Penguin Press. One of the best inside stories so far of the unravelling of the reputation of Facebook and its founder Mark Zuckerberg by the man who mentored the social media network’s founder and was one of its early investors.

Make, Think, Imagine: Engineering the Future of Civilisation, by John Browne, Bloomsbury, RRP£25/Pegasus Books. The former chief executive of BP returns to his roots, refining historical, artistic and business lessons into a heartfelt and optimistic call for more engineering innovation that will change the future for the better. Invisible Women: Exposing Data Bias in a World Designed for Men, by Caroline Criado Perez, Chatto & Windus, RRP£16.99/ Abrams. By analysing problems using data based only on men’s experiences, designers, policymakers and planners have built gender bias into products and systems, according to activist Criado Perez, a finalist for FT/McKinsey Business Book of the Year.

Equal: A Story of Women, Men and Money, by Carrie Gracie, Virago, RRP£18.99. The BBC’s former China editor recounts her hard-fought battle with the broadcaster for equal pay, artfully weaving in the history of gender inequality and tips for women — and men — who wish to continue her campaign for equitable treatment.

The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution, by Gregory Zuckerman, Portfolio Penguin, RRP£20. Told with depth and vividness, this is the tale of one of the most enigmatic and richest pioneers of quantitative finance — a talented mathematician with an eye for the sort of gifted eccentrics who could help him change the hedge fund landscape. Shortlisted for FT/McKinsey Business Book of the Year. ON THE AGENDA...

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