businesslife.co Issue 36 January/February 2015

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Issue 36: January/February 2015

What could the next 12 months bring for banking, funds, insurance, technology, tourism, trusts and the Channel Islands’ economies?

Issue 36: January/February 2015

Plus: Interview with Aurigny and Blue Islands • Compliance Beneficial Ownership • Insolvency • Mentoring • Recruitment • Marketing

Welcome

businesslife.co businesslife.co is published six times a year by Chameleon Group Limited +44 1534 615886 www.businesslife.co CEO, Chameleon Group Carl Methven carl.methven@businesslife.co Carl Methven

Editor-in-Chief Nick Kirby nick.kirby@businesslife.co Art Director Angela Lyons

Nick Kirby

Deputy/Sub Editor Nicola Tann

Angela Lyons

Advertising sales@businesslife.co News and editorial news@businesslife.co

Nicola Tann

General enquiries enquiries@businesslife.co businesslife.co Discussion Forum Follow us at @businesslifeco and @bizlifejobs

Jersey office: Floor One, Liberation Station, Esplanade, St Helier, Jersey JE2 3AS London office: Gunnery 32, Citibase, 9-11 Gunnery Terrace, Woolwich Arsenal, London SE18 6SW © Chameleon Group Limited, all rights reserved. Reproduction in whole or in part without written permission is prohibited. Views expressed by our contributors are their own and do not necessarily represent the views or policies of Chameleon Group. While every effort is made to achieve total accuracy, Chameleon Group cannot be held responsible for any errors or omissions.

Mapping out the road ahead As we kick off 2015, we get a sense that businesses in the Channel Islands are actually looking forward rather than glancing nervously over their shoulders. Could this year be the start of something exciting?

W

ill someone tell us where 2014 went? No, seriously. Just how did 12 months pass so quickly? In the blink of an eye we went from looking forward to what the year had to bring, to dancing around the businesslife.co Christmas tree and welcoming in the New Year.

Unsurprisingly, the end of the year/start of the next one is always a time of reflection on what has been, and what might be coming – especially when the previous year was so fascinating and has set us up for a very interesting 12 months. But rather than us gathering round our crystal ball and peering into the mists of the future, we handed over that job to a number of key figures and experts across the Channel Islands.

So in this issue you’ll find insights into what 2015 might bring for funds, banking, trusts, tourism, technology, insurance and more.

It’s fair to say that while there’s a general sense of optimism among all our contributors, there’s also a tacit acknowledgement that there are plenty of developments ahead – both those

that are already in the pipeline as well as those that, inevitably, will come out of the blue.

One area that already looks set for change in 2015 is the way Channel Islands’ airlines Aurigny and Blue Islands get passengers to and from Jersey and Guernsey. We were delighted to be able to secure an interview with Mark Darby and Rob Veron, respective Managing Directors of those airlines, in this issue. But even as we went to print, things were changing – so by the time you read the article, more news may have already broken.

This year is also going to see massive changes for all of businesslife.co’s operations – this magazine, the conferences we run, and our website. We’ll let you know about them as the year progresses – and we may well even spring a few surprises on you. One thing is certain though: by the time this year has likely flown by and we are gathering around the Christmas tree again, things will look very different. n The businesslife.co team

It’s thE perfect match!

The businesslife.co jobs board brings together top employers and star talent Looking to take your next step up the ladder?

Get online and start searching now – it’s completely free!

Want to attract your next big hire?

Post your latest position and connect with your next big name

To get involved, contact Carl Methven on +44 1534 615886, +44 7797 796377 or at carl.methven@businesslife.co January/February 2015 businesslife.co 3

London City y into the tl c e ir d e m ts u p “Blue Islands , less time, less cost.”

City, less stress

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Global HR shley Cope Advisor, JT Group

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*Terms and conditions apply.

Contents

64

January/February 2015

54

18

54 Video marketing

How to get the most out of online video

32

8 News

60 Mentoring

How younger mentors are helping more senior employees

26 Interview

A round-up of the latest business news from the Channel Islands and beyond

Aurigny’s Mark Darby and Blue Islands’ Rob Veron talk about life at a regional airline

14 Appointments

32 Beneficial ownership

Recent key hires for Jersey and Guernsey businesses

­Should a register be introduced?

10 good reasons why you should quit your job right now

82 20 questions

Mark Pesco from First Names Group undergoes a grilling

36 Compliance ­

18 The Channel Islands

64 Employment

in 2015

How increased regulation has seen a greater demand for compliance

Our experts give their views on what will happen in key business sectors in the year ahead

42 Collaboration ­

Can ‘sleeping with the enemy’ bring business success?

46 Recruitment

Why it pays to do background screening on candidates and current staff

50 Insolvency

26

What is the state of play in Guernsey and Jersey? And do the laws need to change?

The Agenda

67

You can expect stuffed animals, killer colours, pop art, natural interiors, funky trainers and classic watches as this issue’s Lifestyle section shines a bright and spangly light on a few of the trends you can expect in 2015.

contributors

Dr Liz Alexander

Orlando Crowcroft

Thom O’Dwyer

Dave Waller

Leadership guru Liz takes an in-depth look at the benefits of business collaboration, as well as examining how younger people mentoring more senior staff can see everyone reaping rewards.

Business writer Orlando gets a grip on the rather slippery subject of insolvency in the Channel Islands, and asks whether the laws need to change to give businesses a better chance of survival.

Ever the fashion plate, Lifestyle Editor Thom dons some very cool magic goggles to peer into the future at what will be hot in 2015.

Expect colour, colour and more colour. Oh, and stuffed animals.

From company owners to how to select the best people to work at your firm, regular contributor Dave looks at beneficial ownership, and the outrageous porkies people tell on their CVs.

6 businesslife.co January/February 2015

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News

In the news... businesslife.co launches family office conference Businesslife Events has officially launched the first event of its 2015 conference calendar – ‘Family Offices: Past, Present and Future’.

The event, which is sponsored by Deutsche Bank, will take place at 9am–2.30pm on Tuesday 17 March 2015 at the Pomme D’Or Hotel in St Helier, Jersey.

The agenda for the day includes a variety of panel sessions, ‘lightning talks’ and breakout sessions on the following subjects: ● How family offices are adapting to cultural and generational shifts ● Family governance and the next generation ● Is your family at risk through social media? ● Tax and the family office ● Investment strategies ● Extending reach through corporate finance ● Managing conflict ● Isn’t everyone offering family office services now?

Speakers are being confirmed all the time. For more information, a full programme, and confirmed speakers, visit www.businesslife.co/events n

Warning over fake offshore bank Banking regulators in Jersey have warned consumers and investors not to deal with a bank claiming to operate in the Channel Islands.

Channel Offshore Bank (COB) lists a St Helier address on its website and says it has been in business since 1989. The bank’s account registration process asks users to input personal details, including current bank account details.

The Jersey Financial Services Commission (JFSC) says the bank’s claims are false, and highlights the fact that Jersey’s 33 genuine banks are registered and listed on the regulator’s own website. A JFSC statement said: “COB has not received authorisation to conduct deposit-taking business within the meaning of the banking business law. It appears to the commission that COB, as described on the website, is falsely purporting to trade from an address of PO Box 998, St Helier, Jersey, Channel Islands, and is carrying on, or holding out that it is carrying on, deposit-taking business in Jersey when it is not authorised to do so.”

The Commission said the bank had never been registered, or applied for registration, and said any deposits it received would be illegal. n

New regime for Jersey hedge funds A change to Jersey’s legislation may help bolster the island’s standing as a centre for hedge fund business.

The introduction of a new exemption in Jersey’s financial services law, designed to simplify and encourage the establishment of hedge fund management businesses in Jersey, was signed into law by Jersey’s Chief Minister towards the end of 2014.

The change enables Jersey-registered hedge fund managers to be regulated solely under Jersey’s ‘funds’ regulations and not its ‘investment business’ regulations, provided the managed accounts meet certain criteria to be ‘qualifying segregated managed accounts’.

In enabling hedge fund managers to offer managed account services to non-fund clients and fund clients without the need for further regulation, the change allows managers to benefit from Jersey’s zero-per-cent corporate income tax rate without incurring the tax disadvantages of an ‘investment business’ registration.

To benefit from the exemption, a managed account must be able to meet a number of certain criteria, relating to the level of its initial subscription, the strategies it follows, how the assets are held in custody and the name the managed account is held in. The manager will take on a number of reporting responsibilities. n

Sign up for our daily Channel Islands’ business news email updates at www.businesslife.co 8 businesslife.co January/February 2015

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Information on the Ogier Group and details of its regulators can be accessed via our website.

News

Jersey signs TIEA with Romania

Carey Olsen top for LSE advice Carey Olsen remains the top offshore legal adviser to clients listed on the London Stock Exchange (LSE) for the ninth consecutive year, according to the November Corporate Advisers Rankings Guide.

The publication ranks the top 20 institutional advisers by their total number of London-listed clients in a number of categories.

Carey Olsen is the top ranking offshore law firm in total number of clients, with almost double those of its nearest competitor. The firm has held its fourth place position overall for the total number of LSE clients it advises, and is the only offshore law firm to feature in the top 10. It currently advises three FTSE 100 clients and nine FTSE 250 clients.

The firm continues to lead the Alternative Investment Market (AIM) rankings table from an offshore standpoint. Positioned in second place overall, it has 44 listed clients, which is 10 more than its nearest offshore firm competitor. n

Jersey has signed a tax information exchange agreement (TIEA) with Romania, bringing its total number of TIEAs signed to 36. The agreement was signed by the Minister for External Relations, Senator Sir Philip Bailhache, and the Romanian Ambassador, His Excellency Ion Jinga, at the Romanian Embassy in London on 1 December 2014.

Senator Bailhache said: “We attach great importance to the signing of this TIEA with Romania.

While Jersey is not a part of the European Union, we are part of Europe and we have long pursued a good neighbour policy towards the Member States of the EU. It is also further evidence of Jersey’s full commitment to compliance with the current international standards on transparency and exchange of information for tax purposes.

“The signing of the agreement is a further strengthening of the relationship between Jersey and Romania. Both are members of the Early Adopters Group for the implementation of the new global standard on automatic exchange of information, and both are party to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.”

The tax information exchange agreement will come into force once the parties have completed their respective domestic procedures for ratification.

A total of 21 agreements (TIEA or DTA) have now been signed with the EU member states. Agreements with the remaining seven EU member states are either ready for signing or negotiations are well advanced. n

Altair in JFSC first Altair Partners has become the first bespoke director services firm to be licensed by the Jersey Financial Services Commission (JFSC).

The company provides directors on a variety of fund structures (private equity, hedge, real estate and listed funds), as well as self-managed board services, consultancy services and training. It’s also one of the first Jersey companies to offer external AIFMD risk management services.

Ian Lambert, one of Altair’s Founding Partners, commented: “We are delighted to be the first directorship services firm to be licensed by the JFSC. The recent jurisdictional review carried out on behalf of the States recognised the need for Jersey to have a professionalised group of independent directors, and we at Altair are very excited to play a part in developing this important area of our finance industry.” n

Ambassador Ion Jinga (left) and Senator Sir Philip Bailhache

Sign up for our daily Channel Islands’ business news email updates at www.businesslife.co 10 businesslife.co January/February 2015

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Cash management working as one It’s perfect when everything works in harmony. When you can access a range of leading integrated cash management solutions shaped around your needs and facilitating the Carey Olsen control has advised on the of money throughout your organisation. establishment of two new Guernsey-domiciled experience efficiency with everything working as one, simply call funds, InflexionTo Buyout Fund IVoptimum and Inflexion 0207 574 3247 or speak Partnership Capital I, securing commitmentstoofyour Relationship Manager. £650 million andAlternatively, £400 million respectively on out more by visiting us at barclays.com/wealth/cash you can find behalf of Inflexion Private Equity Partners LLP. Led by Partner Andrew Boyce and Senior Associate James Stockwell, Carey Olsen worked Wealth and Investment alongside onshore legal advisor Ashurst in Management the formation of the new private equity funds, which closed within five months of launch.

Barclays offers wealth and investment management products and services to its clients through Barclays Bank PLC and its subsidiary companies. Barclays Private Clients International Limited, part of Barclays, is registered in the Isle of Man. Registered Number: 005619C. Registered Office: Barclays House, Victoria Street, Douglas, Isle of Man IM99 1AJ. Barclays Private Clients International Limited is licensed by the Isle of Man Financial Supervision Commission, registered with the Insurance and Pensions Authority in respect of General Business, and authorised and regulated by the Financial Conduct Authority in the UK in relation to UK regulated mortgage activities. Barclays Private Clients International Limited, Jersey Branch, is regulated by the Jersey Financial Services Commission. Barclays Private Clients International Limited, Jersey Branch, has its principal business address in Jersey at 13 Library Place, St. Helier, Jersey JE4 8NE, Channel Islands. Barclays Bank PLC, Isle of Man Branch, has its principal business address in the Isle of Man at Barclays House, Victoria Street, Douglas, Isle of Man IM99 1AJ. Barclays Private Clients International Limited, Guernsey Branch, is licensed by the Guernsey Financial Services Commission under the Banking Supervision (Bailiwick of Guernsey) Law 1994, as amended, and the Protection of Investors (Bailiwick of Guernsey) Law 1987, as amended. Barclays Private Clients International Limited, Guernsey Branch, has its principal place of business at Le Marchant House, St Peter Port, Guernsey, Channel Islands GY1 3BE.

News

Mergers and acquisitions ● Orangefield Group has acquired a significant, undisclosed interest in the fund administration business of the Legis Group in Guernsey. Legis Fund Services will change its name to Orangefield Legis Fund Services. The business will continue to be headed up by Legis’ Managing Director Patricia White with CEO Stuart Platt-Ransom’s involvement, and will be integrated into the existing Orangefield fund administration division.

The inaugural meeting of the BVCA Channel Islands Working Group

BVCA launches Channel Islands Working Group The British Private Equity and Venture Capital Association (BVCA) has formed a new representative group in Guernsey and Jersey – the Channel Islands Working Group.

The new group, chaired by Andrew Whittaker, Managing Director at Ipes, is comprised of senior professionals from the private equity and venture capital industry, and will seek to enhance BVCA engagement with the Channel Islands community as well as advise the BVCA on strategy concerning issues specific to Jersey and Guernsey.

The group will also act as the BVCA’s representative to other Channel Islands industry stakeholders: the Guernsey Investment Fund Association, the Jersey Finance Association and the Channel Islands Private Equity and Venture Capital Association. n

Photo by Maarten Visser

Blue Islands enters codeshare with CityJet Channel Islands airline Blue Islands has entered into a codeshare agreement with European regional airline CityJet. This new partnership will provide passengers with access to major European cities on hundreds of connecting codeshare flights every week from London City airport through the CityJet network.

Connecting through London City provides the opportunity for daily services to Amsterdam, Paris, Dublin, Antwerp and Rotterdam, with many destinations now being served up to nine times a day. The new daily connecting flights via London City will commence early in 2015. Blue Islands has also announced an additional lunchtime service to the airport.

As a result of the codeshare, Blue Islands will cease to operate its own alternate-day direct flights to Amsterdam and Paris and its twice-weekly service to Zurich from 5 January 2015. n

● Guernsey’s Heritage Group has acquired a 40 per cent stake in Aro Underwriting Group, a specialist insurance agent. Heritage, an insurance and financial services group, has acquired existing shares from an outgoing shareholder and invested in new shares in the group. ● Bailiwick Investments has bought Guernsey-based aviation company ASG Group. ASG operates over 41,000 sqft of modern hangar, and offers a range of aeronautical services, including aircraft maintenance and servicing, avionics support, aircraft handling, hangarage and management. ● Collas Crill and Cayman firm Charles Adams Ritchie & Duckworth (CARD) are to merge in early 2015, subject to regulatory approvals. The merger creates the first law firm with offices in Singapore, the Cayman Islands, London and each of the Channel Islands. The firm will remain as Collas Crill in Guernsey, Jersey, Singapore and London, and trade as Collas Crill & CARD for a transitional period in the Cayman Islands. ● Jersey-based peer-to-peer lender Sancus has signed an agreement to be acquired by GLI Finance (GLIF) for £37.75 million. At the time of writing, the deal was set to complete in midDecember 2014. Guernsey-based GLIF is listed on the Alternative Investment Market and focuses on SME lending. ● Trust and corporate services provider Intertrust Group has completed its acquisition of Corporate Risk Solutions (CRS), a Guernsey-based provider of risk management services. CRS provides outsourced regulatory and legal compliance assessment and advice for local and global companies, as well as corporate governance guidance and administrative support. CRS Managing Director Darren Wadley will remain responsible for growing the risk management business and continue to lead the team under the Intertrust brand. n

Sign up for our daily Channel Islands’ business news email updates at www.businesslife.co 12 businesslife.co January/February 2015

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We didn’t conduct our management buyout of Ogier Fiduciary Services to stay the same. We did it to make a difference.

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News

Appointments

14 businesslife.co January/February 2015

Mike Byrne returns to PwC Jersey Mike Byrne has returned to Jersey following a two-year secondment with PwC Singapore. He assumes the role of Asset Management Industry Leader for PwC in the Channel Islands, with a focus on private equity and hedge funds. In Singapore Mike led PwC’s range of services in the alternative fund space, namely in private equity, hedge and infrastructure funds.

Mike will continue to work closely with the PwC Singapore Asset Management team, visiting regularly to maintain relationships and to support clients.

Jersey Finance appoints two new Directors Jersey Finance has appointed Charlie Barlow and Gary Hales (pictured) as Business Development Directors to cover the GCC states and India. Both will be based in the UAE. With a background in banking and consulting, Charlie has worked with private clients across Hong Kong and the GCC region. Gary, who joined Jersey Finance in 2012 from HSBC, moves into his new role having previously been responsible for business development in Africa, Russia, Europe and the UK.

new UK Chairman at heritage Insurance Heritage Insurance, headquartered in Guernsey, has appointed David Jewell as Chairman of the board of its sister company, Heritage Insurance Solutions Limited (HISL). David has over 50 years’ experience in the London insurance market, with previous roles including Lloyd’s Active Underwriter, Capita Divisional Director, and Director of various insurance companies and Lloyd’s Agencies.

He has also been employed as an arbitrator and expert witness in insurance litigation.

Barclays appoints new Trust Director Barclays has appointed Norson Harris as a Director in the bank’s Global Investments and Solutions Trust division in Jersey. He’ll focus on building and maintaining the existing complex fiduciary relationships with Barclays’ clients based in Europe, the Middle East and Far East. Norson has over 25 years’ experience in the international financial services industry, and his previous roles include Director of The Charlesworth Group, and Founder and Managing Director of The Kensington Group.

John Connolly appointed Elian Group Chairman Elian has appointed John Connolly as its new Group Chairman. Formerly Global Chairman and Global Managing Partner at Deloitte, John has 44 years’ experience in professional services. Since retiring from Deloitte in 2011, he’s been appointed Chairman at FTSE 100 companies G4S and Amec Foster Wheeler. John is also a member of the Board of Governors of the London Business School, and he sits on the President’s Committee of the Confederation of British Industry.

new Head of Tax at Bracken Rothwell Giles Morison has joined Chartered accountancy firm Bracken Rothwell as Tax Manager.

Giles, a specialist in UK tax compliance work for the local and offshore market, has over 15 years’ financial services experience, and will oversee the firm’s Jersey and UK tax compliance services. He’s held senior roles at Abacus and RBC Regent Tax Advisors, and specialises in capital gains tax and income tax compliance work for offshore trusts and companies, as well as non-resident landlord applications and returns.

It’s thE

perfect match!

The businesslife.co jobs board brings together top employers and star talent

senior appointment at Enhance Investment oversight services provider Enhance has appointed Rob Duarte as Head of Managed Portfolio Indices. Rob has 17 years’ experience in the finance industry, predominantly within hedge funds and international banking.

In his most recent role as Senior Associate Director at Standard Chartered Bank, Rob was responsible for regional market management with a specific focus on East and Southern Africa.

In his new role he will focus on the development of the Trustee Managed Portfolio Indices.

New Head of Treasury at Investec Private Banking Mark Thomson has joined Investec Private Banking as its new Head of Treasury. Mark, who has 22 years’ experience in a trading environment, will be responsible for the efficient dayto-day running of the treasury department, along with delivering foreign exchange services and managing the bank’s balance sheet. He will also assist various business development areas with client visits and meetings, using his knowledge and experience to demystify the client’s perception of what treasury does.

crestbridge appoints new real estate director Corporate services provider Crestbridge has appointed Andy Williams as a Director in its real estate team in Jersey. With over 17 years’ experience in the provision of offshore administration services – nine of which relate exclusively to property – Andy joins Crestbridge having most recently headed up a private equity real estate office in Jersey. Prior to that, he was an Associate Director in the real estate team of a global offshore legal and fiduciary services provider headquartered in Jersey.

Collas Crill appoints new property consultant Property expert Shelagh Mason joins Collas Crill as a Consultant.

Shelagh has over 30 years’ experience in the legal and property industries, and joins the firm from Spicer & Partners (Guernsey). She advises on all aspects of UK property and property development, portfolio and management, and corporate and trustee services. Prior to moving to Guernsey in 1999, Shelagh was a Senior Partner at Edge Ellison. She established Mason & Co in 2001, which merged with Spicer & Partners in 2010.

new CEO at Deutsche Bank International Trust Deutsche Bank has appointed international trust specialist Ali Renouf as CEO of Deutsche Bank International Trust Company. Ali will expand on her responsibilities as Head of Global Trust Services in Guernsey, with a remit to grow and steer development of the international trust business in the island. She will also take up a position on Deutsche Bank Channel Islands’ Executive Committee. Having joined Deutsche Bank in 1990, Ali has worked in the bank’s international trust business for 24 years.

David Smith joins Brooks Macdonald David Smith has joined Brooks Macdonald International as Senior Investment Manager in Guernsey.

David joins from Brewin Dolphin where he was Divisional Director, responsible for the operation of the Guernsey office and providing investment advice and management services to a book of clients. David has over 25 years’ experience in the financial services industry, with prior posts including Chief Investment Officer at International Asset Monitor, and Investment Director of Bachmann Asset Management.

Looking to take your next step up the ladder?

Get online and start searching now – it’s completely free!

Want to attract your next big hire?

Post your latest position and connect with your next big name To get involved contact Carl Methven +44 (0) 1534 615886 +44 (0) 7797 796377 carl.methven@businesslife.co January/February 2015 businesslife.co 15

2015 Conference Diary businesslife.co is running six conferences in 2015 Family Office Conference Tuesday 17 March, Jersey (see opposite)

Jersey Trusts Conference Wednesday 13 May Guernsey Funds Conference Wednesday 8 July Channel Islands Insurance Forum Wednesday 16 September, Guernsey Jersey Funds Forum Thursday 1 October Guernsey Trusts Conference Wednesday 11 November

To register interest in any of these events, and to be notified when delegate places become available, please email events@businesslife.co stating the event you’re interested in.

Sponsorship and exhibitor packages are also available for all events. Contact Carl Methven on +44 1534 615886 or +44 7797 796377, or at carl.methven@businesslife.co for more information.

A businesslife.co event

family offices: past, present and future

Tuesday 17 March Pomme D’Or Hotel, St Helier, Jersey 9am – 2.30pm Sessions for the day include: ● How family offices are adapting to cultural and generational shifts ● Family governance and the next generation ● Is your family at risk through social media? ● Tax and the family office ● Investment strategies ● Extending reach through corporate finance ● Managing conflict ● Isn’t everyone offering family office services now?

For more information and to book your place, visit www.businesslife.co/events or email events@businesslife.co

The Channel Islands in 2015

The Channel Islands in

2015 In business, no one has a crystal ball, and after the last few years there are no guarantees as to how things may turn out next month, let alone next year. That said, we have put together a panel of experts who are willing to give their take on what they think will happen in the Channel Islands in the next 12 months across a broad range of sectors.

Here are their views‌ 18  businesslife.co January/February 2015

The Channel Islands in 2015

Banking in Jersey Alex Clark-Hutchison, Head of Intermediaries and Family Offices, Barclays, Jersey

Banking in Guernsey Andreas Tautscher, Chief Country Officer, Deutsche Bank Channel Islands Trying to make predictions in the current environment – or indeed in any of the last seven or eight years – is a fraught process. So we’ll start with a global macro position, and immediately we have two clouds on the horizon.

Global growth is definitely slowing down, as regions such as Europe stagnate and China and Asia generally slow down. This will impact investors and could lead to less investment activity. For the banking industry, there’s the further impact of continued low-interest, which hits bank earnings as well as savers.

What does this mean for Guernsey? Well, while deposits have stopped falling recently, most investors will still be looking for other ways to invest cash, so we’re unlikely to see a strong growth in deposits. Furthermore, with the weight of extra capital and regulatory requirements, some organisations will be looking at their business model and reassessing each jurisdiction they’re in. There’s a danger we could see the surrender of banking licenses as some organisations rationalise.

On the positive side, there are opportunities Guernsey is well placed to benefit from. The capital requirements, while tough for banks, will probably result in more ‘asset books’, such as loans, being sold into the non–bank market, and Guernsey has the structures to deal with this.

The other sector with real opportunities is the transformation of risk between the pension and insurance industry, where you have one group who have financial risk of participants living long lives, and the other with the financial risk of not living long enough. With our strength in banking, insurance and fund products, this is of interest.

While low interest rates hurt the banking industry, it does mean private clients, pension funds and others will look for further returns, particularly in alternatives and real assets. Once again this matches well with our capabilities.

To summarise, 2015 may not be the end of many issues the banking industry has faced – capital, fines, low interest – but hopefully it could be the beginning of the end.

‘Efficiency and consolidation’ will be a recurring theme in banking in Jersey this year, especially linked to banks’ relationships with the fiduciary industry as it strives to make processes and procedures easier for clients. How the banking sector adapts to this demand from its core customers will be key for 2015.

The fiduciary sector is seeing new entrants through the establishment of single-family offices in Jersey – a return to a phenomenon seen in the 1970s and 1980s. Some of these original firms have evolved over time into trust companies and many have more recently merged to form larger entities. This has accelerated as a result of private equity firms identifying opportunities to build scale businesses in the fiduciary sector, with the efficiencies that brings.

This drive for efficiency will affect the number of banking partners family offices and trust companies work with.

Having multiple processes, channels and systems and receiving information in different formats is not sustainable.

Therefore, 2015 will see many Jersey-based trust companies consolidating and family offices carefully selecting their banking partners to minimise operational costs. Working closely and integrating with a small number of banking partners can bring more automation, allowing firms to focus more on their core, client-related activities.

This is both an opportunity and a threat for the local banking industry, which already has the potential to expand following the abolition of the ‘top 500’ bank rule, as competition for work in these areas increases. However, this should lead to the industry developing more relevant, sector-specific offerings based on the changing needs of these clients. Having ever-stronger expert advice and staying one step ahead of the competition will be crucial this year.

Developments in digital processes will continue to be a priority as the Jersey banking industry leverages technologies already used in consumer banking, such as voice security.

Online banking platforms will continue to evolve, and we will see many clients requesting new accounts through these channels.

This has been a manual and time-consuming task for fiduciaries, so making it more efficient will ensure their clients are up and running sooner, and the costs, which can be difficult to recover, can mostly be avoided.

January/February 2015 businesslife.co 19

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The Channel Islands in 2015

Funds Ben Robins, Partner, Mourant Ozannes, Jersey, and Darren Bacon, Partner, Mourant Ozannes, Guernsey In 2015, alternative investments, including private equity, hedge funds, real estate and structured products, will continue to be a major driver of the financial services sector in the Channel Islands. Interest rates will remain low, and against that background, traditional banking (and bank deposits) will continue to decline, and the use of alternative funding, such as peer-to-peer lending and crowdfunding, will increase. The emergence of cryptocurrencies will also continue, and the islands will need to ensure that their regulatory frameworks remain sufficiently flexible to accommodate these developments.

The new year will undoubtedly bring more regulation and scrutiny of the financial services sector and the service providers operating within it. In both islands, the results of reviews of existing fund regulatory regimes will take time to emerge. The march towards automatic exchange of tax information will continue, with FATCA processes becoming second nature as the islands uphold their reputations as responsible and transparent financial centres.

ESMA’s parameters for the future third-country manager passporting regime under the EU Alternative Investment Fund Managers Directive (AIFMD) will start to take shape, and the viability of the islands’ dual ‘opt in or out’ regimes will be tested, as the relative merits of offshore private placement and onshore passporting marketing options into the EU are compared in practice.

Darren Bacon Ben Robins While AIFMD passporting may offer competitor onshore EU domiciles a temporary marketing edge, the OECD’s initiative on base erosion and profit shifting (BEPS) will continue to shine a critical light on DTA-driven competitors like Luxembourg and Ireland. Both AIFMD and the BEPS initiative will generate an increased focus on substance and the need for physical presence in the islands. In particular, the number of offshore management companies will increase to satisfy those operating outside of AIFMD. The islands will therefore need to consider the continuing suitability of their regulatory, housing and taxation policies to maximise any such opportunities.

In conjunction with this need for substance, family offices will continue to develop in size and organisational complexity, and the islands will see the number of such offices or entities increase.

Trusts Michael Betley, Group Chairman, Trust Corporation International Changes in the political landscape of the UK and Europe will impact the Channel Islands, and have a subsequent effect on the trusts industry in the year ahead.

Changes in the Crown Dependencies’ marketplace will largely be down to the interplay between the UK and the EU. The other main theme will be the correction of the overreaction to risk management, which has changed the make-up of the finance industry.

On a broader level, the UK election will be hard fought, but a Conservative and UKIP coalition will be brokered by Boris Johnson. The postelection debate on Europe will escalate between the pro-European business community and the anti-European UK government, destabilising the City of London. The London property market will remain uncertain until after the election, after which there will be a resurgence of new investment.

The political tensions between our neighbours will positively affect the fiduciary sector in the Channel

20 businesslife.co January/February 2015

Islands, as businesses and private investors look to hedge and protect their interests. Despite the threats of an extension of the enveloped dwelling rules and a new ‘mansion tax’, we will see inward investment in the UK increase through investment structures based in the Channel Islands.

The transparency debate will continue, but the Channel Islands’ proposition will finally be accepted, curtailing the demand for open registers of beneficial owners and trusts.

This will enhance the Crown Dependencies’ position and create new opportunities.

In 2015 (and 2016), we’ll see a greater consolidation of firms within the fiduciary sector, principally driven by higher costs of regulation and international reporting demands. These pressures, combined with a diminishing risk appetite internationally, will result in the margin squeeze becoming too great, and will lead to businesses consolidating or leaving Guernsey. While this has been happening over recent years, the next 24 months will see a greater reduction still, resulting in a more competitive marketplace than ever.

The fiduciary sector will remain buoyant this year, and the evolution of a new think tank in Guernsey will stimulate initiatives, but these are unlikely to bear fruit until 2016.

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Tourism in Jersey David Seymour, Managing Director, Seymour Hotel Group Jersey, and member of the Jersey Shadow Tourism Board Among the usual words of caution, there are many reasons to be cheerful about Jersey’s tourism industry.

The following are some key notes for the coming year. ● easyJet’s introduction of the London Gatwick route initiated higher capacity and greater competition from British Airways. All things being equal, and a year under their belts, the marketing power of these two giants can only be to the island’s benefit in 2015. ● Flybe have restructured, becoming leaner and meaner.

A new daily service starting in May from Bournemouth, and their partnership agreement with the loyalty programme Avios across their regional network, will provide many more opportunities for people to visit Jersey. ● I ncreased capacity is also being introduced by other airlines on scheduled routes from Belfast and Dublin, and there are charter routes from Austria, Germany and Scandinavia. ● While the Weymouth connection will be lost, the new, much larger £50 million Condor fast ferry operating from Poole will provide more reliable travel in poor weather. A challenge to overcome will be how to deal with the increased volume of cars and passengers as they arrive and depart at the port amid the normal busy traffic in St Helier. ● The day-trip visitor market from France has proved very resilient, and as economic conditions improve across the Continent and tourism to our neighbouring coasts of Normandy and Brittany increases, this too can only be good for Jersey. ● A significant retail travel agency high street presence in the UK was lost when Preston Holidays ceased trading in 2014. In 2015, this presence will be reinstated across all Thomson Holiday shops through Airways Holidays, part of the Channel Islands Travel Group. This is great news for all the Channel Islands. ● Cooperation between Jersey and Guernsey in tourism matters has rarely been at the forefront, but a joint Channel Islands Heritage Festival taking place in the spring, culminating in the celebrations marking the 70th anniversary of the liberation of the islands,

22 businesslife.co January/February 2015

will hopefully bring many similar opportunities to act in partnership in the future. ● The strength of sterling against the euro continues to cause concern – not only as a threat to our European inbound tour operator partners and their clients, but it also acts in favour of UK outbound tour operators and their customers selling and buying holidays to Eurozone destinations. Jersey must continue to offer value for money and a great holiday experience for all visitors across all areas of the island. ● The Island Games will bring nearly 4,000 athletes, support staff and family to Jersey for a week this year.

This will be a wonderful example of sport tourism, with a well-thought-through programme involving the whole spectrum of arts, entertainment and culture offered by the island. The organisation of the event and its legacy will be a model and a great springboard for the future. ● The traditional holiday-booking process has been blown away by the internet. The emergence of the online travel agent and their dominance in the marketplace today is a massive challenge to suppliers, and they’re going to have to become even more adept at finding ways to strengthen their own online presence and availability to attract customers directly, as strategic online partnerships between airlines and booking agencies will also continue to grow. ● Visit Jersey, the new organisation to replace the States of Jersey Tourism Department, is anticipated to finally get off the ground this spring.

While it may not be able to greatly influence the 2015 marketing programme, it will be able to start the process of creating a long-awaited overarching strategy for tourism in the island. This in itself will act as a catalyst for the industry to take stock and position itself accordingly.

There will undoubtedly be some who choose to exit, but others will see it as a great opportunity and respond accordingly.

The Channel Islands in 2015

Tourism in Guernsey Jonathan Watson, Director of Hospitality, Herm Island Many aspects of the Guernsey tourism industry have enjoyed growth in 2014, with accommodation providers that continue to develop their offerings in terms of quality and guest experience likely to build on their success throughout 2015 and experience further growth.

Those who are able to target clear market objectives and meet the needs and expectations of those markets will enjoy prosperity. A good example is the concentration in Alderney of wildlife tourism, which is likely to increase visitors to the island, supported by a network of related businesses that offer value and quality.

Accommodation providers that haven’t made improvements and attempt to sit in all marketplaces in the hope that something will fall into place are unlikely to see growth in 2015. Without focus and investment in product, team and fabric, accommodation providers are going to find 2015 fairly difficult.

Travel options to the island are going to continue to concern Guernsey’s tourism industry, in terms of routes available and cost structure. Condor’s new Austal 102 ship will create excitement on sea routes, which are likely to see increased volumes, but air links are a worry. While some carriers may look to increase routes, it’s possible that others may reduce their links with the island.

When it comes to the smaller islands, Herm should see further growth in accommodation occupancy levels, but day visitor numbers to Herm and Sark are too dependent on the weather. Sark Estate Management’s decision not to open any of their businesses in the island is likely to reduce tourism revenue, but Sark’s other accommodation providers should expect higher occupancy levels with fewer available bedrooms in the marketplace.

Tourism will also be given a significant boost as the re-energised and focused efforts of Visit Guernsey take effect. There’s a real urgency now behind increasing volume to the industry, along with fresh marketing strategies, including highlighting the islands as a unique archipelago. Visit Guernsey is supported by key industry members in the form of the Chamber of Commerce sub-committee for tourism, giving industry a direct input to the activity of Visit Guernsey. With industry and government collaborating on a strategic long-term plan, we can expect to see a period of sustainable growth.

Technology Kirsten Morel, Technology Editor, businesslife.co You can expect to see the pace of development accelerate in both islands’ technology sectors throughout 2015.

Jersey’s tech hub has played a catalytic role in the creation of communities that are learning and developing businesses together, but Guernsey’s tech scene hasn’t developed at quite the same rate. You can expect this to change, as the island moves to create their Digital Greenhouse to develop skills, diversify the economy and inspire innovation. This year must be Guernsey’s year if it is to keep up with its neighbour.

Anyone who thought e-gaming had it’s final roll of the dice may need to think again. There’s talk that Jersey could catch a second wave as point-of-consumption taxes level the playing field between jurisdictions and help to create new opportunities.

Jersey will continue to grapple with the curiosity that is Bitcoin. Regulators and innovators will increasingly find themselves around the same table as they try to work out how they can make the most of the cryptocurrency.

While 2015 may not be the year that this work comes to fruition, you can expect to see many ideas and possibly the development of a Channel Island-based cryptocurrency exchange. Adoption among islanders themselves is likely to remain slow, but with the global economy still teetering, a sneeze in China could see everyone reaching for their virtual wallets.

A health app has already been launched from Jersey, starting a move into e-health that will only strengthen across the islands throughout 2015. With ageing populations and growing costs, the islands see themselves as ideal places to develop e-health products and services that could help cash-strapped governments save themselves a penny or two.

Talking of governments, much of the digital sector’s focus and energy in 2015 and beyond will go into the growth of e-government. Seen as something of a budgetary saviour for the islands’ treasury departments, Jersey wants 75 per cent of all government services online by 2018.

However, there hasn’t been much community engagement, and very little in the way of information to help people decide whether services are likely to be appropriately private and secure, meaning a change of approach and a great deal more openness is needed before the governments will have their citizens on board.

So it’s more development for the tech sector in Guernsey and Jersey in 2015 – but for the first time, they have something cohesive and tangible to build upon.

January/February 2015 businesslife.co 23

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Insurance Stuart Butler, Client Relationship Director, Heritage Insurance, and Paul Sykes, Managing Director, Aon Insurance Managers (Guernsey) ● Historically, insurance has moved in cycles of ‘hard’ and ‘soft’ markets, writes Stuart Butler. The Channel Islands has been in a soft market for about 20 years. In 2015, there will be a shift in insurance practices to reflect the changing market cycle. But just what will this mean for commercial and finance sector insurance?

2015’s biggest trend will be a further shift in Channel Island practice to mirror UK practice. Health and safety issues are the best example of requirements enshrined in UK law, but previously adhered to in the Channel Islands as ‘best practice’. More insurers are now insisting that these laws are taken into account when writing policies – compliance is now essential rather than suggested.

Market differences are becoming more pronounced.

One property-owners insurer, who uses a Channel Island rating structure, is looking into separate rates for Guernsey and Jersey in 2015, with higher rates for Guernsey. This indicates there have been more losses in Guernsey, but the impact is likely to be felt in both islands.

The increasing frequency and size of claims from the finance sector will have a knock-on effect on premiums in 2015 and will result in Channel Island premiums – and subsequent legal costs – within this sector being higher than those in the UK. On a broader note, insurance tends to be subject to the whim of nature more than other industries. Last year, for example, properties along the South Esplanade in Guernsey flooded for the first time in living memory. One insurer is now reluctant to quote for properties in this area and, if weather patterns result in more flooding, it could become a no-go zone for insurers.

Insurance claims have been rising in the Channel Islands year-on-year and that trend is set to continue into 2015. The Channel Islands industry, however, is robust and equipped to deal with the needs of an increasingly dynamic sector. ● The outlook for the Channel Islands insurance sector is something of a ‘tale of two cities’, writes Paul Sykes.

Insurance is Guernsey’s oldest international financial service industry. At its core is captive insurance, which was followed by protected cell companies in 1997.

Protected cells were the vehicle used to deliver Guernsey’s insurance linked securities business from 2006, which made Guernsey a centre for collateralised reinsurance.

This gave rise to the most recent milestone in the sector’s evolutionary cycle – the launch of Kelvin Re at the end of 2014, the first rated commercial reinsurance company headquartered in the Channel Islands. The launch of Kelvin Re is evidence of Guernsey’s ambition

24 businesslife.co January/February 2015

Stuart Butler

to become a reinsurance market alternative to Bermuda. Although the US market will favour Bermuda, Guernsey is well positioned to be a satellite for the London Paul Sykes insurance market in 2015. The island’s strong reputation for effective policymaking, its sovereign AA+ credit rating and the expanding pool of talented expertise will make insurance risk managers, C-suite executives and the global insurance industry alike recognise Guernsey as a destination of choice for insurance services.

The Guernsey Financial Services Commission (GFSC) is reflecting the island’s growing importance in the insurance world with the recent appointment of Director General William Mason to the executive of the International Association of Insurance Supervisors (IAIS). GFSC’s Director of Insurance, Jeremy Quick, and Deputy Director Caroline Bradley also hold IAIS offices, and they will influence global regulatory standard setting in 2015 and beyond.

The former MD of Willis, Dominic Wheatley, is the newly appointed Chief Executive of Guernsey Finance.

Wheatley will be looking to make an impact in 2015, and in an early statement of intent he committed to protect Guernsey’s current markets and implement a long-term strategic plan to diversify markets into China and Latin America. It’s initiatives like this that will help Guernsey to become a global hub for both alternative risk transfer and reinsurance in 2015.

Of course 2015 isn’t without its challenges. It will see the biggest ever change in UK accounting standards with the ‘switch off ’ of UK Generally Accepted Accounting Practice (GAAP) as we know it. The familiar FRSs and SAAPs will be replaced by IFRS for small and medium entities (also known as FRS 102), and FRS 103 accounting for insurance contracts will also apply from 2015. This could mean a lot more pages in the financial statements and possibly more cost for insurance companies. Reinforcing its reputation for innovation, Guernsey’s already developed an alternative solution – ‘Properly prepared accounts in compliance with the insurance law requirements’ – which will save captive insurers time and money.

Jersey has taken notice of its sister island’s success and enacted protected cell legislation. The island recently appeared in the news linked to potential captive formations and Jersey Insurance Business Transfer Schemes. It remains to be seen whether 2015 will be a breakthrough year for Jersey to emulate Guernsey’s success.

The Channel Islands in 2015

Economy in Jersey Graeme Smith, CEO, Jersey Business After six years of decline, the Jersey economy flatlined in 2013 at a gross value added (GVA) of £3.7bn. So is this the start of a turnaround?

The health of the financial services sector will as ever remain critical for the future of Jersey economy, and I’d expect to see the three per cent decline seen in 2013 return to positive growth, principally as a result of the non-banking segment of that market. In banking, I’d expect to see a much greater impact from digital innovation, so we’re absolutely right to ensure Jersey is seen as a key player in the digital revolution to counterbalance this decline.

However I want to focus more on the non-financial services sectors, which actually collectively showed a two per cent growth in GVA during 2013. Retail and the high street have had a tough time, but the fundamental change here is no longer reduced spending power but an irreversible change in the way we shop. More shops need to have an online capability that isn’t simply the product ‘window’ but also the collection point.

Those with great service standards and a joined-up online capability will be the winners.

Tourism has to deliver the very best experience for the whole visit – from airport to taxi to hotel to restaurant. We’re good in parts but have to be the best in all respects, which we aren’t. The Island Games will be a catalyst, but we need to sort out the weak links in the Jersey experience and get it right, and our beautiful island will do the rest.

Agriculture will always be a fine balance between commercial activity and the vital protection and stewardship of our beautiful and fragile countryside. The commercial side has to focus on delivering a high-value premium product – a good example being Jersey Dairy, whom Jersey Business worked with to help build an export market to Hong Kong and China.

Construction is, in most economies, usually the early indicator of recovery or recession – just count the cranes and you won’t go far wrong. For Jersey, the proposed building programme for the hospital, and in waste and housing, will provide a major boost with increased order books. A note of caution though – order books don’t mean immediate cash flow, so businesses need to plan their working capital carefully to take full advantage.

So, what could our new opportunities be? I don’t believe there’s a completely ‘new’ sector just around the corner. My belief is that we have to look to develop our capability to export what we’re really good at – be that products or services that foreign markets are prepared to pay a premium for.

If we drive up the quality of what we deliver, my view is we’ll see around two per cent growth in GVA this year, rising to nearer four per cent in 2016, which is more in line with what we were seeing in 2006/07. One potential danger is wage inflation. We have a small resource pool and if, as I expect, the number of jobs increases in certain sectors, then we’ll see wage inflation, which impacts our ability to deliver cost effectively.

Economy in Guernsey Deputy Gavin St Pier, Minister for Treasury & Resources, States of Guernsey The general business mood in Guernsey for 2015 is optimistic. After a period of consolidation and several years of low growth, there’s a feeling that the next 12 months should see a tangible economic uplift. Last year we invested in the promotion of Guernsey’s finance sector, which performed well in 2014, and this will continue in 2015. Our banking sector grew to over £80bn of deposits during 2014, we have a pipeline of fund managers moving to Guernsey, and we passed 800 international insurers for the first time in Guernsey in 2014, with every sign that this number will grow in 2015. Innovation will also continue to pay off for our world-leading fiduciary sector in 2015.

We’re growing in new areas too. Our aircraft registry will hit its stride in 2015, with licensing applications increasing. We’ll also see Guernsey make significant steps forward in fintech – we’re working to support new and existing Guernsey businesses who are innovating in crowdfunding, peer-to-peer lending and payment services.

We will continue our productive push in China, but 2015 will also see us make strong inroads in Latin America, the Middle East and the US. We’ll be investing in our tech sector through our new economic development fund, and we expect it to grow alongside our finance sector. The arrival of Ascot Barclay late in 2014 showed that businesses now recognise what we have to offer in this area.

Our tech sector offering will be further strengthened in 2015 through Digital Guernsey and Digital Greenhouse, as well as the work of Startup Guernsey, supporting our local entrepreneurs.

The renewed certainty in Open Market housing in Guernsey will also support economic growth in 2015, and provide a welcome fillip to our property market, which, it is fair to say, had a subdued 2014.

Unemployment remained low, but our employment market was still a little soft in 2014. It is, however, showing signs of growth for 2015 in construction, professional and business services, and hostelry.

Our expectation is that inflation will remain low and stable in 2015, below the target rate of RPIX of three per cent. And our budget is returning towards balance for the first time since 2007. The conditions for growth in 2015 are in place.

The UK is our biggest trading partner, and we’re part of the sterling zone, so we will watch the UK economy with interest – not least to see the impact of the general election in May. n

January/February 2015 businesslife.co 25

interview

Mark Darby

As Managing Directors of the Channel Islands’ two regional airlines, Aurigny’s Mark Darby and Blue Islands’ Rob Veron are responsible for getting people to and from Jersey and Guernsey on a daily basis. But, as they tell Nick Kirby, running an airline is a complicated affair

Those 26 businesslife.co January/February 2015

men…

interview

F

lights in and out of Jersey and Guernsey are the subject of much emoting, not only from the public but also from the islands’ press. The old adage ‘you can’t please all of the people all of the time’ has probably never been truer, with complaints over prices, seat availability and lack of continental routes levelled on a regular basis at the islands’ regional carriers, Aurigny and Blue Islands. But do such complaints have any merit?

The men with the responsibility for running those airlines, Mark Darby and Rob Veron – Managing Directors of Aurigny and Blue Islands respectively – are the first to admit that there are challenges they must meet on a day-to-day basis and that problems arise.

They feel, however, that there’s often a lack of understanding of the commercial pressures they face and the kinds of challenges involved in running a regional service. They spoke to businesslife.co to set the record straight.

How was 2014 for you?

Mark Darby: I don’t know where the year went – it was a very busy and very successful year. We grew our passenger base by 100,000 off a base of 500,000, so we saw quite a big increase in the volume of business. We took on a jet.

We launched the London City route, which we thought might have had a slow start, but it has exceeded our expectations. It’s difficult to gauge how things will turn out when you move into a new airport – we couldn’t forecast how many passengers we were already carrying to London would just divert and how many new customers we would get. The

encouraging thing is that we’re seeing many additional customers that we otherwise might not have seen.

Rob Veron: Likewise, 2014 turned out to be a good year for us. The last three years have been big and 2014 was the biggest, with much of our strategic plan really coming to fruition. We saw fleet harmonisation – we now have a single fleet of ATRs, which brings synergy in terms of training, supplier relationships, and commonality among the fleet, which gives us real business efficiency. We saw an incredible 65 per cent growth on the previous year, and that’s been a similar run rate for the last three years. We carried around 335,000 passengers in 2014 and are forecasting 400,000 for 2015, so that’s a further 20 per cent growth.

We increased staff headcount to support this growth. We also brought the ATR72 into Guernsey/Southampton, started the codeshare with Aurigny and, at the end of the year, announced the codeshare with CityJet. I’d say that all things considered we’re in the best shape we’ve ever been in.

Rob Veron

January/February 2015 businesslife.co 27

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interview

do things slightly differently and still build and grow the business in a sustainable way.

“In 2014, we saw 65 per cent growth on the previous year, and that’s similar to the last three years” Rob Veron

What are the key challenges and highlights from the last 12 months?

MD: We brought in an Embraer jet for the Gatwick route, which was a very big thing for us. When Flybe announced they were pulling out of Gatwick over a year ago, we had to move quickly to replace that lost capacity. Bringing a substantially different aircraft into an organisation is a challenge for any airline – for a small organisation like Aurigny, it really stretched us, so to achieve that within 10 months was really going some.

The technology in the jet is quite different to the technology in other aircraft, so it’s meant a whole re-education for pilots, engineers and the handling staff, which was a challenge, but everyone rose to it.

As Rob has mentioned, we introduced the codeshare with Blue Islands, which made good sense from a business point of view. But politically and culturally it’s been difficult, and it’s taken quite a lot of explaining and educating to get our case across as to why it was the right thing to do.

And last but not least, we’re in the process of replacing the Trislanders, which are relatively old aircraft that are becoming harder to support. We’re replacing them with some newer Dornier 228 turboprop aircraft, but it’s gone very slowly and the people we’re working with haven’t delivered when they should have. However, we have limited choices, so that’s taken some managing.

RV: One of the biggest challenges of the last 12 months – and actually of the years preceding 2014 too – has been the large amount of regulatory change. We’re moving to being regulated by the European Aviation Safety Agency – that changeover has been taking place in recent years and came to a close last year. So that’s been a huge external factor.

Also, switching handling agents brings about a number of operational challenges in systems and training.

In terms of highlights, I’d cite the rate of growth I mentioned before, relating to passenger numbers, team and fleet size. Acquiring an ATR72 for Guernsey/Southampton was important, as was establishing the codeshares. And then there are the little touches and finessing, such as having in-flight catering from [Michelin-starred chef ] Shaun Rankin. All these elements help us elevate our service,

28 businesslife.co January/February 2015

If you were to break down flights by business, tourism and resident figures, how would they look?

RV: I’d say it’s a pretty even split over the year, but there are definitely seasonal variations. In the summer months, London City isn’t so strong because more business travellers are on holiday, but other routes such as Bristol and Southampton peak in the summer and a big part of that is inbound tourist traffic. The winter months, however, tend to be the key business months for London City and Guernsey-to-Jersey.

So if you look across the year, we’ve got the right mix. What tends to differ is that the passengers originate at the off-island end of the route at certain times, while originating at this end of the route at others.

It gives us a bit more business resilience in that we tap into different markets on different routes at different times to ensure we have a relatively smooth line throughout the year.

MD: I’d agree with Rob’s point on seasonal fluctuations, and say that we’re around about 30 per cent tourism, 40 per cent visiting friends and relatives, and coming and going for social reasons, and 30 per cent business. It’s good not to be too heavily weighted in one or the other.

If tourism figures were to fall off a cliff, is there a contingency plan in place? Would you consider operating UK domestic routes, for instance?

MD: No, not at all. Our mandate is very clear – we’re owned by the States of Guernsey and we’re here to serve the people of Guernsey.

If there was a gold-plated business opportunity somewhere else that allowed us to make a good margin with certainty, and we could add that on to the operation, then we would obviously look at it. But otherwise, no.

RV: Our aspiration is to be the islands’ home carrier – to keep bases in Jersey and Guernsey and not to go further afield. The moment you do that, you’ve suddenly got aircraft based here, there and everywhere,

“We’re owned by the States of Guernsey and we’re here to serve the people of Guernsey” Mark Darby

interview

and the additional costs of different bases, so it’s not the direction we would like to go. But, as Mark says, there are always things that you continually assess.

MD: To be honest, we don’t see tourism being at risk of dropping from where it is at the moment, and while we have the breakdown of the different markets, the seasonality that we’ve already touched upon helps balance things out.

RV: There’s a misconception that it’s a lack of seats or air capacity inhibiting the tourism numbers, and that’s utter nonsense. If you look back 30 years, the cost of a ‘four crown’ hotel was around £17 a night, and a flight between Southampton and Guernsey was £50. We still sell flights at that price, but it’s now £100 a night for a hotel.

I think everyone has been a little slow to acknowledge that Jersey and Guernsey are no longer high-volume, bucket-and-spade holiday destinations, but they have continued to market themselves as such, with pictures of beaches and so on. The reality – and this is not rocket science – is low-cost carriers and competing destinations are offering alternatives – guaranteed summer sun destinations, or destinations with a new or reinvigorated product/proposition – for less. We have an ageing demographic of customers that like to come to Guernsey and Jersey, and we need now to start looking at marketing through digital channels to niche markets.

The finger typically gets pointed at the airlines, but our goals and objectives are very much aligned. We certainly want to carry more passengers. We certainly aren’t trying to suppress markets. We’re doing our utmost to grow them and are spending a lot of money on marketing the islands.

Do you think that people sometimes don’t understand the challenges of running a small airline from a relatively small island – like the fact that you can’t fly everywhere people want you to, when they want you to, for instance?

RV: I think people perhaps don’t realise that operating in Guernsey and Jersey, in terms of airport costs and fuel, is challenging – as well as operating into other airfields. We’ve been flying to Zurich and Geneva, but pooling from Guernsey and Jersey to get the critical mass that we needed to attempt to make those routes work. We aren’t going to have a daily flight to Paris, Amsterdam or Luxembourg – we’ve looked into it and it’s not viable, no matter, anecdotally, how many people would suggest it might be. It could be, but seat prices would be significantly more expensive, and wouldn’t meet the general expectations of unrealistically low fares.

MD: I’d agree with Rob that people do underestimate the complexities of running a business like this. I’m sure that if someone were to offer residents a direct service to Sydney, if they wanted to go once every 10 years, then they’d be delighted, but it’s never going to happen. We can only ever make services commercially viable if there are enough people that would want to use those services – and at the right price.

So far, we’ve held off operating continental services, like the ones that have been operated out of Jersey, because we honestly don’t think that the true market demand is there. We might start the route, and there might be a little wave of interest if we started flying somewhere new in the very short term – but once that initial interest has gone, the day-to-day interest just wouldn’t be enough to support it.

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➔ January/February 2015 businesslife.co 29

with one of Europe’s leading regional airlines, CityJet. It means You entered a codesharing agreement with each other last year. we’ll be able to transform travel to and from Jersey and Europe, with What does that entail and how has it worked out? significantly more frequency and greater flexibility, with all flights MD: The overarching rationale for doing it was that both companies bookable with Blue Islands. The partnership will see daily services were losing a considerable amount of money providing the inter-island to Amsterdam, Paris, Dublin, Antwerp and Rotterdam, with many service. There was far too much capacity between us – as part of the destinations being served up to nine times a day. This means day competition we were putting in far too many seats. That was great returns to Amsterdam and Paris are now possible from Jersey. It’s for the consumer but completely unsustainable for both airlines. So something we’re really excited about. Plus, we’re currently developing what we’ve put together is what we believe is a sustainable package further codeshare opportunities specifically for the benefit of from the airlines’ points of view. Something we can afford to operate, Guernsey passengers. something that’s viable for us. Though, I have to say, not hugely so – it’s an expensive little route to operate.

Do you think the lack of direct flights to and from main European When we put together the schedule – and, of course, trying to do financial centres is potentially putting people – fund managers for it cost effectively – there is a limited number of aircraft you can have instance – off doing business with the islands? available to operate it. So this means that at some times of the day it is RV: You can put the routes in, but the numbers won’t be vast, and regularly full, which is good news, but there are plenty of empty seats it’s never going to be a primary route, so you’re never going to achieve through the week. So while we feel we’ve got the total capacity right, the capacity or the frequency to make it convenient and meet people’s there are still some adjustments that customers will have to make expectations. People aren’t going out there for a week at a time, which regarding when they travel. But it’s still early days – we are only six is what might work. Is the market there for a direct daily flight? No. months into it after all.

In which case, would the customers on a below-par load factor be RV: The benefit now is that we’re operating flights with a 46-seat prepared to underwrite the costs? Most likely not. People will choose aircraft as opposed to buzzing around 15 times with a 14-seat aircraft. to go with a connecting flight instead.

This means we can move more passengers at times of peak demand.

MD: There’s a risk that we could put flights in and no one would use The objectives of the codeshare were to mitigate the significant losses them. Indeed, I think that would be the reality. Look at the pattern we were both making, while preserving competition by making sure of demand out of Jersey on Blue Islands services – as Rob has said, they both airlines were free to market seats as they choose, and to put on have to combine flights out of the islands to a sustainable service where we were offering make them viable. Zurich, Geneva, Paris and the right product for that market. While that Amsterdam are all big and expensive airports, means we had to make changes, it also means, so the fixed costs of operation are high. as Mark pointed out, that some customers As Rob says, people aren’t going to go to had to make changes as well.

Geneva on business for a week – it’s going to Yes, we do have the ability to put on more be a day. So even if we operated one or two or seats, but doing that would mean that the Aurigny three services a week, they would still have to average fare for that route would have to Founded: 1968 find another way back. One of the reasons for increase as well.

Main base: Guernsey operating the London City service is that it’s Number of employees: 321 a great airport for connecting to business What about the possibility of codesharing Destinations: 12 (Alderney, Bristol, destinations – not only because of the number with other airlines?

Dinard, East Midlands, Grenoble, of flights, but also the short connecting time.

MD: That’s not on our agenda at the moment.

Guernsey, Jersey, London City, London There are real practical and financial Gatwick, London Stansted, Manchester, Rob, do you feel that being privately owned challenges. For instance, if you sold a ticket Southampton) as opposed to States-owned brings certain to a customer who is going to Gatwick and Fleet: Nine aircraft (one Embraer E195; advantages or disadvantages to Blue Islands? connecting to Emirates to go to Australia, two ATR 72-200; one ATR 42-500; four RV: I would say the former is best. Being and then through operational reasons such Britten Norman BN2A Mk III privately owned, we can be a lot more as fog or bad weather they miss their flight Trislanders, one Dornier 228) dynamic and responsive and can think quite or connecting service, the originating carrier, Passengers (2014): approx 600,000 differently. We’re also able to make decisions in this case us, will have the responsibility to quite quickly – as a business that can be re-book, pay for hotels, pay for all the stuff Blue Islands important. And I’d say that our stakeholder that goes with it and potentially a new ticket Founded: 2006 objectives are aligned, which might not be with the other carrier to get the passenger to Main base: Jersey/Guernsey the case with a States-owned airline. their end destination.

Number of employees: 112 What I mean by this is that different So for the price of a £30 or £40 fare to us, Destinations: 12 (Amsterdam*, States departments have different objectives. there would be a huge liability. It’s a difficult Antwerp*, Bristol, Chambéry, Dublin* Treasury and Resources may be looking for one to contemplate. I’m not saying we would Geneva, Guernsey, Jersey, London City, security and financial viability; Commerce never do it, and with right airline, the right Paris*, Rotterdam*, Southampton) and Employment may be looking at boosting deal and the right safeguards, we would look Fleet: Five aircraft (one ATR 72-500; tourism and allowing easyJet in from at it. But at the moment we’re still trying to one ATR 42-500; three ATR 42-320s) Gatwick, which could be to the detriment get existing projects bedded down, and once Passengers (2014): approx 335,000 of the investment that Treasury and Resources those are sorted we might look at other things. *To be offered under codeshare with has made. And then you have the public service RV: That happened for us at the end of 2014, CityJet via London City from early 2015 department that runs the airport, and they’d when we announced we were joining forces

Flying: by the numbers

30 businesslife.co January/February 2015

interview

like to see the airport movements maintained. These conflicting and disparate stakeholder objectives might hinder decision-making.

Mark, what’s your view?

MD: When it comes to the States – and the Treasury and Resources department, which we deal with as our shareholder – I really can’t complain. When we need them to move quickly, they move quickly, such that it doesn’t disadvantage us at all. But obviously, if you’re privately owned by a single individual, then he can make a decision alone and you can just get on and do it. In some circumstances that can be an advantage – in other cases, decisions made in haste are sometimes regretted. So I’d agree there are pros and cons, although I think that being forced into a more structured decision-making process can be advantageous, and your strategic moves tend to be a little better considered.

One key advantage of being owned by the States is that we can trade off their AA+ credit rating when it comes to raising funds. That means interest rates are attractive. When we were negotiating the jet purchase with Embraer, there was no hesitation in dealing with us a serious player. That helped us move very quickly. There would have been a lot more due diligence otherwise. I think the States, particularly Treasury and Resources, are very supportive – they see us as a strategic asset, they challenge us on what we want to do, they challenge us on our budgets and our plans and the case for doing what we do – so we do get that level of scrutiny we wouldn’t have as a private company.

Finally, what is 2015 going to bring for your company?

MD: I think primarily it’s going to be consolidation. We grew considerably in 2014 – we’ve taken on larger aircraft, the volumes have increased by 20 per cent, and the organisation’s really been stretched, so there would be a danger if we carried on trying to put change on change on change without consolidation. We still need to get the replacements in for the Trislanders, which will be an important change, particularly for Alderney. That will be the main operational change. The rest of it is making sure the changes we pushed through last year settle down. Our target is still to break even and 2015 should be the year we achieve that, which will be an important step for us.

RV: There’s certainly going to be further growth, initially through the launch of our codeshare partnership with CityJet, then with further network developments for Guernsey. Other than that, it’s about continuing to do what we do – we’re very much focused on customer service and our brand and what we’re trying to create. The whole premise of Blue Islands is transparent pricing, free baggage and free changes that take the shock factor out of travel. Continuing to develop what we call our ‘welcome difference’ is going to be key for us. n Nick Kirby is Editor-in-Chief of businesslife.co. This interview took place prior to issues surrounding the potential closure of Aurigny’s groundhandling operations in Jersey being reported in the media.

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January/February 2015 businesslife.co 31

Proposals by the UK Government to introduce a register of beneficial ownership have been met with criticism from many quarters, including the Channel Islands, who already have their own systems in place.

Dave Waller reports

A question of ownership 32  businesslife.co January/February 2015

Beneficial ownership

I

n October 2013, David Cameron gave a speech highlighting the “need to shine a spotlight on where the money is flowing…”.

His subject was an emotive one: who actually owns the UK’s companies. “For too long, a small minority have hidden their business dealings behind a complicated web of shell companies,” the Prime Minister said. “And this cloak of secrecy has fuelled all manner of questionable practice and downright illegality.”

The PM’s proposal? To document control in a public register, meaning that no matter what names a company’s shares were held under, anyone could follow the trail of ownership deeper, beyond what’s known as the beneficial owner (ie the one that’s registered), right to the end of the chain, and thus find out who’s really pulling the strings.

In April 2014, Vince Cable announced that the government intended to move forward with the proposals – a decision that was not universally well received.

“At the moment the UK doesn’t necessarily know who’s in charge of what companies, as there’s no need even for the companies themselves to know this,” says Mark Pattimore, Director at Heritage Group in Guernsey. “Now Cameron is proposing to go from not having that information at all, straight to making it public. The idea is that this would make it easier to root out misuse, providing a deterrent for

anyone operating in the UK for criminal activities. That sentiment, at least, has to be applauded.”

One problem for the UK, however, is that not everyone is clapping.

From the Channel Islands to the Law Society, the same question is being asked: a register is one thing, but wouldn’t a public database also act as a deterrent to those companies who are perfectly law-abiding and tax-paying but don’t want their affairs open to everyone for legitimate reasons?

But why should a shareholder wish to keep the their affairs away from public scrutiny if it’s all totally legitimate? There’s a range of reasons.

A company, perhaps those involved in controversial practices like animal testing, may attract harassment for their beneficial owners if their identities and addresses were revealed. Or it may be more personal.

“Wealthy families often like to be economic with the truth to their own children about the value of their investment portfolio,” says Tony Lane, Senior Associate at Carey Olsen, Guernsey. “They want them to build a life without relying on getting those assets. So some may seek to maintain privacy, as opposed to secrecy, without having anything to hide. That’s an important distinction.”

The UK has written to the Crown Dependencies seeking support for its proposals (see box on page 34), urging them to follow suit. Jersey and Guernsey have both questioned whether it would add any benefit to the

January/February 2015 businesslife.co 33

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Beneficial ownership

UK’s ability to do business, with all the added work and costs, not to mention privacy issues it entails. But Jersey made another important point: Channel Island companies already register this information – just not publicly.

As Steve Meiklejohn, a Partner at Ogier in Jersey, explains: “Jersey told David Cameron: ‘We will consult on the public register. But we don’t need to go that far, as we’re already way ahead of everyone else. And we’re perfectly happy with our methods’.”

Indeed, companies registered in the Channel Islands have had to disclose beneficial ownership for years, under tax information exchange agreements and ‘know your client’ practices. The information isn’t publicly available, but the GFSC or JFSC and the police can access it as they need to.

And it goes further. Under the UK proposals a company would only have to reveal their beneficial owners if they hold at least 25 per cent of the business. Meanwhile every company in the Channel Islands, even a corner shop, has to maintain a register of beneficial owners. And the reach is even more extensive. For example, the threshold for reporting in Guernsey is currently a mere 10 per cent share of ownership.

The UK has pressed ahead with the consultation, aiming to have the legislation

The UK has pressed ahead with the consultation, aiming to have the legislation in place by the middle of 2015 in place by the middle of 2015, although the exact date may be affected by the general election. But its biggest hurdle probably isn’t the nuances of the timing. It’s the glaring issue of lack of support. If the UK can’t convince other members of the international community as to the value of a public register – and no one at government level around the world has yet backed the idea – it will find itself standing alone in revealing sensitive company information to the public.

“There’s scepticism regarding the idea and how it could be successful,” says Meiklejohn.

34 businesslife.co January/February 2015

“First it may infringe privacy rights, and potentially put individuals in danger. And there’s no mechanism under the proposals for ensuring the register is up to date. And while it would affect UK incorporated companies – the only type it could control – it wouldn’t affect UK branches of foreign incorporated companies. So anybody wanting to do business in the UK would simply set up as foreign company and open a UK branch.”

The public register proposal Under the Prime Minister’s proposal, all UK corporate entities that currently register information at Companies House would also have to obtain and hold beneficial ownership information and submit it to a publicly accessible database. This would include not only private and public companies limited by shares, but also private companies limited by guarantee and limited liability partnerships.

Only companies that already comply with the ownership disclosure requirements of the Disclosure and Transparency Rules (DTR) and those whose securities are listed on a regulated market are proposed to be exempt.

The register would document details of anyone who owns or controls more than 25 per cent of a company’s shares or voting rights, or who otherwise exercises control over a company or its management. Details would include: the shareholder’s full name, a registered or service address, country of residence, year and month of birth, nationality, the date on which he or she acquired the beneficial interest, and details of that interest and how it’s held.

In terms of access, companies would have a choice: to keep the register themselves, opening up their books to the public if they came knocking; or to give all the information to Companies House, making it available online, which may prove popular as it’s less work.

The company would need to provide their information and update it annually.

If a shareholder refused to disclose who actually owns the shares, they’d lose the voting rights pertaining to those shares, and have their dividends withheld.

Cost of transparency As such, this may all turn into an opportunity for the Channel Islands. They’re under no obligation to follow the UK’s lead and abandon privacy, and the administrative cost of gathering ownership information is already built into the their cost model – which means no hidden surprises. “There may be companies that are happy to be tax resident in the UK but don’t wish to disclose their beneficial owners,” says Mark Pattimore. “In which case, they may wish to move residency to the Channel Islands.”

The natural question is whether the Channel Islands would ever open their books to prying eyes too. The answer is, in principle, yes – as long as everyone else was doing the same thing. If public registers became the international standard, then the Channel Islands would have to go along with it.

“My view is there will be a public register here at some point,” says Tony Lane. “But we’d need to be convinced there was a benefit and a level playing field. We can’t put ourselves at a disadvantage with prospective clients over privacy. That would be detrimental to business.”

For now, it seems that’s something for the UK alone to worry about. Meanwhile, by not bowing to pressure from the UK Government, the Channel Islands should continue to reap the benefits of its own standards. And along the way they may just chip away at a dangerous subtext that lurks in the language of Cameron’s speech, and much mainstream reporting of the Prime Minister’s ideas.

“There seems to be a ‘naming and shaming’ element to the proposals,” says Meiklejohn.

“There’s a sense that it’s almost bad to have assets, and that it’s fair to allege that anyone with wealth isn’t paying their share of tax.

But a company is effectively just a different form of asset ownership to a bank account.

So does that mean we should all be publishing details of our bank accounts too?” n Dave Waller is a freelance business writer

Increased regulation and demands for transparency have meant the compliance burden for financial service providers has become more onerous.

Kirsten Morel examines how these firms have been affected

Y

ou don’t have to work in the finance industry to be aware that compliance plays a key role in the day-to-day operations of financial services companies. Since 2008, we’ve all experienced the repeated requests from our banks, insurers and credit card providers for more proof of identity and source-of-fund documents. The fact that we, as individuals, all notice a stronger focus on compliance only underlines how pronounced the change must be for those in the industry.

“The financial crisis has brought compliance into sharper focus,” says Kristian Walton, Associate Director of Risk and Compliance at global fiduciary services provider Elian. “The desire to get it right from the top down is much more focused, and every financial services organisation has had to adapt to what has happened and respond effectively.”

That compliance has been brought into sharper focus since 2008 is not to say that it was previously being ignored. Rather, some see it as part of the natural development of the regulatory environment.

“Compliance requirements were increasing anyway,” says Nadia Lewis, Head of CI Compliance at Deutsche Bank. “Take the UK for instance, the rule book was already enormous.”

Add to that rule book a host of new regulations including FATCA and AIFMD that are being brought to bear by external jurisdictions and organisations, and it becomes easier to sympathise with the 32 per cent of people who, according to the Deloitte Compliance in Regulated

36 businesslife.co January/February 2015

Organisations in Jersey 2013 survey, believe ‘current levels of regulation have a detrimental effect on the island’s ability to compete’.

Whether the Channel Islands are putting off clients because of their desire to be seen as well-regulated jurisdictions is a moot point, particularly as the same survey shows that 49 per cent of participants ‘believe current levels of regulation allow Jersey to gain a competitive advantage in certain markets’. Although counter-intuitive to many, this perspective is an acknowledgement that Jersey and Guernsey compete on the global stage and have established reputations for being wellregulated financial centres.

Shifting focus While the rulebook may have always been hefty, a changing regulatory approach that focuses on business conduct as opposed to ticking boxes means the role of the compliance department is also transforming.

“Compliance has become very different,” says Lewis, pointing out that regulators want to see compliance at the forefront of everyone’s mind. “Regulators are looking to speak to people in the business rather than just compliance officers, so ideally everyone has a mini compliance officer inside them.”

Such ongoing and quite extreme change is hitting all companies, big and small, and there’s no doubt that smaller companies in particular find it hard to keep up. Wayne Atkinson, Senior Associate in the Commercial

Compliance

f o e s i r e th

e c n a i l p m co ➔ January/February 2015 businesslife.co 37

Team at Channel Island law firm Collas Crill, says companies need to maximise the efficiency of their processes to deal with this.

“We’re reaching that point where firms have evolved their own processes for demonstrating what they need to do, and perhaps they aren’t always as efficient as they need to be,” he says. “It’s a global issue, and it’s how those companies choose to implement the standards that determines whether compliance is more onerous or not.”

Internal processes and procedures can be used to comply efficiently, but with FATCA (both US and UK versions) and the upcoming Common Reporting Standards demanding firms big and small report new information in new ways, there’s more work than before, and this has resulted in more staff being taken on, according to Deloitte’s ‘Compliance in Guernsey’ 2014 survey.

‘There was a pronounced headcount increase in 2011 and to a lesser extent in 2012. This seemed to tail off in 2013 before accelerating again in 2014,’ the survey finds, while also noting ‘increases were largest in insurance and banking’.

In Jersey, the proportion of companies reporting increased headcounts has steadily risen since 2011. Interestingly, while firms may be hiring more compliance officers overall, in firms with 100 or more staff, the ratio of compliance staff to non-compliance staff has decreased since 2010, suggesting that efficient processes are being used to manage the compliance burden.

environment rather than a lack of suitable staff. “More and more businesses are bringing the compliance function in-house. However, utilising external expertise to build the framework and embed the culture into the organisation is an effective approach,” she says.

Across the water in Jersey, it’s a similar picture. “Outsourcing will be a continuing theme in the years ahead. The specialisation element is important,” says Kristian Walton. “There is a demand for skilled people. Some say it’s a shortage but I’ve not found that here. I’ve been delighted with the candidates we’ve seen.”

Whatever the reason for outsourcing, Walton is unequivocal about where responsibility for compliance lies. “It’s important to understand you can outsource the work but not the responsibility,” he says.

Inside out As a non-fee earning business function, compliance will always be under pressure to work efficiently, and although the Guernsey survey shows firms are hiring, it also notes it’s not without scrutiny from the top.

‘Looking forward, 27 per cent of functions intend to increase compliance staff in 2015, but many compliance officers reported that they were being challenged over costs/ budget,’ the survey reported.

Given the increasingly important role of the compliance department and the constantly changing regulatory environment, it’s perhaps unsurprising that Deloitte also found that ‘the use of external assistance has increased since the last survey, with growth in consultants particularly noticeable’.

Sue Guilliard, Executive Director at Madihan Risk Assurance in Guernsey, sees this as a response to the changing

38 businesslife.co January/February 2015

A changing regulatory approach that focuses on business conduct as opposed to ticking boxes means the role of the compliance department is transforming

Technological advances When it comes to tools that drive efficiency, technology is next to outsourcing in popularity, and compliance is no different to any other department in this respect.

While technology is already being used to help with the due diligence process, and FATCA implementation has seen a variety of reporting tools on the market, the cost, customer nuisance factor and increasing complexity of compliance are behind the development of technologies to address these issues. One tool that seeks to tackle both the improvement of customer-facing processes as well as reducing costs is Jersey-based KYCme. “It’s a platform that enables people to store personal due diligence documents in a secure manner, and they can transmit it securely from here to the business they are dealing with,” explains Mehul Kotedia, Founder and Director of KYCme. “It assists with internal controls and efficiency. It improves customer service and reduces the risk of fraud.”

Also focused on easing the due diligence process is Elian. Their recently launched due diligence app, ID Check, was inspired by the need to simplify the due diligence process for clients. The result is a technology they’re not only using in-house but are selling to other businesses too.

Seemingly more futuristic – but very much available today– is Amelia, a US-developed artificial intelligence that is being trialled in large organisations. According to IPSoft, Amelia’s developers, Amelia ‘automates knowledge work across a broad range

Compliance

of functions’. These include direct communication with clients and the ability to learn processes once and stick to them. As a result, IPSoft believes that compliance will be ‘a strong point’ because ‘Amelia will always follow the governance processes she is asked to follow within any process’.

While technology may be able to deliver efficiencies and, to some extent, reduce headcount, that doesn’t necessarily mean Amelia is set to take over quite yet.

“There’s a minimum standard that can be prescribed formulaically,” says Mehul Kotedia. “But you can’t avoid human interaction. There’s an element of human intelligence that will never be replaced. What’s important is how you use human intervention and technology together to remain efficient.”

The regulatory environment is certainly increasing in complexity, but that doesn’t necessarily equate to compliance becoming a dominant force within firms. Nor does it mean that compliance departments are growing monstrously.

Instead, it’s the perception of compliance that’s changing. As Nadia Lewis says: “Compliance is becoming the industry’s moral compass.”

To achieve this, the compliance function needs to be fully resourced, and that means having the confidence of the board, skilled staff and the right technologies. Bring these together and Channel Island firms can find themselves on the right side of the regulator, and the local regulator on the right side of international regulators. n

Is self-certification next?

One idea for reducing the resources needed to achieve regulatory compliance was aired at businesslife.co’s Funds Forum in Jersey in October last year.

Self-certification of compliance by companies themselves was suggested as a way to reduce the need for a firm to have to prove its compliance to the regulator. Instead, companies confirm that their operations meet certain requirements or principles, and this, in turn, would free them up to meet regulatory standards in the ways that suit them best.

While an upside of this is that it would give companies an opportunity to engineer more suitable practices, the downside is that just one false self-certification could cause significant damage to both the company’s and the Channel Islands’ reputations.

However, the reality is there are already areas where selfcertification is in operation.

“We [Guernsey] have a Qualified Investor Fund regime that is self-certifying on the part of the fund administrator. It’s possible that one day we could see more coming through,” says Wayne Atkinson, Senior Associate at Collas Crill.

There may be a place for self-certification, but while it is the islands’ reputations at risk, it’s unlikely that the regulator will be moving to a fully self-certified environment anytime soon.

Kirsten Morel is businesslife.co’s Technology Editor

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Risk, compliance and the need to outsource As the regulatory landscape becomes increasingly complex, creating a range of compliance and governance issues for firms of all sizes, many are realising the benefits of outsourcing, as Darren Wadley, Director, Intertrust Risk Solutions, explains

A

casual look at the daily papers shows that financial regulators have big muscles and sharp teeth – and that the muscles pack a punch and the teeth really do bite. At the time of writing, RBS have just been fined £56 million for IT failures, and various other institutions have been hit for a total of $4.3bn over allegations of manipulation in foreign exchange markets.

These are the latest in a series of incidents where internal regulation, governance and the risk management of IT systems have gone wrong, and a severe financial penalty has been paid.

What this tells us is that the financial sector is an industry under intense scrutiny – some would say ‘attack’ – and that business is having trouble coping with the regulatory demands for perfection that are being made by its regulator, whether this is locally in the Channel Islands, the Financial Conduct Authority in the UK, or the Department of Homeland Security in the US. There are no shortcuts, and the phrase ‘comply or die’ has become a mantra that must be listened to and strictly adhered to.

What this also demonstrates is that it’s no longer just about processes to detect and prevent money laundering and to counter the financing of terrorism, but increasingly it’s about governance from the board level, management of process and procedures on the shop floor, and ensuring that the required regulatory standards are met right across the board.

40 businesslife.co January/February 2015

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Managing risk has become a non-stop function Put in no uncertain terms, the world of compliance and risk that surrounds every business and those with which it interacts is growing ever more complex and becoming increasingly onerous.

In short, it’s a growing beast that is hugely time consuming, ever resource hungry and very costly to keep. And if it’s not fed, the penalties are flying about and the regulatory authorities are very keen to make noisy high-profile examples of those businesses and individuals who infringe.

All of this challenges businesses to get it right first time, every time, and to monitor and assess all sections of their operations on a non-stop basis.

This continual demand means that whether the business is a twoman band or a multinational corporation, it challenges not only the skills available but also the pool of available resource (financial as well as human) to meet and stay on top of this challenge. This is why, for small businesses in particular, looking outside the business for support is becoming an increasingly popular and necessary option.

Why outsource?

The key benefit of outsourcing is immediate access to experienced, skilled and qualified professionals who will specifically know and understand your industry sector. From onsite experience they will also know and understand the regulators’ current thinking on their particular sector and be able to advise accordingly.

Add in the fact that a business won’t have to face the financial costs of employing and training a huge team of in-house staff, and the option of outsourcing becomes even more compelling.

Businesses should also remember that, although they aren’t averse to outsourced solutions, regulatory authorities do like to see evidence that businesses also have a ‘culture of compliance’ that is driven, maintained and adhered to internally. So before outsourcing, it’s important that local regulations and guidelines are understood so as not to upset the regulator – the very body the business is trying to appease.

Outsourced services The level and degree to which a business outsources can range from substantial – providing Money Laundering Reporting Officers (MLROs), Deputy MLROs and compliance officers, for example – through to buying in specific add-on services that are, by their nature, time consuming or alternatively require a substantial outlay of capital for something, such as specialised software.

An example of the latter is the handling of client data. Potential new clients will require screening before acceptance, and the depth of the screening will depend on the risk rating they’re given. To conduct enhanced screening requires greater investigation, taking more time and needing access to more and better databases. This

There are no shortcuts, and the phrase ‘comply or die’ has become a mantra that must be listened to and strictly adhered to creates an additional overhead. Outsourcing this to a professional provider who will, out of business necessity, have invested heavily in both off-the-shelf and bespoke risk management and compliance software, makes financial sense for a business.

On the other hand, there is the regular and ongoing monitoring and screening of existing clients, the frequency of which will depend on the level of risk attached to them – it could be as often as weekly. Again, to outsource this screening (and the important reviews of the results of the screening) to a professional provider, who also carries out the function against better databases, makes good sense and can be an added ‘plus mark’ when the regulator comes calling for a review.

In summary Businesses must always remember that when outsourcing, particularly regulatory or legal compliance functions, ensuring everything is in order ultimately remains the responsibility of the company – and not that of the provider. But once the decision is made to invest in outsourcing, the wealth of services available is extensive, from assistance with onsite visits, regulatory health checks and remediation project management, through to corporate governance reviews, anti-corruption reviews, AML training and the processing of client due diligence. n

Outsourcing through Intertrust Intertrust Risk Solutions is part of the Intertrust Group. Our aim is to produce pragmatic business solutions for any client situation, remaining mindful of current regulatory requirements, but at the same time maintaining an acute awareness of our clients’ need to retain their competitive advantage and market position within the increasingly complex business environment in which they operate.

For further information on outsourcing compliance and governance functions, and the full range of services offered

by Intertrust Risk Solutions, please contact Darren Wadley on +44 1481 742135, or at darren.wadley@intertrustgroup.com, or visit www.risk.gg

January/February 2015 businesslife.co 41

All together now It might seem anathema to some businesses, but are there advantages to be found by working with your competitors?

Dr Liz Alexander looks at collaboration in action

42  businesslife.co January/February 2015

Business

I

t’s a rough and tough old business world out there. No matter what sector your company belongs to – from technology or finance to retail or tourism – everyone is scrapping hard to fight their corner and make their business stand out, while at the same time trying to find that elusive ‘competitive edge’.

In the immediate aftermath of the recession, it was difficult enough just keeping a company afloat, but as the general economic outlook improves, firms are expanding and going after business once again.

But just how do you push forward when you might not have the manpower, the funds or the expertise to capture a bigger slice of the pie? The answer for many businesses lies in collaboration.

Whether you call them partnerships, alliances or joint ventures, collaborating has been around since humans first recognised the value of cooperating with others to achieve shared goals.

But collaboration can often mean teaming up with an ‘enemy’, and it’s this idea many people have to get over when asked to partner with a competitor.

Take law firms CM Murray, Hierons and Maurice Turnor Gardner, who, along with accountants Buzzacott, formed the Professional Practices Alliance (PPA) in June last year. The aim? To create a one-stop seamless service typical of ‘magic circle’ firms, but also with the in-depth specialist knowledge for which boutique firms like theirs are known.

“A number of recent changes affecting the profession meant we couldn’t continue working the same way,” says Corinne Staves, a Partner at Maurice Turnor Gardner. “This collaboration serves our clients better by drawing from different perspectives and vantage points, not just the aspect of their business we each happen to specialise in.

“Let’s say two Jersey-based professional practices want us to help them merge. The client still has one point of contact but through this collaboration we can be more nimble and adaptive to their needs,” explains Staves. Those needs might include employment law, partnership law, mergers and acquisitions, risk and compliance or outsourcing payroll and HR – all of which are offered by the PPA partners.

And they’ve managed to avoid any conflicts and drama. “We’re all honest about what we can do and how our services overlap, because stealing each other’s clients isn’t the way we want to do business. These conversations aren’t something you think about once and then stop – they’re ongoing,” she adds.

Shared goals In this case, the PPA partners were from the same, or closely related, worlds, but collaboration often happens between very different parties.

January/February 2015 businesslife.co 43

➔

“Success in collaborating is less about your sector and more about what types of leaders are at the helm” Irrespective of which is the case, the point of collaboration is for parties to work towards a common goal. Yet often the biggest challenge is in knowing what that goal should be. Take the Brompton Dock initiative, for example.

Brompton Bikes have built innovative, hand-made folding bicycles and sold them at premium prices since the early 1980s. But increased competition from bigger businesses made Brompton realise that it could soon be out-produced and out-priced. In an effort to grow the brand and become more attainable, the company began a bike-hire offshoot called Brompton Dock.

They partnered with universities, local authorities, corporates and train operators who bought the bikes and the docking stations, putting them in key locations.

Brompton covered the cost of monitoring and maintaining the bikes, and both sides shared the revenues from membership fees and tariffs. But the plan wasn’t working, so Harry Scrope was brought in to turn Brompton Dock into a success, or wrap it up.

Scrope saw huge unrealised potential for folding bike hire at Manchester’s Piccadilly station, but unless he could convince Virgin Trains, they were going to shut him down.

By promoting bike hire through search engine optimisation, social media and posters, Scrope helped stimulate local commuters’ interest and more than tripled membership of the initiative. Since only 40 per cent of bikes need to be hired for the project to break even, Scrope had a financial incentive to offer Virgin. But he chose to offer a bigger, more compelling vision.

“I pointed out that Virgin business is green and that by collaborating with us they have a fantastic PR tool in not only promoting a quality British brand but being a change agent for how people commute – by reducing their carbon footprint, and engaging in a greener, healthier way of living. At that point the Virgin executive said, ‘I’ve heard enough – give these guys what they need’,” says Scrope.

Of course, all of this begs the question: how do you find a partner to collaborate with, and, more importantly, how

do you make that collaboration work? For the four firms that make up the PPA, this was a no-brainer – they were already working closely with one another. It simply took Claire Murray, Founder and Managing Partner of law firm CM Murray, to suggest formalising the arrangement, without forcing a legal obligation or losing their professional independence. The relationship is fluid in being non-exclusive – there is no fee sharing and no referral fees, simply a shared ethos of doing the best for the client.

“For us, it’s more of an understanding,” explains Staves.

“Aside from being honest with one another, we also share a common culture and outlook in the values among the four firms. We will obviously have to constantly review this as the Alliance gets bigger.”

A new paradigm When it comes to setting the parameters at the beginning of a collaboration and setting up the processes to effectively assess its success over time, Jacob Morgan, author of The Future of Work and co-founder of the Chess Media Group, a strategic advisory firm focused on collaboration, says: “The important thing for any organisation to figure out is why they are seeking to collaborate to begin with. Once you understand the ‘why’ you simply attach relevant metrics that allow you to measure it. Then you should benchmark and look at the numbers periodically to see if you are moving in the right direction. Or you can do what many other companies do and just realise that collaborating is simply the new way

Start from the inside According to Jacob Morgan, author of The Future of Work and Co-founder of the Chess Media Group, if you want to be able to collaborate with outsiders, a company needs to foster a culture of collaboration internally. He has five tips for making this happen.

Lead by example Morgan cites Motley Fool, which has a Chief Collaboration Officer, and Telus, which has a Head of Learning and Collaboration, as shining examples. If senior leaders don’t subscribe to collaborative strategies, no one else will.

Create a supportive environment Make the physical environment and corporate culture reflect the community. Telus listened to employees when developing more flexible work-life relationships: 30 per cent of team members are ‘resident’ workers (work in Telus buildings); 40 per cent are mobile workers; and 30 per cent are ‘at home’ workers.

Focus on ‘why’ before ‘how’ Specify the outcomes you want to achieve, then identify the technologies needed to make that happen. In his white paper ‘The Business Value of Collaboration’, Morgan identifies ‘soft’ business outcomes including improved company morale, communication and innovation.

Get out of the way Give employees encouragement, education and training, but don’t force them to do things the way you want them to be done.

Be persistent New habits take time to embed, not least an ethos of sharing and learning from one another. Motley Fool’s values include being competitive in the marketplace but collaborative internally so employees accomplish things together.

1

2

3 4 5

44 businesslife.co January/February 2015

Business

that work must get done, and accept it, without spending additional time and resources trying to measure it.”

Perhaps unsurprisingly, a number of innovative partnerships have emerged from the technology field – from Microsoft’s collaboration with Toyota ‘to jointly fabricate a software platform dedicated to managing the information systems for electric vehicles’, to the recycling venture between the Coca-Cola Company and the UK’s ECO Plastics aimed at ‘more than doubling the UK’s ability to recycle plastic for reuse in new bottles’.

While this might suggest the tech sector is especially good at establishing and managing collaborative ventures, Morgan says: “I find that whether or not companies will be successful at collaborating to be less of an issue of what sector you’re in and more about what types of leaders are at the helm of the company. If you look at leadership and the corporate culture of an organisation, it’s much easier to gauge and predict what type of company will perform better.” (See box below left).

Just don’t let the excitement of a clever idea and the business opportunity blind you to potential difficulties and downsides. “The key thing is being upfront at the start,” says Scrope. “While it’s easy to find common ground, the other partners’ agendas might pull everything apart.” n Dr Liz Alexander is an author, educator, business strategist, and Founder of business consultancy Leading Thought

The role of technology Technology’s helping to bring together networks of experts and members of the public in a collaborative way – something that happened recently in the Channel Islands.

Stephen Ozanne, an Associate with legal specialists AO Hall, was a participant in an ambitious plan to create legislation around the use of Google’s driverless cars in Guernsey, using the concept of crowdsourcing.

Over one weekend last May, local experts in digital mapping, a few lawyers, but mostly members of the public, used online collaborative tools like Google Docs and Google Moderator to brainstorm more than 50 discussion points.

“Opening up these kinds of discussions to the public might have resulted in a chaotic free-for-all, but we had a structure and an experienced Guernsey resident who led the

process,” says Ozanne. He added that the original idea was to experiment with how such collaborations could help mitigate some of the resource problems faced by government, as well as make the proposal of new laws more accessible and engaging for the general public.

Similar collaborative initiatives facilitated by technology are emerging around the globe, including the gay rights legislation approved by the Finnish government, and the OPEN Act written by a US senator to protect internet freedom and intellectual property, which drew from crowdsourced ideas gathered via the online program Madison 2.0.

As technology continues to proliferate, it’s likely to play an increasing fundamental role in collaborative endeavours for both businesses and governments.

January/February 2015 businesslife.co 45

Recruitment

Liar, liar, CVs on f ire Bending the truth on your CV is a big deal.

From small fibs to outright porkies, there can be serious consequences, as Dave Waller discovers

C

ity Barrister Dennis O’Riordan was ‘clever and charming’ according to his colleagues at international law firm Paul Hastings. He’d been called to the Bar in 1993, having attended Radley College public school, bagged a first-class degree from Oxford and a Masters from Harvard, and been a member of both the New York and Irish bars. At least that’s what it said on his CV. But when the Bar Standards Board ran a background check in 2013, it emerged he’d been applying his cleverness and charm to more nefarious ends. O’Riordan’s glittering record was a work of fiction (for ‘Oxford’, read ‘University of East Anglia’). His web of deceit ultimately earned him a three-year ban from practice and reams of national headlines.

But O’Riordan isn’t alone in trying to slip a porky or two past recruiters. Research by background screening firm First Advantage reveals that 27 per cent of CV checks in 2013 uncovered inaccuracies, showing the prevalence of what the company calls a ‘culture of overstatement’.

While a fifth of these were minor offences, nearly nine per cent ‘raised significant cause for concern’.

For another humdinger, try Walmart’s Vice President of Corporate Communications David Tovar, who resigned in September last year after it emerged he too had a longstanding falsehood on his CV. He’d claimed he had a degree from the University of Delaware, but he never actually completed his course. At the time it probably felt like an innocent fib to get his foot in the door. But by the time he’s applying for the post of Senior Vice President, that little white lie becomes an oak-panelled deceit.

The range of common ‘discrepancies’ is vast. It may be about making a CV look cleaner, or giving the candidate

46 businesslife.co January/February 2015

a better shot at landing the role, sexing up a previous job spec, or exaggerating academic successes.

“We’ve seen offers withdrawn for inaccurate grades,” says Jeralie Pallot, Managing Director of Rowlands Recruitment. “An ‘A’, say, instead of a ‘C’. Not that they need someone with an ‘A’. It’s because they lied and made a declaration of accuracy and honesty on the application.”

Under pressure Indeed, while these discrepancies may seem innocuous, they aren’t. The discovery of a lie, no matter how small, throws doubt over integrity. “There may be a rational reason for the discrepancy – maybe they didn’t get on with their previous manager, or had a period off due to stress or something sensitive. But they have to be open up front for me to discuss that,” says Shelley Kendrick, Director at Kendrick Rose in Jersey.

So, why would someone lie in the first place? In a recession market you’re told to stand out in the applicant

➔ January/February 2015 businesslife.co 47

Recruitment pool, so stretching the truth may simply seem part of the game. There’s also the assumption that you’ll probably get away with it. Indeed, people have pulled serious tricks even in the Channel Islands, a small place where people can easily dispute exaggerated claims.

“The most significant matter I was involved in related to a screening programme being introduced as part of a regulatory cycle,” says Jessica Roland, Managing Partner at Mourant Ozannes in Guernsey. “We ran a background check and found someone who claimed a degree but didn’t have it. Her life then unravelled and she was prosecuted. How much money had she made by that point? She’s committed fraud, as she’s earned that at least partly on the strength of false information.”

The fallout goes beyond the individual to the company itself. According to Experian, employee fraud costs UK companies an estimated £2bn a year. Then there’s the massive damage to company reputation. Imagine the fallout of the O’Riordan case, which shows it’s an issue at all levels of business – after all, the higher you go, the further you get on reputation. Then there are the legal risks. The Jersey or Guernsey Financial Services Commissions won’t take kindly if it emerges a regulated company hadn’t run the necessary checks.

It should come as no surprise then that financial services reported the lowest number of CV discrepancies of all sectors in First Advantage’s research, clocking in at 23 per cent. Candidates that lie are likely to steer clear of the regulated industries, because they know their application will be thoroughly checked out. “If someone is incompetent at a retail store that’s one thing,” says Traci Canning, Senior Vice President at First Advantage, EMEA. “At the dynamite factory? That’s something else.”

Instead they’ll be more likely to take their chances in a non-regulated sector, to try to find a way between the cracks. Which is why companies are turning to preemployment screening. A dedicated screening firm will leave no stone unturned: academic and professional qualifications; credit checks; police records; passport and utility bill databases; and even terrorist sanctions and whether the candidate is wanted by Interpol.

Caught in a lie While some companies tackle screening themselves, increasing numbers are driven to outsource the task due to the time demand and cost. A full suite of checks could come in at £200 or £250 for a candidate based in the UK, or double if they’re in Asia or the Middle East. “If it catches just one person, it’s worth it,” says Louise Cram, HR Director at Collas Crill. “Find out all those little white lies beforehand, then you can make a judgement call. If you find out too late, it’s massive.”

It seems this isn’t lost on business these days. First Advantage runs 23 million background checks a year worldwide according to Canning, who says the screening industry is estimated to be worth $1bn.

Whatever the chosen approach, a company should always follow up a candidate’s references, and do so before they’re offered the job.

48 businesslife.co January/February 2015

In a recession market you’re told to stand out, so stretching the truth may simply seem part of the game And if someone is evasive or obstructive, or if any documentation looks weird, take it as a bad sign. “Follow up any hunches,” says Roland.

For any company concerned about privacy issues around screening, it’s a matter of being open and getting consent up front. Questions have to be relevant and treated confidentially. And steer clear of Google searches, which are every bit as likely to pull up a rant from a disgruntled ex-partner as anything worthwhile.

Lies on applications may be far from extinct, but thanks to the higher profile given to fraud cases and screening, candidates are more likely to tell it like it really is. After all, while a wee fib may be tempting, it’s not worth the risk. “If you lie it’ll get found out, and you’ll be flagged as dishonest even if you’re not dismissed,” says Kendrick. “You don’t want your copybook blotted by some irrational error.” n Dave Waller is a freelance business writer

Five common CV fibs

1

Academic excellence “We sent off a copy of someone’s degree certificate once. The university said it was fake for four reasons – including a modified logo and the signature of a head of college who wasn’t head at that time.” Traci Canning, Senior Vice President at First Advantage.

2

Elastic chronology “A candidate may think a CV looks neater with no gaps between jobs, so sometimes the end date is extended to cover a gap that’s more difficult to explain.” Jeralie Pallot, Managing Director, Rowlands Recruitment

3

The glowing past “An applicant got a senior role after saying they’d been quite senior in a team in the past. But things went wrong and they did things in their new role that didn’t marry up to their CV. The screeners checked the references, and found they’d been incredibly junior at the old firm but had the gift of gab and talked themselves up. And that was the end of that.” Louise Cram, HR Director, Collas Crill

4

The dodgy past “We encountered someone with ‘no convictions’ and found them to have quite a few!” Jeralie Pallot

5

The pointless lie “Sometimes people even lie about their interests. They state that they really enjoy long-distance running, and it catches your eye because you do too. You ask what sort of times they do and it turns out they’ve never run a mile in their life.”

Louise Cram

seeing through insolvency There’s a perception that increased regulation is forcing firms in the Channel Islands out of business, but is that really the case? Orlando Crowcroft investigates 50  businesslife.co January/February 2015

Insolvency

I

t’s no secret that financial services firms in the Channel Islands have faced a marked increase in regulation over the past decade, both from authorities inside the islands and from overseas.

New laws such as the US Foreign Account Tax Compliance Act (FATCA) and mirroring legislation in the UK have forced smaller firms to bring on more staff to beef up compliance departments, shrinking their bottom lines in the process (see page 36).

Marcus Pallot, a Partner at Carey Olsen in Jersey, cites trusts as one area particularly affected. “The stresses and strains placed upon the smaller trust companies are such that there’s a marked increase in people being taken on in compliance, which is an increase in the non-fee-earning centres of these businesses,” he explains The immediate result of this is that many of those smaller trust companies have found themselves either merging or being subsumed by bigger companies. Indeed, mergers and acquisitions have been increasing steadily in both Jersey and Guernsey over the past five years. In Q2 2014, Jersey was home to 36 M&A deals including two of the quarter’s top 10 overall deals, according to Appleby.

“It’s more difficult for the smaller, independent trust companies to maintain a back office to the standard the regulators expect without defraying costs over a wider base. That’s why I think we’ve seen consolidation in that sector. So we are seeing a greater level of M&A activity among the fiduciaries,” says Maurice Moses, a Partner at EY.

Shaky ground Other companies haven’t been quite as fortunate and have gone out of business because they can’t meet the standards now required by regulators in both islands: “All of a sudden you move into a position where you need to have people who are qualified, people with standards, who abide by the law and by codes of practice and some people have not been able to adapt to that,” says Carey Olsen’s Pallot.

In other cases, firms have muddled through at the outset but as a result of proper investigation by the either the Jersey or Guernsey Financial Services Commissions, problems have been found and businesses have either been closed or forced to transfer their operations elsewhere. “Businesses haven’t gone bust because of increased regulation, but they might have had to shift or transfer because they can’t meet the regulatory standards,” Pallot adds.

Mathew Newman, a Partner at Ogier in Guernsey, recalls the case of Kingston Management in 2009, where Guernsey’s regulator wanted the offshore firm to pay a substantial sum of money to a consultant to advise on its AML and take on practices and procedures to bring them up to the required regulatory standards. The firm couldn’t fund it and was put into administration, with most of the underlying client funds and trusts transferred to an existing fiduciary provider in the Isle of Man. That said, Newman feels cases such as this are rare. He says it’s nearly impossible to get statistics on the number

➔ January/February 2015 businesslife.co 51

Insolvency

of companies that go into administration in Guernsey each year, but that it’s no more than two or three a month. Many of these, in his experience, are in the real estate sector.

“Most of the companies we deal with are propertyholding companies, mainly in the UK or Europe, which have taken out substantial loans where the property portfolio has depleted in value. The lenders wish to enforce their security and see administration in Guernsey as being an effective route to doing that by extracting value from the existing assets.”

Winding up

Time for change?

A number of lawyers and industry experts in Jersey are pushing for changes to laws governing insolvency in the island to make it easier for companies to wind up and introduce a system of administration, which currently doesn’t exist.

Unlike in Guernsey, which has had an insolvency law for over a decade, Jersey has no system of administration. This means that when a company goes bust, the entire process is dealt with by the courts and the Viscount’s Department instead of being handed over to a third-party administrator, as happens in the UK. Consultation on a new law not yet published has been drawn up, and industry experts such as Marcus Pallot, a Partner at Carey Olsen, are hoping new rules come into force to make the island an easier place to do business.

“Jersey has a few problems with its insolvency regime. In the UK or US, if you have a business that is in trouble you can go into administration. In Jersey we don’t have that. You’re either trading insolvent, or shut and bust – there’s no middle ground,” he says.

“There’s no opportunity to give yourself a second chance, so some businesses have shut because people aren’t prepared to take the risk of committing criminal offences or being personally liable when they are running businesses that otherwise may have been able to have been rescued.”

Maurice Moses, a Partner at EY, agrees. He feels that changes to the insolvency regime in Jersey would give peace of mind to both international and local firms, and possibly even bring more business into the islands.

“We want the insolvency regimes in both islands to be up there with the best. If they’re understood, it will encourage more people to use the Channel Islands as a base for their financing activity. If there’s a transparent way of getting your money back out when things aren’t good, you are more likely to put it in at the outset,” he said.

A consultation paper on a new insolvency law in Jersey is currently with the Chief Minister’s Department, but at the time of writing hasn’t yet been released for public consultation.

But there have been some smaller fiduciary and trust companies that have opted to wind up business in the face of increasing costs and regulation. While ‘winding up’ isn’t the same as going bust – or insolvent – it is effectively a company coming to the end of its life because it can’t afford to go on. Adrian Rabet, Accountant at Moore Stephens in Jersey, says there’s been an increase in this practise in the islands.

A stricter regulatory environment has also seen companies increasingly using insolvency experts to wind up business. As Rabet says: “That’s the regulatory environment and the fear factor. The regulators expect people to wind things up in the best possible way. If it’s a risky type of investment that’s come to the end of its life, a lot of people are now putting it through to people like me to wind up.”

Most feel that as regulation increases, the M&A activity, windings up and occasional insolvencies will continue, but that as Jersey and Guernsey continue to try to protect their position on the OECD white list, this is a necessary and largely positive thing.

Moses believes that while it is difficult for the companies involved, it’s necessary. There has been some anger over laws that are seen to have been imposed from overseas – such as FATCA – but on the whole regulation is needed for the islands to keep their image intact. “It’s the world we live in, sadly, and we just have to cope with that,” Rabet says.

The only negative aspect of these changes is that as smaller companies either get swallowed up by bigger firms – or go out of business – the Channel Islands’ reputation in the private client sector could suffer. In the past, a wealthy client may have called and been able to speak to an employee that they may have worked with for years, but the bigger the company, the less likely that is. However, some would argue it’s a small price to pay if it means meeting the regulatory requirements. n

Some smaller fiduciary and trust companies have opted to wind up business in the face of increasing costs and regulation

Orlando Crowcroft is a freelance financial writer

52 businesslife.co January/February 2015

Advertising feature

Trustees:

are your lettings agents compliant with new rules?

New UK legislation governing lettings agents could have a knock-on effect on trustees acting as landlords, but how can trustees ensure agents are signed up to the new schemes?

Ian Long from LSL Property Services explains all

O

n 1 October 2014, Housing Minister Kris Hopkins introduced legislation to ensure increased protection for tenants and leaseholders from unscrupulous lettings agents in the UK. When he announced the scheme in April, Hopkins stated: “All tenants and leaseholders have a right to fair and transparent treatment from their lettings agent. Most are happy with the service they receive, but a small minority of agents are ripping people off, and giving the whole industry a bad name.”

The Compulsory Redress Scheme for Agents applies to all lettings and property management agents, and requires that they sign up to one of three governmentapproved redress schemes, these being: ● The Property Ombudsman ● Ombudsman Services Property ● The Property Redress Scheme These authorised schemes are licensed to carry out independent investigations of any complaints made against an agent, be they about poor service, unfair terms or hidden fees. Where a ruling is found to be in the complainants favour, tenants may be entitled to compensation.

In effect, all lettings agents must be part of one of these schemes to operate in the UK, and for any that have not subscribed to one of the redress schemes there are potentially severe penalties, including a fine of up to £5,000.

As of November 2014, however, a large number of agents were yet to register.

While more than 2,000 had signed up, this is out of an estimated 3,000-4,000 lettings agents who need to belong to a redress scheme. It’s an alarming shortfall.

So what does this mean for trustees acting as landlords?

There are potential implications if a trust’s agent is not signed up to a redress scheme, so it makes sense to check they’re fully compliant. This could involve individually assessing each and every property within the trust’s portfolio, contacting the appointed agent and requesting proof of registration.

Understandably, this could be a protracted process if there are a considerable number of properties involved.

An alternative option is to simply let LSL’s Corporate Client Department (CCD) help.

LSL CCD has vast experience in the intricacies of corporate property management, and offers a bespoke Portfolio Audit Service, which enables trustees to manage risk effectively. As part of the service, specialist teams from LSL CCD prepare in-depth reports on properties held under trust.

Through an initial one-day, on-site audit, they look at a sample of your portfolio before presenting you with their findings.

What’s more, this initial service is provided entirely free of charge.

The reports will highlight any compliance errors, procedural mistakes or incorrectly conducted processes that may exist, while making suggestions in any areas we believe business improvement could be made.

Key areas of investigation include: ● Ensuring full terms and conditions for individual properties are present; ●E nsuring agents are registered with an approved redress scheme; ● Ensuring buildings insurance is in place and fit for purpose; ● Ensuring gas safety certification is legal; ● Avoidance of lease expiry with no renewal documents in existence;

● Traceable evidence as to whether a deposit was collected.

This service is specifically tailored to the industry, allowing trustees to confidently demonstrate their properties are well managed, thus strengthening their reputations and helping to attract future business opportunities.

The world of the landlord is one fraught with compulsory regulations and everchanging legislation, with the Compulsory Redress Scheme being just one instance.

Unfortunately there are still landlords, lettings agents and property managers that aren’t aware of the true extent of the legislation they must adhere to, and are failing to keep abreast of this constantly evolving legal landscape.

LSL is committed to constantly monitor the industry, track regulations, understand the implications of all new legislation and, most importantly, take every conceivable measure to ensure our clients don’t unwittingly fall foul of the law. n

Contact LSL If you would like to arrange a free Portfolio Audit, or simply find out more about the property services provided by LSL’s Corporate Client Department, contact our dedicated Trust Team on +44 1392 316885, Ian Long on +44 7767 656023 and ian.long@lslps.co.uk, or Jeremy Ogborne on +44 7794 086420 and jeremy.ogborne@lslps.co.uk

January/February 2015 businesslife.co 53

Are you

ready

Those in the know would have us believe that online video marketing isn’t the next big thing – it’s happening right now. So, are you missing a trick if you aren’t using video? Nicci Martel investigates

54 businesslife.co January/February 2015

Video marketing

to roll?

W

hen did you last watch an online video?

Today? In the past week? How many sites have you recently visited that have displayed a video of some form?

Whether it’s friends posting funny cat videos on their Facebook timelines or our favourite brands showcasing products in inventive ways, online video is ubiquitous, and with the average adult expected to spend three hours and 41 minutes a day consuming digital media through computers, tablets and mobile phones according to research group eMarketer, video has rocketed in viewership and shows no signs of slowing down.

This enormous shift in media consumption is forcing big changes in marketing, which is increasingly turning to short videos to inspire,

excite and engage, both with consumers and in B2B. By 2017, video will account for 69 per cent of all consumer internet traffic and it’s predicted to be the future of online marketing, if it isn’t already the here and now.

“If we’d had this conversation even just a year ago, I would have been more cautious, but when you look at the statistics, video consumption has skyrocketed across all devices,” says Jon Salmon, Head of Video at content marketing agency Seven. “People are consuming an incredible amount. In the 18–34 age bracket, something like 53 per cent of people are consuming more video online than they were just a couple of years ago. 2014 has been the tipping point and people are realising the importance of video in online marketing.”

Online video is nothing new, of course, and forward-thinking companies were using communications films on the internet long

January/February 2015 businesslife.co 55

➔

Video marketing

before YouTube, Facebook and Twitter came along. However, it’s the advances in mobile technology and the variety of platforms that are allowing companies of all sizes and sectors the opportunity to engage with consumers like never before.

“The boom in social media channels has simply allowed for better hosting, embedding and sharing of content,” says Phil Bouchard, Business Director at Jersey-based 3C International, which specialises in creative communication content. “Suppliers of good quality, valuable and engaging video content were previously limited to bespoke systems for serving online video. Now, with the range of distribution channels available, online video has become much more widely accepted and easier to implement.

“I’ve always said video tickles more parts of the brain. What we watch and hear is far more engaging and memorable than print, pictures or audio on their own. Combine creative copy, perfectly produced pictures with carefully crafted cuts and you have a recipe for informative and – importantly – likeable content. Take this powerful media and combine it with the reach and effectiveness of the online world and you have the number one communications tool.”

Something for everyone Consumer analysts Nielsen claim 64 per cent of marketers expect video to dominate their strategies in the near future, and it’s not difficult to see why, when YouTube alone receives more than one billion unique visitors every month.

Brand marketers have found innovative ways to engage audiences and create brand loyalists through online video. Look no further than the drinks brand Red Bull to see how effective it can be. With more than 45 million Facebook fans, Red Bull is doing more than simply updating its status about a new flavour. What it does do is post videos of some of the world’s best athletes doing incredible things. Even

It’s the advances in mobile technology and the variety of platforms that are allowing companies of all sizes and sectors the opportunity to engage with consumers like never before

56 businesslife.co January/February 2015

if someone doesn’t consume the drink, it doesn’t mean they won’t share a Red Bull video of someone risking death in a wingsuit.

But the use of video isn’t limited to well-known multinational brands, or even big organisations that might use it in the build up to conferences, product launches and key company milestones. Video is one of the most effective forms of online communication, and it can work for law firms or financial services just as well as it can for the likes of Apple. For example, law firms can use video to demonstrate an advocate’s persuasive powers. With a combination of visuals and sound, video delivers ideas and positions with more authority and emotional impact. Even small Channel Islands businesses can – and probably should – get in on the act.

“Any business can benefit from video online. Small start-ups can differentiate themselves early on with video on a budget. One-man bands, home-office businesses, sports clubs and small regional retailers should consider using video to launch and promote what they do,” says Bouchard. “Many brands use eye-catching animated infographics to explain their businesses and to set them apart from their competition.

Among our clients, investment managers, IT companies and global market researchers are using high-quality animation to put across their level of knowledge and expertise.”

Emma Anderson, Account Director at Guernsey-based Orchard PR, has worked in broadcast news and currently advises clients on how and when best to use video as part of their overall strategies. She agrees that any company, regardless of sector and size, can benefit from the right use of video.

“In terms of a company, I don’t think it’s a question of size. The statistics are out there. I was reading today that just including video in an email can increase its open rate by 25 per cent,” she explains.

“If you’re a small business, you don’t need to spend vast amounts of money producing a slick five-minute video because the technology is more accessible than ever.

“It’s no longer about geography, either. Digital has slowly altered the global framework. Wherever you are in the world, if you’re based in the Channel Islands, video allows your message to transcend borders. It’s a way to expand your business.”

Video can be at its most effective when incorporated into a long-term content marketing strategy and used

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Video marketing in tandem with other online marketing tools. It should be part of the whole package, according to Salmon. Whether it’s a local florist or supermarket chain, he suggests following the same process of plan, create, distribute and measure. “You need to identify the brand and business content strategy and look at the bigger picture, identifying exactly what message it is you want to send, and establish the best way of delivering it to the right people,” he explains.

An easy starting point for any business is to use video content on its website. “Video is a very effective return on your investment because you can see immediately if it’s working. Also, people are more likely to stick with a video longer than with text. You’ve already drawn them in,” says Anderson.

One of the biggest benefits of video is the amount of information it yields. Not only is it possible to measure how many people are watching and sharing it, but further analysis can identity how long people are watching it for, and when the key drop off point is, and feed these findings back into the content.

With the barriers to entry continually being broken down with advances in technology, filmmakers now have the ability to create content, all in beautiful HD, for a much lower price than ever before.

Tools like Vine and Instagram give employees video capabilities at their fingertips and can help you create brand content instantly. The technology is right there in your pocket, and this can be both good and bad. After all, not everyone is a natural born filmmaker and there are

The dos and don’ts of online video

marketing fundamentals that still apply. For digitally distributed films to have impact, the target audience and key messages mustn’t be ignored.

“Are businesses missing out if video is not being considered as part of the marketing mix? Yes,’ says Bouchard. “However, it’s essential that the right kind of video content strategy is developed. Self-generated content has its place, but wobbly iPhone or iPad in-house productions can significantly damage a brand.”

Substandard production isn’t the only path to a video marketing fail.

If a video doesn’t convey a message effectively to the right audience, the results can be disastrous. Hyundai caused public outrage with its 2013 YouTube video ‘Pipe Job,’ which depicts a man using a garden hose to pipe exhaust fumes into his new Hyundai ix35, only to be saved by its clean emissions. Edgy humour or downright insensitive? Most social media users plumped for the latter and the video was quickly taken down and the brand suffered a PR disaster.

Its potential for interactivity with an audience and improved rates of attention marks online video out as a powerful tool. Like no other medium, it can truly engage with people – not just talk at them. And with all the noise that has become the digital world, video offers movement and a chance to grab attention more than anything else on the screen. If a picture paints a thousand words, it’s worth considering just what video could do. n Nicci Martel is a writer at Gem PR & Media

With video quickly becoming a key means for people to satisfy their information and entertainment needs, small businesses that fail to include it in their internet marketing strategies might be doing so at their peril. But there are still some rules you need to follow.

DO: ● Elevate online video up the marketing priority order. It’s often not as expensive or time consuming as other tools. ● Be specific about your budget from the start. This will determine your production values and output. Online video can be made cheaply, and the home-movie effect can be fun, but sometimes you’ll need to spend more to get the quality you need. ● Know your audience and how you can use video to best deliver your message to them. Consider your objective – is it B2B or B2C, for instance. ● Use a variety of ways to showcase your products, services and people.

Options include vodcasts (video podcasts), vlogs (video blogs), infomercials, video case studies, product demonstrations and testimonials. ● Know the longevity of your video and ensure its information remains relevant and useful for as long as it’s out there.

58 businesslife.co January/February 2015

DON’T: ● Let your video be too long, too wordy or too earnest. ● Trick yourself into thinking DIY video production is easy. Engage with production and marketing experts to advise you. ● Think of online video production as a standalone effort.

Instead, incorporate your videos into your marketing strategy. ● Let style override substance.

Marketing fundamentals still apply. ● Forget to include a call to action – either at the end or throughout the video.

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Wisdom of the young Can older, more senior employees and executives learn something from younger staff? Dr Liz Alexander takes a look at the benefits of ‘reverse mentoring’

60 businesslife.co January/February 2015

Mentoring

W

hat do Dumbledore of the Harry Potter books, Obi-Wan Kenobi of Star Wars, John Keating of Dead Poets Society, and Jean Brodie of The Prime of Miss Jean Brodie all have in common, apart from being fictional?

Each of them characterises the ‘wise and trusted counsellor’ or ‘mentor’ archetype we’ve seen in storytelling for centuries.

They’re also considerably older and more experienced than their mentees – a notion turned on its head in late 1999 by General Electric’s then-Chairman and CEO, Jack Welch. After hearing the head of their global finance company in London describe how he kept up to speed in his business by having a mentor under the age of 30, Welch returned to the US insisting hundreds of GE senior executives find young, bright juniors to mentor them on embracing the internet.

Ger Driesen is Co-Founder of the Challenge Leadership Development Academy in the Netherlands, and Practice Leader for Reverse Mentoring. In 2010 he formed the Reverse Mentoring LinkedIn group, whose members are interested in an approach embraced by global brands including Edelman PR, Time Warner, and Procter & Gamble, as well as Tesco in the UK, CitiGroup in the US, Deutsche Telecom, Belgium’s Janssen Pharmaceutica and Dutch technical product wholesaler Van der Peijl Groep.

“It’s tempting to read case studies showing the results achieved by such organisations and become enthusiastic about adopting reverse mentoring,” says Driesen. “But you

should always take a step back and ask: what is the problem or question you want it to answer? If you’re looking to develop a market approach that better matches the needs of Millennial customers, for example, exposing senior management to the insights of Millennial mentors might be one reason to initiate reverse mentoring.”

Dr Katharine Brooks, the Executive Director of top US university Wake Forest’s career centre, and author of You Majored In What? Mapping Your Path from Chaos to Career, believes companies looking to become more innovative can benefit from accessing the entrepreneurial mindset of junior employees.

“I was working with a student the other day, and showed him some software I’d been thinking would be useful for my work. He took it out of the packet, downloaded it, played around with it for a short time then began talking to me about applications I hadn’t even seen, let alone considered. Senior executives across industries could benefit greatly from the confidence, connectedness and adaptability of Millennial or Gen Y mentors.”

Emotional connection Not everyone is a proponent of reverse mentoring, however. Rene Petrin, who founded Management Mentors in 1989 in Boston, Massachusetts, advocates structured mentoring programmes as part of an organisation’s professional development strategy. He believes many reverse mentoring programmes, however, are really about reverse coaching and distinguishes the two approaches by saying that coaching is short-term

January/February 2015 businesslife.co 61

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Mentoring

“Senior executives across industries could benefit greatly from the confidence, connectedness and adaptability of Millennial or Gen Y mentors” and task-oriented while mentoring should be long-term and relationship-oriented.

Petrin questions whether Millennials, in particular, who tend to want to do things quickly and seem to prefer interacting through technology rather than face to face, have the right skills and understanding for reverse mentoring to work effectively.

Mentoring shouldn’t simply be about helping older mentees become tech savvy, he says.

“There needs to be an emotional attachment between two people who are mature enough to establish the trust necessary to open up and fully share how they think and feel about the issue being considered.”

Which is why reverse mentoring must be part of a structured and supported initiative, not run ad hoc, says Mick Miles, CEO of Elite Training, who was approached about reverse mentoring by one of the UK’s largest police forces, following some traditional mentoring courses he ran for them.

“Reverse mentoring can help bring a company up to date with modern thinking and new perspectives. But mentors need to be trained in listening, communication and how to build a rapport with someone from a different generation. And older mentees must recognise they don’t have all the answers, and be willing to open up and admit to weaknesses in the area being targeted,” says Miles.

Even structured programmes need ongoing modifications. For example, UK-based leadership consultancy Brightlife was brought in to help improve the effectiveness of Cisco’s existing reverse mentoring initiative across Europe, the Middle East, Africa and Russia. Since the

62 businesslife.co January/February 2015

The Hartford Founded in 1810 and headquartered in Connecticut in the US, the Hartford Financial Services Group offers property and casualty insurance products to individuals and businesses, along with employee benefits solutions and mutual funds. Some years ago the leadership recognised consumers’ purchasing habits of insurance and financial products were changing.

To remain relevant they needed to be more fluent in social media, mobile and cloud computing, and emerging technologies.

Simultaneously, a group of junior employees, frustrated by this lack of understanding among senior management, was meeting informally to discuss ways in which technological innovations could help them in their work.

Both groups helped launch the Hartford’s formal reverse mentoring programme, the focus being to use social media and emerging technologies to drive innovation. Crucially, mentees included the company’s Chairman and CEO, together with leaders in business units like law, operations and claims. Mentors were selected from among top performing junior employees – the best and brightest early adopters of communication technologies – and were thoughtfully paired with mentees multiple levels above them in the corporate hierarchy who worked in different areas of the business.

Within a year, 11 of the 12 firstwave programme mentors were promoted. Both sides reported gaining new ideas that supported the programme’s stated aim, resulting in two patents being filed.

As Boston College’s Sloan Center on Ageing and Work’s report about the Hartford programme concluded: “Perhaps the most important gift of reverse mentoring… is the affirmation in all sectors of a company and across generations that the next big idea can come from anywhere.”

mentoring focus was to be inclusion and diversity, the Cisco employees were paired with more junior employees with a different cultural background, ethnicity or gender.

The previous year, mentors reported they’d ended up carrying out the actions discussed during their sessions. Brightlife’s subsequent interventions provided volunteer mentors with workshops and materials to help establish the trust and intimacy Petrin believes is missing from many reverse mentoring programs, and to learn to assert themselves so that perceived barriers of status and position don’t get in the way.

Above all, says Brightlife founder Kate Warren, Cisco’s initiative was successful because inclusion and diversity are embedded in the company’s DNA. “The cultural foundation needs to be there,” she explains.

“Otherwise it will be harder and take longer to experience benefits if executives aren’t really interested in the programme and mentors aren’t sure their interventions are welcome. There needs to be a formal structure, strategic purpose and clear guidance to ensure success.”

Brooks feels reverse mentoring is a misnomer, however, because it doesn’t fully describe the broad-based advantages to mentors, mentees and organisations: “Gen Y and Millennials have a very different relationship with employers than previous generations. They want opportunities to establish their value more quickly and will leave if they don’t get them. Mentoring upwards offers junior employees ways to make valuable connections within the company hierarchy and perhaps influence company strategy.

“There are also considerable career advantages for senior executives in being exposed to new ways of thinking that enriches their work experience, helps them re-engage with long-standing roles and makes them more marketable. Done well, this approach positions an organisation to guide change rather than have change forced on them.” n Dr Liz Alexander is an author, educator, business strategist, and Founder of business consultancy Leading Thought

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10

reasons

to quit

1

Your input is disregarded – or not even wanted Everyone has ideas. And everyone loves it when their ideas are taken seriously and implemented.

The feeling that you’ve contributed in a special way is incredibly gratifying.

But when your boss or company shoots down or even laughs at and disregards your ideas, it’s not only insulting, it’s demotivating. And pretty soon you stop caring. Life’s too short not to care.

your job Sometimes it’s easy to get stuck in a job you’re not happy with, yet you seem to find endless reasons why you can’t move on. Here, Jeff Haden highlights 10 reasons why you should get out of there as soon as you can

Q

uit your job to take a better paying position?

Sure. Quit your job for a great opportunity?

Definitely. Quit your job to start your own business? Absolutely.

These are all valid reasons for moving on from your current job to try something new and exciting.

But there are plenty more reasons out there. And they all fall under one main category: life’s too short.

Life’s too short to go home every day feeling unfulfilled. Life’s too short to work for a terrible boss.

Life’s too short to go home every day feeling taken for granted, not being taken seriously, or taken advantage of. Life’s too short to not be as happy as you can be.

Say a good friend called and said: “I hate my job. I’m bored, frustrated, and feel like I’m going nowhere.”

Wouldn’t you tell them to look for another job? So, shouldn’t you follow the same advice?

Here are 10 great reasons to put a stop to being miserable and start looking for something better.

64 businesslife.co January/February 2015

2

You get criticised publicly We all need constructive feedback. We all need a little nudge. We all need to be told when we can do something better – and how to do it better. But we need to be told those things in private. Life’s too short to walk around waiting for the next time you’ll be criticised – or even humiliated – in front of other people.

3

You never hear the word ‘thanks’ Everyone needs praise.

We all need to know when we do something well (and everyone, even poor performers, do some things well). Life’s too short not to be recognised for the contributions you make.

4

Your boss manages up, not down You know the type: as a leader they should focus their time and attention on their direct reports, but they spend all their time following their boss. It seems like your only job is to contribute to the greater glory and advancement of your boss. A great boss knows that if their team succeeds – and each individual on that team succeeds – then they will succeed too. Life’s too short to spend your time developing and promoting your boss’s career at the expense of your own.

5

You feel like you have no purpose Everyone likes to feel a part of something bigger.

Everyone likes to feel they have an impact not just on results, but also on the lives of other people. Life’s too short to go home every day feeling like you’ve worked without accomplishing anything meaningful.

6

You feel like a number Everyone is replaceable. Everyone, ultimately, works for a pay cheque. But people also want to work for more than a pay cheque. They want to work with people they respect and admire, and they want to be respected and admired in return. If your boss doesn’t occasionally stop for a quick discussion about family, an informal conversation to see if you need any help, or simply to say a kind word, then it might be time to say goodbye. Life’s too short to only be an anonymous cog in a big machine.

Business

8

You can’t see a future Every job should lead to something – hopefully a promotion, but if not, at least the opportunity to take on additional responsibilities, learn new things, or tackle new challenges.

Tomorrow should have the potential to be different, in a good way, from today. A good boss works to improve their employees’ futures, even if it means some of them will eventually move on to bigger and better things. Life’s too short to live without hope.

9

No one has the same dreams as you Countless companies were started by two or more people who at one time realised they had complementary skills and that they wanted to carve out a new future together. If you plan to be an entrepreneur, working for a big company first is one of the best things you can do: it’s a risk-free environment where you can meet future colleagues and co-founders.

Pick a dozen companies at random and you’ll find at least a few that were founded by aspiring entrepreneurs who met as co-workers and went on to launch awesome start-ups together. Life’s too short to spend working with people who don’t share your hopes and dreams.

10

7

You aren’t remotely excited about going to work Every job has its downsides. I’m willing to bet even Richard Branson has to do a few things he doesn’t enjoy. But every job should also have some fun moments. Or exciting moments. Or challenging moments.

Or some aspect that makes you think: ‘I’m looking forward to doing that’. Life’s too short to spend all your time at work only looking forward to going home.

You don’t think you can do anything else This is the best reason of all to quit your job. I know what you’re thinking: “I make too much in my current job, I’ll never find something comparable.” Or: “There just aren’t any jobs where I live.” Or: “I’ve put too much time into this company/career/industry.”

Or: “I don’t have what it takes to start my own business.”

All those things are true, if you let them be true. You can do something else.

You can do lots of ‘something elses’. You just have to believe, and trust that your creativity and perseverance will take you to new, happier and more fulfilling places. Thousands of people quit their jobs for something new all the time. The only difference between you and them? They decided to take the chance and bet on themselves. They decided that life’s too short to just stay where they are instead of doing everything possible to live a better life. n Jeff Haden is a bestselling business author.

This article originally appeared on www.inc.com

January/February 2015 businesslife.co 65

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the AGENDA

1

The Agenda is compiled by businesslife.co’s Fashion and Lifestyle Editor, Thom O’Dwyer, with additional material by Danny Cobbs, and Jeffrey Chinn of Hettich Jewellers in St Helier.

1. Animal magic From the style wilderness to the height of cool, taxidermy is staging a massive comeback. After nearly a century on the dusty, musty shelves of stately homes and Victorian piles, stuffed animals are now popping up everywhere, from modern urban digs to country retreats.

Kate Moss and Bansky are both reportedly collectors. Could it have been Damien Hirst’s shark, sheep and cow pickled in formaldehyde, or Polly Morgan’s curiously entrancing coiled stuffed snake sculptures that have taken this macabre Victorian craft-art to the cutting edge of Brit Art, or is it yet another manifestation of the trend for going back to nature? Who knows, but it’s really happening.

Master taxidermist Mike Gadd reports a huge upsurge in sales at his online business, UK Taxidermy – his gorgeous Snowy Owl is pictured here – and the same goes for hipster taxidermist Margot Magpie. Madcap Jo Shears, on the other hand, has taken the taxidermy trend to the next level, making stuffed animals wearable.

Fashionistas can’t seem to get enough of her range of hats, handbags and outlandish accessories made from stuffed rabbits, mice, birds and other furry creatures. This peculiar but rich craft-art is without a doubt experiencing a true renaissance.

Prices vary, www.taxidermy.co.uk

Inside The Agenda: Technology, Fashion, Jewellery, Food, Beauty, Footwear, Perfume, INTERIORS, Watches, Cars

Everything you need for a more stylish life.

➨ January/February 2015 businesslife.co 67

the Agenda WOMEN’S FASHiON:

avant pop S

traight from the 20th-century artist’s studio, ‘avant pop’ is one of 2015’s most influential seasonal references – led by luxury haute labels like Chanel, Prada and Celine, as well as nouveau hipster designers like Jeremy Scott at Moschino, Christopher Kane, House of Holland, and Mary Katrantzou. We’re talking big, bold, colourful, artistic, energising prints. Pop art visuals and surrealist imagery are the most cutting-edge trend, while Warhol-esque print mixes and blocking offer commercial appeal. It’s like ‘candy land’ – a sugar rush of contagious energy and bold, high-voltage, saturated colour.

This inspired multi-application trend fuses aesthetic elements from just about every single key 20th-century art movement.

Cubism? Check. Art nouveau? A soupçon.

Art deco? Check. Abstract expressionism – especially Jackson Pollock’s drip paintings?

Definitely. Mondrian colour-blocking along with Ellsworth Kelly block stripes? Of course. Victor Vasarely and Bridget Riley inspired op art prints? All over the place.

And screamingly apparent everywhere you look is Warhol and the entire crazy-camp pop art collective.

In addition to the modern art vibe, you’ll find comic-book prints, photo prints, retro packaging and advertising graphics, tonguein-cheek slogans and pop art expletives, as well as retro kitsch souvenir tropical prints and motifs all over the shop.

Shapes for the most part stay classic and simple, with asymmetric hemlines and 1950s-inspired draped and wrapped techniques adding a stylish edge. But at the end of the day it’s also all about print and colour – a mad jumble of fantastic technicolour dreams. Lush rainbow hues and head-to-toe primaries as well as Day-Glo colours light up the wardrobe. This audacious look – conspicuously absent from the catwalks for way too long – is just what the fashion doctor ordered. ‘Avant pop’ is all about carefree whimsy, mixing humour with dreaminess, and once again having fun with fashion. Come on, girls. Let rip!

68 businesslife.co January/February 2015

2

3. Cocktail Umbrella necklace from Tatty Devine’s 15th Birthday Collection, £65, www.tattydevine.com

3

2. Mondrian-inspired cotton top by Marimekko, £155, www.johnlewis.com

4. Leather manga-print clutch by McQ Alexander McQueen, £175, www.selfridges.com

4

6. ‘Gillian’ cosmetic bag with built-in phone charger

by Handbag Butler, £59.95, www.cuckooland.com

5 5. Gold Zip Necklace from Tatty Devine’s 15th Birthday Collection, £95, www.tattydevine.com

6

7. Silk candy-print dress

by Moschino, £1,614, www.farfetch.com

7

8. Parasol open-toe heels

by Charlotte Olympia, £885, www.selfridges.com

8 January/February 2015 businesslife.co 69

➨

the Agenda men’S FASHiON:

killer colours A

side from a relatively brief excitement in the ‘Swinging Sixties’ and a fleeting return in the New Peacock Revolution of the 1980s, men’s wardrobes have been a pretty dark, dismal, colourless place for most of the 20th century. Anything other than brown, black, navy and grey would seriously upset the status quo, making men’s fashion conspicuously and irrevocably drab, drab, drab. Until a few years ago, even a pink shirt raised eyebrows.

Not in 2015 though – colour is back, and is the game-changing innovation this year.

Furthermore the palette is in no way uniform, with just about every colour of the rainbow appearing on the men’s fashion catwalks in Paris, Milan, London and New York.

It has to be said, though, that decking yourself out in the style of Crayola’s ‘Masterworks Art Set’ is not the easiest thing to pull together, so you’ll have to be careful. Take a few styling tips from the men’s fashion and style magazines piled high in your local newsagent or online. In addition to fitness training and physical wellbeing, the glossy monthly Men’s Health is a brilliant barometer for tempering and reinterpreting current fashion trends, no matter how wild, in a far more acceptabe and wearable way.

GQ is another must-read.

One final piece of advice. Make your major colour statement – be it with a smartly tailored suit or a casual bomber jacket – then keep the surrounding pieces simple and relatively neutral. A bright pink suit, for instance, needs no competition from the shirt, tie and shoes you put with it.

In 2015 – and carrying on well into 2016 – killer colours make a bold declaration and are just the pick-me-up metro man needs.

The bottom line here? Just experiment and let yourself go.

70 businesslife.co January/February 2015

9

10. ‘Litir’ jacquard-knit sock in violet by CHUP by Glen Clyde Company, £25, www.endclothing.co.uk

10 9. Polyester-blend suit jacket by Alexander McQueen, £1,248.33, www.farfetch.com

11. ‘Winter Palm’ pure cotton print shirt by Gitman Vintage, £155, www.endclothing.co.uk

11

12

13

13. ‘Verdi’ cotton-blend fully reversible bomber jacket in rose by Dries Van Noten, £715, www.endclothing.co.uk

12. ‘No Fish’ backpack, exclusive to Selfridges. From the ‘No Fish No Nothing’ collection by Kenzo in association with the Blue Marine Foundation, £220, www.selfridges.com

14

16

14. Men’s Bike Chain bracelet by LB Man, £24, www.notonthehighstreet.com

15

16. California blue and matte gold trainers by Reebok x Major The Pump Certified, £185, www.endclothing.co.uk

15. Cutting-edge print cotton T-shirt by Christopher Kane, £180, www.liberty.co.uk

➨ January/February 2015 businesslife.co 71

the Agenda 17. Perfect gentleman Don’t pack your pocket squares away just yet – while colour might be all the rage, dapper, perfectly curated urban gent styling is the accessory trend for 2015, writes Jeffrey Chinn. Of course, a real gentleman understands that while it’s about style, it’s also about substance too. Which is why the latest timepiece to cause ripples in the watch world isn’t a flashy futuristic gadget-y sports watch but this handsome Omega De Ville Trésor. And yes, the fact that it also features one of the world’s most advanced movements probably has something to do with it too.

The brand new De Ville Trésor marks the return of an icon. Based on Omega’s classic 1949 watch, it features the same understated class, quality and presence as the original, but is refined with top-notch tech. As every gentleman knows, it’s about attention to detail, and the De Ville Trésor’s design is immaculate. Not only is the stunning old-school honeycomb dial subtly domed, so is the sapphire crystal protecting it, as well as the 18-carat gold hour markers and hands – all creating a balance of vintage inspiration with high-tech execution. Pictured here in 18K Sedna gold, a patented alloy blending gold, copper and palladium, the De Ville Trésor is also available in white and yellow gold casing. Powering this beautiful watch is Omega’s unique Master Co-Axial calibre 8511 movement – manually wound, of course, because the pleasure of winding your watch every day is part of the appeal.

Quite simply it’s an impeccable piece of tech that blends patina and personality perfectly. Oh – and did we mention it just happens to be the watch that George Clooney wore when he married Amal Alamuddin? £7,639, www.hettich.co.uk

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72 businesslife.co January/February 2015

18. Top marques ‘Iconic’ is an overused word these days, but when talking about the Audi TT it seems fitting, writes Danny Cobbs. There’s a new version on the way, a third generation, that has just gone on sale with first orders being delivered as we go to print.

This TT sits on a new platform, which has given it a longer wheelbase, yet its footprint remains the same as the outgoing model. The bodyshell, which is made from a composite of lightweight metals, will probably divide opinion. The thought that Audi hasn’t tinkered around too much with its exterior styling will come as a blessed relief to those who were happy with the old shape, leaving

the rest disappointed, as this TT is very similar, visually, to previous one.

Once inside, however, the cabin is a different story. It’s roomier than before and the attention to detail is incredible. This is Audi at their very best. The digital dashboard, with its crystal-clear graphics, is an obvious headline grabber, but the individual heater settings on the air vents are also worthy of a mention.

As before there’s a choice of engines, power outputs, transmissions and a quattro drivetrain. And while it’s not the most engaging sports car around, as a multitalented coupe this new TT is in a class of its own.

From £29,770, www.audi.co.uk

18 January/February 2015 businesslife.co 73

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the Agenda 19. Boys and girls Chart-topping singer-songwriter Pharrell Williams has teamed up with the humungously hip Japanese fashion label Comme des Garçons to produce an equally hip unisex fragrance.

Comme des Garçons X Pharrell Williams ‘Girl‘ Eau de Parfum is a fresh, woody scent inspired by the rapper’s bestselling album of the same name.

This new whiff by the Grammy winner, Oscar nominee and wacky-hat aficionado is an expert bouquet of aromas. The complex construction kicks of with neroli, lavender and white pepper with a subtle riff of iris and violet, and finishes with an explosion of woody scents, including vetiver, patchouli, cedar wood, and sandalwood. Packaging and bottle artwork are by über-trendy New York artist Brian Donnelly, aka KAWS. Sales in 2015 will undoubtedly go stratospheric. £80 for 100ml, www.endclothing.co.uk

19

20. Colour in

20

On the spring 2015 catwalks, make-up and hair trends were a very mixed bag of looks, from the barely-there look to bold, smouldering eyes with 20-odd coats of mascara. So, to avoid confusion with your 2015 on-trend maquillage, let make-up giant Mac Cosmetics do the work for you. Their ‘Trend Forecast Spring 15’ lip and cheek palette includes warm, stand-out shades, from bright orange to light pastel peach, while the ‘Trend Forecast Spring 15’ eyes palette ranges from light periwinkle blue to intense, deep burgundy. The one thing to remember in 2015 is: don’t be afraid to add colour. It’s all about brave painterly strokes, ranging from high impact to quietly understated. £35 each, www.maccosmetics.co.uk

21. A matter of taste

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74 businesslife.co January/February 2015

Balachaung is a Burmese condiment that figures strongly in umamirich Burmese cuisine – most of which is prawn and fish based – and it’s become an overnight sensation with faddishly fickle foodies.

The main ingredients of this savoury spice are ground dried shrimp, onions (fresh and crispy fried), shrimp paste, garlic, vinegar, chilli and seasoning. It comes two ways – wet or dry. The crisp, golden, dry variety can be liberally scattered on stir fries, curries, soups, oriental-style stews or braises, salads – pretty much anything – adding serious oomph. Then there’s the wet variety – this stuff really does have the wow factor. But wet or dry, both are absolutely addictive. Dry, it adds a mega-hit of umami to your cooking. Wet – spread on toast or crackers, say– it’s mega-delicious. Diehard foodies are calling it the new Marmite. You’ll find it at Burma Star Foods, a UK supplier of Burmese condiments and food stuffs.

Their Balachaung is made to a family recipe of the company owner’s Burmese father.

From £3.25, www.burmastarfoods.com

22. Outside inside A rustic, laid-back, natural look is dominating interior trends for 2015. It’s a cross-pollination with industrial style, with elements of nature producing a cosy, lived-in feel.

It can be a wonderful showcase for ingenuity, but be sure to keep your rustic decor subtle and nuanced. Salvaged wood, rough timber and longoverlooked American hardwoods are combined with background neutral shades of grey, cream, stone, and misty forest greens.

Textural juxtapositions of hardworking fabrics, like burlap, washed linen, cotton and calico, combined with plank flooring, brick or stone walls, distressed metal, sheepskin and glass add elegance and unselfconscious luxury to living spaces.

A combination of offbeat, quirky lighting fixtures along with folk art, handthrown country ceramics, blown glass, natural seagrass baskets, wicker chairs, and natural wood milkmaid stools evoke an honest, unstudied, simpler feel.

Furniture goes from classically modified contemporary to homespun country with unpretentious aplomb, delivering an utterly ergonomic contemporary style.

Scrapwood wallpaper PHE-1 by Piet Hein Eek, £199, www.bodieandfou.com Schafer armchair, £1,299.92. www.ecochic.com.au

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22

Scrapwood wallpaper PHE-1.

Left: Schafer armchair

23. Record breaker

Until now, trying to convert your old vinyl to digital was pretty much a fruitless pursuit, then last year the Flexson VinylPlay Turntable arrived.

Precision made in the UK, with a sleek monochrome styling and stylish see-through protective lid, not only does it look good, it also sounds great. Flexson bends over backwards to make things easy – it’s got an analogue-to-digital convertor and phono pre-amp built in, so it will genuinely be working in minutes, and the whole thing can be set up in seconds. Just add speakers or plug it into any decent stereo system, sling some vinyl on the turntable, and you’re away. Pair it with SONOS and you can stream music all around your home.

You can also finally make digital copies of your vinyl collection in true hi-fi quality. This affordable turntable truly can’t be beat. £329.99, www.amazon.com

January/February 2015 businesslife.co 75

Directory To advertise in the directory in print or online contact Carl Methven on + 44 (0)1534 615886 or carl.methven@businesslife.co

Training to improve your business performance ALX Training is dedicated to making sure that your staff have the tools they need to do their jobs efficiently and effectively.

Our extensive range of courses covers all Microsoft Office products including Excel, Outlook, Powerpoint, Word, Project and Visio as well as training on the major bookkeeping packages: Sage and Quickbooks.

We also offer a wide range of online courses through our exclusive partnership with LearnDirect. From Microsoft Office Expert exams to short focused IT modules, you can use our range of online courses to provide your staff with a truly flexible way to learn.

Where software packages are unique to your business, we are able to create courses that will effectively train both your customers and staff on bespoke systems, getting the most from your investment.

Operating with complete flexibility - you can choose to use our training rooms or we can come to your workplace - we deliver courses in short two or threehour sessions that ensure learning is maximised whilst time out of the office is minimised.

For more information, please contact us: T: 01534 710926 E : alex@alxtraining.com www.alxtraining.com

76 businesslife.co January/February 2015

Appleby is the leading provider of offshore, legal, fiduciary and administration services. Uniquely positioned in the key offshore jurisdictions of Bermuda, BVI, the Cayman Islands, Guernsey, Isle of Man, Jersey, Mauritius and the Seychelles, as well as the international financial centres of London, Hong Kong, Shanghai and Zurich. We are also the only firm to have offices in all three British Crown Dependencies.

Active in Jersey’s Finance industry sector since its inception, the Jersey office has an excellent reputation for corporate & commercial, litigation, property and financial services as well as private client and corporate trust work.

Our services include: l Corporate & Commercial l Litigation & Insolvency l Private Client & Trust l Property Members of the Jersey office regularly advise London City and international law firms on all legal aspects of offshore corporate, finance and investment fund transactions and arrangements in Jersey.

For more information visit our website www.applebyglobal.com/our-expertise Michael Cushing Managing Partner – Jersey Tel: +44(0)1534 818 395 Email: mcushing@applebyglobal.com

Bespoke Impartial Credit Solutions Asset Leverage Consultants (ALC) is a privately owned company based in Jersey, serving a global client base.

We deliver bespoke debt structuring solutions, based upon the very latest financial criteria across all asset classes. Our knowledge enables our clients to achieve optimal financial structures that maximise returns and our service allows Trustees, Family Offices and Private Clients (both Private and Institutional), the ability to secure savings both from a monetary perspective and reduced risk profile.

ALC demystifies the language of finance, working independently of any provider on an impartial basis for our clients.

Learn more at: www.alc.je Tel: 01534 719 188 Email: enquiries@alc.com Linkedin: /asset leverage consultants

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Ashburton Investments is a new generation investment manager. We are the investment management arm of the FirstRand Group, one of Africa’s largest financial services companies. Our offering spans traditional and alternative investment strategies, as well as active and passive investment styles.

The strength of our investment proposition is based on our unique ability to leverage investment thinking and capability across the FirstRand Group, to offer retail or institutional clients unique investment opportunities. With us, investors can gain access to more sources of return, broader investment capabilities, considered risk management and deeper investment insights. We are experienced emerging market investors in Africa, India and China, with a proven track record in multi asset investing.

Our assets under management total approximately US$10 billion as at June 2014, and we have international reach with offices in the Channel Islands, South Africa, the United Kingdom, United Arab Emirates and India.

To find out how Ashburton Investments can help you access more opportunities, contact us today on: +44 (0)1534 512000 enquiries@ashburton.com www.ashburtoninvestments.com

We are an independent trust company fully regulated and licensed by the Jersey Financial Services Commission in the conduct of trust company business.

We provide a full range of management services to our domestic and international private clients.

Join us.

Our team has many years of experience dealing with a wide range of clients in different countries. We look to provide good corporate governance to achieve your aim. Try us.

Family office- bespoke assurance Wealth management -your strategy Fiduciary services - impartiality with vision Corporate services - attention to detail Good governance - a helpful eye We aim to assist in the provision of personal service to meet your requirements, being vigilant and proactive in the face of a fast changing legal, economic and fiscal landscape. We can provide the focus to your solution. Contact us.

Mrs Áine O’Reilly, ACCA – Client Director aoreilly@baccata.co.je Nigel Bentley, Solicitor, TEP – Consultant nbentley@baccata.co.je Mrs Ann Williams, TEP – Client Director awilliams@baccata.co.je Nicholas Falla, TEP – Managing Director nfalla@baccata.co.je Tel: +44 (0)1534 870670

At the C5 Alliance Group we work as a trusted partner with a range of different sized organisations in the Channel Islands, helping them to change and run their businesses, to increase revenue and reduce costs.

Now with a team of over 150 experts, we have both an IT Services Division (managed services/outsourcing) and a Business Solutions Division (professional services). C5 is a Microsoft Partner with multiple gold and silver accreditations achieved.

The services and support we provide includes: Business Solutions Division l Business Growth & System Innovation l Business Intelligence & Management Information l Business Process Management & Project Delivery l Client Relationship Management (CRM) l Infrastructure Design & Platform Implementation l Compliance & Corporate Governance l Information Sharing & Collaboration (SharePoint) l Product/Service Innovation l Customised IT Training IT Services Division l 24x7x365 Managed Services & Support l Full Service Desk including First Fix Time l Incident & Problem Management l Server Patching l End of Day Check Lists l Hands on 1st & 2nd Line Support l Cloud Services l Business Continuity l Dedicated Facilities & Hosting – ISAE 3402 accredited Please contact us to discuss how we can help your organisation gain competitive advantage through technology.

Tel: Jersey (0)1534 785400 /

Guernsey (0)1481 722575 Email: info@c5alliance.com Website: www.c5alliance.com

January/February 2015 businesslife.co 77

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Directory For more information about the directory contact Carl Methven on +44 (0)1534 615886 or carl.methven@businesslife.co

Deloitte LLP Deloitte LLP offers professional services to the UK and European market. The company has the broadest and deepest range of skills of any business advisory organisation and employs over 14,400 exceptional people in 28 offices in the UK and Switzerland.

We provide professional services and advice to many leading businesses, government departments and public sector bodies and publish many influential studies and thought leadership pieces.

Deloitte LLP employs 160 professionals across the Jersey, Guernsey and the Isle of Man offices. It is the UK member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its global network of 150 member firms, each of which is a legally separate and independent entity.

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. Deloitte brings worldclass capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges.

About EY EY is a global leader in assurance, tax, transactions and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

l Insolvency, Recovery and Reorganisation, and

Liquidation services l Out-sourced Accounting and Payroll services l Private Client services l Tax services l Business Risk services

To discuss how we can support your business, please contact one of our partners below: Mike Bane, Partner, Assurance and TAS E: mbane@uk.ey.com T: 01481 717435 Andrew Dann, Managing Partner, Assurance E: adann@uk.ey.com T: 01534 288655 Geraint Davies, Partner, Assurance E: gdavies11@uk.ey.com T: 01534 288639

John Clacy, Partner, Guernsey Email:jclacy@deloitte.co.uk Phone +44 (0) 1481 724011

Chris Matthews, Partner, Assurance E: cmatthews@uk.ey.com T: 01534 288610 David Moore, Partner, Assurance and Advisory E: dmoore@uk.ey.com T: 01534 288697 Peter Willey, CI Head of Tax E: pwilley@uk.ey.com T: 01534 288 212 Wendy Martin, Executive Director, Tax E: wmartin1@uk.ey.com T: 01534 288 298 David White, Head of Tax, Guernsey E: dwhite1@uk.ey.com T: 01481 717 445

78 businesslife.co January/February 2015

l Audit l Accounting services

Our strong network has enabled us to build close working relationships with our colleagues in EMEIA and across the world. This allows us to respond quickly to our CI clients’ needs, drawing upon our industry experience across all our services lines.

For further information please do not hesitate to contact:

Greg Branch, Partner, Jersey Email: gbranch@deloitte.co.uk Phone: +44(0)1534 824325 www.deloitte.com

Grant Thornton Limited is a leading Channel Islands accountancy and consultancy practice with offices in Guernsey and Jersey. We are the Channel Islands member of Grant Thornton International, one of the world’s leading organisations of independently owned and managed accounting and consulting firms. We provide a range of services in the Channel Islands that include:

We offer practical and strategic advice to a range of businesses from the Financial Services sector including Funds, Fiduciaries, Insurance and Banking.

Our Business Advisory team provides a full range of services to independent businesses throughout the Channel Islands, covering the retail, manufacturing, agricultural, horticultural, hotel, leisure and service sectors.

For more information please contact: Grant Thornton Guernsey Office PO Box 313, Lefebvre House Lefebvre Street, St Peter Port Guernsey GY1 3TF T +44 (0)1481 753400 F +44 (0)1481 753401 Grant Thornton Jersey Office Kensington Chambers 46/50 Kensington Place St Helier, Jersey JE1 1ET T +44 (0)1534 885885 F +44 (0)1534 885775 www.gt-ci.com

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A leading accountancy practice, with offices based in Jersey and Guernsey, KPMG in the Channel Islands provide audit, tax and financial advisory services.

KPMG’s global network enables us to draw on our international resources and skills to meet our clients’ needs. We address complex business challenges with methodologies and processes spanning markets and national boundaries.

Fundamental to KPMG’s approach is our focus on industry sectors. Our vision is simple, to turn knowledge into value for the benefit of our clients, people and capital markets.

For further information please contact: Neale Jehan Head of Audit njehan@kpmg.com

Marbral Advisory are the largest providers of change managers in the Channel Islands. Our portfolio of clients covers many sectors; Legal, Logistic, Utilities, Financial and Government. Our team provides businesses in transition and change with the professional support they require to achieve their business objectives and goals.

Change requires governance, great communication, drive, and innovation to succeed. Our success has been built on delivery.

Whether clients need seasoned Programme and Project Managers, highly skilled and experienced Business Analysts, Human Resources Consultants, PMO designers. Project Administrators, or training we can provide these resources. Marbral also provide a number of services to individuals actively involved in or wishing to instigate change, with coaching and mentoring support either at their offices, or within private consulting rooms.

Minerva is a family owned business that has been in existence in Jersey for over 35 years.

As a leading independent provider of trust, corporate and fund administration services, we focus on internationally active clients located in sub Saharan Africa, India, the GCC and Europe.

We firmly believe in the value of personal relationships and are familiar with how our clients and professional intermediaries operate from a cultural and business perspective within these regions.

In addition to Jersey, we provide services from a number of offices based in key jurisdictions including London, Geneva, Mauritius, Dubai, Singapore and Amsterdam, as well as affiliate offices in Kenya, India and New Zealand.

Marbral are continuing to grow and extend their range of exciting services including group facilitation, career support and a suite of technical change and personal effectiveness training courses.

For further information, please contact:

John Riva Head of Tax jriva@kpmg.com

For further information, please contact Alexsis Wintour – Principal Consultant Tel: 00 44 1534 744303 / 00 44 7700 33333 alexsis@marbraladvisory.com

Tony Mancini Executive Director, Tax amancini@kpmg.com

Kenan Osborne – Principal Consultant Tel: 00 44 1534 744303 / 00 44 7700 753753 kenan@marbraladvisory.com

Minerva Trust & Corporate Services Limited PO Box 218 43/45 La Motte Street St Helier Jersey JE4 8SD Channel Islands

Ashley Paxton Head of Advisory ashleypaxton@kpmg.com

Jamie Pestana - Principal Consultant Tel: 00 44 1534 744303 / 00 44 77977 99601 jamie@marbraladvisory.com

Robert Kirkby Executive Director rkirkby@kpmg.com

Chris Shield - Principal Consultant Tel: 00 44 1534 744303 / 00 44 7829 736810 chris@marbraladvisory.com

www.kpmg.com/channelislands

www.marbraladvisory.com

Andrew Quinn Deputy Head of Audit, andrewquinn@kpmg.com

John Wood Managing Director

T +(0)1534 702930 E john.wood@minerva-trust.com www.minerva-trust.com

➔ January/February 2015 businesslife.co 79

Directory For more information about the directory contact Carl Methven on +44 (0)1534 615886 or carl.methven@businesslife.co

Specialty: Bespoke IT Development & Business Consultancy Our Products PureClient is a new pioneering client data management platform that will maintain client records for any entity or relationship. Built with an integrated customer due diligence and risk assessment tool, PureClient has 4-eyes control throughout that will ensure your business can trust the data within it.

Designed to support FATCA, PureClient provides the necessary transparency to enable “look-through reporting” that is needed to manage sophisticated structures and automatically identify U.S. or other high risk entities and relationships.

PureClient will automatically manage new, outstanding and renewable KYC and ensure entity documentation is stored and quickly retrievable on the integrated document management platform.

PureFunds is a powerful and intuitive investment administration platform supporting Hedge Fund, Mutual Fund, Private Equity and Real Estate businesses within a single application.

PureFunds multi-currency transfer agency platform brings a new and dynamic approach to dealing and administrative activities ensuring that all client, fund and company registers are automatically updated.

The flexible straight- through batch processing functionality will automatically process, file and email all client correspondence. This functionality will minimise business risk and deliver many efficiencies without compromising control, integrity or security.

To find out more how Puritas can help your business.

Contact Mike Feighan Head of Business Development T: +44 (0) 1534 874100 E: mike.feighan@puritas.co.uk

80 businesslife.co January/February 2015

Understanding reputational tax risk In the current tough economic climate, tax authorities are under pressure to maximise revenues and prevent tax leakage, and attitudes to offshore financial centres are hardening, fuelled by coverage in the press. Users of offshore centres not only need to ensure their tax structuring is robust, but also that it stands up to public scrutiny.

Have you considered the reputational risk buried in your client base?

We can help you: l Review your client portfolio and identify risk areas. l Develop client take-on procedures that evaluate the business risk associated with tax structuring. l Review tax risks including substance and management and control in practice. l Assist your clients in dealing with tax enquiries and investigations.

The goal posts are moving; make sure you and your clients are not caught out.

Contact Jersey – 01534 838200 wendy.dorman@je.pwc.com garry.bell@je.pwc.com Contact Guernsey – 01481 752000 david.x.waldron@gg.pwc.com

Rathbone Investment Management International is part of the award winning Rathbone Brothers PLC (“Rathbones”), which was established in 1742.

Rathbones is a leading provider of discretionary investment management services for private investors, charities and trustees.

We enjoy the stability afforded by being a FTSE-250 listed company with significant critical mass (£20 billion of funds under management as at 31 March 2013).

We offer a range of tailored investment options: l Bespoke portfolio management l Multi-manager portfolios l Unitised portfolios (the RIMI Strategies Funds) Our services are delivered by a team of innovative and experienced offshore professionals based on an understanding of a client’s specific investment and risk objectives, backed-up by the performance-driven Rathbone investment process and encompass the full universe of assets.

For further information please do not hesitate to contact: Jonathan Giles, Managing Director Jonathan.giles@rathbones.com Phil Bain, Director Phil.bain@rathbones.com Vaughan Rimeur, Director Vaughan.rimeur@rathbones.com + 44 (0) 1534 740550 www.rathboneimi.com Rathbone Investment Management International Limited is regulated by the Jersey Financial Services Commission

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Rowlands has been actively supporting businesses in Jersey for almost 40 years. With a wealth of experience, in-depth market knowledge and a genuine enthusiasm for people, careers and resourcing we are well positioned to help you make the most of your recruitment opportunities and to secure the best possible people for your business.

Our performance is based on honest, effective personal relationships and it is our aim to provide you with a long term, valuable resource that will help to improve your business. The services we provide have developed through client demand; building a reputation for professionalism and confidentiality. Our services include: l Permanent Recruitment – all levels l Executive Placements l Temporary/Flexible Solutions l Contract Recruitment

Security & Simplicity Shared We provide exceptionally secure online access systems for sending and sharing highly confidential information.

Safelink’s virtual data rooms are perfect for M&A due diligence, allowing documents to be released to potential acquirers in a tightly controlled online “room” with the ability to restrict downloading and printing. Excellent local support, a simple but sophisticated interface and powerful page-level reporting make Safelink ideal for onshore and offshore transactions.

Our secure extranet service is used by trust, legal and accountancy firms to provide 24x7 access for peers, clients and intermediaries through a fully branded portal. You can share documents and send encrypted messages while retaining complete control.

l Graduate Services l Pre Employment Screening l Outplacement Services l Psychometric Testing

For further information, a no-obligation demonstration or to discuss your specific requirements please contact:

At Santander Corporate Banking, we believe in building long-term relationships by placing you, the customer, at the heart of all we do. We’ll strive to become your partner, not just a finance provider and we’ll take the time to listen to you and understand your business needs. We’re setting a new benchmark in corporate banking with a team of experienced Relationship Directors based within a Corporate Business Centre in Jersey.

Every business and organisation is different which is why we’ve assembled a range of products and services, together with tailor-made solutions in day to day banking, deposit taking, treasury and lending.

We are consistent in all we do; a true relationship bank that has earned the trust of our customers by doing what we say, when we say.

To start working with us today, contact our team on 01534 767750.

Wil Beaumont wil.beaumont@Santander.co.uk

l Remuneration Survey

Karl.Anderson@safelinkdatarooms.com For more information on these services and how we could support you and your resourcing strategy please contact: Jeralie Pallot Managing Director Rowlands Recruitment, Trinity House, Bath Street, St Helier, Jersey JE2 4ST

Safelink Data Rooms Suite 15, 4 Wharf Street St Helier, Jersey, JE2 3NR T: 020 8798 3140 E: hello@safelinkdatarooms.com W: www.safelinkdatarooms.com

Steve O’Brien Stephen.o’brien@santander.co.uk Richard Le Breton Richard.lebreton@santander.co.uk Jane Bond-Webster jane.bond-webster@santander.co.uk

T: +44 (0)1534 626722 E: Jeralie@rowlands.co.uk www.rowlands.co.uk

January/February 2015 businesslife.co 81

20 questions

questions with Mark Pesco

Favourite TV programme?

It’s a toss-up between I’m A Celebrity... Get Me Out Of Here! and Gogglebox. Actually it’s got to be Gogglebox – particularly the posh couple. Who would have thought watching people watch TV could be so entertaining?

Fondest childhood memory?

Spending my summer holidays with my Italian relatives in San Remo – endless days on the beach and eating Rostelle [grilled goat skewers].

Favourite holiday destination?

Sark. No – I’m joking! For chilling out it’s got to be the south of France.

Gogglebox

Most embarrassing thing that’s happened to you?

For the Directors’ Christmas video a couple of years ago I dressed up as our Group Head of Marketing, Jennie, donning a blonde wig and a full face of make-up – including false eyelashes. It was then played to everyone at the Christmas party later that year.

Last meal on death row?

It’s got to be a rare rib eye steak with chips and a very good bottle of Claret.

Cats or dogs?

Dogs. I’ve got a labradoodle, Lola. She’s a beautiful, blonde fluffy thing.

First job?

Growing up in Jersey, you always end up having an eclectic array of summer jobs. Mine include working as a milkman, painting boat engines and delivering wine.

kenny g

Dogs

82 businesslife.co January/February 2015

What did you want to be when you were growing up?

A professional musician – think Kenny G.

Your best qualities?

Sense of humour, patience and fairness.

Any bad habits?

I bite my nails – horrible habit.

Who do you admire?

Simon Weston, the Falkland’s war veteran.

What drives you nuts?

Slow drivers, rudeness and people that lack generosity.

Best bit of business advice you’ve received?

I think it’s quite simple – work hard and get on with people.

Dream job?

Trust fund beneficiary!

Worst job you’ve ever had?

It has to be the summer holiday I spent painting boat engines that I mentioned before – confined spaces and iron oxide fumes do not mix.

Buzzword you hate the most?

I have two: ‘let’s touch base’ and ‘can we take this offline’.

Sports fan?

Yes, rugby. We entertained 24 clients at the England vs New Zealand match last month. An excellent perk of the job.

City or country?

It’s a combination. I’d pick the city for food, wine, restaurants and culture, and the country for walking, spending time outdoors and keeping fit.

Any hobbies?

I’m obsessed with cooking and regularly wake up thinking about what I’m going to make for my family that evening. My gluttony, however, requires regular early morning visits to the gym, otherwise I would be the size of a house. n Mark Pesco is Group Managing Director - Private Clients at First Names Group

Kenny G Photo credit: s_bukley / Shutterstock.com

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➤ Tea or coffee?

Coffee. I have at least three or four cappuccinos from Mange Tout before 11am.

n

business news . views . comment . lifestyle

Issue 37: March/April 2015

PROPERTY FOCUS

Residential . Commercial . Buy-To-Let . Construction Buying Agents . Real Estate Funds . UK Property

Available 6 March

For advertising opportunities, contact Carl Methven on +44 1534 615886, +44 7797 796377 or at carl.methven@businesslife.co Plus: Emotional intelligence • Agile Innovation Speech writing • Outsourcing • The importance of sleep