BL Magazine Issue 49 March/April 2017

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doing business with AFRICA

How far have the Channel Islands made inroads in this most difficult of continents?

private clients in 2017

As the world keeps changing, the ‘typical’ private client has become a thing of the past

the digital channel islands

How close have Guernsey and Jersey come to achieving their lofty digital ambitions?


the end of forecasting post brexit and trump, why

bother predicting the future?


&CO IS IT ENOUGH TO BE THOROUGH? We don’t think so. Thorough is what you expect. Thorough is industry standard. At Carey Olsen, we view every instruction as a chance to surpass your expectations, to set new standards and reaffirm our position as leading offshore lawyers. We haven’t been just thorough for a very long time. We prefer meticulous.





The future is… well, we don’t have a clue, actually FOR THE PAST 12 months, this welcome page has been pretty much dominated by two things: Brexit and Donald Trump’s ascendency to President of the United States. As we move into Spring 2017, it seems like there may finally be some movement on the former, while the latter just gets more bizarre by the day. The one thing that both events have in common is that the pollsters and experts who supposedly ‘predict’ future events – be that in politics, stock markets or economics – got it so hideously wrong. And just to compound their epic failure, Brexit was meant to lead to the UK economy falling off a cliff, while Trump would send global markets into freefall. At the time of writing, neither has happened. Indeed, markets have gone up under the new President, much to the astonishment of many supposedly in the know. Admittedly, sterling tanked and Brexit technically hasn’t started yet, but all the same, the ‘science’ of forecasting has been seriously called into question in the past 12 months. That said, it’s really been under scrutiny for a lot longer – financial crisis that few people predicted ring any bells? It seems right, then, that in this issue, we look at whether forecasting is no longer worth bothering with. Some companies invest masses of time and a bucket load of cash in trying to predict which way the wind is blowing so that they can give their company an advantage – but would that be better spent elsewhere? Or is the reality that these days you have to plan for every eventuality? In uncertain times, it’s understandable that governments and businesses want to get a grip on what might come down the pipeline. But when there’s such a high level of uncertainty, forecasting does seem to be an exercise in futility. All of this said, companies, and indeed jurisdictions, do need to keep moving forward. And in the case of the Channel Islands, that means seeking out new territories with which to do business. Forty-four issues ago, in October 2009,, as this magazine was called at the time, looked at the opportunities for the islands in doing business with Africa. At the time, the continent was seen as a potential significant growth market, with billions, if not trillions, in untapped wealth. More than

seven years on – as we revisit Africa in this issue – it seems that both Guernsey and Jersey are still only just scratching the surface. The principle of ‘playing the long game’ certainly seems to hold very true in this instance. While that may be the case, Africa is definitely providing business to the islands, as are other global regions such as the Middle East, the Far East, Russia and the US. This increased globalisation creates two distinct challenges. First there’s the fact that clients from different regions and cultures often have different requirements. This has changed the face of private client businesses in the islands – and with no such thing as a ‘typical’ private client, businesses are having to move fast to keep up. Similarly, the shift towards greater transparency on a global scale has seen the introduction of the Common Reporting Standard, which is putting pressure of a different kind on fiduciary businesses. We take a look at both these challenges in this issue. Just as the islands keep moving forward, so do we. As we put each issue of the magazine to bed, we’re already working on the next edition. And it’s pretty screwy to get our heads around the fact that the next issue of the magazine will be our 50th. It will also be our annual Wealth Edition. I’d like to say that we planned that deliberately, but it’s a pure, albeit happy, coincidence. Keep your eyes peeled for that special bumper issue, out in May. But for now, enjoy your read. n

the ‘science’ of forecasting has been seriously called into question in the past 12 months

Nick Kirby, Editor-in-Chief, BL magazine march/april 2017 3

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BL guernsey Guernsey Finance makes Hong Kong appointment

G Locate Guernsey reports on 2016 achievements


ocate Guernsey facilitated a total of 21 relocations and created 36 local jobs during 2016, it announced at its Year in Review event in January. Working with a budget of £400,000 and a team of four, the organisation has returned an annualised financial benefit to the exchequer of £672,266. The team attended around 400 stakeholder meetings and 50 events, including a London event to showcase the island, and handled 140 inquiries.


Richard Le Tocq, Head of Locate Guernsey, said the £672,266 in financial benefit to the island excluded wider economic value to local businesses, such as contributions to the construction, service and hospitality, legal and financial sectors. He added: “The biggest challenge is getting Guernsey on the radar and helping people to understand how straightforward it is to relocate to the island. We’ve had encouraging feedback from those who have made the move here.” n

uernsey Finance has appointed Christopher Chan as its first Hong Kong Representative. Christopher will lead Guernsey’s promotional efforts in Hong Kong, as well as being an on-the-ground presence for Guernsey Finance and its member firms. He will also assist with promotion in the wider South East Asia region. Christopher has worked within Hong Kong’s financial and corporate services sector for the past six years, with a focus on business development. Guernsey Finance opened its Hong Kong office in March last year. It was initially used as a base from which Guernsey Finance’s Shanghai-based China Representative, Wendy Weng, carried out further promotional activities in South East Asia. It has also been used by the Guernsey Financial Services Commission to provide regulatory advice to those in the region who might be considering Guernsey-specific ventures. n

Rules enhanced for insurance-linked securities


he Guernsey Financial Services Commission (GFSC) has published a new set of rules that clarify the regulatory treatment of collateralised reinsurance, including insurance-linked securities (ILS), and allow for a one-day approval process. From 1 January 2017, under the Insurance Business (Special Purpose Insurer) Rules 2016, applications for the licensing of a special purpose insurer (SPI) may be granted a single consent for the formation of further SPIs but without any

further applications. The streamlined process typically allows new insurers to be established within one business day. The Insurance Business (Solvency) Rules 2015 have also been amended to include the new insurer class. The update means an SPI isn’t required to maintain the minimum or prescribed capital requirements or to conduct own risk or solvency assessments. Guernsey Finance Chief Executive Dominic Wheatley said: “These changes are a codification of the way the GFSC already applies its discretionary powers and they

provide a new level of operational certainty and efficiency for the insurance sector.” SPIs must be fully collateralised to the extent of their liabilities and, in addition to ILS, may include collateralised reinsurance, catastrophe bonds, side-cars and life-based securitisations. Typically, cash assets will be applied against liabilities. However, under the changes, the GFSC recognises that the commercial interests of the counterparties may be satisfied using (re)insurance, letters of credit or partly paid shares. n

64 march/april 2017

64 bl guernsey


The latest financial and business news and views from the bailiwick

BL jersey Jersey Finance sets out plans at annual review


BL is published six times a year by Chameleon Group +44 1534 615886


JFSC focuses on shared responsibility




ersey Finance will be commissioning independent research into the value the island’s finance industry brings to UK pension funds, and working to boost the perception of the industry in Jersey, as part of its 2017 marketing plan. Presenting the plan at Jersey Finance’s Annual Review on 27 January, Geoff Cook, CEO of Jersey Finance, said 2016 had been a record-breaking year, with funds business in Jersey reaching its highest level since 2008. He also noted the island was now the world’s sixth largest hedge fund management centre. Cook said: “Jersey’s finance industry has evolved considerably over the past decade and more than half of our business is now institutional in nature. "That means Jersey firms are

supporting areas like pension, university and sovereign wealth funds. But that is perhaps not widely understood. For that reason, we will be doing further research work this year to explain Jersey’s role in the global pension fund market. “Our funds industry continues to grow and diversify. Firms here are well established in the private equity, real estate, hedge and infrastructure fund space, but they are also reporting more activity in the private debt fund market, providing financing for investment activity around the world in the absence of traditional sources of financing. “We're also focused on differentiating Jersey through fintech and cyber security and enhancements to companies, trusts and foundations laws.” n

hared responsibility is the key theme of the Jersey Financial Services Commission’s (JFSC's) Business Plan for 2017, which was presented to the island's financial services industry and politicians in February. The regulator sent out a clear message that consumers, industry and the regulator must all play a part in protecting the island’s reputation and ensuring its continued economic success. The JFSC said it would be focusing its regulation on the areas of greatest risk, improving interactions with industry, safeguarding its own sustainability, efficiency and independence, and facilitating market access for Jersey. Mike Jones (pictured), Director of Policy at the JFSC, outlined the priority areas for the year ahead. These were: ● Enhancing the registry systems and beneficial ownership register ● Developing a new website and other digital channels ● Improving supervisory processes ● Expanding the financial education outreach programme ● Advancing cyber-security measures. The JFSC’s 2017 Business Plan can be viewed at n

Jersey retains credit rating


7 News

24 africa

A round-up of the latest Channel Island business news

This most diverse of continents has been targeted by both Jersey and Guernsey, but with what measure of success?

12 Appointments Recent top-level appointments for firms in Guernsey and Jersey

16 Interview Jo Stoddart, MD of Quintessential Relocation Consultants, on who’s moving to the islands and why

Finance 20 institutional investment Are investors favouring corporate or private client firms when putting their money into the Channel Islands?

ating agency Standard & Poor’s (S&P) has maintained Jersey’s credit rating at AA- as part of its regular, bi-annual review. The agency noted: “Our ratings on Jersey reflect our view of the island’s strong and flexible institutions, wealthy economy and considerable fiscal buffers. The stable outlook reflects our view that, over the next two years, the risks to Jersey’s financial sector and its fiscal performance will be balanced by its still-significant economic resilience.” The Chief Minister, Senator Ian Gorst, commented: “The agency’s report does point out that economic uncertainty in the UK could have an impact on Jersey. This is something we have anticipated and are planning for. “We have been able to update S&P on the work underway as a result of Brexit, and they share our view that our institutional relationships with the UK and EU are not expected to materially change.” n

business 48 digital islands

64 march/april 2017

How well are Guernsey and Jersey doing when it comes to realising their digital ambitions?

31 CRS

53 work contracts

With the Common Reporting Standard starting to bite, just how will the Channel Islands be affected?

With the rise of the gig economy and ‘zero hours’, is the nature of work contracts changing?

36 private clients As the world keeps on globalising, so the very nature of the private client is changing

They failed to predict Brexit and Trump, so is there really any value in listening to those who forecast the future?

42 banking


Having only just survived one banking crisis, could we be heading for another?

Want to get the most out of interns? Then make sure they’re doing more than just making coffee

66 bl Jersey A review of the biggest business developments and finance news stories


57 future forecasting

The Agenda Spring has sprung in our lifestyle section, as we go positively bright and breezy!

contributors The BL Global Discussion Forum

Follow us @blglobalnews Office: Floor One, Liberation Station, Esplanade, St Helier, Jersey JE2 3AS © 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.

ALEXANDER GARRETT It seems that predicting the future of business, politics and finance is getting harder by the minute. Which begs the question: why bother? BL newbie Alexander asks whether forecasting itself has a future.

KIRSTEN MOREL BL’s very own technology guru Kirsten takes a peek at how well the Channel Islands are doing in chasing their digital agendas, as well as looking at why work contracts no longer mean what they used to.

DAVE WALLER It’s a triple-header for BL stalwart Dave, as he examines how Jersey and Guernsey are faring in Africa; weighs up what the modern private client looks like; and asks whether banks are at risk of failing again.

CHRIS WHEAL Returning to write for BL, award-winning financial journalist Chris pits private client businesses against corporate firms and questions whether investors are favouring one over the other.

march/april 2017 5

Whether it’s an established company, a family business, an entrepreneurial start-up or the local arm of a larger operation, what businesses in the Channel Islands need to thrive in an ever-changing economy are trusted advisors who understand how to take advantage of opportunity, manage challenges and mitigate risk. Ogier’s local legal services team covers property, employment and regulatory law. We work with clients who are buying or selling a business, entering into a joint venture or restructuring, as well as advising on day to day issues from financing and corporate governance to contracts.

Local legal services Business and commercial law Competition law Dispute resolution Employment law Offshore relocations Planning and environment law Property and construction law Regulatory law Trusts Advisory Group Wills, probate and estate planning

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ey on brexit and channel islands

First speakers announced for inaugural Jersey Private Client Conference THE HEAD OF KPMG UK’s Family Office Services, a Legal Director at Mishcon de Reya, and UBS’s UK Head of Philanthropy Services are among the first speakers to be confirmed for BL Events’ inaugural Jersey Private Client Conference – ‘A Brave New World’. Produced in partnership with Zedra and sponsored by Benest Corbett Renouf and Optimus Group, the event will be held from 9am-3.15pm on Thursday 25 May at the Royal Yacht in St Helier. It will gather practitioners from Jersey and beyond to discuss the challenges, opportunities and issues dominating the private client space. The first group of speakers confirmed for the event is: ● David Benest, Managing Partner, Benest Corbett Renouf ● Ashley Cox, Managing Director, Zedra Jersey ● Sally Edwards, Global Head, Private Client and Trusts, Ogier ● Julie Fairclough, Director, Zedra Jersey ● Simon Foster, Chief Financial Officer, TY Danjuma Family Office ● Aonghus Fraser, Group Chief Technology Officer, C5 Alliance ● Miles Geffin, Legal Director,

Mishcon de Reya ● Catherine Grum, Head of Family Office Services, KPMG, London ● Tom Hall, Director, Head of Philanthropy Services UK, UBS ● John Harris, Director General, Jersey Financial Services Commission ● Keith Johnston, Chief Executive, Family Office Council ● Wendy Martin, Partner, EY ● Reginald Mills, Head of Corporate Finance Partnership EMEA, Deutsche Bank ● Kellyann Ozouf, Partner, Collas Crill ● Christopher Scholefield, Partner, Viberts ● Justin Woodhouse, Tax Partner, PwC. The event will examine: the new face of the private client; high-net-worth divorce; alternative investments; philanthropy; trusts, tax and regulation; technology and private clients; and challenges and opportunities in the years ahead. The delegate rate is £295, with discounts on multiple bookings. Five hours of CPD are also available. To book, go to or email n

ECONOMIC FORECASTING GROUP the EY ITEM Club has outlined how the Channel Islands will be affected by the shifting makeup of the UK economy in the coming years. The forecast notes that the UK and the Channel Islands are still in a risky period because of the unknowns surrounding Brexit. Presenting the forecast at seminars in Jersey and Guernsey in January, EY ITEM Club Senior Economic Adviser Martin Beck (pictured) outlined the options for leaving the EU. He noted the Channel Islands could provide a model for the UK. “The islands’ third-country status works well for them, and their relationships with the EU probably won’t change all that much, no matter which option the UK government negotiates,” he said. “What will be interesting is how the islands’ relationship with the UK changes post-Brexit. There will certainly be new trading opportunities opened up by Brexit, particularly as the islands provide such stability.” Beck said close links between the economy of the UK and those of the Channel Islands mean that the latter will feel the effects of a slower UK economy. The UK is the Channel Islands’ most prominent trading partner, so the value and volume of trade into the UK from the islands will be affected. He added that it was difficult to gauge the success of economies such as those in the Channel Islands. “Small economies are more susceptible than larger ones to erratic market behaviour and feel a greater impact from large one-off developments. This makes it hard to judge underlying economic performance. Additionally, the economies of the islands are underpinned by financial services, which are hard to measure given their ‘invisible’ nature.” n

march/april 2017 7


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Done Deals Collas Crill has acted for online gaming software supplier Playtech in a deal to buy games designer Eyecon for up to £50 million. Eyecon launched in Guernsey and Alderney in 2013. The Collas Crill team was led by Group Partner Wayne Atkinson and Senior Associate Simon Heggs, with property advice provided by Partner Paul Nettleship.

MitonOptimal expands into Isle of Man GUERNSEY-HEADQUARTERED INVESTMENT management group

MitonOptimal International has merged with Blythe Financial, an Isle of Man-based investment advisory business. The transaction and the granting of a discretionary fund management (DFM) licence – both of which have been approved by the Isle of Man Financial Services Authority – bring together the two firms under the MitonOptimal banner. All Blythe’s management and staff will stay with the company. Managing Director Alan Blythe will join the MitonOptimal International Board of Directors. Founded in 2002, MitonOptimal is a multi-asset management company with operations in Guernsey, South Africa, the UK, Isle of Man and Singapore. It offers a range of portfolio management, discretionary and advisory services, and multi-asset funds to intermediaries and institutional investors around the world. n

CISE to rebrand as TISE THE CHANNEL ISLANDS Securities Exchange (CISE) has announced plans to rebrand as The International Stock Exchange (TISE) in early March. The Exchange, which is headquartered in Guernsey and opened an office in Jersey at the start of 2015, also plans to launch a presence in the Isle of Man in March. Jon Moulton, Chairman of the CISE (pictured), said: “We already have business coming to us from many different parts of the world. Also, last year we made changes so that listing sponsors no longer have to be based in the Channel Islands, but can be from further afield… This [expansion] is the

8 march/april 2017

next phase of the longer-term strategy for the business and we believe now is the right time to reflect that through a change in name.” The CISE had 502 new listings during 2016. This represents an 18.7 per cent increase on the previous year, taking the total number of listings on the Exchange to 2,272 at the end of December. During 2016, the market capitalisation of all listed securities on the CISE increased by £36bn (10 per cent) to reach £393bn at the end of the year. n

Hawksford has supported the sale of a stake in online beach holiday provider On the Beach. Hawksford acted as a trustee and shareholder on the sale of 2.8 million shares at 240 pence on the London Stock Exchange, helping to raise £6.8 million for the selling shareholder it represents. It worked with law firms Ashurst and Carey Olsen, which also supported shareholders in the transaction. Offshore law firm Mourant Ozannes has advised China CITIC Bank Corporation and the Export-Import Bank of China on facilities with a total commitment of US$2.63bn for a consortium led by Apex Technology Co, PAG and Legend Capital Management Co. The facilities support the acquisition of US printer and software firm Lexmark International. The Mourant Ozannes team, advising on Cayman law, was led by Partner Simon Lawrenson. Mourant Ozannes’ Guernsey corporate team has advised on the placing of East Africa mining company Rainbow Rare Earths on the Main Market of the London Stock Exchange. On admission, Rainbow Rare Earths had a market capitalisation of £15.2 million. Partner Helen Wyatt led the team advising on the Guernsey aspects of the deal, aided by Corporate Senior Associate Dylan Latimer. Financial services group PraxisIFM Fund Services (UK) has worked with RM Capital Markets on the IPO of RM Secured Direct Lending on the Main Market of the LSE. Gross proceeds of £50.3 million were raised for RM to invest in secured debt instruments to UK SMEs and mid-market corporates. Walkers (Jersey) is advising Russian regional bank Bank Saint Petersburg on a private equity fund launch aimed at high-growth technology companies. It was set up as a Jersey closed-ended very private fund (limited partnership) with a Jersey general partner and investment adviser vehicle. The Walkers team was led by Senior Associate Sophie Reguengo. n


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SMP Partners expands into Jersey

Air ‘taxi service’ planned for this summer

ISLE OF MAN-based corporate and trust

A NEW AIR taxi service is due to launch in the Channel Islands this year, with a leased fleet of three aircraft connecting the islands. Based in Guernsey, the operation – Waves Technologies – will serve passengers from a private facility next to the main Guernsey airport terminal. Initially, flights will be between Jersey, Guernsey and Alderney, but Waves plans to offer services to southern England, France, Italy and Spain by 2018. As well as a timetabled service with up to four flights per hour, Waves has developed a booking solution similar to the mobile phone app used by Uber taxi customers. Waves is led by CEO entrepreneur and tech investor Nick Magliocchetti, with Captain Matt Bisson, formerly of Aurigny, as its COO. Magliocchetti is confident of securing an Air Operators Certificate this spring and to have flights running by summer. He told BL an inter-islands flight would cost between £45 and £75, depending on the destination. n

service provider SMP Partners has opened a new office in Jersey. Recently granted a corporate and trust services licence by the Jersey Financial Services Commission, SMP is using the move to diversify its service offering. Mark Denton, Managing Director of SMP Partners, said: “While our Jersey business will serve the broad corporate and trust requirements of our clients and contacts, our initial focus will be on egaming. With its egaming regulation now in place and a pipeline of business established, Jersey has become an important jurisdiction for our gaming division.” SMP Manager Katy Stopford has relocated from the gaming division in the Isle of Man to Jersey, becoming Associate Director responsible for establishing the new office and managing key relationships. n

CIPR elects new committee MARK OLIPHANT, Head of Communications at the Channel Islands Securities Exchange, has taken over as Chair of the Channel Islands group of the Chartered Institute of Public Relations. Oliphant (pictured) is joined on the executive committee by Vice Chair Natasha Egre from The Refinery, Treasurer Guy Le Maistre from Exposure PR, and Secretary Jim Anderson from the States of Guernsey. Katrina Bray, Lisa Downes and Leah Le Ruez from Liquid, Nichole Culverwell from Black Vanilla, Sarah Jehan from Collas Crill, and William Church from Jersey Royal Company, remain on the committee for another year. They are joined by Brooke Kenyon from Orchard PR. Crystal PR’s Adam Riddell, who has been the Channel Islands group Chair for three years, stepped down at the AGM at the end of January. He said the group would always be challenged due to its size and location, but added: “Despite the fact that we are the youngest CIPR regional group and the smallest by some distance, we are one of the most active. In 2016, we held nine CPD events, as well as networking and social events, and we continue to attract some of the industry’s leading and well-regarded trainers and speakers.” n

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MERGERS AND ACQUISITIONS Global security company West Sealand International has acquired Guernsey-based cyber security consultancy Ascot Barclay Group. West Sealand, which is headquartered in Guernsey, launched in 2016 and has an office in Washington and consultants in Scandinavia, the UK and Saudi Arabia. The company offers security masterplan design and consultancy, as well as specialist training services. Ascot Barclay Group, which provides cyber security products and services to Channel Islands companies, has rebranded as West Sealand Digital. Savills UK has extended its Channel Islands presence with the acquisition of Guernsey-based Montagu Evans Channel Islands. The move will combine with Savills’ existing residential offer in Jersey to provide a real estate service across the jurisdiction. Montagu Evans Channel Islands has changed its name to Savills Channel Islands accordingly. Its team of nine, who all join Savills, is led by Managing Director Tony Rowbotham. Fund and corporate services provider Alter Domus has signed an agreement to acquire Carta Fund Services in the US. Carta specialises in providing private equity-focused, customisable reporting and administrative solutions for general partner sponsors and institutional and sophisticated investors. The company was founded in 2013 by Michael Trinkaus as a spin-off of a private equity company, and now has a team of 28. Following completion of the transaction, Trinkaus will become Regional Executive North America and Country Executive US of the expanded firm. n


INTELLIGENCE When you look below the surface, we are more than just Global Fund Services. Our people are the very best and brightest sparks - skilled outside-the-box thinkers who deliver intelligently tailored solutions to meet our clients’ needs. So you can expect more from Moore.



Moore consists of a number of companies operating in multiple jurisdictions. These include entities licensed by the Guernsey Financial Services Commission and

Jersey Financial Services Commission. For details of specific activities and regulatory status please visit our website Moore does not march/april 2017 11 provide legal, tax or investment advice and the information in this document should not be regarded as such.


Appointments Funds and regulatory specialist Emily Haithwaite has joined Ogier as a Partner. Emily joins from Bedell Group, where she spent almost two decades acting for banks and asset managers in the formation, listing and winding-up of funds, as well as for sovereign wealth funds, funds of funds and investors in Jersey funds. She has extensive regulatory experience, having advised investment, trust company, fund services businesses and directors on their regulatory licence applications and ongoing obligations. Emily is an expert in AIFMD regulation and an active member of Jersey’s AIFMD industry working group.

Collas Crill in Jersey has appointed trust lawyer Nick Marshall as a Senior Associate in its fiduciary team. An English solicitor experienced in advising on private wealth structures and other fiduciary matters, Nick specialises in all aspects of Jersey trusts and foundations law. As well as being a senior private client lawyer, he has expertise in a variety of UK and Jersey corporate and commercial matters. He previously spent time with Collas Crill as a professional support lawyer in its knowledge management team, providing advice and resources across all departments. He has also spent a short time with Pinel Advocates.

Zedra has appointed Paul Nayar as Finance Director, Mark Cleary as Head of Relationship Management and Funds, Guernsey, and Joe Donohoe (pictured) as Client Director. Paul, who is now responsible for all financial procedures, policies, controls and reporting systems in the business, was most recently Chief Financial Officer for Result Marketing. Mark, who now oversees relationships with bespoke fund services, was previously Risk Manager for Ashburton Investments. Joe, meanwhile, moved to Jersey in 1986 and joins Zedra from Asset Risk Consultants, where he was a Director.

Mourant Ozannes has appointed four new Partners to its Jersey office – lawyers Alistair Horn and Jon Woolrich in the Corporate and Finance practice and, for the first time, two professionals from outside the law: Chief Operating Officer Keith Pearse (pictured) and Managing Director of Corporate Services Ed Fletcher. Keith has been with the firm since 2013; he was previously International Director of Human Resources at RBC Wealth Management. Ed joined in 2012 from Deutsche Bank. Alistair qualified in London before moving to the firm in 2005. And Jon joined in 2007 from Scottish firm Maclay Murray & Spens.

PraxisIFM has recruited Peter Bruges to the new role of Group Finance Director. Peter has held a variety of senior roles, including Head of Internal Audit and Programme Management at Specsavers, moving on to Terra Firma Capital Management to establish its Guernsey office as Finance and Operations Director. Peter has also held CFO roles with The Channel Islands Co-operative Society and family office Hark Capital. He joins PraxisIFM from investment specialist Energy Growth Momentum, where he has been Director and Financial Controller for the past year.

HSBC has appointed Tracy Garrad as Chief Executive Officer for the bank’s operations in the Channel Islands and the Isle of Man. Tracy, previously Chief Executive Officer of First Direct, succeeds Ewan Stirling, who is retiring after more than 31 years with HSBC. Based at HSBC International’s Jersey HQ, Tracy will oversee local retail operation HSBC Bank International, as well as HSBC’s private banking and trust businesses in the islands. She joined HSBC in June 2012, having spent 10 years at Banco Santander, and joined First Direct in April 2013, becoming Chief Executive in May 2014.

Finding the best brains in the business... 12 march/april 2017


Equiom has promoted Sarah Vooles and Jack Nicholls (pictured) to Manager and Senior Manager respectively in the Client Services department. Sarah has been in the finance sector for 20 years, with a recent focus on looking after registered office-only clients. Her new role will involve managing relationships with new and existing clients. Jack has 27 years’ experience and joined Equiom after the acquisition of Vivat Trust & Corporate Services in January 2016. Moving up from Trust Manager, he will continue to have responsibility for a portfolio of private clients while also managing a team in the Client Services department.

Sure’s operations in two regions – Channel Islands and Isle of Man, and South Atlantic and Diego Garcia – will now be managed as one group, headquartered in Guernsey. Ian Kelly (pictured), CEO of the telecomms group’s South Atlantic and Diego Garcia operations for the past three years, and also an Executive of Batelco (Bahrain Telecommunications Company) since 2007, has been named acting CEO of the group. Eddie Saints, who held the post of Guernsey-based CEO of Sure’s Channel Islands and Isle of Man operations since 2008, was due to take on the role with Ian’s support prior to his death in January.

Ipes, the provider of outsourced services to private equity firms in Europe, has appointed Adrian Gardner to the role of Chief Financial Officer. Adrian, who is a chartered accountant, is an established CFO with a broad range of experience. Until recently, he served as Chief Financial Officer of FTSE 250 financial services firm International Personal Finance. Adrian began his career at Price Waterhouse (now PwC), going on to spent 13 years at Lazard, latterly as a Managing Director in the technology, media and telecoms team. He then served as CFO at ProStrakan, PA Consulting and RSM Tenon.

Corporate services provider Crestbridge has appointed corporate lawyer Danny Cole as a Director of Corporate Services in the firm’s Jersey office. Danny will be responsible for merger and acquisition deals, services to complex structures and directing a number of entities. In the latest move of a 15-year career, he joins from international law firm Appleby in Jersey, where he advised on corporate finance transactions, international M&A, restructurings, listings and regulatory issues. He has also acted for a range of corporate clients, banks, insurers and a number of other financial institutions.

Sanne has named Eric Watson (pictured) Chief Operating Officer, as his predecessor Phil Godley moves into a new group role of Senior Managing Director. Based in Jersey, Eric will oversee IT, operations, human resources, legal and company secretary. He joins from Royal Bank of Scotland, where he has worked since 2012, most recently as Programme Director for Williams & Glyn Financial Crime. In his new role, Phil will oversee Sanne’s global product and service offering. He moves up after almost two and a half years as Chief Operating Officer, having joined Sanne in 2006.

Peter Brown has become Head of Funds at RBS International. Peter has more than 25 years’ experience in corporate and institutional banking, and most recently led the RBS Financial Institutions Group in the UK, which included the RBS funds banking business in London. Prior to that, he was a founding member of the RBS mid-market leveraged finance business, delivering buyout transactions alongside private equity sponsors. Peter now leads a funds banking team that supports fund manager and fund administrator customers in the UK, Jersey and Guernsey.

We call it resourcing excellence. march/april 2017 13

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As managing director of Quintessential Relocation Consultants, Jo Stoddart helps individuals, families and businesses move to the Channel Islands. She tells BL who’s coming and why, what the islands have to offer and what they could do better


interview Jo Stoddart


Words: Nick Kirby Pictures: Glen Perotte

You set up Quintessential in 2010 – did you spot a gap in the market? Basically, I had a constant stream of clients who had the same issues I’d had when moving – there was nowhere to go for independent advice about where to live, which were the best schools etc. I realised relocators could benefit massively from an independent property finding and project management service to pull all the different threads together and open the right doors. It was a massive leap of faith, but I could see there was a need for it. How has the business grown since you launched it? I was on my own at first, but now there are five of us over two islands. Between us, we have personal experience of international relocation and we know the property markets and schools really well. We’ve

worked with hundreds of clients from all walks of life and all budgets, so we bring a lot to the party. Most of our clients are really busy and time poor – they don’t want to trail through endless websites looking for property. So we search the whole of the market, discuss options with them, make appointments, preview on their behalf if necessary. We get involved in negotiating leases and sales and act as the client’s eyes and ears on the ground before they arrive. We give a lot of frank and unbiased advice on all aspects of Channel Island life. Whether people need help arranging shipping, transporting pets, re-registering cars, finding doctors or employing domestic staff, we can point them in the right direction. We’ve even helped people to find jobs. The list is pretty endless. So, what sort of people are relocating to the islands? About 75 per cent of the people we deal with relocate with their job, 25 per cent choose to live here. We deal with a fair amount of families, but we also help single people and couples. The demographics are really interesting, with an increasing number of younger people looking for a better work/life balance. Entrepreneurial types see opportunities here and, for those in the finance industry, offshore experience looks good on their CV. You launched just after the financial crisis – how have things changed since then? The days when people used to come to the islands and buy a property and think ‘If we don’t like it, we’ll resell it’ are behind us. These days, people are a lot more cautious – they’re renting, not wanting to commit themselves for long periods of time. As far as employment goes, we did have a really slow period where employers weren’t bringing people to the island. It didn’t quite drop off a cliff but it wasn’t far off. Now that’s really picking up and employers are bringing more staff to the islands again, which is a sign of confidence. It helps that there aren’t as many restrictions on where people can live – the housing laws changed in Jersey in 2013, for instance, and the rules are due to change in Guernsey at the beginning of April.

If people come and spend a few days here and realise it’s not for them, then it’s money well spent

Where are these new arrivals to the islands coming from? We’ve got employers who are bringing in people from all over the world. We’ve worked with people coming in from Russia, America, Canada, Australia, New Zealand, Dubai, the Caribbean. That said, the majority are still British or European. Do you think people have misconceptions about the Channel Islands? Yes, I think people do have preconceived ideas. Many assume that because the islands are small, there will be nothing to do. People are usually pleasantly surprised that there’s far more going on than they expected. They’re also amazed by how beautiful, clean and well-kept everything is. Families sometimes worry about the quality of education and what opportunities there will be for their children – and are then blown away by just how good it is. That said, many people also assume everyone is rich here, so it can be quite a surprise to see that we also have poverty. What do you believe are the attractions of the islands? To the wealthy, it’s tax, obviously. But where we win over other jurisdictions is the fantastic work/life balance. Also, safety and security are uppermost in people’s minds – they want to live in a place where their family and their business will be safe. You have shorter commuter distances, and you

march/april 2017 17

Before you started Quintessential Relocation Consultants, what was your background? I went to Paris for a gap year, but ended up staying for 17 years. I worked for five of those in international banking before realising that wasn’t for me. I spent a couple of years at a charity, then five at IMG McCormack, an international sports management firm. I was involved in organising huge projects, including professional golf and tennis tournaments all over France. After my daughter was born, I went to work at the OECD for five years, organising conferences and seminars in central and eastern Europe. I moved to London in 1999 with my husband, David. We spent 20 months there but weren’t particularly enamoured with the lifestyle, so we moved to Jersey in 2001. My son was born, and when he was two I thought ‘I need to go back to work’. So I went to work for a property firm, mainly dealing with commercial sales and lettings, but also doing a bit of residential work for clients who were relocating. In 2005, we moved to Guernsey because of David’s work, and I took up a post at a local estate agency. In relocation terminology, I was the classic ‘trailing spouse’ – having to rebuild our family life each time David moved. So my career path has, by necessity, been varied!

Interview can access decision-makers such as government officials quite easily. The medical care is great, education is good and there are lots of leisure options. When we moved to Jersey from London, we were blown away by the improvement in our quality of life and I know others feel the same. On the flipside, what might put people off? It can be expensive to get off the rock and travel links are an issue. If you’re going on holiday abroad, you generally have to get a flight to the UK first, so that’s an extra cost. The cost of living and the cost of property can put people off, particularly if they’re coming over for a job and are on the lower end of the payscale. Generally, though, there are more advantages than disadvantages. What makes people choose one island over the other? Not everyone gets to choose, especially if they’re coming for work. If they’re coming for other reasons, partly it’s a question of affordability. Jersey sets a minimum income level that they expect their high-net-worths to be able to meet. So Guernsey’s an easier option. Typically, people say there’s more going on in Jersey and it’s generally a bigger place. Some think Guernsey is too quiet. But others prefer the quiet and don’t want the ‘bling’ factor of Jersey. It depends what you’re looking for in terms of lifestyle, and also on the type of property you’re after. Do you ever get people who come to the islands, have a look and just say no? Yes we do. In some cases, people are put off by the cost of property and realise they could get more for their money in other jurisdictions. Sometimes it’s the transport links, but mostly it’s because one half in a relationship isn’t committed to moving. When that’s the case, it’s a personal issue and it would be the same anywhere. If people come and spend a few days here and realise that it’s not for them, then it’s money well spent, because a relocation that doesn’t work out is horrendous for everybody. When you relocate, you’re ripping up your roots and starting over again, and you need to be realistic about whether you’re prepared for that. How important have Locate Jersey and Locate Guernsey been in attracting people to the islands? Both organisations do a great job marketing the islands as destinations for people to come to for business or wealth reasons. They have the funds to go out and do that, whereas small companies like mine don’t have the budget for that. The important thing is that they’re both seen as representatives of the government, so it sends out a message that Jersey

18 march/april 2017

FACT FILE Name: Jo Stoddart Age: 53 Position: Founder and MD of Quintessential Relocation Consultants Married to: David Children: Laura and William Hobbies: Cooking, renovating houses, travel Interesting fact: I had to stand in for Isabella Rossellini and present one of the prizes to golfer Vijay Singh when he won the 25th Lancome Trophy in Paris in 1994

and Guernsey are open for business. Competitor jurisdictions all have similar set-ups and it’s something the islands just have to invest in to ensure we’re on the radar of people looking to relocate. Is there anything those bodies aren’t doing that could help the islands more? They’re doing a great job targeting the obvious sectors, but I think they need ideas about what other sectors might work on the islands. Identifying growing businesses elsewhere that are looking for funding to take their business to the next level and matching them up with some of the wealthy and sophisticated investors living on both islands could provide an opportunity. It could be win-win if business funding from private investors and residency went hand in hand. So, tell some of these entrepreneurs they could have the funding if they moved their business to the islands and created local jobs in the process. Have you noticed any impact on relocation on the back of Brexit? If anything, it’s had a positive effect. Before the referendum – from early April onwards – things went very quiet. Businesses and individuals put plans on hold. Once the outcome was announced, there was a flurry of people saying ‘We’ve got to get away from the UK’. I can’t say it’s been floodgates, but it has prompted some people to make a decision. In terms of business clients bringing staff to the islands, that seems to be taking off again in some cases. Then again, we have other clients who employ people from all around Europe who are suddenly putting the brakes on because they don’t know what the implications are going to be in the long term. I do have a few concerns about whether the UK will start to sell itself as a low-tax jurisdiction, which could be a bit of a challenge for the Channel Islands.

Are there other jurisdictions that people think about when considering Jersey and Guernsey? People often consider a number of places. We had a client recently who’s relocating his business – he did a very thorough study of all the possible places around the world he could go, and he felt that Guernsey was the right choice. Switzerland used to be popular, and sometimes Malta is on the radar, especially in the tech arena. But no, there isn’t just one place. How do you see the outlook for the next 12 months, both for people relocating and for your business? The start of the year has been really positive. I think it’s an interesting time for people coming to the islands – for instance, as I mentioned earlier, the housing rules are changing in Guernsey as they did in Jersey three years ago. In Guernsey, prices on the Open Market have dropped considerably, so it’s a real buyers market. Business seems to be doing quite well in the islands. You can see things moving forward, and it’s encouraging to see interesting people from diverse backgrounds with some great ideas among the entrepreneurs who are moving to the islands. They want to get involved, contribute to island life and make a difference, which is encouraging. I think I would say I’m cautiously optimistic because I can see movement rather than stagnation. As for my business, it’s important to get the message across about what we do and how we complement the work of Locate Jersey and Locate Guernsey rather than compete with them. Other than that, we’re just going with the flow – you never know from one week to another who might be the next new client. And that’s all part of the fun. n NICK KIRBY is Editor-in-Chief of BL magazine


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Corporate or private clients:

the investor’s dilemma


Words: Chris Wheal

There’s a theory that investors prefer corporate businesses over private client firms, but is that perception remotely accurate or is the thinking flawed? so. Many other firms are heavily private client, or equally mixed. When you look at the balance of such firms, it makes you wonder if there really is any merit in the argument that one is better than the other.

CLEAN VS DIRTY MONEY Smith thinks the concerns are that corporate money is safe, whereas private money is potentially ‘dirty’. He believes there’s been a legacy of misconception among European investors that offshore centres are part of an unregulated, secretive Wild West of investing, where private clients hightail it to hide their saddlebags of ill-gotten cash. Investors with that view are wrong, he says. “For an outsider to the sector,

For an outsider to the sector, corporate business is seen as safer, with less reputational risk and higher growth rates

corporate business is seen as safer, with less reputational risk and higher growth rates. Maybe the growth rates can be better in the corporate sector, but in the Channel Islands the private client money is clean and has been for years.” It’s a perception that frustrates Bart Deconinck, co-Founder of mixed business Zedra. “In the private client sector, you find now, worldwide, a very compliant, clean and above-board industry,” he says. “Sometimes you can get angry because, for instance, you have leaks such as the Panama Papers that give a view on how it used to be 10 years ago, not how it is today. Public opinion mixes this up, and some journalists get it wrong, and it gathers speed. I wouldn’t know how to get a structure up and running and a bank account open for money that wasn’t fully compliant anymore. I just wouldn’t know how to do it.” Smith says the impact of this prejudice is widespread. “It’s impacting a bit on pricing, but some firms with lots of private clients have been told they can’t list. Where private equity firms do buy into mixed businesses, they’re trying to make them more focused on corporate business,” Smith claims. “The whole concept is flawed.” Not everyone agrees, however. One market maker, who didn’t want to be named, says it’s not misunderstanding how good the quality of private client business is, but a focus on the potential growth rates that are higher in the corporate sector. “The view that corporate business is better isn’t unfair. Investors see corporates as stickier and likely to grow more quickly. It’s not at all about getting out of private clients to tilt the balance in favour of corporates – most of this money [behind march/april 2017 21

WHETHER THEY’RE THE man on the street choosing which retail funds to invest in, or institutional types looking to buy into a business, investors are always looking for the biggest bang for their buck. They have another thing in common, too – the pot of cash isn’t bottomless, so that means hard decisions have to be made. When it comes to the institutional end, there’s a school of thought that says city slicker investment types prefer flinging their hard-earned cash into fiduciary firms that favour corporate funds rather than those handling private client wealth. Indeed, it’s been suggested that potential investors often won’t back M&A activity or IPOs for firms heavily into private clients. And if they will invest, they do so at a lower price or insist on a massive expansion of their investment’s corporate client base as part of its business plan. Jonathan Smith is a Partner at Wyvern Partners who advises private equity firms, banks and other investors, and has witnessed this negative impact on firms with strong private client business. He says one firm has even been told that it’s “too private client to IPO”. He believes there’s an unfair preference among investors for firms with strong corporate client bases. This poses an interesting challenge for the Channel Islands, which host firms from across the spectrum. There are fiduciary experts with a strong corporate bias, such as Ipes and Augentius. There are mixed firms with a corporate bias but a considerable private client base alongside, such as Sanne, which had a £232 million IPO in 2015. And there are firms with a strong private client base, such as Equiom, which is private equity-backed and has been on the acquisition trail for the past year or


private equity and IPOs] is funded by private clients,” the source told BL. Deconinck says it’s a problem, but the dynamics are shifting. “I would say, yes, up to very recently, investors looked at corporate businesses above private, but I think it’s changing now,” he says. Three years ago he admits there would have been zero interest in a business with a strong private client portfolio. Part of the negative view of private clients were concerns about tax conformity. Deconinck insists that this all changed with the introduction of the Common Reporting Standard (CRS). States such as Jersey have been sharing information with countries around the world for 15 years or more. The same couldn’t be said of all offshore tax jurisdictions. But pressure from the Organisation for Economic Co-Operation and Development (OECD) has meant that even the more recalcitrant governments have started sharing tax information. “The Channel Islands have always been frontrunners in this, but the jurisdictions that are a little more laissez-aller have also cleaned up their act more recently because there’s no hiding anymore,” Deconinck says. “Since January, private clients are de facto compliant. There’s no right or wrong anymore – only compliance. The appetite is changing because investors know that if you step into the private client business, it’s a totally different ball game to 10 years ago.” No wonder, then, that the Channel Islands remain attractive to wealthy private individuals. Indeed, targeting growth in this area is part of the islands’ plans for the future. Jersey Finance, for example, had a tour of Asia last year and sees the growing number of high-net-worth and ultra-highnet-worth individuals in the likes of China as a huge potential market. Guernsey Finance was in Shanghai for the same reason in December last year.

TURNING THE TABLES The spotlight now, Deconinck insists, is on the less regulated and potentially less complaint corporate sector. “At the same time as the private wealth sector has become compliant, you see all kinds of things happening in corporate business

22 march/april 2017

It’s been suggested that potential investors often won’t back M&A activity or IPO s for firms heavily into private clients

that create uncertainty.” He cites OECD guidelines on base erosion and profit shifting (BEPS) as a powerful concern. Reporting guidelines now demand companies report profits in the countries in which those profits originated, casting doubt on the structures used to move profits to lower-tax locations. “It calls into question all sorts of corporate structures,” says Deconinck. He specifically points to what he calls the “attacks” in the EU on Apple and Starbucks for their location decisions that result in little tax being paid in key trading countries. Apple was told to pay back €13bn in avoided tax to the Irish government after the EU stamped out the ‘sweetheart deal’ to attract the tech giant. Starbucks was similarly forced to pay €25.5 million to the Dutch government, with the knock-on effect that it’s started paying greater proportions of tax in

individual EU countries too. And US tax avoiders are about to be played a Trump card. “The new President in the United States has a comprehensive tax reform where he wants to bring back the trillions that are in overseas structures,” Deconinck says. “All these things create uncertainty in the corporate sector. So today, if you look at the private client business, you know exactly what’s going to happen, while the uncertainty in terms of ‘are these structures for corporate clients valid for the medium or long term?’ is becoming a problem.” Deconinck also challenges the long-held assumption that growth is more certain in the corporate sector. He says growth in this sector is predicated on three factors: continuing GDP growth; M&A transactions; and cross-border trade. “As to economic growth, yes, I see that continuing, but M&A transactions are still subdued compared with what we saw prior to 2008. And with cross-border trade you only have to look at what’s happening in the world to see free-trade agreements being stopped. We’re going into a protectionist world.” There are changes in circumstances and new nuances, but the argument over whether it’s better to have corporate or private clients or to have a mix of both has been going on for years and will probably go on for many more. Even the most pro-corporate source says: “Private client business is still very attractive. There’s a lot of value in private client business.” While Wyvern’s Smith says investors need educating to see the value of firms focused on private clients, Deconinck argues that all firms should be balanced – ideally about 50 per cent in each but not more than 60:40 in either direction. Sometimes defining your client can be a case of semantics. “Look at Asia. Even the biggest companies there are often owned by families. If those families are your clients, are they private clients or corporate? Often it’s unclear,” Deconinck says. “Having expertise in both is the way forward. If you have knowledge of both corporate and private clients, it puts you in the perfect position.” n CHRIS WHEAL is a freelance financial writer


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The slow

road to

24 march/april 2017


EIGHT YEARS AGO, thanks to the arrival of a new US President, one simple word was getting a huge amount of lip service: hope. Soon after Barack Obama rode into the White House on a wave of ‘Hope’ and ‘Yes We Can’ badges, here at BL we ran a feature on the vast promise of the African market. Just like the Obama campaign, the continent was generating a lot of optimism in 2009 – in this case, over the potential spoils it promised. The figures were certainly eye-catching – foreign direct investment into the continent had hit $61.9bn by 2008, according to African Economic Outlook. China was backing everything from minerals and energy to transport and construction. And everyone from the Gulf nations to Russia and Malaysia was looking to benefit from the endless potential of the continent. Hence the Channel Islands’ interest. Not only did Africa offer huge demand for investment structures (funds focused on sub-Saharan Africa raised $3.2bn in 2008), but all the private wealth coming out of the region would need a stable home too. And so, eight years after that article, we come to a natural question: did the African

opportunity live up to the hype? The short answer is no. At least not yet. In terms of genuine presence in the continent, the Channel Islands’ footprint has been light – Guernsey Finance has said that, beyond working with South Africa, the rest of the vast continent isn’t currently an area of focus. And while Jersey Finance has taken greater steps on the ground, even it says the industry’s intent towards Africa hasn’t been as focused as it has been towards, say, China (Jersey Finance says 15 of its member firms have a presence in South Africa, Kenya and/or Nigeria, compared with 34 in mainland China and 50 in Hong Kong). So what’s happened? One key lesson learned in the last eight years is that the African market is tough for outsiders. As with many emerging markets, the vast opportunity is tempered by the need to invest a huge amount of time and energy to build trust on the ground. “You can’t sit on an island and pretend you’ll crack Africa,” says Will Thorp, CEO of Standard Bank Offshore Group. “You need to ensure that people are getting on planes and building relationships.”

BARRIERS TO ENTRY For an illustration of how hard it can be, look at Minerva Group, which set up MTC Trust in Kenya in 2012 and took three years to make headway with the African business community, despite having strong relationships in the area. “We’ve done it, but we’re just one company, and we had experience in the market,” says Sailesh Navsaria, Head of Africa, Strategy and

Words: Dave Waller


The Channel Islands have long talked about the opportunities provided by Africa, but it seems that gaining a foothold there isn’t as simple as perhaps it first appeared march/april 2017 25


ultra-high-net-worth individuals in Africa






Combined wealth of HNWI s in Africa

3,933 2025

Source: Knight Frank Wealth Report 2016


Development at Minerva. “But it was still a challenge.” One major hurdle is cultural. Many potential clients will be unfamiliar with Channel Island vehicles, and there may be more fundamental, yet fascinating, blocks to understanding. “It wasn’t easy for us to sell a concept like a trust to communities who view even the mention of the word death as completely taboo,” says Navsaria. “You need to find a way to address the mortality issue.” Beyond that, the islands face stiff competition from other international finance centres. “If there’s a look to offshore, the majority of structures will involve Mauritius. It has a significant double-tax treaty network,” says Simon Dinning, a Partner at Ogier. “And the BVI tends to provide more vehicles for African investment than the Channel Islands. Until we’ve a developed set of agreements and treaties in place, Jersey and Guernsey are unlikely to be the ‘go to’ jurisdictions for this work. And as Mauritius becomes a more sophisticated international finance centre, Jersey and Guernsey may start to miss out on the work that they currently see from the continent.” But as Dinning suggests, there is work being done. South Africa is still the vast continent’s largest economy by far, and internationally dynamic families there often use Channel Island structures to preserve their wealth in the face of local instability. This pattern is repeating in the likes of Nigeria and Kenya, as their highnet-worth populations grow. Yet while it’s natural to think of wealthy Africans seeking refuge for their assets away from corruption, there’s been a surprising twist since 2008. As the continent has begun offering better returns,

26 march/april 2017

just as Europe stagnates, Africans have been taking money back to expand their local businesses or invest in local assets. “Private clients used to see a few properties in the UK and a good name on the high street as blue-chip investments,” says Navsaria. “But with the financial crisis, they saw those names disappearing. We see everything in Africa as being risky – for them the risk was suddenly in the UK.”

TARGETED APPROACH Geoff Cook, CEO of Jersey Finance, says Jersey has put in “hard work” over the past two years, and is “starting to see a lot of African opportunities as a result”. When

As Mauritius becomes a more sophisticated international finance centre, Jersey and Guernsey may start to miss out on the work that they currently see from the continent

Jersey Finance appointed Allan Wood as its new Business Development Director for growth markets, his main focus was on sub-Saharan Africa. “Cross-border business with African investors and institutions is mainly in the banking, holding company and trust structuring space,” says Cook. “Private equity investors have been targeting mining, and we’re seeing growth in the number of Jersey-domiciled and administered funds with a focus on the environment and social impact. We’re seeing more activity in the alternative fund space, with more private equity funds investing in African infrastructure and healthcare assets and African high-net-worths choosing Jersey as a stable, well-regulated jurisdiction from which to manage their investments.” Meanwhile, several Guernsey businesses already have offices in South Africa, and relationships with local clients, both private and corporate, going back 25 years or more. “I met representatives of ‘Silicon Cape’ who use fund structures in Guernsey as the backbone for their tech start-ups, especially when starting companies in Europe or the UK,” says Dominic Wheatley, CEO of Guernsey Finance. “Guernsey offers a very good midway house for housing the financing part of their fintech companies, for example.” All of which suggests – at the risk of sounding like a record that’s been stuck for eight years – that Africa truly does offer a strong opportunity for Channel Islands business. “African companies are growing and looking outward, and global wealth has to find a home somewhere,” says

Source: Africa Wealth Report 2016

For the curious. Recruitment Drop‑in Evening. For island lovers who want to join a global business where the islands are established powerhouses and not on the periphery. For a career without compromise, come talk to us and find out what your in could be. • For the A Levels & IB school leavers: Brightstart programme • For the university students: Graduate programme • For the pre‑university gap year: Scholar scheme • For all students: Summer vacation scheme 12 April 2017 The Lovin’ Spoonful Hill Street St Helier 5.30pm to 7.30pm #careerwithoutcompromise © 2017 Deloitte LLP. Deloitte LLP is an equal opportunities employer.


Cape Town: gateway to opportunity?

Pride of Africa Here are three countries that offer the brightest opportunity for the Channel Islands, thanks to the sophistication of their markets and their pattern of wealth creation. South Africa Still the largest African market by a long shot, South Africa has an open and familiar business environment – so it’s a good route to other African business too. Key sectors are mining and resource extraction, but it also has a burgeoning fintech scene. It’s more developed than other African markets, but this can be a double-edged sword – it offers greater opportunity right now, but anyone seeking a growing market will need to look elsewhere. Nigeria Nigeria boasts far more eye-catching growth potential than South Africa. Its high-net-worth population, which is forecast to increase by 10 per cent by 2020, is expected to be sat on $131.6bn. Nigeria has a good track record of internationalising wealth and offers relatively modest barriers to capital movement, as well as boasting a definite need for inward investment. It’s let down by its vulnerability to oil price fluctuations.

Navsaria. “The predictions around Africa are very attractive.” Of course, Africa remains a huge continent, so to speak of it in one voice is to risk a dangerously broadbrushed approach. South Africa, Nigeria and Kenya are often held up as the most enticing markets [see box, right]. But for an example of how fruitful relationships may be developed in future, look no further than Rwanda – the only African country with which Jersey has a double tax treaty and bilateral agreement. Rwanda approached Jersey for help to become a financial centre in the region, and Jersey has responded by getting input from its regulator, and helping with drawing up trust and foundation laws. “By helping a country like Rwanda become compliant, it gets easier for you to deal with private clients from those places,” says Navsaria. “This could be the model to repeat.” Indeed, it’s not just a matter of waiting until the African promise is fulfilled and then reaping the rewards. The Channel Islands are best placed by adopting a role in helping the continent reach its potential in the first place. “Africa is going to be a significant growth area for the world economy in future, and that’s a process we can help with,” says Wheatley. “Our finance and business support could be key to that development. As opportunities arise to work with African companies and industry, we will take them. And it’s not a question of if it will happen, but when.” Everyone seems to agree, still, on Africa’s rich promise. As to whether that’s something the continent can deliver, we’ll see you back here in eight years. n

DAVE WALLER is a freelance financial writer

28 march/april 2017

Kenya One of the best-performing African economies recently, Kenya’s grew above five per cent for most of 2016. It’s home to around 9,000 high-net-worth individuals, with a combined wealth of $42bn in 2015. Growth is the key: that figure is up from a mere $24bn the previous year. Kenya boasts a highly educated workforce, but its financial services markets remain nascent and unregulated.

One to watch – Botswana Lindsay Bateman, Business Development Director (Africa) at Brooks Macdonald, believes that outside of South Africa, Nigeria and Kenya, Botswana has an interesting story and may well provide opportunity. “Botswana celebrated 50 years of independence in 2016, and is considered one of the continent’s most stable nations,” he says. “It’s Africa’s largest exporter of diamonds and is heavily exposed to safari-based tourism, mining and cattle rearing. Botswana’s economic growth rate is expected to nearly double in 2017, as the economy shakes off a slump in global commodity prices and the problem of electricity shortages dissipates. “Despite easy access by road or air from Johannesburg, its growing economy and an expanding financial services industry, Botswana is often overlooked by many international investment firms who tend to focus on the more established and sizeable economies of South Africa, Kenya and Nigeria. Nevertheless, Channel Island-based firms can offer Botswana residents the opportunity to access and diversify into global developed markets.”

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Nedbank Private Wealth is a registered trade name of Nedbank Private Wealth Limited. Nedbank Private Wealth Limited is licensed by the Isle of Man Financial Services Authority. Registered office: St Mary’s Court 20 Hill Street Douglas Isle of Man. The Jersey branch is regulated by the Jersey Financial Services Commission. The London branch is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registration No: 313189. The UAE representative office in Dubai is licensed by the Central Bank of UAE. Licence No: 13/191/2013. Representation in South Africa is through Nedbank Limited. Registered in South Africa with Registration No 1951/000009/06, an authorised financial services and registered credit provider (NCRCP16).

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Are you qualified to be a director?

The IoD Certificate and Diploma in Company Direction is an internationally recognised benchmark for directors, providing a robust and challenging programme to meet the needs of today’s executives. This 13 day modular programme leads on to the prestigious qualification of Chartered Director. The 2017 programme will be delivered in Jersey on the following dates: 19 - 20 April 2017 Role of the Director and the Board 10 - 12 May 2017 Finance for Non-Financial Directors 5 - 7 June 2017 Director’s Role in Strategy and Marketing 21 - 22 June 2017 Director’s Role in Leading the Organisation 9 - 11 October 2017 Developing Board Performance To find out more call: +44 (0)1534 610 799 email: or visit

30 march/april 2017



the year of sharing

Words: Richard Willsher THE COMMON REPORTING Standard (CRS) for the automatic exchange of financial institutions’ client information was approved by the OECD in July 2014. Its origin was the desire among G20 government leaders to combat tax evasion, by requiring financial institutions (FIs) and local tax authorities to share information. Global transparency would light the dark corners where unpaid tax was being salted away. So far, more than 100 jurisdictions have

signed up to CRS. Jersey and Guernsey were among a group of 54 ‘early adopters’, for whom the first CRS reporting period began on 1 January 2016 and ended on 31 December. Financial sector businesses that fall within the scope of this legislation must report to their local tax authorities by 30 June this year. “Four types of FI are defined under CRS,” explains Kelly Tadier, Senior Tax Manager at PwC Channel Islands. “There are depositary institutions, which relate to those specifically carrying out banking (or similar) business. There are custodial institutions, which would align with investment houses, custodial banks and clearing organisations. There’s a category for specified insurance companies, which is

fairly narrow. But the largest group is termed ‘investment entities’. “That can include any trust companies and trustees, but also a number of private arrangements or entities that wouldn’t typically be seen as financial in nature – the trusts themselves, for example. “It’s a category that’s wide-ranging. If you have or are investing into a professionally managed structure, you could very well have a connection to an investment entity without knowing it.” What these FIs must actually report varies by the type of institution, but broadly it includes details of the account holders and investors, alongside all types of investment income and account balances, and the proceeds of financial asset sales. march/april 2017 31

CRS is here, and it will have a big impact on the Channel Islands’ financial services sectors. The question is, how big?


the sentiment in the Channel Islands is very similar to that relating to the other waves of financial sector regulation since the financial crisis – one of quiet resignation

Moreover, the accounts can be held by businesses, trusts or private individuals. Where accounts are held by nominees or trusts, they must report the individuals who are the ultimate beneficiaries.

IN THE BEGINNING… The path towards CRS was blazed by the Foreign Account Tax Compliance Act (FATCA). This piece of US legislation, dating from 2010, required foreign FIs to report on the accounts of American account holders, either through their own tax authorities or directly to the US Internal Revenue Service (IRS). Failure to do so meant that the FIs would incur withholdings on their profits in the US. A similar piece of legislation was introduced by the UK in respect of its British Crown Dependencies and Overseas Territories (CDOTs), dubbed ‘UK FATCA’. These weren’t the first information exchange agreements, however. As Greg Murray, Head of Compliance at Zedra in Jersey, points out:

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“Before CRS and FATCA came into force, there were tax information exchange agreements (TIEAs) or bilateral tax agreements between many countries. Jersey, for example, had around 38 such agreements. “These TIEAs allowed the sharing of tax data between two jurisdictions. However, they were very limited in the way they could be used.” The crucial difference CRS now makes is that the exchange of information is mandatory and automatic. And it’s also truly international. US FATCA was a one-way street of information leading to the US tax authorities; CRS is designed for the information to be exchanged between all tax jurisdictions in the world. Although relatively few of these jurisdictions are effectively up to speed so far, the principle, which was a long time in the making, is now firmly established. In the wake of FATCA and the other bi-lateral information sharing agreements, FIs have had an opportunity to prepare their systems and personnel for the task that CRS poses. As Kelly Tadier says: “Jersey and Guernsey will be exchanging information in the summer. They’re only obliged to exchange information with other members of the early adopters group. The legislation is in place and they’re going to be enhancing the portals that they’ve utilised previously for US and UK FATCAs. “They’re in a pretty good position comparatively but it’s not run-of-themill business yet. The great challenge

is the volume of data that local FIs are going to be asked to hand over.” And CRS is going to be felt across the islands’ finance industries. As Zedra’s FATCA Requirements Manager, Steven Sardo, states: “It’s hard to see any financial services business in the islands that isn’t impacted in quite a considerable measure.”

ADDITIONAL WORK Lisa McCleane, Senior Manager for Tax at EY, adds: “It’s especially difficult when you’re reporting on so many jurisdictions. It’s a burden of work for people in the Channel Islands and is taking them away from their day jobs. “Smaller businesses have handed their technical tasks to people like us, or they’ve got a team internally who are looking after it and will raise particularly difficult questions with us. “There are technical updates constantly coming through from the OECD or local governments that you have to keep up with. This then needs to be translated into the information required and that has to be submitted in special formats for the tax offices. It’s a lot of work.” The sentiment locally is, therefore, very similar to that relating to the other waves of financial sector regulation that have broken over the industry since the financial crisis – one of quiet resignation. Furthermore, it’s not immediately clear to many organisations whether they will fall within the scope of CRS. “This is so wide-ranging that even if you aren’t an FI, it can be worthwhile speaking to somebody to learn whether and exactly


CRS and Trusts

how CRS may affect you,” says Tadier. “It doesn’t automatically mean that you will have an obligation to report, but at the same time there could be penalties for failing to report or for providing inaccurate information. “There are fewer than 7,000 entities in each of Jersey and Guernsey that had registered as FIs with the United States IRS under US FATCA. “Under CRS, we would expect that number to increase significantly, and certainly there will be more scrutiny around how local businesses have attended to their obligations, both in classification and reporting. “We have seen in Jersey that there are going to be audits run by the Comptroller of Taxes, though they have yet to be framed. How they will materialise is yet to be made clear to the financial services industry, but all businesses should be prepared.” The message from experts BL spoke to about the still-nascent CRS compliance levels is loud and clear. They say that now is the time for all types of financial sector firms to reach an understanding of how they may be affected by it. Meanwhile, even private individuals, especially those involved with trusts, may find that they too will need to render returns to their tax authorities. They could receive notification from their banks or investment advisers any day now. n RICHARD WILLSHER is a freelance financial writer

The inclusion of trusts in the scope of CRS brings particular concerns. Trusts are used for a variety of purposes. David Dorgan, Partner and Group Head of Private Client & Trusts at Appleby in Jersey, lists some: charitable and philanthropic purposes; to structure commercial investments with multiple investors; holding and structuring family businesses; to hold wealth for future generations. While he sees no reason why CRS would change the “fundamental legitimate reasons why people use trusts to structure their affairs”, there are challenges. CRS aims to identify individuals who exercise ‘the ultimate effective control’ of trusts. These could be a protector, a trustee or a settlor in relation to a trust. Often, such people can be non-trust professionals, such as family members or friends of those who established the trusts. Such people may, in the coming months, receive requests from their banks, financial advisers or other financial services companies for information about their financial affairs, which will need to be submitted to the tax authorities. Meanwhile, further guidance is expected from the OECD on the treatment of trusts in March, when it is likely to release its updated Implementation Handbook. “It’s worth remembering that this is a data collection exercise,” says Andrea Daley Taylor, a Director and family office specialist at Trust Corporation International in Guernsey. “This isn’t about raising additional taxes, it’s about a cross-border exchange of tax information. CRS is a drive to combat tax evasion. There doesn’t seem to be an intent to tax someone for something they don’t benefit from. Nonetheless, this won’t encourage people to take positions such as trustee or protector without good knowledge of this legislation.” Another issue related to CRS’s treatment of trusts is whether it’s really possible to marry privacy and security with disclosure. For example, exchanging details of personal trust arrangements with certain jurisdictions could compromise the personal safety of wealthy individuals or those in the public eye. They could become targets for robbery, bribery or kidnap. Dorgan says: “As we move into the age of transparency and disclosure, it would seem to be incumbent upon each competent government authority, FI, professional or person with a legitimate interest seeking the disclosure of private information, to keep it as secure as possible because, for some, the ramifications of not doing so could be deadly serious.” Alternatively, greater transparency into trusts and their beneficiaries reduces the number of hiding places available to tax evaders, money launderers and others with malign intent. But will the Channel Islands’ early adoption of CRS drive away trust business to ‘greyer’ jurisdictions? “There are 1,300 bi-lateral agreements in place involving more than 50 jurisdictions signed up to CRS,” says Taylor. “So you’re going to have to look harder and harder for grey jurisdictions – and how long will it last? “I would make the distinction between privacy and secrecy,” she adds. “We can offer privacy for our clients by ensuring that their estate planning and family governance are protected from public scrutiny – if they’re people in the public eye, for instance. “The use of nominees is still appropriate in some circumstances. We still offer privacy but we can also be part of the tax evasion fight, which is ultimately something we support.” And this, of course, is the overall goal of CRS – and that’s just beginning to bite. march/april 2017 33

A BL event


In partnership with:

Sponsored by:


a brave new world

Confirmed speakers: David Benest, Managing Partner, Benest Corbett Renouf • Ashley Cox, Managing Director, ZEDRA Jersey • Sally Edwards, Global Head, Private Client and Trusts, Ogier • Julie Fairclough, Director, ZEDRA Jersey • Simon Foster, Chief Financial Officer, TY Danjuma Family Office • Aonghus Fraser, Group Chief Technology Officer, C5 Alliance • Miles Geffin, Legal Director, Mishcon de Reya • Catherine Grum, Head of Family Office Services, KPMG, London • Tom Hall, Director, Head of Philanthropy Services UK, UBS • John Harris, Director General, Jersey Financial Services Commission • Keith Johnston, Chief Executive, Family Office Council • Wendy Martin, Partner, EY • Reginald Mills, Head of Corporate Finance Partnership EMEA, Deutsche Bank • Kellyann Ozouf, Partner, Collas Crill • Christopher Scholefield, Partner, Viberts • Justin Woodhouse, Tax Partner, PwC

thursday 25 may 9AM-3.15PM The royal yacht, st helier, jersey 5 Hours CPD available Delegate rate: £295 (+ 5% GST if applicable) Places can be booked by visiting or emailing


The new face of the private client


wealthy individuals are spread around the world as never before, AND HAVE a whole host of different demands to boot – which means PRIVATE CLIENT FIRMS ARE HAVING TO WORK HARD TO KEEP UP Words: Dave Waller

“The wealthy are really very wealthy. London property is still the obvious asset class they invest in, but while this was predominantly residential, now it’s also hotels, offices and developments.” With interest rates remaining low since 2008, many have added alternative assets such as art, yachts and planes, and private equity and venture capital investments to their portfolio. This spread only makes everything even more challenging for service providers. “In the early days, smaller independent trust companies thrived,” says Paul Fauvel, Private Client Director at Zedra. “The shift to a more global client has made it difficult for these firms – clients now expect you to be able to tap into and provide services in a number of other jurisdictions, and to be connected to all the areas that affect them.”

SUCCESSION PLANNING There are other factors to deal with. While the UK’s had trust structures for generations, for the majority of clients from Asia, the Middle East, Russia and Latin America, succession planning is an unfamiliar task, because their wealth is relatively new. Providers have to educate clients in how Channel Island structures work, and how the means of protecting their wealth matches their expectations. There’s also a desire for confidentiality on the part of the client and, increasingly, a need for transparency on the part of the regulator. With the introduction of directives such as the Common Reporting Standard and anti-money laundering rules, knowing your client (KYC) has become more important than ever. The modern client has to get used to this extra level of transparency. “When we ask for extra due diligence, they don’t take umbrage, but they do often go: ‘Oh, do I really have to produce all this?’,” says Bolan. With all this wealth kicking about, and the Channel Islands’ oft-touted reputation in private wealth management and expertise in regulations – especially when many clients are based in less stable jurisdictions and seek a safe haven for their assets – it’s no surprise that their services should be in high demand. According to Capital Economics, Jersey now holds £400bn in trusts established by private individuals, for example.

WHAT DO CHINESE property moguls, Middle Eastern families and African mining magnates have in common? Not a huge amount, you’d think. One common factor is that the Channel Islands are now doing business with high-net-worth individuals and families from across the planet. That said, they all have vastly different requirements and concerns. So if you’re trying to define the ‘average’ private client these days, you’ll have a hard time. Go back 30 years, though, before the technological boom helped the financial world to globalise, and things looked a lot different. Back then, most Channel Island clients were linked to the UK in some way. There was also far less regulation, affairs were simpler, and structures held fewer assets. It’d be normal to look after trusts with as little as £500,000 in investments and cash, for example. In short, everything felt a lot more… local. Few readers will need telling that the field has opened up massively in the period since then. While the UK has continually tightened its tax legislation, making it increasingly difficult for UK residents to use offshore trusts for tax reasons, this has simply prompted service providers to cast their client net wider. At the same time, wealth has shifted away from the US and Europe, with areas like the Middle East, Russia, Latin America and Asia coming to the fore. China has just overtaken the US as having the most dollar billionaires in the world, while the country also boasts around two million millionaires. “When I started out, no one was claiming Middle East or Asian expertise on their CV,” says Catherine Grum, Head of Family Office UK at KPMG, who joined the financial services industry in 2003. “The whole industry has become much more internationally focused over the past 15 years. And, of course, it’s become far easier to work with global clients with the advent of the internet. Back then, we were still sending letters as the main form of correspondence, even though we had email.” Things have moved on – and not just in the demise of the Post Office. Clients’ requirements have changed massively too. “It’s the value of the assets that’s so astonishing,” says Roger Bolan, Director at Intertrust. march/april 2017 37


As their assets increase in scale and complexity and become a sprawling web, busy and wealthy families require ever more specialised professional help

But there’s one area of private wealth that’s slated for particularly strong growth – the family office. As their assets increase in scale and complexity and become a sprawling web, busy and wealthy families require ever more specialised professional help to co-ordinate it all, often calling on these standalone legal set-ups. “With the proliferation of multi-millionaires and billionaires in recent years, the greater economies of scale afford their families the opportunity to have their wealth administered in one place,” says Fauvel. “This allows them increased flexibility and the tailoring of the services – from wealth and estate planning, to trustee, legal and investment services.” While many families will have a standalone family office, not every family will be able to afford it. “It’s common for entrepreneurs to lean on someone inside the business to help build a property portfolio, manage trust structures or help with tax,” says Grum. “But as it all gets more complex, they outgrow the embedded approach and swap for a full family office.” Grum believes this progression will grow to be even more common in future. But, again, there’s still a huge amount of education to be done around family offices when it comes to this new private clientele. “From a succession point of view, we’ve seen a rapid catch-up in intent in Asia, if not in execution,” says Iain Johns, Head of Private Client Services at JTC Group. Last year, JTC partnered China’s Noah Holdings when it established a trust company in Jersey, a watershed moment for the Channel Islands as regards mainland Chinese business. “We’ve seen more sophistication and a flight to quality in the services clients demand,” says Johns. “But it’s not about them being ready to set up a family office now. It’s: ‘Tell us why we need one’.” Yet there are other hurdles to overcome. The ever-increasing cost of compliance is likely to mean the smaller structures that dominated the early years of the Channel Islands private wealth market will die out, leaving fewer, larger family office-type structures thriving. These providers can expect to encounter a younger generation of wealthy people who, thanks to the internet, may be more informed than their forebears – for good and for ill. “The next generation will Google

38 march/april 2017

their queries first, so advisers will have a very different kind of interaction with them,” says Grum. “More and more, clients will come with a basic level of knowledge, but that can do more harm than good, as complex situations can become massively oversimplified.” Perhaps the biggest shift, however, is that clients increasingly demand constant instant access to their affairs as they move freely around the world. With providers used to showing the highest standard of administration and being adept at regulation, client servicing and relationships, that’s no longer good enough. You have to move with the times. “We need to show a commitment to technology,” says Johns. “Clients want to be able to look at their tablet and see how much they’re worth, their KYC, their succession handling, their will and their insurance policies – all in one place. “Yes, they need providers to be nimble and flexible, and fully compliant and transparent, but that’s just the baseline now. Competing these days is about being alive to the technology.” There’s an old adage around wealth, that one generation creates it and the next enjoys it, but by the time it gets to the third generation it’s all gone. Yet there’s no logical reason that has to be the case. While the ‘average’ private client may be rather elusive these days, their ultimate goal couldn’t be more clear. n DAVE WALLER is a freelance finance writer


‘The new face of the private client’ is the opening panel session at this year’s Jersey Private Client Conference and will feature Catherine Grum, Head of Family Office Services UK, KPMG. To find out more about the event – organised by BL Events in partnership with Zedra, and sponsored by Benest Corbett Renouf and Optimus Group – visit


A grand and imposing property. Luxuriously carpeted throughout. Matching people and property across 28 London offices. march/april 2017 39

Advertising feature

Intertrust: a global business with local pride

Intertrust is now one of the largest providers of corporate, fund, real estate, private wealth, capital markets and employee benefit services in the Channel Islands, following the acquisition of Elian. Simon Mackenzie, MD of Intertrust in Jersey, and Paul Schreibke, MD of Intertrust in Guernsey, explain what’s different about the company and what comes next for this growing business What role do Jersey and Guernsey play in Intertrust’s global strategy? Simon Mackenzie (pictured far right): With the addition of Elian, Intertrust now has a presence in 30 jurisdictions with 41 offices and over 2,500 employees. More than 500 of our global team are in Guernsey and Jersey. The Elian acquisition reinforced Intertrust’s position as a global leader by strengthening and broadening its services in corporate, capital markets, funds, real estate, private wealth and employee incentives. Elian has expanded Intertrust’s geographic presence to include jurisdictions such as Jersey, and added scale in other key locations including Ireland, the UK and the Cayman Islands. The integration of Elian and Intertrust has allowed the two businesses to take the best of both organisations and create a new, dynamic strategy which will see the group develop and grow. Paul Schreibke: Guernsey is a longestablished member of the Intertrust family, and the firm has a heritage in the island that can be traced back to 1900. We’ve seen the economy change, evolve and reinvent itself many times over as industries rose and fell in importance. We’re rightly proud of our heritage, our extensive knowledge of the Bailiwick and how our work here contributes significantly to the global business. What makes Intertrust an attractive place to work for employees and potential employees? PS: There are many factors. Our global presence allows us to operate a global mobility programme, where employees can undertake secondments to offices around the world. We actively encourage participation in this programme, as we’re genuinely a global organisation that fosters

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talent across geographies. It’s also a real point of differentiation from our competitors and a fantastic experience for employees across various levels of the business. One of our managers recently undertook a three-month secondment to our Singapore office, gaining experience in a completely different jurisdiction and cultural environment. Being listed on the Amsterdam stock exchange underscores Intertrust’s transparency, which I believe adds to our attractiveness as an employer. It also helps to make us the ‘go-to’ company for financial institutions, funds, corporations and high-net-worth individuals looking for a high-quality service with an open approach to what we do. We’re committed to ensuring our employees remain our greatest asset and we’re proud of the Global Intertrust Academy, which is our learning and

We are firm advocates of cross-border working – after all we do it globally – and we see cohesion and a cross-island approach as important

development platform for all training initiatives within Intertrust. The programme offers both global and local training, with content relevant to all jurisdictions, both in terms of global technical knowledge and local development skills. SM: We recognise that happy and productive employees result in satisfied clients, and we’re dedicated to investing in our employees to make Intertrust a truly great place to work. Our employees come from broad and diverse backgrounds including legal, tax, accountancy, audit and administration. We have an inclusive and interactive culture – I regularly meet small groups of employees from across the business to seek feedback and ideas on how we can make this an even better place to work. The teams all work very hard and I’m keen we don’t forget to have fun along the way – it’s this fun element that’s epitomised by Intertrust Jersey’s legendary Christmas party! What are the challenges of introducing the Intertrust brand in Jersey, how are you tackling them, and does having the brand in Jersey make a difference to Guernsey? SM: I’m very enthusiastic about the challenge of leading Intertrust in Jersey. The rebranding completed on 12 December last year and, working with the existing Intertrust team, the transition was completed smoothly, right down to the newly branded Intertrust taxi. Our Jersey employees have embraced the new brand and we’ve recently been named Jersey Trust Company of the Year at the Citywealth IFC Awards. I believe there are great opportunities to build on the solid foundation we have in the island. We’re proud to be part of the Jersey community and feel a strong sense of responsibility towards it. PS: Having an office in Jersey has given us a

Advertising feature

Image: Glen Perotte

renewed energy and motivation to be seen as the best possible partner for our clients across the Channel Islands. Many of our employees are already working closely with the team in Jersey, sharing experiences and knowledge to further boost our expertise and client service. We are firm advocates of cross-border working – after all we do it globally – and we see cohesion and a cross-island approach as important, not least because it means we can support each other in seeking new opportunities and connections. What are the benefits of being part of a sizeable global business? PS: The increased scale strengthens Intertrust’s client service capabilities and broadens its career opportunities for employees. We offer our employees the opportunity to work in truly global roles, which is something that’s not always possible in many Channel Island businesses. That’s also a compelling point with our clients, as they’re safe in the knowledge that we can service their needs locally and globally. SM: Ultimately we can provide a service for our clients from all corners of the world. We have offices in all key financial centres and we have strong relationships with

strategic business partners globally. It can’t be overemphasised that our people are the centre of our network – we now boast expert, client-focused colleagues across the world, meaning we can help our clients wherever they are. As an MD, what are you looking forward to in 2017 as part of Intertrust? SM: The continued success of the Channel Islands in the face of changing global socio-economic circumstances is no coincidence. We have an infrastructure that makes it easy to do business and we’re upbeat about the opportunities for future growth in both islands. We have a global approach to new business origination and we’re confident and excited about the opportunity to continue to grow our business in the Channel Islands. PS: We’ve seen an increase in business coming from Europe recently and witnessed many private equity structures and hedge funds re-domiciling in the Channel Islands, so we will have to see what opportunities this brings. Beyond Europe, the future is looking bright as many local firms are already engaged in significant funds and corporate work with clients in the Middle East and the Far East markets. n


Intertrust is a leading global provider of corporate, fund, real estate, private wealth, capital markets and employee benefit services. Its 2,500 employees are located throughout a network of 41 offices in 30 jurisdictions across Europe, the Americas, Asia and the Middle-East. The company focuses on delivering high-quality, tailored services to its clients with a view to building long-term relationships. Intertrust works with global law firms, accountancy firms, multi-national corporations, financial institutions, fund managers, high-net-worth individuals and family offices. For further information, go to You can contact: Simon Mackenzie on 01534 504 000 or Paul Schreibke on 01481 211 000 or Intertrust Jersey is regulated by the Jersey Financial Services Commission and Intertrust Guernsey is regulated by the Guernsey Financial Services Commission. march/april 2017 41


Is banking at breaking point? Just when we thought everything was tickety-boo in the world of banking, a new series of shocks suggests we’re heading into another crisis

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Words: Dave Waller creditors to bail them in. The UK’s larger banks have been forced to ringfence their operations, splitting their retail and investment wings to protect their books. Meanwhile, Basel III stipulates that banks must hold more capital, and reduce the liquidity gaps they have. “Banks have to keep raising more capital to stay ahead,” says Jeremiah O’Keeffe, CEO of JCap Treasury Services. “European stress tests are keeping banks on their toes, and these tests are getting stricter every year. They run lots of scenarios to test how resilient the banks are – for example, could they weather a 20 per cent collapse of the property market, or five years in which house prices drop 30 per cent, or the devaluation of the pound?”

MEASURING RISK Yet while such measures do protect the populace from the dangers of banking excess, it also makes it more difficult (and expensive) for the banks to do what they’re meant to be doing – enabling the growth of the economy. The changing regulatory requirements mean they have to raise more capital, while also fronting up the cost of all the reorganisation that comes with measures such as ringfencing. “Some argue these controls are having an impact on banks’ ability to make profits,” says O’Keeffe. “That’s one reason why banks’ share prices are struggling.” It’s also one reason why, despite these measures, there’s still a great deal of concern around how risky banks remain. One issue is that no one knows whether some of the new measures will actually work. Because no one’s seen a bail-in happen, for example, no one knows the knock-on effects it’ll have. It may be that investors don’t have the appetite to get involved once they’ve seen how the first one turns out. O’Keeffe also believes there’s an inherent flaw in the role played by ratings agencies when it comes to managing risk. Yes, they’ve become much stricter since the crash, when they were castigated for the often generous ratings they’d been dishing out. But even now, their controls may not be as effective as people think. “Banks get reviewed quarterly or annually by the march/april 2017 43

REMEMBER HOW ADVERTS for banks used to sound so reassuring? Midland was the ‘listening bank’, Lloyds the ‘thoroughbred bank’, NatWest was ‘here to make life easier’. Everything seemed so stable and secure. Nowadays, banks may trot out adverts that make them sound like they’re your best mate, like they’re safe places to stash your cash, but the public are far more cynical. And considering banking’s recent history, it’s not surprising. When the world’s oldest bank, Monte dei Paschi di Siena, is getting a bailout from the Italian government, RBS is failing the stress test set by the Bank of England, and Deutsche Bank is handing over a whopping $7.3bn to the US Department of Justice for its conduct in the lead-up to the 2008 crash. Offers of financial security would be more convincing coming from an advert for mattresses than from a bank. Indeed, there’s a long list of factors giving banks sleepless nights – the incredibly low interest rates we’ve had for eight years; the hefty fines banks are swallowing, thanks to their pre-crash negligence; turmoil in the Middle East; dented consumer confidence; the sovereign downgrade of South Africa; the ever-evolving threat of cyber attacks; Brexit destabilising the UK; and the continued economic uncertainty that’s given rise to populism across the US and Europe. All this comes with deep and extended market, credit and liquidity risks, while the spectres of Greece and Iceland loom large, showing just how wrong things can go. “I’ve never known banks face such a range of risks,” says Mark Sumner, Director for Supervision and Risk at the Jersey Financial Services Commission (JFSC). “It all paints a picture that, at its worst, suggests turmoil, and is certainly one of vulnerability. It’s a very challenging time for banks at the moment.” The reassuring thing is that various authorities have introduced processes to prevent failures in future – well aware, of course, that many of the existing problems came from these very organisations being too loosely supervised. Europe has replaced taxpayer-funded bailouts of struggling banks with a nifty idea: get


ratings agency, and they tend to use lagging indicators,” says O’Keeffe. “They generally rate a bank’s long-term debt, maybe up to 30 years, looking only at bonds. “But issues like credit default swap prices and share price performance are the early warning indicators, and far more pertinent than long-term risks. We suggest looking at short-term risks – like that of a depositor not getting their deposit and interest back from the bank.” O’Keeffe cites Deutsche Bank. “We saw the warning signs four or five months ago and brought it to the attention of clients in a timely manner,” he says. “If you’d looked at only its long-term ratings, you wouldn’t have taken any action.”

two thirds of Jersey’s banks are branches of larger operations, and thus benefit from the financial strength of that larger player

KNOCK-ON EFFECT So what impact does all this have on the Channel Islands? In a recent JFSC survey on financial risk, which covered everything from loss as a result of incompetence through to market abuse, industry figures and JFSC staff ranked the failure of banking as the highest risk facing the island (alongside the funding of terrorism). Yet O’Keeffe is confident that the Channel Islands remain well protected, even if he does caution that fiduciaries really should be looking more closely at their banking partners’ risks. He points to the quality of Channel Island banks, which act prudently and without over-exposure to risky assets. “Most local banks have cautiously managed balance sheets, and business failures and mortgage arrears are at a low level in the islands,” he says. “Jersey also has a depositor compensation scheme that provides individual depositors with protection for up to £50,000 in the event that a Jersey bank should fail.” But, he concedes, you can’t ignore that risk entirely. “The JFSC signalled in 2016 that the financial failure of a Jersey bank would have a significantly higher impact than the failure of other firms in the island,” he says. “Therefore it is considered a material risk.” Over at the JFSC, Sumner points out that two thirds of Jersey’s banks are branches of larger operations, and thus benefit from the financial strength of that larger player. The other third are subsidiaries of international banking groups incorporated in Jersey. Yet this brings other risks that the regulator must remain on top of. “The biggest risk our subsidiaries face is that they upstream funds to their parent,” says Sumner. “But if we have concerns, we will take action. Jersey is proud to say it that didn’t lose a bank in the crisis, but we were affected – we were having dialogue with overseas regulators, whose banks we took an opinion of when it came to risk. If any banking group under severe stress had a bank here, we had a dialogue with them. A number of banks left the islands – we

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became uncomfortable with the credit risk their upstreaming represented.” Regulation can be seen as a pendulum – swing too far one way and banks become too carefree, nothing is controlled, mistakes are made and everything crashes; too far the other way and banks are safe but stifled, unable to play their proper part in economic growth. So is there a risk of more regulation coming in and stifling activity in the Channel Islands? Probably not. While they follow international developments closely, and meet standards where appropriate, the islands’ regulation is more open to interpretation, and less prescriptive, than it is in the UK. And as they’re independent and small, they can be more agile in responding to crises. Questions will no doubt arise – the JFSC is currently consulting on what access to Europe must look like in the wake of Brexit, for example, and how this affects meeting European standards. But the regulator has no intention of crushing the island’s bankers under a pile of new regulation. “It’s about meeting international standards and being a good neighbour, where customers and other jurisdictions can have confidence.” Indeed, you can’t ignore the risks, nor the fact that the global picture’s not going to become suddenly settled any time soon – no matter how thoroughbred the banks are or how good they are at listening. Banks must be allowed to be banks. So we should keep that pendulum swinging – just not too far. n DAVE WALLER is a freelance financial writer


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Words: Kirsten Morel

Cracking the

digital code Guernsey and Jersey have both nailed their colours to the digital mast – but are they focusing on the right areas or do they need to rethink their technological ambitions? 48 march/april 2017


oversight, given the islands’ acknowledgment that much of their digital success is likely to be tied to their already existing finance industries. “We need to train young people in the whole IT environment, not only so they can code properly but also so they’re able to choose the areas to work in which suit them best,” says Chris Langlois, Head of Professional Services at Channel Island communications company Sure. “Unless you understand the foundations as well as the interactions and environment within which the applications are operating, then it’s likely the code won’t work properly, leading to problems.” Whilst the islands’ digital strategies do have a strong slant towards innovation, there’s also realism about the make-up of the islands’ digital sectors. “Digital Jersey undertook a skills survey and we’re going to do another,” says Digital Jersey CEO Tony Moretta. “We’ve asked businesses what kind of courses they want us to run, and it’s important to understand that things like our coding programme aren’t about churning out coders but about showing people can be trained and taught new skills.” In IT terms, the emphasis on coding is a focus on the top of the ‘stack’ – or level seven of the digital environment. The criticism is that the islands are failing to educate people in levels one to six. Sure focuses on the networks and infrastructure on which businesses are built, so knowledge of coding isn’t the primary requirement when recruiting technical staff. “There are few trained network infrastructure personnel in the market, so we have to resort to bringing people in on licences from outside the islands,” says Langlois.

DRIVERS FOR GROWTH Another reason for looking beyond entrepreneurship and innovation as the key drivers for successful digital sector growth, is the reality that not everyone is cut out to be or wants to be an entrepreneur. According to the Global Entrepreneurship Monitor, no more than 4.9 per cent of the UK’s adult population are entrepreneurs, similar to the US, which has 4.3 per cent. The fact that no developed nation comes in the top 25 suggests that this is the way it goes for stable, developed economies, and raises questions about how effective any drive to entrepreneurialism can be. When it comes to growing a business sector, the authorities have to attract existing companies and encourage the creation of new ones. Given the march/april 2017 49

THE CHANNEL ISLANDS have had a stop-start relationship with the global technology industry. Twenty years ago, the tiny island of Alderney (part of the Bailiwick of Guernsey) took the bold step of committing to the tech sector by creating a regulatory regime that would attract the emergent egaming sector. Guernsey stepped up its efforts a few years later with legislation that enabled egaming firms to locate their servers in the island. But it would be more than a decade before Jersey joined the digital fray. Guernsey’s early foray into the tech sector proved successful and by 2012, egaming was responsible for generating 12 per cent of Alderney’s GDP and 1.1 per cent of Guernsey’s. This was also the year that Jersey committed itself to exploring the digital sector. It launched a new agency, Digital Jersey, and created a £5 million Innovation Fund that would, in its own words, help ‘foster growth in digital employment and increase the sector’s local value’. After its quick start with egaming, Guernsey held back from committing further until it launched its own hub, the Digital Greenhouse project, ‘to support effective collaboration, co-working, networking and learning to enable successful innovation to thrive in Guernsey’. Both Digital Jersey and the Digital Greenhouse have chosen to focus on innovation and entrepreneurship as key routes to developing the tech sectors in the islands, an approach that could be described as the Silicon Valley model. Fast forward to the current day and the sectors have gained a foothold in the islands. Digital Jersey claims 2,650 people work in the digital industry (excluding teams in financial services businesses). And in Guernsey, which has better historical records on this matter, the figure is 1,054, although this has fallen by 54 since 2012. The drive for digital has become a key factor in both governments’ economic strategies, but with slow progress and obstacles such as the skills gap set to take years to overcome, the question has to be asked – are the islands making the right choices? In addressing the skills gap, both islands have targeted coding as a skill they want people to learn, in the hope that it will increase local employment and help the islands achieve their aspirations. Coding skills are in demand and can be used to create new digital products and services, but a coding course won’t teach its graduates about the wider digital ecosystem. This is seen by some as an


competition between jurisdictions, the lack of existing skills and the islands’ sizes, it’s understandable that Digital Jersey and the Digital Greenhouse could choose entrepreneurship as the way to go. But even then, a successful startup will need a wider range of skills as it grows. First Central Group (FCG) is an excellent example of a successful homegrown business that started in Guernsey in 2008. It sells online-only insurance and today employs over 500 people in five locations. “Getting coding into the education system is fantastic but we have to enable choice,” says John Davison, Chief Information Officer at FCG. “I’d much rather see a rounded, holistic approach in the education system. Understanding the evolution of the internet helps people to understand where it’s likely to go.” The fact that digitisation is transforming every aspect of the economy is a challenge for the islands’ digital agencies, making it difficult to focus on a single aspect or sector in order to stimulate growth. In an ideal world, everyone entering the workforce would have some level of digital competency and understanding, but at the moment this isn’t happening. “We’re teaching development skills [as an island] but we’re not equipping non-technical people with enough technical knowledge to be able to make informed decisions in a technical world,” says Davison. “As a professional, I wonder where the business analysts, data architects and other technically aware business roles are coming from.” At Digital Jersey, Tony Moretta is aware of the bigger picture and is trying to widen the skills training that the agency is able to provide. “We try to balance things out and are trying to offer more than just coding. We’ve been running a digital marketing course, are about to start an iOS app programming course and will be holding a data analytics course later this year. I’d like to see a greater choice of tech education courses.”

LEADING BY EXAMPLE Naturally, resources are limited and neither Digital Jersey nor the Digital Greenhouse have education as their sole responsibility, so it falls to firms such as FCG, Sure and C5 Alliance, the Channel Islands’ largest IT company, to provide training that will meet their own business needs. “We have a group of 10 under-30s in the business, six of whom are embarking on the first stage of their IT careers,” says Ceri Riddett, Head of HR at C5 Alliance. “It takes a leap of faith for the business to accept that junior recruits may take a period of time to have an impact on the bottom line. But it pays off,

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and is very important due to the limited supply of talent in the islands.” Interestingly, the recruitment model at C5 has changed over the years, and today the firm could be characterised as being more accessible than it once was. “We’ve been maturing. We were previously very degree driven in our recruitment process, but we’ve been moving away from that and now we have a heavy weighting on attitude,” says Riddett. “If you’re highly motivated and can also apply logic to situations, then you’re going to be able to learn.” In looking at C5’s approach, we can better understand the sector’s drive towards entrepreneurship, by seeing it as a way of thinking rather than just a desire to see vast numbers of people starting up businesses. Coding may or may not be useful in helping people achieve this. It certainly doesn’t hurt, but in the same way that we all liked different subjects at school, coding will never be for everyone. “Digital Jersey are doing an amazing job, but there is scope for them to help people explore what the technology sector has to offer,” says Riddett. “When we visit schools, we don’t talk about coding, we get the students speaking to people from across our business.” From an economic perspective, the Channel Islands are still feeling their way into the technology-driven world. When you look at the recent collapse of Jersey’s Innovation Fund and the fact that the islands’ tech sectors are intrinsically tied to the financial services industry, then it does become necessary to ask whether digital strategies should engage with holistic models of technology education because the sector’s needs are far wider than coding can provide for. Whether you look at Sure as a communications company, FCG as an insurance provider or C5 Alliance as a dedicated IT firm that serves all sectors, the reality is that all business is digital. By acknowledging this, as Moretta and his team team at Digital Jersey are doing, and by incorporating that assumption into training, then the islands will stand a greater chance of creating the 21st century economies that they so clearly want. n

In an ideal world, everyone entering the workforce would have some level of digital competency and understanding, but at the moment this isn’t happening

KIRSTEN MOREL is a freelance technology writer


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When is a work contract not a work contract? Words: Kirsten Morel

DRIVEN BY TECHNOLOGY and recession, today’s workforce has accelerated away from the traditional concept that employment is a commitment between an employer and an employee. It’s no longer always the case that a contract of employment binds two parties together by defining the nature of the work, hours to be worked, remuneration, certain protections (some statutory and others voluntary) and mutual responsibilities. Today, the increasing use of zero-hour contracts and the rise of the so-called ‘gig economy’ have, some say, degraded the status of employment and

deprived workers of the stability it formerly offered. Publicity around the abuse of employment practices in the UK – Sports Direct, for example, allegedly acted as an employer but didn’t feel obliged to offer work on a daily basis, expecting staff to accept work when offered – has caused unions and politicians to question whether such abuse also takes place in the Channel Islands. Political reaction to zero-hours contracts has been somewhat fraught, with a Scrutiny Panel’s march/april 2017 53

The traditional employer/employee model is no longer the norm, but how might the Channel Islands be affected by zero hours and the gig economy? and how is the law changing on broader issues?


finding of widespread abuse in Jersey being rejected by the relevant minister due to there not being “sufficient local evidence”. From a legal perspective, questions surrounding zero-hour contracts remain, as Wendy Lambert, Partner at Benest Corbett Renouf in Jersey, points out. “There have been some inconsistent [tribunal] decisions, but this might be because every case is different and they always come down to the individual facts,” she explains. “However, mutuality of obligation is the crux of it. If someone doesn’t want to commit to specific hours, then a zero-hour arrangement can be good, as long as they’re free to accept or decline the hours when offered.” A similar issue to zero-hour contracts is the gig economy – where people are treated as self-employed subcontractors by a company, which provides them with work on a job-by-job basis. The firm that’s perhaps most strongly linked with this arrangement is Uber, the app-driven, unregulated cab company. A recent tribunal decision in the UK found that Uber’s drivers should, in fact, be classified as ‘workers’, a status that affords them greater entitlements under the law – such as paid holiday leave and access to the minimum wage – than would be the case if they were self-employed, though not as many as full employees.

ISLANDS IMPACT So does this finding affect the Channel Islands? In direct relation to Uber, no, as the company doesn’t operate in the islands. But could worker status have wider significance for people in a similar situation working for other companies? “We don’t have this intermediate ‘worker’ status in Jersey,” explains Richard Sheldon, Counsel at Channel Island law firm Appleby. “Arguably this could make us more attractive to start-up tech companies, because a similar case decision could go the other way.” It could be some time before we see such as decision because there isn’t a lot of evidence, empirical or anecdotal, that the gig economy is growing in the islands. Lambert says: “I haven’t seen a huge rise in these types of working relationships. There are examples of organisations that refer to people as consultants, particularly in the tech sector, but if they are genuinely

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The increasing use of zero-hour contracts and the rise of the so-called ‘gig economy’ have, according to some, degraded the standing of employment

one if they have a clear rationale as to why they need it. Reasons could include physical capabilities or succession planning.” There are however, very good reasons not to include a compulsory retirement age, irrespective of the law. “Most businesses are considering moving away from a retirement age,” says Huw Thomas, Counsel at Channel Island law firm Carey Olsen. “If you look at the tightness of the labour market and the islands’ demographics, there’s already a ‘battle for talent’ which is forcing employers to take a different approach to recruitment and retention.” In islands with limited talent, there are good reasons to question the idea of a compulsory retirement age because it can be seen as creating a brain drain. “When someone is 65, they don’t suddenly become incapable of doing the job they could do before,” says Richard Sheldon.

self-employed and choose to work their own hours, and choose how to conduct their work, it shouldn’t be problematic.” At the heart of the issue is the matter of control and exploitation. Some people want to be in charge of their daily work, rather than hand that control to an employer; others fear exploitation by unscrupulous employers. “Individuals operating under those contracts don’t benefit from all of the same minimum protective measures, which are otherwise afforded to employees,” explains Niall MacDonald, Associate at law firm Walkers. “And employees with zero-hours contracts can be offered no shifts.” However, both Jersey and Guernsey courts prefer to uphold contracts between parties, unless specific circumstances apply. “Parties can normally expect to hold each other to the terms of any agreement, by legal proceedings if necessary. However, there are exceptions, including the contract being unlawful or contrary to public policy,” says MacDonald. Anti-discrimination laws fall into these categories, including Jersey’s new age discrimination law, which came into force in September 2016. Guernsey has yet to introduce a similar statute. “We’re in a two-year transitional period, during which time employers can have a compulsory retirement age,” explains Lambert. “After that, they can only have

MOVING ON Whether people choose to retire or are looking for opportunities in pastures new, when an employee leaves, it disrupts the business to a greater or lesser extent. The harm caused can be exacerbated if the leaver uses their inside knowledge to help a competitive business. If a former employee tries to take clients or colleagues with them, the chances are that they won’t be breaking the law, so firms have to look to their employment contracts in order to prevent this kind of behaviour. “There are several types of restrictive covenants that employers might include in their employment contracts,” says Thomas. “They can try to protect commercial information or include non-compete clauses and restrictions on taking colleagues with you. They might also have non-dealing or non-solicitation clauses in relation to clients.” Non-dealing clauses are similar but wider than non-compete clauses. The former stops the employee from having any dealings with former clients whilst non-compete clauses tend to stop the ex-employee approaching their previous company’s clients. When properly drafted and in appropriate circumstances, restrictive covenants are usually enforceable, but it’s not without cost.


“They’re difficult and expensive to enforce but many employers – particularly in the financial services industry – regard them as vital tools to protect their business. In practical terms, most employers are pragmatic about enforcement,” says Thomas. Part of the reason for the high cost of enforcement is that these clauses aren’t enforced by tribunals but in the Royal Court. Interestingly, legal opinion regarding restrictions has changed over time. “There used to be a presumption that covenants that restricted a person’s ability to work were a restriction of trade, but this has changed,” says MacDonald. “Now, the court takes into account the legitimate interests of the employer, which include secrets and confidential information, as well as the stability of the workforce. They don’t include competition.” For people approaching the age of retirement, the employment landscape is very different from the one they entered 40 or so years ago. Greater flexibility has costs and benefits for both employees and employers, but for the latter, evolving employment laws mean they have to stay on top of their game – and that’s as important with regard to individual employees as it is for the company as a whole. At a company-wide level, employers should look at the employee handbook as a constantly developing document. Employment laws change as employment relationships do – making today’s perfect agreement tomorrow’s tribunal evidence. “Staff contracts, including handbooks, and agreements with contractors should be reviewed regularly, to ensure that their terms keep pace with legislative developments; and reflect the true nature of the arrangement between the parties, especially if it’s evolving too,” says MacDonald. The concept of employment is definitely changing, but it’s not the case that one side is benefiting more from modern-day employment relationships. Employers and employees need to be aware of their rights and wishes. By knowing what they want to get from the relationship, they can ensure that it’s a smooth and fruitful one. n KIRSTEN MOREL is a freelance business writer

Staying up to date Few employment relationships remain the same over time. Junior employees enter management, staff leave temporarily to start families, small companies become large ones – it’s the way of the world. This state of change can be difficult for employers and employees, who often both forget to ensure that contracts and job descriptions are updated as circumstances change. Here are a few things both sides should look out for: ● Notice periods need to be looked at whenever someone is promoted. Generally, they will increase with seniority because an employer needs to ensure they aren’t suddenly left with a hole at the top of their organisation. For the employee, longer notice periods give greater confidence that they will be properly recompensed should they be placed on gardening leave. ● Similarly, restrictive covenants should have a time limit attached. A court is less likely to enforce a covenant that lasts for two years or even longer because it will be viewed as a restriction on trade. Richard Sheldon, Counsel at Appleby, suggests that terms of three, six, nine and 12 months can be used, increasing with seniority. ● Employers shouldn’t use pro forma clauses to describe restrictive covenants in the employment contract. To do so could weaken their chances of enforcing restrictions, should that become necessary. ● Employers should tailor employment contracts and employee handbooks to the industry they’re in, making sure they understand how certain restrictions will affect both sides of the relationship and that they revisit the handbook regularly. march/april 2017 55


What’s the future for Words: Alexander Garrett

Used for decades to predict the future of markets, economies and even fashion trends, has forecasting become nothing more than an exercise in futility?

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FOR ANDY HALDANE, Chief Economist at the Bank of England, the fact that economists didn’t predict the 2008 financial crisis was a ‘Michael Fish moment’. In conjuring the failure of the TV weather presenter to anticipate the 1987 hurricane, Haldane admitted that the profession of economic forecasting was in trouble. Fast forward to 2016, and that sentiment wasn’t helped by the Bank’s own prediction that a vote for the UK to leave the European Union in last year’s referendum would lead to a technical recession, which then duly failed to materialise. Last year will go down in history for its unexpected events – the Brexit vote and the election of Donald Trump being just the most notable. So it’s hardly surprising that the credibility of forecasting has been put under the spotlight and – to some, at least – is in question as never before. The World Economic Forum in Davos, usually the place where bold forecasts are made, this year held a session on ‘Forecasting failure’. Forecasting is a multibillion-dollar industry. Businesses, governments and organisations of every kind are prepared to pay huge sums of money for information that helps them peer into an otherwise uncertain future, and to plan accordingly. It’s hardly a new concept, of course. Back in the time of Ancient Greece, the Delphic Oracle was consulted about the future, while Romans examined the entrails of sacrificed animals. In modern times, the

Wall Street Crash of 1929 was correctly predicted by one financial pundit, Roger Babson, while another, the celebrated economist Irving Fisher, got it completely wrong. He infamously pronounced that “stock prices have reached what looks like a permanently high plateau”. Economic number-crunching is arguably the most high-profile form of forecasting. Fortunes can be won and lost, and the prosperity of millions can hinge on knowing what’s going to happen to GDP, interest rates, tax receipts and a slew of other data. But it’s far from being the only type of crystal ball gazing that businesses are interested in. Trends forecasters look at what’s going to be hot in fashion this season, and how consumer behaviours are likely to change. Market analysts forecast demand for products and services by sector and help companies to make investment decisions. In the housing market, for example, forecasting focuses mainly on predicting movements in property prices. And scenario planners help companies play out the ‘what if’ consequences of events and understand the impact on their organisation.

FUTURE IMPERFECT All of the above share a desire to look forward, yet in terms of approach they’re quite different. And science, or logic, plays a part in varying degrees. At the heart of economic forecasting methodology is regression analysis – developing a model

that attempts to describe the relationship between different variables. The trouble is, according to Mark Cliffe, Chief Economist of ING Group, economists delude themselves that the resulting forecasts are precise and certain, when they’re anything but. Cliffe says: “Having constructed models to predict the future, forecasters tend to forget that they’re only approximations.” Overconfidence gives an illusion of control, says Cliffe, while forecasts are typically flawed by other factors, such as biases and preconceptions, a reliance on what’s happened in the past, or a simplistic focus on a single factor. And there’s a natural tendency to be influenced by what others are saying. “Most forecasters prefer to stick close to the consensus of their peers,” Cliffe points out. “They seek safety in numbers, figuring that it’s better to get it wrong in a crowd.”


forecasting? march/april 2017 57


Trend forecasting is a somewhat different cup of tea. It’s more a question of watching closely what’s happening and then following your intuition. In a blog interview, fashion forecaster Geraldine Wharry explained: “Identifying a trend is a continuous effort of compiling observations. I call it ‘hunting and gathering’. Once I see there’s a flurry of images with one particular thread running through, it’s very easy to see this as a trend, although sometimes a single image can be so powerful that it triggers an instant conviction.” Blue sky thinkers, sometimes known as futurologists, are another sub-species of the forecaster. Their focus tends to be on ideas – inventions that might happen – rather than hard and fast predictions about events. Ian Pearson is a self-styled futurist/futurologist with a background in engineering, who used to work for BT and now specialises in the impact of technology through his consultancy Futurizon. Among his many inventions, he came up with the idea of text messaging in 1991, but he says BT wouldn’t back it. One area forecasters can help with, he says, is identifying which product innovations will take off and which won’t – companies themselves often fail in this. “One recent example of a company getting it wrong was Google Glass,” says Pearson. “And I see the same thing happening with the Apple Watch.”

THE HUMAN ELEMENT Reading the runes in this type of forecasting is seldom a case of developing mathematical models, but more a question of logical reasoning, Pearson says. “You need to be able to see the big picture, to understand the human factors involved, which can’t usually be reduced to an equation,” he says. “For example, people just don’t want to wear a watch they have to recharge every day.” As for Brexit, he says economists got it wrong because they weren’t taking account of the societal factors, because they couldn’t write equations for those. He says neural networks help computers to model complex issues better. “You end up with a large number of forces in play, and if a couple of those forces are slightly inaccurate, it doesn’t throw the whole thing awry – that’s how your brain works,” says Pearson. The UK referendum vote in favour of leaving the European Union is a classic example of an outcome that few forecasters predicted, but which has serious implications for all businesses – especially in the financial sector.

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Businesses, governments and organisations of every kind are prepared to pay huge sums of money for information that helps them to peer into an otherwise uncertain future

EY carried out research among Channel Islands companies in the wake of the vote to find out how many had considered the impact of Brexit. Some 73 per cent said they’d carried out a review to assess how it had affected their business – the surprise was the number that had not. “This may be symptomatic of the difficulties that businesses encounter when attempting to model the implications of the numerous possible scenarios that flow from the future UK departure from the EU,” says Stuart Gardner, EY’s Channel Islands Restructuring Director. EY’s survey set out to encourage companies to undertake scenario planning. In financial forecasting, for example, individual business units are assigned revenue targets. “When you’re forecasting, you have to consider the sources of uncertainty, and which factors will impact those uncertainties,” says Gardner. “Scenario planning comes in when you consider outliers across the distribution curve of expected outcomes, and what impacts they might have.” What if one of the drivers for your revenue forecasts is taken away? “You consider how you can influence your drivers, which helps you reach your objectives,” he says. This kind of forecasting has got much harder in today’s economic climate, says Gardner, with negative interest rates and the pound at its lowest level for years. So are businesses over-reliant on forecasting in its many guises? Tidjane

Thiam, Global CEO of Credit Suisse, told US TV channel CNBC: “I don’t like forecasting. I so deeply believe that the world is random, that management is about getting ready for a broad range of outcomes, rather than trying to predict the outcome. Sometimes it’s useful to predict the outcome, but the primary rule is to make your organisation resilient, so that it can cope with a number of outcomes.” In any case, the writing may be on the wall for the individual star forecaster who seems to have a hot line to the future. The Good Judgment Project, initiated in 2011 by the University of Pennsylvania’s Philip Tetlock in response to a US government forecasting tournament, applies aggregation methods to turn individual forecasts into ‘the wisdom of the crowd’. Participants are weighted according to their competency, and even trained in forecasting methods. The Project emerged as the clear victor in the tournament, building the case for a future in forecasting that relies on the aggregation of expertise to give a higher degree of confidence in its predictions. This is just one response to the crisis forecasters face in an age of uncertainty. Artificial intelligence and ever-more sophisticated computer algorithms may also help to provide more accurate results in future – but it seems that for businesses, the best advice is to plan for everything. n ALEXANDER GARRETT is a freelance business writer


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It’s hard to escape the image of interns spending hours making coffee and doing the photocopying, but companies who use them wisely could be setting themselves up for the future


cheap labour or future stars?

HOW VALUABLE A resource are interns? There are a whole host of companies that take a great deal of time and effort sourcing top-quality interns. They see it as an excellent recruitment opportunity – a way of building relationships with highly talented students who are, potentially, the future of their business. However, there’s the flipside – when colleges send students to companies and they learn very little; where their time isn’t structured and they just end up making coffee runs. Though hilarious to watch, the character Will in BBC’s comedy W1A paints the intern very much in this light. One of the problems with the term ‘intern’ is that it’s used as a catch-all for anyone who works in an office on a temporary basis – be they school leavers, A-level students, graduates or apprentices. Like-for-like comparisons are often misleading. For instance, a school leaver spending two weeks on work experience at a company is going to have a totally different level of involvement to someone who’s spending six months with a company and is trusted to produce reports and make presentations. As Sue Lincoln, HR Director at law firm Ogier explains, what companies offer depends very much on age and experience. march/april 2017 61

Words: David Burrows


“We have a vacation scheme that operates in our Cayman office, which gives post-secondary education students a four-week placement in the office working with our lawyers and also our specialist support functions.” She adds: “We also have a bursary scheme in our Guernsey and Jersey offices, again aimed at postsecondary education students, where we give financial support during their studies, career advice and paid work placements.” Further up the scale, Ogier has a Trainee Solicitor scheme for graduates, which is a structured route through to qualifying as a lawyer.


Companies have too often exploited interns, expecting them to work set hours, on an open-ended arrangement and for little or no pay

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Shelley Kendrick, Director at recruitment firm Kendrick Rose, agrees that the definition of an intern isn’t always clear. And she points out that ‘intern’ is predominantly a US word and not one used widely in the Channel Islands. “On the islands, you’re more likely to hear the term ‘bursary schemes’ rather than intern,” she says. “I think what’s being offered is improving markedly. Companies are definitely looking more at developing their programmes. They’re more structured. For instance, set days for eight weeks throughout the year in between study at college.” Helen Shoreson, Head of HR at Deutsche Bank, explains that the internship programme they run is not only well structured but highly demanding on undergraduates. Intern candidates go through a panel interview and if they impress, they’re accepted on the programme. “The interviewing is tough,” she says. “But we need to be confident that those we select can stand on their own two feet. “While they’re with us they’ll have access to senior people in the organisation. Each week we have a speaker event, where a senior member of the bank will give a talk. They gain valuable insight into what it means to be in an institution like Deutsche Bank.” Shoreson adds that at the half-way and end point of the 10-week programme, interns meet with their mentor for a review. “The feedback we get from interns is that they didn’t realise they would be given so much responsibility,” she explains. “Whether that be dealing with our office in the Cayman Islands or taking minutes at meetings.” With employers increasingly looking for verified experience as well as qualifications when they hire, intern programmes can be a vital credit on a CV. Lois Falla, Co-founder of Orchard PR, agrees that well-structured internships are highly valuable to students and graduates. However, she makes the point that companies have too often exploited their interns, expecting them to work set hours, on an open-ended arrangement and for little or no pay. Evidently, interns should vote with their feet if their programme is offering little in the way of valuable experience but long hours and plenty of drudgery. “We’ve had people come to our company from another business where they weren’t being paid and just weren’t valued,” Falla says. Which begs the question – should interns be paid? Falla believes that in most instances, the answer is yes.


“If you’re talking about one or two weeks shadowing someone, then perhaps payment isn’t necessary. However, if someone’s working beyond that, and if they’re providing some value to the business, then they should be paid – and more than the minimum wage.”

WIDER APPRECIATION In terms of industries best suited to use interns, do any stand out? Falla says that the professions – notably accountancy and law – have always been strongly associated with internships, but she suggests the benefits of offering such programmes should be appreciated more widely. “At Orchard, our apprentice scheme takes an 18-year-old on a four-year contract. At the end of the four years, they’re at the same level as a graduate. We then put them through the Chartered Institute of Public Relations (CIPR) qualification, which we expect all our team to have as a minimum.” Orchard’s approach isn’t typical, as many PR or communications specialists have neither the size nor the inclination to make use of internships or apprenticeships productively. Seeing the bigger picture is something Kendrick picks up on too. “There’s no reason why you couldn’t have internships across marketing and HR roles. The one benefit of internships, whatever the role, is that you get a really good look at someone in a way that you would never do at an interview.” By way of an example, Kendrick points to a young intern who was clearly very bright but notably shy when she joined. “We weren’t sure about her because she was so shy. However, her first presentation to the team was brilliant and extremely confident. “It’s important to remember how young these people are, and how the workplace is completely new to them. A well-organised internship can help develop people skills massively.” Of course, the benefit from this is two-fold. The intern clearly develops and their abilities are identified and nurtured. The company, on the other hand, builds a strong team for the future with highly talented people who understand their business inside out.


is whether internships are even more important in ‘closed’ markets such as the Channel Islands. Ogier’s Sue Lincoln, however, isn’t convinced. “I wouldn’t say they’re more important,” she says. “What is important is that firms recognise the potential talent they have on their doorstep and ensure that they work with the local communities to nurture the talent and create great opportunities so that we retain these people locally.” Lincoln concludes: “I think having a good mix of people with different experiences is also important, so an exclusive approach would be wrong.” n DAVID BURROWS is a freelance business writer

Five tips for employers ● As an employer, set criteria for who you will offer placements to. ● Be clear how the placement will operate and who is responsible for making sure it achieves its aims. ● Make sure you share knowledge both ways. Whilst the placement is designed to help the intern make a career choice, businesses can also learn from the next generation. Take feedback and use it. ● Involve the intern in as much as you can, including social activities. It’s a fantastic way of hiring and being able to see every facet of your potential future employee. ● Hire the best interns as permanent employees. Do that as soon as you spot their potential.

Five tips for interns ● Research the industry – don’t go into one you know little or nothing about. ● Has the company run internships before? What was the feedback? ● Will you be able to pick people’s brains and learn? ● Are you able to make many contacts or will you just be running errands? ● What are you going to do with the experience – what is your next step?

Sourcing the best talent at an early stage is particularly important for the Channel Islands, as Kendrick explains. “The islands have a real brain-drain problem. We’re losing graduates at a rate of knots. We often only attract these people back when they have families and appreciate the quality of life here.” Kendrick suggests one answer is for companies to move early and attract college leavers with good training programmes for a plethora of roles. Given the huge debt burden university students can build up, the option to stay on the islands and be funded right through training has strong appeal. And there are ways to ensure that these young people don’t feel they’re missing out by not studying overseas. “It’s important to get off-island experience, but companies could offer, say, three-month sabbaticals once someone has qualified. The company could be offering a lot of foreign travel anyway,” Kendrick says. From a local level, another point worth considering march/april 2017 63

BL guernsey Guernsey Finance makes Hong Kong appointment

G Locate Guernsey reports on 2016 achievements


ocate Guernsey facilitated a total of 21 relocations and created 36 local jobs during 2016, it announced at its Year in Review event in January. Working with a budget of £400,000 and a team of four, the organisation has returned an annualised financial benefit to the exchequer of £672,266. The team attended around 400 stakeholder meetings and 50 events, including a London event to showcase the island, and handled 140 inquiries.

Richard Le Tocq, Head of Locate Guernsey, said the £672,266 in financial benefit to the island excluded wider economic value to local businesses, such as contributions to the construction, service and hospitality, legal and financial sectors. He added: “The biggest challenge is getting Guernsey on the radar and helping people to understand how straightforward it is to relocate to the island. We’ve had encouraging feedback from those who have made the move here.” n

uernsey Finance has appointed Christopher Chan as its first Hong Kong Representative. Christopher will lead Guernsey’s promotional efforts in Hong Kong, as well as being an on-the-ground presence for Guernsey Finance and its member firms. He will also assist with promotion in the wider South East Asia region. Christopher has worked within Hong Kong’s financial and corporate services sector for the past six years, with a focus on business development. Guernsey Finance opened its Hong Kong office in March last year. It was initially used as a base from which Guernsey Finance’s Shanghai-based China Representative, Wendy Weng, carried out further promotional activities in South East Asia. It has also been used by the Guernsey Financial Services Commission to provide regulatory advice to those in the region who might be considering Guernsey-specific ventures. n

Rules enhanced for insurance-linked securities


he Guernsey Financial Services Commission (GFSC) has published a new set of rules that clarify the regulatory treatment of collateralised reinsurance, including insurance-linked securities (ILS), and allow for a one-day approval process. From 1 January 2017, under the Insurance Business (Special Purpose Insurer) Rules 2016, applications for the licensing of a special purpose insurer (SPI) may be granted a single consent for the formation of further SPIs but without any

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further applications. The streamlined process typically allows new insurers to be established within one business day. The Insurance Business (Solvency) Rules 2015 have also been amended to include the new insurer class. The update means an SPI isn’t required to maintain the minimum or prescribed capital requirements or to conduct own risk or solvency assessments. Guernsey Finance Chief Executive Dominic Wheatley said: “These changes are a codification of the way the GFSC already applies its discretionary powers and they

provide a new level of operational certainty and efficiency for the insurance sector.” SPIs must be fully collateralised to the extent of their liabilities and, in addition to ILS, may include collateralised reinsurance, catastrophe bonds, side-cars and life-based securitisations. Typically, cash assets will be applied against liabilities. However, under the changes, the GFSC recognises that the commercial interests of the counterparties may be satisfied using (re)insurance, letters of credit or partly paid shares. n

BL Guernsey

Funds grow for fifth straight quarter

guernsey continues to lead with lse listings


uernsey’s fund industry has enjoyed five consecutive quarters of growth, according to the latest figures released by the Guernsey Financial Services Commission (GFSC). At the end of September 2016, the net asset value of all funds under management and administration in Guernsey was £249.4bn – up £2.3bn (0.9 per cent) since the end of June 2016. For the year ending 30 September 2016, the total value of funds in Guernsey rose by £24.6bn (10.9 per cent). Guernsey open-ended funds saw an increase of £4.3bn (10.4 per cent) in the third quarter of 2016 to £45.6bn, an increase of £6.2bn (15.7 per cent) year-on-year. Guernsey closed-ended funds fell by £0.8bn (0.5 per cent) to £152.6bn in the quarter, but the total was still £14bn (10.1 per cent) up on the same point in 2015. Non-Guernsey schemes – funds not domiciled in Guernsey but with some aspect of management, administration or custody in the island – stand at £51.2bn. This is a decrease of £1.2bn (2.3 per cent) since the end of June 2016, but an increase of £4.2bn (8.9 per cent) on the same point in 2015. n

Guernsey’s credit rating re-affirmed


nternational credit rating agency Standard and Poor’s (S&P) has re-affirmed the sovereign credit rating of Guernsey as AA-/A-1+ with a stable outlook, following an evaluation process conducted in January. The rating demonstrates Guernsey’s capacity to meet its financial commitments in the short and long term, providing certainty to businesses and the community in the island. The rating is unchanged since the last evaluation, which was undertaken immediately after the UK’s referendum on membership of the EU in June 2016. The sovereign rating is undertaken to give investors insight into the financial stability of a jurisdiction and the level of risk associated with investing there. During the review process, reviewers conducted a thorough investigation into Guernsey’s current circumstances and spoke to a range of local business representatives, politicians, civil servants and regulators. In its report, S&P says its rating reflects Guernsey’s strong and flexible institutions, its strong economy and the robust fiscal framework. While it acknowledges the risks posed by the uncertainty of the UK’s exit from the EU, the report balances this against Guernsey’s significant economic resilience. n


uernsey is again the global finance industry’s number one choice for non-UK entities listed on the London Stock Exchange (LSE), according to Guernsey Finance. LSE data released in January shows there were 124 Guernsey-incorporated entities listed on the Main Market and AIM at the end of 2016. Guernsey added nine new entities to the LSE markets during 2016. These included Hadrian’s Wall Secured Investments – the first investment company to list on the LSE’s Main Market in 2016 – and VinaCapital Vietnam Opportunity Fund, which completed its migration from the Cayman Islands to Guernsey and its move from AIM to the premium segment of the Main Market early last year. The total number of non-UK LSE listings for Guernsey is more than 40 ahead of its nearest competitor, Jersey, which has 82. In total, Guernsey has 91 non-UK entities listed on the Main Market of the LSE and is home to 33 entities listed on AIM. In addition, Guernsey is the market leader in terms of the number of non-UK equity investment instruments – the majority of investment funds – listed on the LSE, with 74. n

Indicators of poverty report published


he States of Guernsey published a report in February that, for the first time, measures the extent of potential social and economic deprivation in Guernsey. The States of Deliberation agreed last year to ‘improve and broaden the measurement of relative poverty’ using the annual electronic census. In the past, periodic surveys and research have made the information less reliable and updated less frequently. The Indicators of Poverty report (available at includes measurements for seven areas – income; employment; education, skills and training; health and disability; crime; barriers to housing and services; and living environment. The methodology is broadly based on that used to compile the English Indices of Deprivation, published by the Office for National Statistics. n march/april 2017 65

BL jersey Jersey Finance sets out plans at annual review

JFSC focuses on shared responsibility


ersey Finance will be commissioning independent research into the value the island’s finance industry brings to UK pension funds, and working to boost the perception of the industry in Jersey, as part of its 2017 marketing plan. Presenting the plan at Jersey Finance’s Annual Review on 27 January, Geoff Cook, CEO of Jersey Finance, said 2016 had been a record-breaking year, with funds business in Jersey reaching its highest level since 2008. He also noted the island was now the world’s sixth largest hedge fund management centre. Cook said: “Jersey’s finance industry has evolved considerably over the past decade and more than half of our business is now institutional in nature. "That means Jersey firms are

supporting areas like pension, university and sovereign wealth funds. But that is perhaps not widely understood. For that reason, we will be doing further research work this year to explain Jersey’s role in the global pension fund market. “Our funds industry continues to grow and diversify. Firms here are well established in the private equity, real estate, hedge and infrastructure fund space, but they are also reporting more activity in the private debt fund market, providing financing for investment activity around the world in the absence of traditional sources of financing. “We're also focused on differentiating Jersey through fintech and cyber security and enhancements to companies, trusts and foundations laws.” n

hared responsibility is the key theme of the Jersey Financial Services Commission’s (JFSC's) Business Plan for 2017, which was presented to the island's financial services industry and politicians in February. The regulator sent out a clear message that consumers, industry and the regulator must all play a part in protecting the island’s reputation and ensuring its continued economic success. The JFSC said it would be focusing its regulation on the areas of greatest risk, improving interactions with industry, safeguarding its own sustainability, efficiency and independence, and facilitating market access for Jersey. Mike Jones (pictured), Director of Policy at the JFSC, outlined the priority areas for the year ahead. These were: ● Enhancing the registry systems and beneficial ownership register ● Developing a new website and other digital channels ● Improving supervisory processes ● Expanding the financial education outreach programme ● Advancing cyber-security measures. The JFSC’s 2017 Business Plan can be viewed at n

Jersey retains credit rating


ating agency Standard & Poor’s (S&P) has maintained Jersey’s credit rating at AA- as part of its regular, bi-annual review. The agency noted: “Our ratings on Jersey reflect our view of the island’s strong and flexible institutions, wealthy economy and considerable fiscal buffers. The stable outlook reflects our view that, over the next two years, the risks to Jersey’s financial sector and its fiscal performance will be balanced by its still-significant economic resilience.” The Chief Minister, Senator Ian Gorst, commented: “The agency’s report does point out that economic uncertainty in the UK could have an impact on Jersey. This is something we have anticipated and are planning for. “We have been able to update S&P on the work underway as a result of Brexit, and they share our view that our institutional relationships with the UK and EU are not expected to materially change.” n

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BL Jersey

Locate Jersey shares 2016 figures


ocate Jersey – the team in the Economic Development, Tourism, Sport and Culture Department responsible for inward investment and high-value residency – has released figures for 2016 which demonstrate continued interest in Jersey from businesses and high-networth individuals. The 2016 figures show that Locate Jersey helped 25 businesses to gain a business licence last year, with the potential for 200 new jobs as a result of those companies establishing in the island. Of those potential jobs, 81 per cent would be for ‘entitled’ or ‘entitled for work’ individuals. Enquiry levels remained stable in 2016, with 132 new enquiries from businesses considering relocating to Jersey. Particular areas of interest include financial services, such as funds and family offices, digital, fintech, natural resources and corporate services. A total of 119 high-value residency enquiries were received in 2016, with 17

permissions being granted. There were also 14 relocations last year, which will result in a minimum additional income tax yield of £1.75 million in 2017. The total value of property bought by new high-value residents in Jersey exceeded £100 million for the first time in 2016, generating property stamp duty for the public purse of more than £5 million. Economic Development, Tourism, Sport and Culture Minister Senator Lyndon Farnham said: “I'm delighted to see that the 2016 figures show a continued interest in Jersey as a destination for inward investment. “The excellent work of the Locate Jersey team in generating enquiries, onboarding and facilitating the move of individuals and businesses continues to secure high-quality inward investment business and high-value residents.” n

Consultation on new tourism law


he Minister for Economic Development, Tourism, Sport and Culture, Senator Lyndon Farnham, has published proposals for a new tourism law. The consultation paper advocates replacing the existing Tourism (Jersey) Law 1948 with more streamlined legislation. This will be based on six key principles: ● Improve conditions for industry growth ● Benefit both the consumer and business ● Secure sufficient data for marketing and policy purposes ● Provide for limited casual home rental ● Maintain public safety ● Lower the cost of regulation without compromising the other objectives. Senator Farnham commented: “Our tourism industry has been working hard with Visit Jersey to generate additional and sustainable growth across the sector in the years ahead. The government has an important role to play in helping to make that extra growth achievable. “I am proposing a new law that will strip away unnecessary red tape and give the industry greater scope to respond to the demands of the market. I also intend to clarify the rules around Airbnb-style short-term letting and put the tourism accommodation licensing system online for the first time.” Tourist accommodation providers, consumers, other industry stakeholders and members of the public will have until the end of March to comment on the proposals. Further information can be found at n

Fewer permissions for migrants


inisters are introducing measures in Jersey to reduce the number of permissions available to businesses to employ newer migrants. The aim is to ensure that migration is more focused on delivering the greatest social and economic value, while also creating a fairer allocation of permissions across businesses. To the end of 2017, large businesses employing more ‘registered’ workers than other businesses in the same sector will have their requirements assessed by the Population Office. As a result, businesses could be placed into a new ‘step down’ programme to reduce the number of registered staff they employ. Alternatively, they could be placed in a work permit-type scheme requiring them to demonstrate the value of each new registered worker before they are permitted to recruit them. The Council of Ministers wants to see more productive businesses making more profit and paying higher wages, with migration targeted toward delivering the greatest benefit for islanders. The Assistant Chief Minister, Senator Paul Routier, said: “Jersey is a small island, so it's right that we target migration to get the most social and economic value we can. This new initiative will help us do that by focusing on businesses that employ the highest proportion of registered staff. “We welcome newcomers who bring the skills Jersey needs – in areas such as construction, financial services, private education and healthcare – but we need to do more to limit migration.” n march/april 2017 67



The Agenda is compiled by BL’s Fashion and Lifestyle Editor, Thom O’Dwyer, with additional material by Danny Cobbs.

goes Bright and Breezy

1. IN FULL BLOOM For the new season, Gucci is saying it with flowers. Its Cruise 2017 collection is a veritable garden paradise of floral prints, vibrant blossom embroideries and delicate posy appliqués that appear on almost everything – from skirts, dresses and jackets, to shoes, neck corsages and even handbags. Pictured here is the Sylvie handbag that every front row fashion editor at the Cruise show was gasping for. The classically shaped calfskin bag with a detachable shoulder strap features a suede-like microfibre lining and the outside is enhanced with exquisitely embroidered flower appliqués. The gold-toned metal chain and buckle closure augment Gucci’s famous signature striped webbing detail. Inside the bag, there are zip and smartphone pockets. The perfect arm candy for any Easter weekend event. But it’ll cost you! £2,350,




2. STUNNING SETTING One of the most exciting talents to emerge from the New York fashion scene in many a season is Rosie Assoulin. She’s already collected celebrity fans – Michele Dockery and Rihanna among them – who have become enamoured with her elegant, vintage glamour style. Prior to launching her own label brand in 2014, the Brooklyn-born designer worked for top New York fashion names Oscar de la Renta and Adam Lippes. Last year she was the winner of the 2016 edition of the prestigious CFDA Swarovski Award for Womenswear, which led to her designing the stunning new Spring/Summer 2017 jewellery collection for Atelier Swarovski, some of which is pictured here. A palette of deep, eye-catching, saturated primary colours, sculpted into neo-Georgian shapes, make a bold, drop-dead glamorous statement. This is one designer who’s definitely a modern star in the making. Aquamarine chandelier earrings, £399; cocktail ring, £249; and necklace, £599,


3. KICK ASS! A taste-making success story, and an emblem of all-American everyday chic, Tory Burch describes her Spring/Summer 2017 collection as ‘Classic America’. Her inspiration for it was her own heritage. Girls – for a bit of fashionable feminine fun, why not step out in style wearing these brazenly beautiful cha cha heels? The brightly coloured floral embroidered Ellis mules seal the deal on the ultimate statement-making pair of shoes. The textured pom-pom detailing and the gleaming gold leather-trimmed open toe jazz up the proceedings, and the triangular stacked heel ensures a cool, modern style. These are shoes guaranteed to add a distinctive touch to every girl’s wardrobe. £325,


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4. SOFT TOP Roland Mouret is the modern day master of drapery and structure, seducing the fashion world with one feminine, flattering design after another. Since his design début in 2006, every collection Mouret has sent down the catwalk has had the Wow Factor 10 times over. His signature stylish design flair was one of the major influences that propelled Victoria Beckham straight into the fashion stratosphere. Pictured here, elegance gets a flirty update with his pink Eugene asymmetric-cut top crafted in the finest wool crêpe. Skilfully draped, its floaty, flatteringly alluring silhouette makes it a powerful statement piece for spring. Tailored trousers make this the perfect partner after dark. £370,




5. CLASSIC REINVENTION Undoubtedly the most revered and iconic of British luxury brands, Burberry‘s signature design mainstay has, since 1856, been the classic trenchcoat. Then in 2004, Christopher Bailey stepped in as the brand’s new Design Director – and in 2013 was appointed CEO. He singlehandedly turned the company in a totally new direction – paying tribute to Burberry’s rich heritage and superb craftsmanship while also embracing today’s social change. Bailey’s unique poetic design deconstruction of the classic Burberry trench, pictured, epitomises his inventive take on traditional British design. First of all, the colour: dusty pink. Then the material: ornate, weblike, floral patterned lace. The Stanhill lace coat is a masterwork of romantic styling, decorated with ruffles and flounces and finished with boldly large black buttons. Fully lined in silk, the garment is crafted to perfection. A dramatic springtime statement piece, wear it over widelegged trousers or one of the new long-length dresses or skirts. £1,895,

6. SALTED WONDER Himalayan salt block cooking is the hottest trend to hit the world. The salt block schtick is a big deal, and it’s getting bigger. Mark Bitterman, author of best-selling book Salt Block Cooking – which features 70 mouthwatering recipes – describes the revolutionary cooking process as ‘the boldest idea in cooking since the matchstick’. Because the block holds its temperature for long periods of time, you can use it to fry fish or sear a steak, or even keep ice cream chilled. It also greatly enhances the flavour of anything placed on it. For dinner parties you can present slivers of sashimi on the plate and actually watch it cure at the table, or slowly heat the block in the oven and use it to fry scallops or even an egg in front of your guests. This really is something else! Salt Block Cooking by Mark Bitterman, £14.94; Natural Himalayan Crystal Salt Cooking Plate and Holder by Mister Moby, £41.84,



7. POP YOUR CORK Following a hugely successful taste test reception in some of the top-end hotspots in Ibiza last summer, Ombra Di Pantera Prosecco has recently launched its premium drink in the UK. Determined to set a new standard in the premium Prosecco revolution, this new DOCG Prosecco – DOCG being the highest classification for Italian wines – is made from the finest Glera grapes from one of the oldest cultivated vineyards in Treviso. It’s a top-quality sparkling wine with an intense, complex and fruity bouquet and a distinct aroma of golden apples against a delightful floral background. Dry, fresh and light, it is soft and well-balanced with a good aromatic length and a memorable fruity finish. In essence, this top-end product is a pure expression of the most elegant, finest, high-quality Prosecco you’re likely to find anywhere. Chin, chin! £24.99, march/april 2017 71



8. BITING THE BULLET The Bristol Bullet isn’t your typical sports car, writes Danny Cobbs. Nor, for that matter, is Bristol Cars your typical car company. For the past 70 years, this curio, independent car maker has only ever produced 18 different models (which now includes the Bullet). Its styling has always been outrageously leftfield – yet never crossing the line that thinly separates quirky from visionary. This, and the fact all Bristol cars are melded by hand, bejewelled in the finest materials and limited by number,


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continually seduces the serious car connoisseur and sees them gladly pay a hefty sum to indulge their guilty pleasure. Even during its heyday back in the 1950s and 60s, no more than 200 Bristol cars were ever built. This makes a Bristol car – any Bristol car – rarer than a Fatimid rock crystal ewer, and just as precious, too. Now, after more than decade in the making, and a 2011 post-administration buyout, the Bullet ushers in a new dawn for Bristol Cars and celebrates the company’s

70th anniversary. In many ways, this two-seat speedster is a peculiarly beguiling car, of which there are just 75 planned for production. It remains a paragon for individualism and British craftsmanship, and is extraordinarily exquisite. By design, it evokes all the glamour and values from a bygone age. Yet beneath its somewhat eccentric, aeronautically influenced coachwork sits all the modernity of a BMW-sourced 4.8-litre engine. Power is 370bhp and torque 361lbs, and if you think

9. ABOUT FACE Brainchild of Irish-born but London-based bon viveur Brendan Murdock, Murdock London is the ultimate grooming specialist for the discerning gentleman. Dissatisfied with unisex salons and highstreet barbers, Murdock wanted to return to the glory days of smart, masculine gentleman’s barbershops. His first classy grooming emporium opened in Shoreditch in 2006. Six more shops followed, as did a high-end collection of colognes and grooming and skincare products. Pictured here are the Pre-Shave Oil, to be applied before shaving to soften whiskers and prepare the face for a razor’s edge, and the Shave Cream, providing a soothing unguent scented with Murdock’s clean, fresh, citrusy signature Avalon scent. And should there be any unfortunate nicks, the ingenious Styptic Matches will stop bleeding, close the pores and provide antibacterial treatment. All a worthwhile investment. Pre-Shave Oil, £34, 100ml; Shave Cream, £34, 200ml; Post-Shave Balm (not shown), £36, 100ml; Styptic Matches, £3 for 20 matches,


these numbers underwhelming in return for the hefty price tag, you need to understand a few important things. Although it’s meant to be a quick car, the Bullet’s prime motivation is not all about speed. Instead, this car has been engineered to excite its exclusive audience with its grace rather than its pace. Much like Bristol Cars, the Bullet is an enigma, but the automotive world would be a sadder place without either. £250,000,


10. RAIN CHECK An innovative and influential fashion brand based in Copenhagen, Norse Projects started life as a retail streetwear shop in 2004, but in 2009 it launched its own-label menswear brand. In 2015 – in addition to topping a list of the 15 best Scandinavian menswear brands – it introduced its first women’s fashion collection. The trademark look blends influences from streetwear and classical workwear with high-end fashion. Norse is also renowned for its collaborative projects with artists and other designers. The Anker Classic Perimeter Jacket, pictured, is the result of a collaboration with the traditional Danish rainwear manufacturer Elka Regntøj. Featuring two pockets and stud button fastening, it’s the perfect cover-up for when the proverbial April showers come pouring down! £170,

11. TOTAL SHOESTOPPER Whether killer classic or cool and crazy, Christian Louboutin – undisputed King of the Red Sole – always has his finger on the pulse of what every dedicated follower of high fashion craves in statement-making footwear. And he never, ever disappoints. The Louis high-top trainers, pictured here, being a perfect example of the man at his best. In shimmering emerald green suede, the shoe is decorated with a blindingly blingy array of Swarovski crystals for a bold, dramatic finish. A tonally matched rubber sole completes a shoestopping look! £1,895,

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12. BLOOMING MARVELLOUS Equal parts luxe and laid-back, this is how cool girls and saucy ladies will be wearing florals come spring. This season, Marni – still a favourite fashionista label – puts its distinctive stamp on the classic bomber jacket style. Reimagining it in eye-bogglingly vibrant, textured matelassé, the romantically voluminous raglan sleeves further enhance the oversized fit. This coolest of cool bomber also features ribbed cuffs and hem, with a snapbutton front fastening. Someone once said: “Style is a way to say who you are without having to speak.” This jacket speaks volumes. £1,300,

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13. BEYOND RETRO For a laid-back look that’s as cheeky as it’s chic, you couldn’t do better than stepping out wearing this easy, breezy, voluminously flared, ankle-skimming dress by hottest designer on the block Rosie Assoulin. The Boogie Woogie Bugle Boy Dress is crafted from check seersucker organza. With its cinched in waist and peplum detail giving a flattering look, the ultra-feminine silhouette has a definite retro appeal. So put a spring in your step, ladies, and balance the flared skirt with flat sandals, as seen on the New York catwalk. £1,870,


14. SKIP IT! First of all, block out any associations you may have with the skipping rope used in children’s activities and accompanied by rhymes. Skipping happens to be an incredibly efficient and versatile workout for everyone, especially when you’re getting into shape for summer. Stash a rope in a rucksack, briefcase or Louis Vuitton tote and take it with you everywhere. An exercise programme based on the skipping rope is one of the easiest ways to build cardio fitness, agility and strength. Many professional trainers, fitness experts and athletes endorse skipping over any other alternative exercise, such as running, for burning fat. Individually handmade, the coolest skipping ropes in town are from Geoffrey Fisher. They feature solid wooden handles and the standard 280cm length rope comes in four striking colours – red, blue, yellow and green. So skip into summer and stay well conditioned while you’re at it. £25 each,

15. UNDER COVER This fascinating Paper Vase Cover is actually a ‘skin’ allowing you to transform any old bottle or container into a stylish, utterly uptown, postmodern, faceted vase. Adjusted by simply rolling up the paper, it will fit almost any size bottle, as the triangular structure allows the paper to set around the enclosed receptacle. It comes to you flat-packed, and is available in a variety of colours, textures and prints, including Vermeer’s famous milkmaid painting. Designed by Pepe Heykoop for the Dutch charity Tiny Miracles Foundation, every Paper Vase is handmade by Pardeshi women in Mumbai, providing incomes for one of the poorest communities in India. So, not only beautiful to look at, but doing good at the same time. £18,

THE AGENDA 16. FLORAL DELIGHT Fleur Musc for Her by Narciso Rodríguez is an intriguing new floral, woody, musk fragrance for the equally intriguing, free-spirited, sensual and knowing woman. Iconic New York designer Rodriguez – who opened his atelier in 2001 – has become as well known for his classically serene perfumes as his slick, sleek, bias-cut styling. Vogue magazine’s Anna Wintour once remarked: “No one but Narciso has ever made a simple line look more stunning.” A similar ethos – simplified complexity – is also at the core of his beauty business. His newest fragrance has a spicy floral scent, with a top note of pink peppercorn. Middle notes bring in the heady aroma of roses, peonies and musk, with luminous woody notes of patchouli, which blend with the cool softness of amber giving a longlasting effect on the skin. The colour of the bottle says it all – spring has definitely sprung! £49, 30ml; £60, 50ml; £80, 90ml, available nationwide from 13 March

17 18. GOING GREEN When Zeev Aram opened his first furniture and home accessories showroom in 1964 – a small, white-onwhite space in London’s King’s Road – Britain was a modern furniture desert, bereft of any experimental new design. He was the first to introduce some of the great Masters of Modernism – Achille Castiglione, Breur, Le Corbusier – to the


17. A PAINTERLY APPROACH True Brit designer Paul Smith is known for his idiosyncratic take on traditional styling, having coined the term ‘classic with a twist’. However, his talent as a brilliant and innovative colourist is just as great – if not more so – than his huge talent as both a menswear and womenswear stylist. Understanding the effects of light on colour, and the juxtaposition of colours, was one of the central tenets of the revolutionary Impressionist art movement. And, like Claude Monet, Paul Smith conjures the same inspirational life and vibrancy for his colour palette for the shirt shown here. His signature muted Artist Stripe is the apotheosis of the Impressionist dream. Crafted in Italy in the finest 100 per cent cotton, the print shirt is expertly finished with grey shell buttons. A classic winner! £150,

British public. Fifty-three years on and the store and gallery still fly the flag for the best in cutting edge, experimental modern design. Take the innovative Polder Sofa pictured here – created by Dutch designer Hella Jongenius, one of the leading lights in modernist industrial design. The asymmetrical sofa can be

configured with the higher armrest on the left or right side. It’s covered with mixed fabrics and different weaves in carefully co-ordinated hues of golden yellow, night blue, flame red, or vibrant green, and features striking button back detailing. The ottoman section is movable. A perfect ‘totally today’ addition to any urban dwelling. £4,350,

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Directory To advertise in the directory in print or online contact Carl Methven on + 44 (0)1534 615886 or

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 three-hour sessions that ensure learning is maximised whilst time out of the office is minimised. For more information, please contact: Alex Morel Managing Director Hilary House 19 Hilary Street St Helier JE2 4SX

Appleby is one of the world’s largest providers of offshore legal advice and 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 and Shanghai. We are also the only firm to have offices in all three British Crown Dependencies. Our services include: l Corporate l Dispute Resolution l Private Client & Trusts l Property Members of the Jersey and Guernsey offices regularly advise London City and international law firms on all legal aspects of offshore corporate, finance and investment fund transactions and arrangements in the Channel Islands. For more information visit our website Michael Cushing Managing Partner, Jersey +44 (0)1534 818 395 Gavin Ferguson Managing Partner, Guernsey +44 (0)1481 755 603

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 our unique ability to leverage investment thinking and capability from across the FirstRand Group, to offer our retail or institutional clients unique investment opportunities. With us, investors can access more sources of return, broader investment capabilities, informed risk management and deeper investment insight. 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 dollar $8.55 billion as at 31 December 2015 and we have international reach with offices in the Channel Islands, South Africa, the United Kingdom, and the United Arab Emirates. To find out how Ashburton Investments can help you access more opportunities, contact us today on: +44 (0)1534 512000

01534 873785 07797 774676

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Independent and Professional

Bright. Commercial. Responsive.

We offer a full range of management and fiduciary services to our domestic and international private clients:

Benest Corbett Renouf provide solutions to a wide range of legal issues.

l Family office ​​- bespoke assurance l Wealth management ​- your strategy l Trustee ​​- impartiality with vision l Corporate services ​- attention to detail l Good governance ​- a helpful eye l Strategic guidance​- controlled ideas We aim to assist in the provision of personal service to meet your requirements. Ask us. Being vigilant and proactive in the face of a fast changing legal, economic and fiscal landscape. We can provide the focus to your solution. Try 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. Contact us: Tel: 00 44 1534 870670 or Nicholas Falla Mrs Ann Williams Mrs Áine O’Reilly Licensed by the Jersey Financial Services Commission in the conduct of trust ompany business

We may be Jersey’s newest law firm, but we draw on the combined wealth and experience of our partners and fee earners in the following practice areas: l Litigation l Employment Law l Trust Law l Property & Planning l Family Law l Wills & Estates l Corporate & Commercial l Insured Risks Our team aims to provide the best possible advisory and advocacy services to clients, tailored to your particular needs, or those of your business. We are proud of our ability to resolve matters by giving leglly sound, commerically practical advice at sensible cost. For further information about how we can assist you, please contact: David Benest, Managing Partner Tel: +44 (0) 1534 760 860 Follow us on Twitter @bcr_law

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 world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. For further information please do not hesitate to contact: John Clacy, Partner, Guernsey Phone +44 (0) 1481 724011 Greg Branch, Partner, Jersey Email: Phone: +44(0)1534 824325


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Equiom is a global fiduciary services provider with offices in some of the world’s premier International Financial Centres, including Jersey, Guernsey, Hong Kong, the Isle of Man and Malta. We create innovative and effective structures to protect private and corporate clients’ wealth. Our experienced and highly qualified teams offer services in specialist sectors including trust, corporate, property, family office, eBusiness, yachting, aviation, crewing, tax and VAT. We are an award-winning, independent company focused on strategic thinking and quick responses to clients’ requirements. We continually seek to develop our services to provide an unrivalled range of opportunities for clients. Equiom’s Jersey and Guernsey teams have significant experience relating to the setup and administration of trusts and companies and the market-leading knowledge required to appropriately protect clients’ assets. Equiom (Jersey) Limited is regulated by the Jersey Financial Services Commission. Equiom (Guernsey) Limited is licensed by the Guernsey Financial Services Commission. Equiom (Jersey) Limited Address: Equiom (Jersey) Limited One The Esplanade St Helier Jersey JE2 3QA

We are Estera, a leading provider of offshore fiduciary and administration services. Established for more than 25 years, our strong legal heritage, rooted in our previous partnership with Appleby, and resolute commitment to the delivery of service excellence is what sets us apart. Independent and global, we have over 350 dedicated, professional and highly qualified employees supporting smart and integrated fiduciary solutions. Our comprehensive and diverse service offering is split across our four core service lines: l Corporate l Trusts l Funds l Accounting Our unique understanding of the complexities surrounding the world of fiduciary services inspires us to achieve the best possible results for our clients. This, combined with our commercial acumen, attention to detail and responsiveness, enables us to meet our clients’ needs. Richard Prosser Group Director +44 1534 844 809 Estera Trust (Jersey) Limited is regulated by the Jersey Financial Services Commission.

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. 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. To discuss how we can support your business, please contact one of our partners below: Mike Bane, Partner, Assurance and TAS E: T: 01481 717 435 Andrew Dann, Managing Partner, Assurance E: T: 01534 288 655 Richard Le Tissier, Associate Partner, Assurance E: T: 01481 717 468 Chris Matthews, Partner, Assurance E: T: 01534 288 610

Tel: +44 1534 760100

David Moore, Partner, Assurance and Advisory E: T: 01534 288 697


Wendy Martin, Partner, Head of Tax CI E: T: 01534 288 298


David White, Head of Tax, Guernsey E: T: 01481 717 445

78 march/april 2017 To advertise in the directory in print or online contact Carl Methven on + 44 (0)1534 615886 or

We are a leading independent provider of trust, corporate, fund and real estate administration services with 800 people in 14 strategically located offices worldwide. Our presence in – and knowledge of – the regulatory landscape in so many of the world’s key financial jurisdictions means we can respond to the varied and specific needs of our clients, either directly or via their trusted advisers. We are director led and have a clear focus on professional qualifications among employees, with many trust and estate practitioners, accountants, lawyers and chartered secretaries providing the necessary experience. We believe that our people give us our edge and that what makes us special is the way we share our experience and pool our knowledge. We take the time to understand our clients’ individual requirements, and we take pride in our ability to tailor the right solutions. If you’re looking for a tailored solution to meet your needs, get in touch with: Matthew Haynes Group Business Development Director D / +44 1534 714551 M / +44 7700 712839 First Names (Jersey) Limited is regulated by the Jersey Financial Services Commission. First Names (Guernsey) Limited is regulated by the Guernsey Financial Services Commission. For further information, please visit

Intertrust is a leading global provider of high-value trust, fund and corporate services, with a network of 41 offices in 30 jurisdictions across Europe, the Americas, Asia and the Middle-East. Our 2,400 employees are focused on delivering highquality tailored services to clients with a view to building long-term relationships. Intertrust in the Channel Islands offers a comprehensive range of services to our clients and business partners wherever they may be located: Corporate services Private equity and debt fund services l Real estate services l Capital markets services l Performance & Reward Management l Private wealth l Regulatory and reporting services l l

We pride ourselves on providing professional, personal and multijurisdictional services to our clients all over the world. For further information, please contact:Andrew Niles Business Development Director Intertrust Guernsey Tel: +44 (0)1 481 211 321 Simon Mackenzie Managing Director Intertrust Jersey Tel: +44 (0)1 534 504 000

KPMG in the Channel Islands is a leading provider of professional services, including audit, tax and advisory. With offices in Jersey and Guernsey, we employ over 260 members of staff across the two islands. We work closely with our clients, helping them to identify and grasp opportunities, and mitigate risk. KPMG’s global network enables us to draw on our international resources to meet our clients’ needs. Our member firms are located across 152 countries and employ more than 189,000 people around the world. With passion and purpose, we work shoulderto-shoulder with our clients, integrating innovative approaches and deep expertise to deliver real results. Jersey Jason Laity Chairman Andrew Quinn Deputy Head of Audit John Riva C.I. Head of Tax Robert Kirkby Advisory Partner Guernsey Neale Jehan Managing Director and C.I. Head of Audit Tony Mancini Tax Partner Ashley Paxton C.I. Head of Advisory

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Marsh & Parsons has been selling and letting property in London for over 160 years. We now operate 28 offices which are situated in prime positions across central and Greater London. We have an intimate and extensive knowledge of these areas as well as the ability to reach a global audience through our strong links with international corporates. Our people deliver the perfect balance of professionalism, transparency, enthusiasm and determination. It’s this, combined with our ongoing assessment of the local property market, that means we can deliver the best possible service and results. Since 2009, we’ve won 44 industry awards – most recently Overall UK Estate Agency of the Year and Best Large UK Estate Agency of the Year at The Sunday Times and The Times Estate Agency of the Year Awards 2016. For a free up-to-date valuation of your property portfolio speak to William Hughes-Ward on 020 7590 0801.

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. For further information, please contact: John Wood Managing Director Minerva Trust & Corporate Services Limited PO Box 218 43/45 La Motte Street St Helier Jersey JE4 8SD Channel Islands T +(0)1534 702930 E

Global fund services by experts We are a leading specialist provider of independent fund administration and management services to corporate and institutional clients around the world. What makes us different is our dedication to exceeding the expectations of our clients, which range from major investment banks and large financial institutions to boutique alternative asset managers. Our specialist teams support the management and fund servicing needs of: l Real estate funds l Private equity funds l Structured funds l Open ended funds l Alternative investment funds We have extensive experience with complex investment holding company structures, carried interest structures, special purpose vehicles and special limited partners, as well as a variety of performance fee models. We are licensed to provide fund administration and management services in Jersey, Guernsey and the Isle of Man. If you’re looking for expert, individual attention rather than an off-the-shelf product, get in touch with: Andrew Maiden Funds Director D +44 1481 231868 M +44 7911 126092 Moore consists of a number of companies operating in multiple jurisdictions. These include entities licensed by the Guernsey Financial Services Commission and Jersey Financial Services Commission. For details of specific activities and regulatory status please visit our website Moore is a First Names Group company

80 march/april 2017 To advertise in the directory in print or online contact Carl Methven on + 44 (0)1534 615886 or

Specialty: Bespoke IT Development & Business Consultancy

Building trust in society and solving important problems

Puritas is an award-winning provider of intuitive software and business solutions for the financial services industry.

We focus on three things at PwC in the Channel Islands: assurance, tax and advisory services. But how we use our knowledge and experience depends on what you want to achieve. So whichever one of our 390 staff in the Channel Islands you work with (or 225,000 people across the PwC global network of member firms), they’ll start by asking the following questions:

Specifically designed to meet the increasingly complex accounting, compliance, and reporting needs of our clients, all software features robust audit and control capabilities which can be easily updated to reflect changes in the regulatory environment. Our products include: l PureFunds - a unitized product platform specifically designed to support many different types of asset class and fund structures and help fund administrators and portfolio managers better manage investor activity l P ureClient - an advanced customer due diligence/client management system which will maintain and update client records for any entity or relationship and provides the necessary transparency and look-through reporting that is needed to manage sophisticated structures l P ureManager - a bespoke software package for fund and investment managers which provides for effective control, analysis, reconciliation and reporting of daily trading activity. As well as software development, our services include: l Systems integration and implementation l Programme and project management l Project and business consultancy

Are you looking to build trust? Give your shareholders more value? Or do you want to do something completely different with your strategy? When we work with you we really listen, to understand you better. We’ll get to know you, your business and your goals. Then we’ll share what we’ve learned to help you get there. We want to deliver the value that you, our clients, our people and our communities are looking for. Talk to us about your issues and aspirations. For further information, please contact: John Roche, Partner, Guernsey Phone: +44 1481 752040 Email: Karl Hairon, Partner, Jersey Phone: +44 1534 838276 Email:

Viberts is dedicated to providing outstanding legal advice and customer service, both in Jersey and internationally. Our clients range from private individuals to multinational corporations, local businesses and governments. We are large enough to offer a full service but small enough that each client has direct contact with one of our partners. We always take a pragmatic approach so that we can deal with matters as efficiently as possible, but we are also compassionate and understanding when it comes to sensitive issues. We partner with other specialists across the globe where required to bring you the best possible advice and representation. Our range of bespoke legal services includes: l Commercial l Employment l Family l Litigation l Personal l Property For expert legal advice, please contact us today. E: T: +44 (0) 1534 888 666 W:

Follow us: @PwC_CI URL:

To find out more how Puritas can help your business. Contact: Mike Feighan - Director Phone: +44 (0) 1534 874100 Email:

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20 questions with LOUISE BRACKEN-SMITH

➤ Tea or coffee? I prefer herbal tea and Rooibos is my favourite. Favourite TV programme? Sherlock. But there have been a few fabulous period dramas on lately. I thought War & Peace was wonderful. Fondest childhood memory? Spending summers in Ireland with cousins, swimming every day in the freezing Irish Sea. Somewhere you’ve never been that you’d love to visit? There are so many countries I’d love to visit, but trekking up Kilimanjaro would definitely be high up on my list.


Scariest thing that’s happened to you? Travelling alone to Ecuador, losing my rucksack and having to learn to speak Spanish pretty quickly! Best quality? Honesty – which isn’t always appreciated. Something about yourself you’d change? I wish I’d started doing triathlons earlier in life. Last meal on death row? Vegetarian Massaman curry. I’ve been a vegetarian since I was 12 years old.



Cats or dogs? Dogs. Having always had cats, I was totally converted to dogs when we got our first Boxer eight years ago. Someone you admire? Bonita Norris. She reached the summit of Mount Everest at the age of 22 and was the first British woman to successfully climb Mount Lhotse in the Himalayas – the world’s fourth highest mountain – in 2012.

First job you had? Valeting cars for neighbours – they took hours and all for £10! Worst job you had? Working in a shop on a Saturday. I found it very boring. Dream job? A professional triathlete, because I love the discipline of the sport. And who wouldn’t enjoy representing their country around the world in a sport they love? Any hobbies? Perhaps unsurprisingly, triathlon training! I also love golf and tennis when I can find the time. Something that drives you nuts? Lack of recycling and overuse of plastic bags/packaging. Best piece of advice received? This quote from Churchill says it all: “Success is going from failure to failure without losing enthusiasm.” Fantasy dinner guests? Alistair and Jonny Brownlee, Rafael Nadal and Adele – what an evening that would be! Buzzwords you hate the most? ‘Touch base offline’. Sweet or savoury? Sweet for sure – I have a ridiculously sweet tooth. Something about you that people might be surprised by? I’ve just qualified for the Irish triathlon team in my age category and will also be competing in the ITU World Triathlon Series in Rotterdam in September. Louise Bracken-Smith is Managing Director of the Fairway Group.


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Collas Crill is about people and relationships. We’re where our clients need us to be, whenever they need us. So, by building on our global presence we help our clients to grow and prosper because we measure our success from their perspective. When they succeed we do too.

To find out how our people can help your business visit BVI // Cayman // Guernsey // Jersey // London // Singapore

We are dedicated asset guardians, more than just a service provider.

A partnership built on trust.

Whether you are a successful individual or corporation, you can trust Equiom to protect and nurture your wealth. We are your asset guardians, here to assist with: • The establishment, formation and administration of trusts, foundations and companies • Specialist tax & VAT planning and tailored ownership structures for property, yachts and aircraft • eBusiness solutions, including eGaming licence applications, corporate structures and VAT advice

Trust | Corporate | Family Office | Tax & VAT Property | eBusiness | Yachting | Aviation | Crewing Equiom (Isle of Man) Limited is licensed by the Isle of Man Financial Services Authority. Equiom (Jersey) Limited is regulated by the Jersey Financial Services Commission. Equiom (Guernsey) Limited is regulated by the Guernsey Financial Services Commission. Equiom (Malta) Limited is authorised to act as a trustee and fiduciary services provider and as a company service provider by the Malta Financial Services Authority.