BL Magazine Issue 50 May/June 2017

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Bluffer’s guide to trusts • Spotlight on the Middle East Bart Deconinck • Advising the modern family Could the UK become a tax haven? • MiFID II update Boomtime for data scientists • Future leaders Investing in classic cars • Superyachts • Lifestyle

The Wealth Edition 2017 ISSUE 50 MAY/JUNE 2017


50 things they said looking back as bl hits its half century

By understanding your ambitions and the world you operate in day-to-day, our lawyers are able to fine-tune their advice and find new ways to add value. This personal approach to delivering business-minded solutions is helping us to advise on the most complex cross-border instructions for our clients who range from multinationals and banks to high net worth individuals and investment managers.


Seeing the world from your perspective OFFSHO R E L AW S PECI A LI ST S BR ITIS H V I R G I N I S L A N D S C APE TOW N







We’ve come a long way, baby THE WORLD WAS a rather different place back in 2009. Gordon Brown (remember him?) was UK Prime Minister; the 90s’ tech boom was a distant memory; and, oh yes, we were in the throes of the worst financial crisis in a generation (or two). So, the perfect time to launch a business and finance magazine that was distributed free and paid for by advertising, right? No wonder they said we were mad. Kirsten Higgins, the founder of this magazine (along with her brother Carl Methven), originally contacted me in 2008 to see if I’d be interested in editing this new publication that they’d dreamed up – as it was then. And who was I to turn down the possibility of endless trips to Jersey and its streets that were paved with tax dodgers’ gold? Yes, I was that naïve. My perception of the Channel Islands at the time was no different to most other people who only knew Jersey through the dreaded ‘B word’ – Bergerac. To be honest, when I first heard the term ‘States of Jersey’, I actually thought they were the counties on the island. So, as you can imagine, this was one hell of a steep learning curve. But here we are, more than eight years later, and we’re still going strong – and, thankfully, I’m far more knowledgeable. And a magazine that was initially only distributed in Jersey,





Nick Kirby, Editor-in-Chief, BL magazine




now goes out in Guernsey and the City. It’s certainly not been plain sailing – and putting out a magazine six times a year continues to be a challenge. We’re extremely thankful for the support of all the PR and media agencies on the islands who hook us up with their clients on a regular basis. And, as a free publication, we’re incredibly grateful for the support of our advertisers, who believe in what we do. I’m personally indebted to the dozens of remarkable writers who’ve graced these pages over the past eight years – not least those who have featured in practically every issue and in whom I place my trust to deliver sharp copy every time. They never let me down. Neither do my remarkable Art Director Angela Lyons and my eagle-eyed Sub Editor Kate Wheal, who put up with my rubbish layout ideas and pernicketiness every issue. The Channel Islands themselves have faced their fair share of challenges during those eight years, and I never fail to be impressed by their resilience, particularly in the finance industry. With a UK general election looming, the whole Brexit mess to be untangled and continued global uncertainty, I’ve no doubt that the next 50 issues will be as much of a fascinating ride as the first 50. n

Our cover image, by the talented Thinus Slabber, includes 40 people who’ve been interviewed, featured in some way, or have contributed to the success of the magazine in the past eight years. There were so many more we could have included, but limited space means that we largely opted for the most familiar faces. The 40 are:


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1. Dave Waller 2. Christopher Jehan 3. Nick Kirby 4. Jo Stoddart 5. Trevor Falle 6. John Henwood 7. John Harris 8. Steve Williams 9. Tony O’Neill 10. Dame Mary Perkins 11. Martin Belcher 12. Mike Byrne 13. Steve Meiklejohn 14. Kate Wheal 15. Andrew Whittaker 16. Bart Deconinck 17. Doug Bannister 18. Deputy Lyndon Trott 19. James Filleul 20. Senator Ian Gorst

21. Rosemary Marr 22. Martin Bralsford 23. Kirsten Higgins 24. Colin Powell 25. Senator Sir Philip Bailhache 26. Fiona Le Poidevin 27. Geoff Cook 28. Kirsten Morel 29. John Boothman 30. Connie HelyarWilkinson 31. Jon Moulton 32. Heather Bestwick 33. Cees Schrauwers 34. Derek Coates 35. Angela Lyons 36. Graeme Millar 37. Carl Methven 38. Dominic Wheatley 39. David Warr 40. Marc Laine

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4 july/august 2015


INSIDE 72 bl guernsey


The latest financial and business news and views from the bailiwick


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

7 News

33 modern family

A round-up of the latest Channel Island business news

As the nature of families evolves, advising them when it comes to wills and succession becomes ever more complex




Recent key appointments for firms in Guernsey and Jersey

16 50 things they said As BL hits its half century, we pull together some memorable quotes

22 Interview Zedra’s Bart Deconinck on trusts, starting over and “bonkers” Brexit

Finance 28 trusts Ever wanted to know what trusts are all about? Then our ‘Bluffers Guide’ is just the job

36 Middle East The region has endured troubled times recently, so where does that leave the Channel Islands’ finance sectors?

40 UK as a tax haven As the UK fires the gun on leaving the EU, is there any substance in the rumour that it could become a low-tax centre?

46 MiFID II Coming into force in 2018, what does this legislation mean for Guernsey and Jersey?

business 53 business leaders Why the traditional CEO could become a thing of the past

56 data scientists How the people who make sense of data could be the future of business

61 broad career Does career success depend on gaining broad experience?

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


lifestyle 65 clAssic carS How to spot the motors that might be classics in the future

68 superyachts Take to the high seas on some frankly insane high-end yachts

The Agenda It’s glitz and glamour-a-go-go as our lifestyle section gets decidedly blingy

c o n t r ib u t o r s

The BL Global Discussion Forum


Follow us @blglobalnews Office: Meadowlands, La Rue a la Dame, St Saviour, Jersey JE2 7NQ © 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.

With some firms moving away from a typical hierarchy, Dr Liz takes a look at whether it’s really possible to get rid of the man or woman at the top, and what that will mean for the structure of businesses.


It’s a welcome return for business and finance writer Orlando, who uses his knowledge of the Middle East to examine what the region still has to offer finance in the Channel Islands.


Amid bullish comments from government, BL regular Kirsten examines whether the UK could actually use Brexit as a way of becoming a low-tax jurisdiction, and what that might mean for Guernsey and Jersey.


It’s been a busy issue for Dave as he makes sense of the trusts industry in the Channel Islands, examines the challenges facing firms advising 21st century families, and takes us on a tour of the superyacht scene.

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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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BL launches 2017 Channel Islands Funds Forum

PraxisIFM Group lists on TISE

BL EVENTS HAS launched this year’s Channel Islands Funds Forum, with a dedicated website and the announcement that the event will be bigger than ever before. This is thanks to the inclusion of a pre-event seminar from alternative assets industry intelligence provider Preqin, and post-event networking drinks. The event – ‘A Sharper Focus’ – is produced in partnership with PwC, sponsored by Appleby, JTC Group and Optimus Group, and supported by Altair, Puritas and Rossborough Professional Risks. The main conference will take place from 11am-5.30pm on Wednesday 27 September at the Radisson Blu in St Helier, and will be followed by drinks and the opportunity to network. Prior to the main event, specialists from Preqin will present an exclusive session on the global alternative assets industry and where the Channel Islands sit in that landscape. Anyone booking a full event ticket will be able to attend the seminar, which runs from 9.30-10.30am. For those who are unable to attend the full day, reduced price tickets are available for the seminar alone. As in previous years, the conference will bring together leading funds practitioners from the Channel Islands and beyond to discuss the challenges, opportunities and issues that are dominating the funds space right now. This conference will comprise a variety of sessions and panels covering a wide range of subjects, as follows: ● The last 12 months in funds – what’s happened in the Guernsey and Jersey funds industries in the previous year. ● The global geopolitical landscape

FINANCIAL SERVICES BUSINESS PraxisIFM Group has listed on The International Stock Exchange (TISE). The Guernsey-registered business, which has assets under administration in excess of $40bn and operates across 10 jurisdictions, was listed with a market capitalisation of just over £89 million. Simon Thornton, PraxisIFM’s CEO (pictured), said the listing will ”broaden the group’s profile internationally and, in particular, within our target markets”. It will also provide the group with access to capital markets. Appleby acted as Lead Counsel in both Jersey and Guernsey to PraxisIFM Group in relation to the listing, led by Andrew Weaver, Corporate Partner in Jersey, and supported by Kate Storey, Corporate Partner in Guernsey. As a result of the listing, Andrew Haining and Iain Stokes join the PraxisIFM board as Non-Executive Chairman and Director respectively. Following the listing, the Financial Services Opportunities Investment Fund is increasing its stake in the organisation to 21.4 per cent, having acquired a further 12.4 per cent of the issued share capital of PraxisIFM Group. n

and its impact on funds – uncertainty caused by Brexit, turmoil in the Trump administration and volatility in the Middle East are just a few of the issues that could put pressure on funds. ● The view from the outside – a panel of experts from outside the Channel Islands give their take on the funds industries in Guernsey and Jersey. ● The Channel Islands respond – local funds practitioners respond to the points raised in the previous session. ● Where is the money flowing? An examination of where the funds industry will be gaining business from in the coming year. ● What next for funds? What are the biggest challenges and opportunities in the coming year? What must the islands do in order to move forward? Carl Methven, CEO of BL Events, commented: “We’re really excited about this year’s funds forum. Not only does the main event look as if it’s going to generate some very strong opinions, but it’s great news that Preqin have agreed to present their seminar on the alternative assets landscape. We really think this year is going to build on the success of previous years.” An early bird delegate rate of £315 is available until 30 June, when the price will be increased to £395. For those wishing to only attend the Preqin seminar, the ticket price is £40. Up to 6.5 hours of CPD are available, depending on the sessions attended. For more details on the schedule and to book tickets, visit the dedicated website – – or email Carl Methven at n

may/june 2017 7


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Done Deals

Sanne gains Lux depositary licence CORPORATE SERVICES PROVIDER Sanne has been awarded a licence to provide professional depositary services in Luxembourg. The firm’s Luxembourg office will now be authorised as a depositary for assets other than financial instruments held in custody. This will allow it to offer additional services to the alternative funds sector, including family offices, in line with the European Union’s Alternative Investment Fund Managers Directive (AIFMD). Sanne, which operates from Jersey and Guernsey, opened its Luxembourg office in 2008 and provides fund and corporate administration services to global private equity, debt and real estate investment managers and institutional clients. In respect of professional depositary, its areas of expertise include safekeeping and verification of documentation and assets, transaction and cash monitoring and maintenance of comprehensive asset registers. n

8 may/june 2017

BioMedPartners has announced the first closing of BioMedInvest III, its third Guernsey-domiciled equity venture capital fund, at CHF75 million. The fund, a healthcare venture capital fund, invests in private early-to-mid-stage companies in Switzerland, Germany and neighbouring countries of the EU. BioMedInvest III is a collective investment scheme authorised by the Guernsey Financial Services Commission and administered by Louvre Fund Services. Collas Crill acted for BioMedInvest on the establishment of the fund.

JTC Fund Services has provided administration and corporate services in the initial public offering of the Impact Healthcare Real Estate Investment Trust (REIT) on the specialist fund segment of the Main Market of the London Stock Exchange. Impact Healthcare REIT raised an initial £160 million following its listing, and has already agreed to acquire and subsequently lease 58 residential care homes across the UK. Jersey-based JTC’s London team was involved in the transaction, led by Director Will Cameron and Associate Director Simon Gordon.

Carey Olsen’s corporate team in Guernsey has advised investment firm Cairngorm Capital Partners on the £107.5 million final closing of its second fund, Cairngorm Capital II. Carey Olsen claims this is the first Guernsey fund to be established as a Private Investment Fund (PIF) since the GFSC-registered class was introduced last November. The team, led by Partner Christopher Anderson with Senior Associate John Scanlan and Associate Colin Calvert, advised on the Guernsey aspects of the launch of Cairngorm II.

Mourant Ozannes has advised the Export-Import Bank of China, China Development Bank, Silk Road Fund and International Finance Corporation in connection with a US$1.392bn facility that was the first infrastructure project announced under China’s ‘One Belt One Road’ infrastructure development fund. The facility was provided to Karot Power Company (Private), a Pakistanincorporated subsidiary of China Three Gorges South Asia Investment, which was incorporated in the Cayman Islands. It will fund the construction of a 720MW Karot hydropower project in Pakistan on the Jhelum River, east of Islamabad, and is expected to be commercially operational in 2021. The Mourant Ozannes team was led by Partner Simon Lawrenson, with Associate Paul Trewartha, who worked alongside a range of international counsel including Shearman & Sterling, Shanghai.

Collas Crill has advised on aspects of the sale of UK credit and debit card payment processing firm Retail Merchant Services to TCV, which provides capital for growthstage private and public enterprises in the technology industry. Retail Merchant Services provides payment solutions for remote invoice e-settlement, online, by phone and in person via chip-and-pin machines in retail outlets. The Collas Crill team comprised Group Partner Michael Morris from the UK property team, and Senior Associate Tristan Ozanne from the firm’s commercial department. Collas Crill has also advised FastForward Innovations on investing in a Canadian company that will grow and supply marijuana for medicinal purposes under licence from the Canadian government. Collas Crill formed part of an international team led by Michael Corcoran at Hill Dickinson, advising FastForward on the application of Guernsey laws in this fastgrowing sector. Based in Guernsey, AIMlisted company FastForward has invested CAD$3 million in newly incorporated company Nuuvera. Collas Crill’s team included Group Partner Wayne Atkinson and Senior Associate Simon Heggs.

Mourant Ozannes is also advising both OneWeb and Softbank (on two sides of an ethical wall) on the proposed multi-jurisdictional merger between OneWeb and Intelsat, and the connected $1.7bn capital injection by Softbank into the combined group. The Mourant Ozannes team acting for OneWeb is led by Partner Mark Chambers and Senior Associate Andrew Salisbury, working with US Counsel for OneWeb, Choate Hall & Stewart. Mourant Ozannes is also providing Jersey law advice to Softbank and OneWeb on the deal. The team acting for Softbank is led by Partner Gareth Rigby and Senior Associate Amy Demetriou, working with US Counsel Morrison & Foerster and Luxembourg Counsel Arendt & Medernach. n




APPLIED HONESTLY We build lasting relationships based on a deep understanding of our clients’ priorities. Our director-led teams of trust and estate practitioners are structured around each client, matching expertise with requirements to ensure we’re both responsive and efficient. Our commitment to our clients over the long term provides constancy of service and ultimately peace of mind.

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TISE given recognition by German regulator THE INTERNATIONAL STOCK Exchange (TISE) has received recognition from Germany’s federal financial supervisory authority, BaFin. This means German funds established under the European Union’s Undertakings for Collective Investment in Transferable Securities (UCITS) Directive can now invest in securities listed on TISE. Fiona Le Poidevin, Chief Executive Officer of TISE, commented: “The fact that BaFin is happy to allow German UCITS funds – which themselves will have ordinary retail investors – to invest in products listed on TISE is a huge endorsement of our regulatory standards and adds significant weight to the credibility of the Exchange. It also demonstrates that the financial services authorities in Germany recognise the role that the British Crown Dependencies play in the flow of global capital.” The application to BaFin was supported by German investment funds association BVI. n

Salamanca Group announces MBO SALAMANCA GROUP, THE London-based merchant banking business, has signed a binding agreement to complete the management buyout of its trust and fiduciary business, SGTF, which operates from Jersey, Mauritius and Geneva. Financial details of the transaction weren’t disclosed and completion is subject to regulatory approvals in Jersey and Mauritius. Established for more than 40 years, SGTF is a global trust and multi-family office firm that serves international families with cross-border assets. The business has grown to administer and oversee US$10bn of financial and non-financial assets on behalf of wealthy families around the world. The SGTF senior management team, led by Xavier Isaac (Geneva), Paul Douglas (Jersey) and Gordon Stuart (Mauritius), are all reinvesting in the business as part of the transaction, and will retain full operational control. Dr Alexander Ospelt, a Liechtenstein lawyer, will take a minority stake in the business and will join the group board. n

10 may/june 2017

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MERGERS AND ACQUISITIONS Accountancy firm Carter Backer Winter (CBW), based in the City of London, has formed a partnership with Guernsey-based accountant Chandler Backer & Co to create CBW Guernsey. The joint venture will provide services including advice on business start-ups and sales strategy, investment, overseas expansion, tax planning and regulatory compliance. Chandler Backer will operate as CBW Guernsey under the directorship of its founder Martin Mahe. Stuart Place, former Chair of the Guernsey Investment Managers and Stockbrokers Association, also joins the team. Corporate services provider Crestbridge has acquired Ohad Trust, a trust, fund and corporate services provider based in Manama, Bahrain. With regulatory consent from the Central Bank of Bahrain, Ohad has become part of the Crestbridge Group and will be fully rebranded this year. The firm’s owner, Graham Journeaux, and Associate Director Naser Obaid will continue to lead the Bahrain office. Equiom has acquired Tokyo-based Solid Japan, which offers services to support inbound investment into Japan. The deal adds to Equiom’s Asia presence in Singapore and Hong Kong. Equiom has also acquired Inverness-based professional services outsourcing firm Eagle Consulting, whose 64 staff have joined Equiom. Solid Japan and Eagle Consulting began rebranding to Equiom in April. Corporate services provider JTC Group has acquired Netherlandsbased New Amsterdam Cititrust (NACT), subject to regulatory approval. Led by Edmond Hartsuiker, NACT serves clients ranging from entrepreneurs to venture capitalists,

private equity firms and publicly listed companies. It provides corporate and administration services, including company formation, corporate management, administration, accounting, legal and secretarial services. PraxisIFM has completed the acquisition of Ryland Gray, which offers financial administration and corporate consultancy services across the Arab Gulf Cooperation Council States, and specialises in structural financial solutions for corporate and institutional clients. Founder Simon Fielder will continue to lead the firm, which will rebrand as PraxisIFM Consultancy FZE. PraxisIFM has also acquired Guernsey-based specialist annuity provider Cavendish Corporate Investments, established by Mike Dewsnap and Martin Triggs in 2008. Dewsnap will remain on the board of Cavendish and continue to provide technical support to the company. Jersey-based corporate services group Vantage has purchased HR consultancy Hassell Blampied Associates (HBA). HBA, also based in Jersey, offers remuneration surveys, HR advisory and recruitment services in Jersey, Guernsey and the Isle of Man. Vantage’s HR company, Vantage Personnel, founded in 2015, will be renamed Vantage HBA with immediate effect. Corporate service provider Vistra has acquired Optegra, a German specialist in auditing, tax consultancy, legal advisory and management consultancy services with offices in Cologne, Hamburg and Munich. All of Optegra’s Partners will remain with the business to develop the range of services provided by Vistra in Germany. 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 may/june 2017 11 provide legal, tax or investment advice and the information in this document should not be regarded as such.


Appointments Equiom has named Matt Tabb as its Global Head of Corporate Communications, based in Jersey. Matt brings more than 19 years’ experience in marketing communications to the team, having worked with Procter & Gamble, Mastercard and Ikea. He has held senior roles in UK marketing agencies, including Managing Director of Wax Communications, Marketing Director of Arc/Leo Burnett and, more recently, Managing Director of BWP Group. At Equiom, he will oversee all strategic marketing activities across the company’s business lines within the 11 jurisdictions in which it operates.

Richard Corrigan has been appointed as Chief Officer of the States of Jersey’s financial services, digital and competition teams. Richard had been on secondment to the States from his role of Deputy Chief Executive of Jersey Finance, acting as the Interim Director of Financial Services. The teams he will oversee are responsible for the development of the government’s strategic priorities in the financial services, digital and competition sectors. The financial services policy framework, cyber security strategy, digital policy framework, and regulatory and competition framework review action plan are examples of current work.

The Guernsey Financial Services Commission has two new Commissioners. John Aspden (pictured) was Chief Executive of the Financial Supervision Commission in the Isle of Man from 1998 to 2015. He has also been MD of Matheson InvestNet and Deputy General Manager of the International Bank of Asia, and has worked at the Bank of England. The second new Commissioner is Philip Middleton, who since 2015 has advised on banking and financial services through Rifle House Capital. He has also been Deputy Chairman of global banking forum OMFIF for the past three years, and has worked for KPMG and EY.

Guernsey law firm Babbé has named Robert Varley and Katherine Hitchins (pictured) as Partners. Robert joined Babbé as a Consultant within the corporate, commercial and funds teams, having served as Managing Partner of Walkers’ Dubai office. He specialises in corporate and fund matters. Katherine joined Babbé in November 2015 as a Consultant in the corporate and commercial team after more than 13 years as in-house Counsel for investment banks in Europe and Asia. Most recently, she was an Executive Director and Assistant General Counsel for JPMorgan Chase Bank in Singapore.

Jersey technology firm Prosperity 24.7 has made two promotions. Paul Marshall (pictured) has moved from Head of Business Change to the newly created position of Director of Business Change. He has been with the team since 2013. In his new role, he sets investment strategy, identifies areas for growth and oversees the Head of Business Change and Senior Consultants in the team. Peter Stoten, who joined Prosperity 24.7 in January 2016, has been promoted from Senior Consultant to Head of Business Change, co-managing the business change team, analysts and junior project managers.

Glen Kehoe has become Director for Digimap in Jersey, after 10 years with the technology firm, which is Jersey’s and Guernsey’s official mapping partner. Glen previously served as the company’s Business Manager, based in Jersey, and prior to that he worked in a variety of management roles at Jersey Post. At Digimap, he has been responsible for commercial customers who use States of Jersey mapping data, ranging from advocates, architects and government departments to property developers, taxi firms and pizza delivery companies.

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


Collas Crill has appointed Quentin Bregg as an Associate within its dispute resolution department in Guernsey. Quentin, who qualified as a solicitor in Scotland in 2010, specialises in complex commercial litigation in financial services, insolvency and regulatory disputes. Prior to joining Collas Crill, he practised at Brodies in Edinburgh, in its business disputes and asset recovery team. He recently completed a secondment in the litigation team of RBS, where he dealt with a variety of commercial disputes. As well as being a Notary Public in Scotland, Quentin is a member of INSOL International and the Law Society of Scotland.

Ipes has appointed Sumindra BainsCleary as Head of Commercial Finance in London and David Bateman (pictured) as a Manager in Guernsey. Sumindra joins after five years with business process and technology services provider Xchanging, latterly as Corporate Development and Corporate Strategy Manager. Prior to that, she worked at KPMG. David joins Ipes Guernsey as a Manager overseeing a number of private equity funds. An experienced fund administrator, he was most recently Head of Operations in Singapore and the British Virgin Islands for Conifer Financial Services.

Jersey law firm Benest Corbett Renouf has appointed Advocate Adam Harrison to its litigation team, bringing the total number of Jersey-qualified lawyers to 11. He joins the firm having previously practised criminal and regulatory law with Appleby. Adam qualified as a Jersey solicitor in 2010 and was called as an Advocate three years later. He has specialised in criminal law and courtroom advocacy, advising on all aspects of criminal law, including to local industry professionals facing regulatory prosecutions. This has included cases brought to court under health and safety legislation.

EY has named Emma Hosking-Williams as Director in its private client and trust team in the Channel Islands. Emma began her career as a forensic accountant at HMRC. She joined EY’s London office in 2008 and has moved to the Channel Islands to lead the pan-island private client and trust team. Emma is experienced in advising on the UK taxation of offshore trust and company structures, as well as the taxation of non-UK domiciled individuals and international pension schemes. In her new role, she will focus on high-net-worth individuals, family businesses, large multinationals and trust and corporate service providers.

Butterfield Bank (Guernsey) has recruited Colleen McHugh as its Head of Wealth Management. A chartered wealth manager with more than 18 years’ experience, Colleen will work with the private banking and asset management teams in her new role. She previously served as a Corporate Investment Specialist within Barclays Wealth and Investment Management. She has worked with high-net-worth individuals and in the fiduciary, reinsurance and captive insurance sectors. Her experience spans a range of jurisdictions – the UK, Isle of Man, Ireland, Bermuda and Cayman.

Zedra has made two appointments in Jersey – Michael Capraro (pictured) as Head of Business Development Fund Services, and Ryan Taylor as Associate Director, Fund Services. Michael was a Director of Vistra Fund Services’ funds and corporate division. Prior to that, he was a Director of TriAlpha Asset Management, and a Founder and Managing Director of Jersey-based Herald Fund Services. Ryan began his career at EY and also joins from Vistra Fund Services, where most recently he managed the client accounting team and served as Funds Group Systems Controller.

We call it resourcing excellence. march/april 2017 13

A BL event


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channel Islands funds forum


WEDNESDAY 27 SEPTEMBER preqin seminar 9.30-10.30AM • main conference 11am-5.30PM The radisson blu waterfront hotel, st helier, jersey up to 6.5 Hours CPD available Delegate rate: £315 to 30 june, £395 thereafter (+ 5% GST if applicable) Places can be booked by visiting or emailing

50 issues of BL


As BL reaches its landmark half century, we look back over more than eight years and pull one quote from each issue. These are just some of the more striking things that people have said in the magazine in that time

things they said… ISSUE 3: JUNE/JULY 2009 “We’re on the cusp of something big. You can see very large accountants and law firms… lining up their affiliates in India, ready for that cross-border stuff to kick off. It’s started but it’s soon going to take on a very fast pace. The BRIC economies are the ones [Jersey wants] to be spending time and effort with.” Hiren Patel, Partner, Verras Law

Words: Nick Kirby

THEY SAY THAT a week is a long time in politics, so eight years is an eternity in finance. Since our very first issue went out in February 2009, we’ve probably interviewed every leading business and finance figure in the Channel Islands. In that time, we’ve gone from being to to plain old BL. We’ve seen UK Prime Ministers come and go, new finance products launch in the islands, and regulation tighten its stranglehold across industries. And last year alone we saw Brexit and the ascension of Donald Trump. It’s been a fascinating ride – and people have said fascinating things. Here are just 50 of them…

ISSUE 1: FEBRUARY/MARCH 2009 “Perceptions are everything. We need to keep chipping away to get people to understand they shouldn’t be tarring everyone with the same brush. If you wanted to be a ‘naughty boy’, it would be much easier to do it in one of the major centres. Jersey has to be whiter than white.” Martin Fricker, Managing Director, Lloyds TSB Channel Islands

ISSUE 2: APRIL/MAY 2009 “Intellectual property is a growing business. It’s used more and more and is increasingly valued, especially on the balance sheet. Jersey should be looking to be the leader in IP management, but at the moment it has a lack of proper identity in the IP world.” Robert Walker, Head of IP Legal, CPA Global

16 may/june 2017

ISSUE 4: AUGUST/ SEPTEMBER 2009 “At a time of economic downturn, if the two islands don’t work together, they’ll be split down the middle. For example, there’s a set of legislation coming up soon called the European Directive on Alternative Investment Fund Managers, which we believe will have a real impact on both islands… This is a classic case of where the two islands should work together.” Gary Drinkwater, Chairman, IoD, Jersey

ISSUE 5: OCTOBER/NOVEMBER 2009 “The eligibility of a business to employ ‘unqualified’ individuals has been a bone of contention since the law was first introduced in 1974. In a market economy, there’s something almost Stalinesque about a government official telling businesses who they can and can’t employ.” David Warr, Owner, Cooper & Co

50 issues of BL



“One of the strongest tax breaks in Europe to encourage investment into high-growth early-stage companies is the UK’s Enterprise Investment Scheme – this provides tax incentives to encourage private individuals to invest into these companies. We would urge the States of Jersey to consider this as an extra incentive to support local industry.” Scott Haughton, Director, Envestors

“Jersey is small. It can’t absorb large numbers of people to service a variety of businesses, and because of this, over the years Jersey has found it difficult to support more than one large, vibrant industry at a time. It’s good to aim at greater diversification, but experience has shown that this is no easy goal to achieve.” Colin Powell, former Adviser on International Affairs to Jersey’s Chief Minister


ISSUE 13: FEBRUARY/MARCH 2011 “My nature is not to mess around. If I can see a short way through something, rather than a long way around it, I’ll take it. I have the same view when it comes to giving my opinion. I’m lucky, because I can afford to be outspoken – I don’t work for a giant corporation, I’m not a politician, so I can speak my mind.” Jon Moulton, Chairman, Better Capital

ISSUE 8: APRIL/MAY 2010 “The eGaming debate really has little to do with the merits or otherwise of gambling. There’s a sizeable economic opportunity opening up here, whether we like it or not. eGaming is the only strategic opportunity available in e-commerce today with mass growth and global reach.” Chris Evans, Managing Director, Foreshore

ISSUE 9: JUNE/JULY 2010 “In Jersey, as in most other places, we tend to take things for granted, to avoid uncomfortable issues, and hope they will go away if we don’t talk about them. Sometimes we seem to lack the confidence to stand up for ourselves and to think outside the box. There may be a comfortable assumption that the mother country will tuck us up in bed and look after us if anything horrible happens. That is an illusion.” Sir Philip Bailhache, Founder and Chair, Institute of Law

ISSUE 10: AUGUST/SEPTEMBER 2010 “The States should not be running [Jersey] airport unless it’s managed as a strategic island asset. To be run commercially, the States should have little involvement. Either run it as a States asset and accept the extra cost of States employees, working practices, pensions and the like, without passing that on to the airlines, or run it commercially and accept that it will respond to the market.” Paul Sabin, Managing Director, Blue Islands

ISSUE 11: OCTOBER/NOVEMBER 2010 “Technology is moving at pace, and we believe that Jersey’s waters offer an opportunity for us to harness significant amounts of renewable energy for Jersey and potentially for export to European markets.” Constable Dan Murphy, Group Chairman, States of Jersey Tidal Power Steering Group

ISSUE 14: APRIL/MAY 2011 “We would have had much more chance of landing the likes of Google or Amazon with [an IP] law a few years out of date than with one drafted when wax cylinders were de rigeuer and the iPod was 89 years in the future.” Mark Renouf, Partner, Hanson-Renouf

ISSUE 15: JUNE/JULY 2011 “It’s true that Jersey isn’t very big. But look at where the universities that have been created in the last 20 years are: lots of them are in places that are a similar size or smaller. Look at Worcester, Winchester, Bolton and Luton: these are moderate-sized towns sustaining considerable universities… So the size of a population is no deterrent whatsoever.” Malcolm Johnson, Professor of Gerontology, Bath University

ISSUE 16: AUGUST/SEPTEMBER 2011 “One of my biggest fears for the future is that very few young people want to follow in the footsteps of my generation. Government has done nothing to encourage young people to enter the industry – agricultural loans have gone, and it will be very difficult for young people to start out in farming because the set-up costs are horrendously prohibitive. It’s a sad thing to say, but government doesn’t see agriculture as very important any more.” Tony Le Brun, Founder, Amal-Grow

ISSUE 17: OCTOBER/NOVEMBER 2011 “At this point in time, nobody in the world is ready for FATCA – and that includes the IRS.” Tony Mancini, Executive Director, KPMG Channel Islands

ISSUE 18: DECEMBER 2011/JANUARY 2012 “The islands are stuck in the nitty-gritty of how Guernsey is the place for private equity funds, QROPs and captive insurance, while Jersey leads in property funds, open-ended structures and private client work. It’s better to present how the Channel Islands are the ideal middle ground between onshore and the relaxed regulation of the Caribbean. At the moment, that message is often lost.” Paul Wilkes, Group Partner, Collas Crill may/june 2017 17

“I think in general people are reluctant to change. Let’s face it, if you’re bringing in new ideas, you’re going to ruffle the competition’s feathers. But if your offer is the best and you’re offering value for money, you won’t be afraid of the competition because you’ll always win out in the end. To be frank, if you can’t stand the heat, get out of the kitchen.” Gary Whipp, Managing Director, Jersey Post International Developments (on introducing Ship2Me and Me:Mo)

50 issues of BL

ISSUE 19: FEBRUARY/MARCH 2012 “It’s easy to talk about branding in terms of logo and advertising, but branding is as much about writing thought-leadership articles to demonstrate the will of the business as it is placing an advert in the local press. And I would suggest there are a lot of businesses in the Channel Islands that see branding as almost a standalone thing, away from the business ethos.” Emma Anderson, Senior Consultant, Orchard PR

ISSUE 20: APRIL/MAY 2012 “Jon Moulton is an incredibly bright guy and I have massive respect for him. I can’t imagine him coming into Aurigny and being a caretaker Chairman who does nothing. I look forward to seeing exactly what his motives are – they may be altruistic, but I’m not sure that’s the sole reason for his accepting the challenge.” Derek Coates, Chairman, Blue Islands

ISSUE 25: FEBRUARY/MARCH 2013 “To be honest, the [Jersey] Innovation Fund is rather like me starting up a new shop and someone giving me a fiver. It sounds very impressive to the uninitiated, but from a business perspective… those sums in terms of diversification are basically laughable… If you want to get ahead of the curve, you need the right level of investment, and you’re not going to do that with £5 million.” Robert Parker, Chairman, Hotel de France Group

ISSUE 21: JUNE/JULY 2012 “On one hand, the [Jersey] community is very supportive and very friendly, but there’s real intensity about the business, and the critical views that people give around certain things. The airport and the harbour undeniably attract attention being the only gateways into and out of the island, and this keeps us on our toes.” Doug Bannister, Group CEO, Ports of Jersey

ISSUE 22: AUGUST/SEPTEMBER 2012 “Tourism is still a pretty big market… but Jersey is never going to be the huge, mass destination it was 10 or 15 years ago. It can be an upmarket, niche, short-break destination, however, and I believe that is the way to go – to deliberately target high-value tourists.” Lawrence Huggler, MD, Huggler Group

ISSUE 26: APRIL/MAY 2013 “Attaining influence is part of our work, as it is of any diplomatic mission. And yes, Brussels is a very crowded place, so we have to be very focussed and think carefully when we seek to call on people in EU institutions – not only about what we want to achieve but why the other person should devote time to us.” Steve Williams, Director of European Affairs, Channel Islands Brussels Office

ISSUE 27: JUNE/JULY 2013 “Wealth managers should always look after their clients’ interests, and in recent years we’ve seen that hasn’t always happened. In some cases, they’ve been too busy looking after their own.” Philip Taylor, Regional Chairman, Coutts Channel Islands


“Our world is running up the down escalator and someone is fiddling with the speed – if you stop to catch your breath, you are at the bottom again. The world is speeding up all the time, so companies need to have the organisational ‘fitness’ to deal with it.” Cees Schrauwers, Chairman, Guernsey Financial Services Commission

“I think the general attitude to gender in Guernsey has changed in recent years. There are a lot of women in their 30s and early 40s who occupy relatively senior positions in [the finance] industry – you wouldn’t have seen that 20 years ago. As for politics – well, I think a lot of that has to do with the way government is structured in Guernsey. It’s very frustrating to try and get things through, and women have been put off by that.” Connie Helyar-Wilkinson, Chair, Guernsey NED Forum



“From the CICRA perspective, there are two advantages of pan-CI working – we are more efficient and less costly. The key benefit, though, is having a common set of rules that businesses operating across the islands can adhere to… I’m not an expert in financial services, but I’d imagine there’s a lot you can do without formally or legally merging the two regulators.” Andrew Riseley, CEO, Channel Islands Competition and Regulatory Authorities

“In Luxembourg, there’s a whole industry built on foreign direct investment into Brazil. The Channel Islands can’t compete while on the [Brazilian] blacklist and [have] no ability to offer the succinct corporate packages that Luxembourg has. In terms of corporate fund stuff, there’s absolutely no chance for the Channel Islands to benefit directly from the World Cup or Olympics in infrastructure investment.” Iain Johns, Group Head of Private Client Services, JTC Group


18 may/june 2017

50 issues of BL


ISSUE 31: MARCH/APRIL 2014 “A misconception of our industry is that every time a [construction] job starts, a load of people arrive on the boat, hang around for a couple of years and then leave. This doesn’t happen. Ninety-five per cent of our industry is locally qualified in employment terms, having been in the island for five years or more.” Martin Holmes, Director, Garenne Group

ISSUE 32: MAY/JUNE 2014 “The sheer scale of the regulatory burden on regulated businesses now means that you need scale to invest in the resources you need to comply, and I can see life becoming more difficult for smaller businesses. However, I do hope the trend in a regulatory sense as well as in an M&A sense doesn’t mean there are no smaller businesses left.” Phil Le Cornu, Partner, Ogier

ISSUE 33: JULY/AUGUST 2014 “I think the States [of Jersey] population policy is ludicrous, and I think the States and the Council of Ministers came to the wrong decision after their recent debate [where the net number of migrants will be limited to 325 each year]. I think there are some real problems if they think they can grow the economy by letting in such a limited number of people.” James Filleul, President, Jersey Chamber of Commerce

ISSUE 34: SEPTEMBER/ OCTOBER 2014 “My view is that in Guernsey we need a hybrid of Digital Jersey and Guernsey Finance. I would argue that Digital Jersey is doing a great job and that Guernsey Finance has been successful in the promotion of the island. This hybrid could be the glue that holds everything together. I think we need a digital champion for sure.” Marc Laine, Chair, Guernsey Chamber of Commerce ICT sub group

ISSUE 35: NOVEMBER/DECEMBER 2014 “I look at Bitcoin and say this is a great fintech with problems. I’m supposed to get paid for solving those problems, and Jersey is supposed to get paid by helping me solve those problems – and the way that we’ve worked in really close cooperation with the regulators here on this product [Jersey’s first regulated Bitcoin fund] has put Jersey on the global stage as a place that has managed to get its head around this complex new thing in the very early stages.” Danny Masters, Founder and Director, Global Advisors

ISSUE 36: JANUARY/FEBRUARY 2015 “I think everyone has been a little slow to acknowledge that Jersey and Guernsey are no longer high-volume, bucket-and-spade holiday destinations, but they have continued to market themselves as such, with pictures of beaches and so on… We have an ageing demographic of customers that like to come to Guernsey and Jersey, and we need now to start looking at marketing through digital channels to niche markets.” Rob Veron, Managing Director, Blue Islands

ISSUE 37: MARCH/APRIL 2015 “The problem Guernsey has is that while there’s a number of [digital] initiatives, there’s no clear focus. There are lots of things coming out – the Digital Greenhouse, the Financial Innovation Lab and Start-up Guernsey. Guernsey’s problem is that there are four or five very good people working in silos away from each other, more or less creating the same thing with a slightly different name with very little support from the States.” Martin Belcher, Chairman, Polygon Group

ISSUE 38: MAY/JUNE 2015 “What we have now is a new generation of educated young professionals in the [wealth management] industry who don’t fit into the kind of model that I came into 35 years ago. They are people who are well educated, very keen to progress quickly, technologically savvy and who are going to challenge the status quo. They simply won’t allow the hierarchical environment that I was accustomed to to frustrate their career growth and development.” Trevor Falle, Group Director, JTC Group

ISSUE 39: JULY/AUGUST 2015 “We have a bloated government [in Jersey] that allowed itself to believe that the money was simply going to go on pouring in forever, so it just grew and grew – and frankly we can’t afford the size of government we have now. Government needs to take a lead and start reducing its size – and yes, I’m talking about laying off a lot of public sector employees.” John Henwood, Chairman, Visit Jersey may/june 2017 19

“Custody used to be taking a piece of paper, keeping it in a drawer, and pulling it out every quarter just to make sure it’s still there. Under AIFMD, that all changes – you now have to oversee the funds and it’s a bit more risky, there are more procedures to follow and it’s more detailed.” Justin Partington, Commercial Director, Ipes

50 issues of BL



“I don’t think women should be singled out as being somehow different. People should stop talking about it. In my entire career, I’ve never felt a gender gap. I’ve never felt I haven’t been considered for things because of my gender. I wouldn’t want to be considered for a job because of my gender. If you look at a lot of industries, it’s natural that as women have children, many choose not to come back to work. That’s a choice.” Jo Cox, Chief Commercial Officer, Sure International

“Firms are looking for a kitemark of approval, but regulators, quite rightly, won’t endorse products because they need to remain independent. It would be good for government to look at creating a kitemark, or something similar. If Jersey and Guernsey could use a kitemarked [customer due diligence] system, it could create a competitive advantage.” Andy Pryke, Deputy Group Head of Compliance and Risk, Ipes

ISSUE 41: NOVEMBER/DECEMBER 2015 “We do have something of a ‘closed pool’ of talent. That’s good in that it keeps the jurisdiction ‘clean’ and the levels of expertise are exceptional. There is a problem, however, with attracting people in lower levels of management, because there’s a tipping point as to when it’s economically attractive living in the Channel Islands.” Andrew Whittaker, Managing Director, Ipes, Guernsey

ISSUE 42: JANUARY/FEBRUARY 2016 “For those companies that decide they’re going to show a wanton disregard for compliance, we could impose a civil penalty, make them train in anti-money laundering, or even revoke their licence and close their business. The Jersey brand has been hard fought to achieve, but can be lost very easily by anyone playing fast and loose with anti-money laundering standards.” Barry Faudemer, Director of Enforcement, Jersey Financial Services Commission


ISSUE 47: NOVEMBER/DECEMBER 2016 “In the run-up to the presidential election, Brexit was vigorously waved in the face of those voters who argued that Donald Trump couldn’t possibly make it to the White House – so there was no need to turn out and vote. If you’re reading this and a Putin-loving egomaniac with Shredded Wheat for hair is preparing to take his place in the White House, then I suspect the message didn’t hit home. I, for one, would like to ISSUE 48: JANUARY/ get through the rest of 2016 FEBRUARY 2017 without any more surprises, “There’s a small clique thank you very much.” of people holding NED Nick Kirby, Editor-in-Chief, BL roles [in the Channel magazine (prior to the US election) Islands]. There should be a maximum number of directorships, which would allow a wider spread of talent.” Mark Dunster, Partner, Carey Olsen

“Sports tourism has considerable potential on the island, but isn’t being exploited. It’s fine supporting food, heritage and the arts, but you can’t forget the other quarter of the equation. I can’t understand why they don’t give more money to sporting events.” David Harry, Chief Executive, Guernsey Sports Commission

ISSUE 44: MAY/JUNE 2016 “There’s a general feeling that Brexit couldn’t possibly happen – but you never know. I suppose 2016 feels like quite a big year from a political and a macroeconomic perspective, when you look at the UK referendum and the American election… A UK exit from Europe and a radical change in US politics would be challenging in many ways that we can’t fully predict.” Steve Spybey, Group Chief Operations Officer, Hawksford

ISSUE 45: JULY/AUGUST 2016 “Our challenge is to create clear water between us and other jurisdictions with lower standards. I’m concerned about the broader media coverage, which affects the popular view by lumping us together with other jurisdictions. But we do what we can with the more informed media – the Financial Times and the Evening Standard, for example.” Geoff Cook, CEO, Jersey Finance (on the impact of the Panama Papers)

20 may/june 2017

ISSUE 49: MARCH/APRIL 2017 “[Locate Guernsey and Locate Jersey are] 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.” Jo Stoddart, Founder and Managing Director, Quintessential Relocation Consultants

ISSUE 50: MAY/JUNE 2017 “My personal take on Brexit is that it’s totally bonkers. Obviously the people have voted, but I think it’s bad for the UK and for Europe. Both should have done much more to avoid it. I think the whole process in the UK with the referendum was strange, and that the EU didn’t give anything to the UK to satisfy the people. So both parties are to blame.” Bart Deconinck, Deputy Group Chairman, Zedra The job titles are those held at the time of the interview.



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Estera Trust (Jersey) Limited is regulated by the Jersey Financial Services Commission


Bart Deconinck has a long and illustrious career in financial services. In 2016, he took on a new challenge as Deputy Group Chairman of trust, corporate and fund services company Zedra. He tells BL what that entails and gives his outspoken take on the present and future for wealth management


interview What does your role at Zedra entail? Obviously there’s a fully functioning executive committee with a CEO, Niels Nielsen, who runs the day-to-day business. I find myself more involved with a number of other things. One is helping the board to set the strategy going forward. I would say that was my main task in the beginning, when we acquired the Barclays business. I’m also involved on the commercial side, with big relationships and with intermediary contacts. I’m heavily involved in all marketing matters, and everything to do with acquisitions. And then I also help wherever I can. We’re a small team, so if something comes up, I’m happy to jump in.

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Where are you based? I’m based in Monaco, but I travel constantly. You will find me in Monaco, in Geneva, the Channel Islands, in London, the Netherlands, Luxembourg… My typical week generally involves three to four days of travelling. As someone who works in different places, do you think that private clients prefer to work with firms they are culturally or socially aligned with? There’s an element of that, although I wouldn’t exaggerate it. I think the one thing that’s important to clients is language skills. It’s sometimes difficult to explain to British people that the whole world doesn’t necessarily speak English well. It’s important that you have the right language skills in place. Yes, I do think the cultural differences are there, but what the client obviously needs is proactive and speedy service – so it’s not necessarily the case that a certain nationality wants a relationship manager from the same nationality. Indeed, you also have a lot of clients that feel more comfortable with a relationship manager who has a different nationality to their own. Where do you feel the Channel Islands fit within this? For instance, one thing some private clients struggle with is the concept of trusts. I would say three things. First, the Channel Islands have a highly skilled workforce. In terms of technical service delivery, they are top of the bill worldwide. I do believe, however, that people who don’t understand the concept of trusts shouldn’t have one in the first place. People must be comfortable with a structure and if they feel awkward about the trust, then we have to find other solutions

Tell us a little bit about yourself. After I finished my studies in theoretical economics and added a Masters in accounting, I started working at Ernst & Young. After a couple of years, I moved to what was then MeesPierson, a mainly Dutch merchant private bank, where I became the Finance Director and subsequently the Managing Director of the Belgium office. I stayed with MeesPierson for 13 years, ultimately becoming a member of the global board. Among my responsibilities were the worldwide trust activities, of which I became CEO when the firm acquired Intertrust. In 2006, I said: “Let’s do something new and let’s do it on our own.” So I started a company called Vistra with two people. When I left Vistra after the sale to Barings Private Equity in Asia in 2015, there were 3,000 people. But I firmly believe you should always want new challenges, which is why I find myself involved now with Zedra. It was a great opportunity and I couldn’t refuse to be part of something new.


Bart Deconinck may/june 2017 23

Interview companies become so big, pieces fall off again – people leave and start their own businesses. So I see it more as a cycle. As we mentioned, consolidation can lead to clients experiencing quality issues, so you will see the emergence of smaller, specialised boutique firms again.

Looking at Zedra, you have a global presence – do you feel that’s essential for fiduciary firms these days, or can firms with a more local focus still flourish? It’s a bit of both. You have to be large enough to provide the service the client needs, yet small enough to give that personal touch. If a firm starts to get too big in a given jurisdiction, I’m a strong believer in breaking things up into separate business units or separate teams so that you create mini-businesses within your firm. That helps retain an entrepreneurial spirit and is reflected in how clients experience service. If you have a presence in 10 to 15 places, you can deliver for about 99 per cent of what the global need is. Would you agree that if companies expand too quickly, one of the things that’s lost is the customer service element? Absolutely. For me, a trust firm is like a Michelin-star restaurant. If the chef’s not in the kitchen setting the example, the rest

24 may/june 2017

will fall apart. You’re only going to get three stars if the owner of the business is in the kitchen. As senior management – shareholders, in the case of Zedra – we all directly meet clients and intermediaries who work for clients. It goes wrong when companies shift into an overly corporate mindset, where the senior people who were very good at keeping clients happy all of a sudden get management tasks and administration for 80 per cent of their work. That’s the tipping point, where you see service going down the drain. Let’s move on to consolidation in the trust space. There are now fewer smaller trust firms than ever – will they be squeezed out altogether as firms look for globalisation and economies of scale? Yes and no. Yes, the consolidation will go on. The compliance and regulatory costs of running a business like this have become much higher in the past 10 years, squeezing the smaller firms. Also the valuation of these businesses has gone up since private equity got involved, and consolidation will go on as long as you have buyers and sellers. At the same time, as these

Coming back to client expectations – have you found that since the financial crisis, clients are more knowledgeable and are demanding more for their money? Clients have become more sophisticated, they’ve become more demanding, and they’ve also become very critical of wealth management services in general. I think that makes it more important than ever for the trustee to understand their clients and their risk perspective. I would say there’s much more knowledge and much more sophistication. But at the same time, the larger clients – and this is a trend that’s accelerating very fast – are getting more in-house expertise to help them select the right asset managers. This is why we’re seeing a tremendous growth of family offices. Another element you’re seeing now is that clients are very much impacted by increasing geopolitical instability. That’s one thing I wouldn’t have had on my list three years ago, but now I see it as one of the main drivers. In the past, we would have had tax optimisation as the driver of setting up structures. We always had estate

– this might be foundations or companybased structures. The third point, and backtracking slightly, is that I think the Channel Islands could benefit from improved language skills. To give you an example, take the office of Zedra in Geneva. In that small office of 30 people, you will find 12 nationalities, something I’d argue you wouldn’t find in the Channel Islands. I do accept there may be reasons, such as the restrictions on employment, but I think a more proactive focus on getting different language skills would be welcome.

For me, a trust firm is like a Michelin-star restaurant. If the chef’s not in the kitchen setting the example, the rest will fall apart

You mention private equity – what’s your view on their involvement in the wealth management space? And why is it a route that Zedra chose not to go down? As a free market person, I look at private equity in general as a good thing, because it provides liquidity. Also, when private equity gets involved in businesses, they tend to grow, so employment is created. But of course, it’s not quite that simple. The moment private equity becomes your shareholder, they are thinking how they can get out again – you have a window of three to five years. I do think businesses can benefit from having a private equity shareholder to get their house in order, if it’s not in order. Whether private equity is a natural shareholder of a professional services firm, that’s something else altogether, as their view can be quite short term. That’s why we’ve decided not to go down that route, and is why we came together with a couple of families to invest our own money in Zedra. That gives us a couple of things. You have the longer-term view, so it’s more about setting the right kind of behaviours, making sure your clients are satisfied, and then the financials will follow eventually. When you don’t have the deep pockets that private equity has, you have to make more strategic choices.


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planning as a driver to transfer wealth to the next generation. It’s geopolitical instability that’s now becoming a big driver of how people want to structure and diversify their holdings and their assets across different countries – choosing safe and stable jurisdictions to do so. If you talk to clients these days, that’s the emerging topic – not their investment returns, not taxes any more as that’s been dealt with. It’s how do I protect my money; how do I make sure no one is going to take it back from me? Are your clients asking for advice around Brexit? And what’s your take on the whole situation? My personal take on Brexit is that it’s totally bonkers. Obviously the people have voted, but I think it’s bad for the UK and for Europe. Both should have done much more to avoid it. I think the whole process in the UK with the referendum was strange, and that the EU didn’t give anything to the UK to satisfy the people. So both parties are to blame. It’s going to be bad for the UK, it’s going to lead to a loss of jobs, and I’m afraid that the UK, in terms of industrial strategy, isn’t ready. Manufacturing strategy, for example, is just not ready to withstand the blow it will receive from Brexit. But we’re there now – it could have been avoided, but it’s going to hurt the UK, London and the EU. As for what it means to our clients, many have become reluctant to invest further in the UK – you see that mainly with regard to property. Everybody is waiting now. Typically, the average Middle Eastern or Asian wealthy family wants to have something in the UK or London. They love London, but they’re in a wait-and-see mode. So we’re helping them understand that, helping them with property. There may be a silver lining in that the Channel Islands might be well positioned regarding Brexit. When the UK falls out of the EU, they are going to have to redo a lot of legislation, but a lot of that is already in place in the Channel Islands, for instance. An ongoing area of concern is the regulatory and compliance burden. What’s your view on that? And are we near to being ‘complianced out’? It’s fair to say that the regulatory burden has grown significantly over 10 years in terms of what you have to do – and it’s still going on. That said, it’s a necessary evil. You can’t resist it and shouldn’t get upset about it. It’s there and you have to organise yourself in an efficient way. The Common Reporting Standard is

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I believe it’s a dangerous development – these registers will end up in the public domain, and the whole idea of separation between ownership and the business goes out of the window.

FACT FILE Name: Bart Deconinck Age: 50 Position: Deputy Group Chairman, Zedra Married to: Magali Van Overbeke Deconinck Children: Three sons and a daughter Hobbies: Skiing, music, boating Interesting fact: During the second half of the 80s and the first half of the 90s, I was a DJ, with my own show on various Belgian radio stations.

crs means all the bad stuff is pushed out. We find ourselves in an industry that’s totally above board, clean as a whistle

basically now implemented and the information will start to flow. What that means for our industry is that all the bad stuff is pushed out. We find ourselves in an industry that’s totally above board, clean as a whistle – certainly compared with 25 years ago. We do client identification, we do KYC, we do constant monitoring on our client database against sanction lists, transaction monitoring of every amount that goes in and out of a structure. Where they may go further is in setting up ultimate beneficial ownership registers, which I personally think is a bridge too far.

For the next 12 to 24 months, where are the biggest opportunities and challenges, both broadly and for the Channel Islands? There are a number of things that are happening in the world. One, we have some European elections coming up. Two, we still have the problem of Greek banks, which appears to be in limbo until the elections are over. Three, interest rates are going up in the US. All of this will have an impact on the valuation of asset classes. I don’t know how this will pan out, but there’s going to be volatility – so that’s the background. What you’re also seeing is a big generational shift for a lot of the structures we are running. A lot of children have become adults, so we’re seeing a shift in family businesses in wealth. The baby boomers are retiring and the children who are 40 years old are getting control of the businesses and that’s happening at a very high speed. So that’s a challenge and an opportunity – a lot of work’s going to have to happen. As for Zedra – well, we’ve only been going for a year. We’ve worked very hard during that time to create a standalone company independent from the previous Barclays set-up. And on top of that, we’ve hired around 150 people and opened new offices. So we’ve laid a lot of the groundwork going forward. We have three big themes for the next year to 18 months. One is to further strengthen the company. That will mean considerable investment in IT systems – making our IT systems much more client-centric and much more secure – and that will include hiring more people. The second theme is to expand the business in new territories and new services. We’re investing heavily in funds services and we still want to add one or two more geographies to our map. And the third theme is to grow the business. As we add jurisdictions and add asset classes to our offering, we’ll be able to do more for existing and new clients. So while today the business is 80 per cent private clients, I expect in a couple of years’ time, we will be one-third funds, one-third private client and one-third corporate services. But you won’t see us taking on a private equity company any time soon – we will be doing this on our own. n NICK KIRBY is Editor-in-Chief of BL magazine

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s ’ r e f f Blu Finance

Guide to Trusts To the man on the street, trusts are complicated and associated by many with ‘naughty’ financial goings on. Perfect timing, then, for this guide to what trusts in the Channel Islands really are all about

Words: Dave Waller

28 may/june 2017


IN A NUTSHELL, WHAT IS A TRUST? Put simply, a trust is a legal arrangement where someone with assets (the settlor) hands those assets to a trustee to look after for the benefit of one or more other people (the beneficiaries), or for a specific purpose, with agreed restrictions on what they can do with those assets. Simple. Trusts have been around since the Crusades, used by knights to protect their assets while they were out doing the Lord’s work with a sword.

AND THERE’S MORE THAN ONE TYPE OF TRUST, YES? Yep. There are tons. Which type you choose depends on what you want to use it for. There are those set up for charitable and non-charitable purposes; and there are all sorts of trusts for beneficiaries – from fixed trusts, which lay out the rights for the beneficiaries very specifically, to unit trusts, which give each beneficiary a set proportion of the assets. “The very basic trust is purely discretionary,” says Michelle Tring, Senior Client Manager at Estera. “Trustees have discretion over what they want to do with the assets, as long as it’s for the benefit of the beneficiaries. An accumulation of maintenance trust ensures that the assets are used to maintain minor beneficiaries – to pay for school fees at a certain age, say. The other most common type is the reserved power trust, where the settlor hands over assets to the trustee but retains certain powers over investments. You could go on forever…”

WHAT’S THIS WE HEAR ABOUT CERTAIN CULTURES STRUGGLING WITH THE CONCEPT OF TRUSTS? People tend to think, quite sensibly, that ownership means ownership. Simple as that. The trust demands that they rethink this and make a distinction between two types of ownership – the legal and the beneficial. “The trust is registered in the name of the trustee, who holds legal title, but the beneficiaries have beneficial ownership,” explains Marcus Leese, Head of Ogier’s Guernsey private client and trusts team. “So,

should the trustee take the assets and bet them on the 2.30 at Kempton Park, the beneficiaries have a right to go to court to get those assets back. That division is fundamental to the concept, which is absolutely fine in common law jurisdictions like the UK, US and Australia. But if you go to a civil law country like France or Germany, that division is completely alien.” Also, unlike a company, a trust isn’t a legal entity but a legal relationship, a set of rights and obligations, which can really flummox some people too. “A jaundiced bureaucrat on the continent may view the trust as suspicious and dodgy, and a source of great mischief,” says Christopher Scholefield, Partner at Viberts. “They want to know the address of the registered office – and we’ll have to explain it again: it’s not a thing, it’s a relationship. The Arab world has something like a trust – a waqf – so they don’t struggle too much with the idea, but it usually results in scowls in Europe and Latin America.”

WHO USES TRUSTS AND WHAT DO THEY USE THEM FOR? Anyone, basically. And for anything. These days they’re hugely popular for ultra-high-net-worth individuals planning succession, whether it’s to prevent their kids from selling the family business or to delay them having full control of their assets until they’re 25 years old; to ensure the estate is distributed properly or protected against future claims; or simply to put a degree of distance between the individual and their assets, to protect their privacy. But that’s not all. “My day could go from a multimillion-pound litigation case in the morning, to an old lady upset that she’s had no cheques from her trust and can’t pay for her prescriptions,” says Tring. “Part of why I love the job is that you get to work with all these people.” Then there are more commercial uses. Investors such as pension funds may use a unit trust to pool their money, so they can make a collective investment in stocks or real estate. And finally, there are charitable uses – where a wealthy individual or family sets up a trust as a means of giving money to cancer research or to build a school, for example.

BUT THEY’RE REALLY ONLY FOR THE MEGA-RICH, RIGHT? Nope. Not the ‘mega’-rich. But you still need a few quid. It’s unlikely you’d set up a trust for anything less than £2 million in assets, simply thanks to the costs involved in running it in a regulated, and thus more expensive, jurisdiction like the Channel Islands.

IS THE CLIENT BASE CHANGING, AND ARE PEOPLE USING TRUSTS FOR DIFFERENT THINGS? The rise of commercial trusts has led to more business people being involved. Companies use employee benefit trusts to pay pensions and benefits, insulated from the ups and downs of the company itself. “Trusts sometimes own companies, or very large infrastructure projects such as bridges, tunnels and buildings, as they can provide flexibility of ownership,” says Mark Renouf, Partner at Benest Corbett Renouf. Meanwhile, the Channel Islands have increasingly may/june 2017 29

TRUSTS ARE A weird idea when you think about it. Entrusting someone with a personal secret is one thing, but handing them millions of pounds, your family business, share portfolio, superyacht and priceless collection of Jackson Pollock paint splats for safekeeping is another. Add in the fact that you’re putting your faith in a total stranger – and, as far as the law’s concerned, you’re actually giving all this stuff to them – it’s no wonder that many are baffled by this Anglo-Saxon creation. Yet there’s clearly something in the concept – private individuals have stuck £400bn in Jersey trusts alone. So, if you’re having trust issues, we hope this guide will help…


Unlike a company, a trust isn’t a legal entity but a legal relationship, a set of rights and obligations, which can really flummox some people

diversified to a base beyond the UK. “Clients now come from all over world,” says Matthew Guthrie, Head of Trusts and Private Client at Mourant Ozannes, Guernsey. “Latin America, the Middle East, Far East and India. It’s increasingly international. Reserved powers trusts are popular among clients in China and Hong Kong – they can bundle up their assets in a trust and continue to tell them what to invest in.” The one thing trusts aren’t used for so much these days is tax management, as increasingly strict tax rules around the world have gradually eroded any advantages. “I have one client in the Middle East who has a trust structure here that’s taxed back at home,” says Guthrie. “There’s zero tax advantage, but he wants his business to continue when he’s gone.”

SO WHAT DO PEOPLE PUT IN THESE TRUSTS? Pretty much anything – from real estate to Ferraris, artwork, shares in the family business, yachts. But some assets do suit trusts better than others. “Classic cars generally go up in value over time, but private aircraft may go down, so that can be problem,” says Scholefield. “Trustees have to establish that the settlor understands it’s a depreciating asset, so the beneficiaries don’t pop up later saying the trustee should have sold the aircraft and bought shares in Apple instead.”

AND WHAT ABOUT PEOPLE USING THEM TO HIDE ILL-GOTTEN GAINS? You can’t start any financial structure these days without disclosing a whole load of information as to who you are, why you’re doing it and where the money came from. There’s all the changes to tax legislation in onshore jurisdictions like the US, UK, Australia and Canada, as well as the need to disclose information under anti-moneylaundering legislation, FATCA and the Common Reporting Standard. All of which makes it nigh-on impossible to hide assets in trusts. “Of course, like cars, computers, companies and cash itself, trusts can be one of the resources used by criminals,” says Renouf. “But it would be very stupid to use the Channel Islands to hide ill-gotten gains. Trust assets can be frozen quickly and professionals can be jailed for not asking enough questions. Dirty money tends to migrate to other jurisdictions – which I won’t name in case I ever want to go on holiday there.”

many places won’t allow non-charitable purpose trusts, for example; the Channel Islands do. The islands’ industry professionals – trustees, lawyers and accountants – are well-versed in setting up and managing trusts, and the islands have a long-standing relationship with the UK, the original home of trusts. They also share a common legal system, language and time-zone. Finally, the courts are robust. “When you’re setting up a trust, you’re putting someone else in control of your assets,” says Guthrie. “So, you don’t want to use a tin-pot jurisdiction where you’re worried what the court would do if you have to litigate. Here, you can be satisfied you’d get the right outcome.”



Not trusts per se. They’re clamping down on money laundering and tax evasion. This drive has, however, led some EU member states to push for a public register for trusts, which would declare the beneficiaries and leave them open to public scrutiny. This could fatally undermine the appeal of trusts, even when those trusts were being run in a respectable jurisdiction for legitimate reasons. “If I’d set up a trust to reduce the chance of being kidnapped for ransom, I wouldn’t want ‘Scholefield trust: £50 million’ on a register,” says Christopher Scholefield. “Kidnappers would just think ‘goodie’.” The islands’ trust practitioners aren’t too disturbed by the possibility of a public register, as it would be almost impossible to pull off. “Identifying beneficiaries doesn’t work,” says Scholefield. “I could set up a trust for the benefit of the residents of Haringey in London. Try listing them.” A register open only to the authorities is a more likely prospect. And we trust that this has answered all of your questions about trusts. n

First, there’s legislation – Channel Island trust law is as modern, supportive and flexible as trusts require –

DAVE WALLER is a freelance finance writer

30 may/june 2017

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Advising the

modern family shares would go to… none of them. As an example of a family feud, this is certainly extreme – and fitting, perhaps, for wealth built on outdoor gear. But even regular family dynamics have become increasingly complex over recent decades. Cultures are mixing, remarriages are common, and kids and assets are spreading ever further from home as the nuclear family explodes across borders. And as family relationships gain complexity, so the pool of potential beneficiaries to a family estate gets larger, bringing the risk that some will feel left out and bring claims. As a result, wealth advisers are having

Words: Dave Waller

THINK YOUR FAMILY is a mess? In 2003, Susan Gore, the daughter of Bill and Genevieve Gore, who founded the company behind the Gore-Tex waterproof fabric, adopted her former husband Jan Otto in a bid to get their sons an equal slice of the family fortune. Yes, you read that right – she adopted her ex-husband. Her parents had left equal shares of company stock in a trust for their grandchildren – but while Susan Gore’s siblings each had four children, she only had three, and so adopted the 65-year-old Otto to level the playing field, only for Otto to keep the shares for himself. A Delaware court finally ruled in 2012 that the extra

From multiple marriages and sibling rivalry to global living and cultural shifts, the wealthy modern family is constantly changing – and that poses a wide range of challenges for those who advise them may/june 2017 33


to adapt to the new reality if they wish to keep families’ assets safe across the generations. One of the biggest recent changes is the rise of the ‘blended’ family, where the traditional unit is muddied by half-siblings and ex-spouses. “The most common issue we see, in terms of the modern family and arguments around trust funds, is divorce and children from other marriages,” says James Cohen, a Partner at GSC Solicitors. There have, however, been more positive changes too. These days families are keen to give women and younger siblings their fair share of the pie, rather than simply handing everything to the eldest son. Meanwhile, the cultural landscape keeps evolving too. Prior to the Finance Act of 2008, the majority of trust planning in the Channel Islands was carried out on behalf of UK families for tax purposes. Client families now come from everywhere – ranging from Africa and India to Kazakhstan and the Far and Middle East. Unsurprisingly, this has brought greater complications. “We’ve had lots of issues surrounding second wives or multiple wives,” says Cohen. “One client from Yemen passed away with two wives, two distinct families, and no will. Now, no one can reach terms that allow the situation to move forward.” There’s also often conflict within such families because the children have become

34 may/june 2017

more westernised and married outside their religious beliefs. “The younger generation in these cultures tends to be more tolerant in terms of gay marriage, divorce, co-habiting and having children out of wedlock,” says Cohen. “But it’s the older generation who have the wealth and want to pass it down. It’s a real challenge for us sometimes to convince the client to let go and acknowledge that they can’t control everything.” As mentioned, advisers have had to adapt to these changes. Many teams will now divide along geographical specialisms, becoming familiar with issues affecting one particular region. Lawyers will work more closely with the families themselves. “The roles are now a lot more holistic,” says Angela Calnan, Group Partner at law firm Collas Crill. “Rather than just needing to be a good lawyer, you have to get into the psyche of the family and play the politics a bit more. The lawyer has become more of a trusted adviser, rather than just dealing with legal documents.”

BUSINESS MATTERS While many families will be looking for asset protection, others will also be looking to run their family business through a trust. Succession in a family business is crucial, and demonstrates better than anything the importance of getting your affairs straight right from the word go. If you lack effective documentation between beneficiaries at the trust level, or between shareholders, which dictate how things should play, inheritors can easily come to disagree over the running of the business. “Some beneficiaries are disappointed about not receiving anything,” says Calnan.

“Others get involved in the business with no training, so it doesn’t work – or it goes to someone who the staff and management don’t like and the business fails.” Many family businesses will therefore be placed into a private trust company (PTC), an example of trust vehicles becoming more advanced to deal with evolving demands. Here the client can establish their own trustee and take a place on the board. “They get all the benefits of giving things to a trustee to look after, but it’s a trustee they already know,” says Calnan. “In the last two or three years, we’ve seen huge numbers being set up.” And it’s not just about protecting family businesses. As well as drafting the trust, many will draw up family charters prescribing where the patriarch sees the family going in future generations. Calnan describes these family documents as the “big change of the past five to 10 years”. PTCs have also proved popular among sprawling Middle Eastern families looking to do right by their many beneficiaries. “Each person may have a very different idea of what they want to do with their part of the family wealth,” says Richard Tribe, Equiom’s Head of Family Office for Europe. “Under the PTC, there are various planning options, and you can have different trusts for different parts of the family. One person may direct their share towards ethical investments, for example; another may say they want all the returns they can get for theirs. Trust vehicles now allow us to deal with each individual and what they want to do with their part of the funds – four kids, four smaller pots, for example.” The thing with families is that they’re unpredictable. Even if things seem in order


right now, nobody knows what’s going to happen further down the line. As such, it’s always worth building flexibility into the trust, to ensure that the smooth sailing when the settlor is alive doesn’t take a nasty turn after they die. “These days settlors and families are certainly putting provisions in to make sure that if their children or grandchildren get divorced, the family money is looked after,” says Derek Rhodes, Director at Alex Picot Trust. Spouses or partners are typically excluded. If the family stays together, that spouse benefits, and if not they have no claim and the assets are protected. “We’ve recently seen some trusts insisting that children or grandchildren get post-nups in order to benefit,” Rhodes adds. “That makes it easier for the head of the family – it saves an embarrassing chat with the in-laws at the wedding, as it’s all down to the trustees to handle.”

STAYING FLEXIBLE Yet most trusts remain flexible enough for trustees to vary the instruction during its life. “It’s a fluid vehicle,” says Calnan. “If there’s a divorce or family conflict during the life of the trust, you can exclude people from that beneficial class. The structure often evolves with the family.” With that in mind, clients should review and revise wills and

As family relationships gain complexity, so the pool of potential beneficiaries to a family estate gets larger, bringing the risk that some will feel left out and bring claims

trusts at least every five years, especially between the age of 30 and 60, when there’s likely to be more fluctuation and change in the family structure and the extent of their wealth. They’re also worth revisiting when there’s a major change in the family – a death, birth or catastrophe. Larger families may wish to pre-empt conflict by establishing a family council, which works like a board of directors and is often made up of family members and external advisers such as lawyers. The council decides the course of action for the structure, be it channelling funds to cover education costs for future generations, or philanthropic causes, which are becoming increasingly popular. Family councils are useful in large or complex families, where trying to give everyone a say would be simply unworkable.

The vast majority of wealthy families won’t have to resort to Gore-Tex-style measures to secure their fortune. But there’s one common mistake that even the most level-headed of families can make when planning wills and trusts – ploughing ahead without proper advice. This is especially true of tax, an area where a rapidly changing legislative landscape not only makes errors more likely, but also potentially crippling. There was, for example, a time when placing residential property in a trust would save on inheritance tax, but these days it’s likely to land the beneficiary with a hefty bill. “Making decisions without advice is an absolute no-no,” says Calnan. “I’ve seen people go it alone, but it’s so easy to walk into an elephant trap.” Wise words indeed. n DAVE WALLER is a freelance financial writer may/june 2017 35


With falling oil prices and social, political and economic turmoil in the region, there’s been talk that the Middle East has lost its shine in wealth circles. Yet not everyone would seem to agree

Is the sun setting on the Middle East? Words: Orlando Crowcroft

36 may/june 2017


envious of the Jersey industry because they were there early and are more visible than Guernsey,” he says. “We would go into meetings and they would say: ‘We know about Jersey but not about Guernsey’. But in the last few years, Guernsey has made a concerted effort to be in the region.” In the face of increased scrutiny and regulation by European and US governments since 2008 (and, arguably, before) around their citizens’ use of low-tax jurisdictions, a push towards the Middle East for Jersey and Guernsey was, in many ways, a no-brainer. Gulf residents have always been interested in European assets – particularly London property – while the Arab Spring and wars in Iraq, Syria and Libya have convinced wealthy individuals in the Middle East of the need to diversify their investments outside of the region. But while political instability was the chief concern in the Middle East between 2011 and 2013, in 2014 it was economic issues that came to the fore. In June of that year, the price of oil went into freefall, dropping from $110 per barrel to under $30 in just a year. As of April 2017, prices had levelled out to around $50 – less than half the 2014 value. The fall took an axe to the UAE’s budget – 80 per cent of which comes directly from oil exports – as well as Saudi Arabia’s,

forcing both countries to cancel building and infrastructure projects. Dubai’s growth was 2.7 per cent in 2016 and is expected to be around 3.1 per cent in 2017. In Abu Dhabi, it was just 1.5 per cent last year.

CROSSING BORDERS Much has been made since 2014 about economic diversification, both in the UAE and in Saudi Arabia, home to the world’s largest oil reserves. Both Saudi Arabia and Abu Dhabi have pledged to reduce their reliance on oil – something that Dubai, with its minimal reserves, has arguably already done. But it takes time to change the habit of a lifetime. In many ways, say experts in both Jersey and Guernsey, the oil price crash and continuing political instability have only increased Middle East interest in the wealth management industry – particularly in structuring investments in UK assets through the islands. Just as their governments are looking to diversify, so are individuals. “Our clients have been looking at getting money outside the region and we’ve been able to offer solutions. For the most part, it’s been positive for us. We’ve been able to make sure they have safe-haven investments outside of the region,” Zimmerman explains. This interest has been buoyed by the may/june 2017 37

EVER SINCE REGULATORY pressures began to squeeze Jersey and Guernsey’s traditional wealth business in Europe more than a decade ago, the islands have looked to new markets. And one key target has been the Middle East, particularly Dubai and Abu Dhabi in the United Arab Emirates (UAE). Jersey Finance set up an office in Dubai in 2011 and Geoff Cook, the organisation’s CEO, estimates that 40 local firms now have a presence in the Middle East. As recently as July 2016, Jersey signed a double tax agreement (DTA) with the UAE – and in 2015, the Jersey Financial Services Commission (JFSC) signed a Memorandum of Understanding (MoU) with Abu Dhabi’s financial regulator. Jersey also signed a DTA with Qatar in 2012. Guernsey has traditionally lagged behind in terms of securing a Middle East presence, signing a DTA with Qatar in 2013. And while Jersey appointed a UAE-based Director in 2011, Guernsey Finance only opened an office in 2015. As a result, Guernsey firms have historically struggled to build a profile in the region. As Naro Zimmerman, Trust Manager at Nerine Fiduciaries, who has a specific focus on the Middle East, explains, potential clients in the Middle East tend to say that they are aware of Jersey but haven’t heard of its local rival. “From a Guernsey point of view, I was


Both Jersey and Guernsey use the Gulf states as hubs for investment from other Arab nations, including Egypt, Jordan and Lebanon

“We’re in the trust industry – a lot of our clients like the fact that we’re completely offshore,” he says. The fall in the pound has proved a double-edged sword for Channel Islands’ firms, however. While it’s meant that Gulf investors are keen to invest in Britain, it has substantially increased the cost of business trips to the region. “There’s a currency impact, as trips to the region are now more expensive for visiting firms,” says Jersey Finance’s Cook.


steep drop in the value of the pound following the decision by Britain to leave the European Union last year. In April this year, the UAE dirham and the Saudi Arabian riyal – both pegged to the dollar – were worth a third more than they were in May 2016. On a £10 million London property deal, that amounts to a great deal of money. “We’re seeing a lot of investment in UK commercial real estate from Saudi as a result of the weaker pound,” says Angela Calnan, Group Partner at Collas Crill. “We’re still seeing MENA clients with trophy properties in London.” In terms of strategy, Jersey firms have adopted a range of approaches to the region, including investing in physical operations in the Dubai International Finance Centre or other Dubai Free Zones, or in Bahrain and Qatar. Both Jersey and Guernsey use the Gulf states as hubs

38 may/june 2017

for investment from other Arab nations, including Egypt, Jordan and Lebanon. It’s become a cliche that face-to-face is the only way to do business in the Arab world and the Far East – the Channel Islands’ other key non-European market. While some have staff in the region, Jersey Finance sees the ‘fly-in’ model as the most common approach, with regular visits to the Gulf preferred to a permanent presence. Alistair Rothwell, Director at the Fairway Group, travels to the region at least once a month, often to the UAE (where Fairway is a key liaison for UAE bank Emirates NBD). “You have to give the region time. People have got to know that you understand the proposition,” he says. The same goes for Guernsey, says Naro Zimmerman. He visits the Middle East “every six to eight weeks” and finds that clients in the region actually prefer the fact that Nerine has no physical presence there.

One of the attractions of the Middle East to the islands has traditionally been that the UAE and Saudi Arabia have no income tax and few property taxes, meaning that there is nothing like the regulatory challenges involved in serving clients in the UK and the US. But in the new era of low oil prices, that could be about to change. The UAE is due to introduce a valueadded tax in 2017, and there’s been talk of the famously tax-free nation bringing in income and possibly even property taxes. While this may persuade more wealthy clients to consider getting their assets out of the region, it could also make life more difficult for offshore services providers to navigate a new tax code. It’s not all about the UAE, Saudi Arabia and Qatar, of course. Jersey and Guernsey have made marketing visits to Oman, Lebanon and Bahrain. The latter two have both experienced instability in the six years since the Arab Spring revolutions that swept the region. Egypt remains another prospect, despite its economic malaise under General Abdel Fattah al-Sisi. Rothwell says that the benefit of doing business in the Middle East, and particularly in the Gulf, is that clients have typically been wealthy for a long time, rather than newly rich, and therefore want to use jurisdictions that are transparent. For that reason, they often prefer Jersey and Guernsey to their rivals in the Caribbean, despite BVI or Cayman companies being cheaper. Even if economic malaise in the Middle East continues, diversification by regional governments was well needed and overdue. It’s prompted Saudi Arabia, under new king Salman bin Abdulaziz, to quicken the pace of liberalising its stock market. Other states have turned to the debt markets, as Dubai once did, to finance construction projects. But even when they do, says Zimmerman, they’re borrowing at rates that are no more than those being demanded of Western states. It’s a time of change in the Middle East, but that isn’t necessarily a bad thing. n ORLANDO CROWCROFT is a freelance financial writer


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1. BREXIT So, Theresa May has triggered the formal process for the UK to leave the European Union. If the more pessimistic predictions prove correct, the UK could face economic turbulence – and that’s potentially risky for individual directors. If there are choppy economic waters ahead, the share price of financial institutions could fall. That in turn could spark shareholder unrest and a spike in potential shareholder claims against directors. That’s where insurance comes in. Directors’ and officers’ liability (D&O) policies could help you. Some policies already deal with specific Brexit issues – covering the costs incurred by EU nationals opposing deportation if their immigration status ends up being challenged, for example. It’s worth taking a look at which insurance policy could best fit your business when it comes to such issues.

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defence costs and damages incurred, rather than being limited to the costs and damages incurred by the directors. However, a potential problem is that the policy’s limit of liability could be eroded. Ultimately, it could be exhausted by payments in favour of the corporate entity – leaving the insured directors with no insurance. Buying a standalone policy dealing with a particular securities event is one way to deal with this issue – for example, the public offering of a corporate entity’s securities. It means any claims arising from the particular securities event should be covered under the standalone policy, and have no impact on the limit of liability of the main D&O policy. Other approaches include a standalone ‘Side A’ policy that only covers the directors or officers for losses the corporate entity is unable to indemnify. A ‘Side A Excess DIC policy’ is also an option, which is an excess policy similar in nature to a Side A policy, but with additional coverage benefits.

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Could the UK become a tax haven? Words: Kirsten Morel THAT THE PHRASE ‘Brexit means Brexit’, which was designed to have no definition, is likely to come to define a period in the UK’s history, shows just how uncertain the nation’s future has become. In the 10 months since the UK held its in/out advisory referendum on the future of the country’s relationship with Europe, there’s been no shortage of speculative news stories about what that relationship will eventually look like. Will the UK become a close partner to Europe or is it teetering on the brink of becoming the 51st state of the US? For several months after the votes were counted, nobody was ruling anything out. ‘Brexit means Brexit’ became Theresa May’s mantra until mid-January, when Chancellor Philip Hammond gave an interview to German newspaper Welt am Sonntag. In it, he clarified remarks about the UK possibly moving outside of “European mainstream thinking”, saying: “We will change our model and we will come back, and we will be competitively engaged.” The sentence may be almost as elusive as its three-word predecessor, but that didn’t stop pundits and analysts interpreting it as a call for the UK to become a postBrexit tax haven. In seeming support of her Chancellor’s thinking, May announced that she would pursue withdrawal from the single market and the jurisdiction of the European Court of Justice, seeking a

40 may/june 2017

so-called ‘hard Brexit’. Finally, those three infamous words had been given definition, but not so much as to halt speculation about what a hard Brexit would look like. People began to wonder whether Hammond’s tax haven scenario could indeed be the shape of the UK’s post-European future.

TAX HAVEN OR LOW-TAX ENVIRONMENT? In today’s world, the words ‘tax haven’ are particularly provocative, not least in the Channel Islands, which continually work to ensure they aren’t blacklisted as such. Given this environment, would the UK really want to go down that road? Dominic Wheatley, CEO of Guernsey Finance, thinks not. “The idea of the UK becoming a tax haven is unrealistic,” he says. “A tax haven suggests nefarious motives, where a jurisdiction actively enables people to avoid taxes. Hammond was likely referring to the UK becoming a low-tax environment.” Using the term ‘tax haven’ may be taking it too far, but in his interview Hammond did question the entire European economic model, including the regulatory regimes that provide social and environmental protections – so it’s likely that he was referring to more than just the lowering of corporation taxes. “One motive behind Brexit is to get away from moves in the EU towards regulation, transparency and the implementation of a new approach to taxation that will fundamentally change the ability for businesses to shift profits [across borders],” says John Christensen, Chair of the Tax Justice Network. Christensen is referring to plans for the

Common Consolidated Corporate Tax Base, which would see companies being taxed in the jurisdiction where revenues are generated. The UK has blocked such plans a number of times, much to the frustration of France and Germany. The idea that the Chancellor is most interested in the UK carving its own niche with regard to a range of business matters that includes tax and regulation, gathers strength when considered in the context of what the nation will need to do once faced with a lack of access to the single market. “There’s an element of truth in the idea of the UK as a tax haven,” says Andrew Pinel, Partner at Pinel Advocates. “There’s a possibility of the UK looking to lower its corporation taxes and provide a more compelling all-round proposition for businesses to locate in the UK.” The main rate of corporation tax in the UK is currently 19 per cent, which is relatively low but still some way higher than Ireland’s 12.5 per cent and an achievable tax rate in Malta of five per cent. Given that the UK has been the ‘victim’ of profit-shifting into countries such as Ireland and the Netherlands, it could be argued that being a tax haven wouldn’t put the UK on a collision course with Europe unless it adopted a particularly aggressive approach. “If it lowers its tax rates further, the UK would have to be mindful of Ireland’s Apple case,” says Steve Meiklejohn, Global Senior Partner at law firm Ogier, referring to the European Commission’s order for Apple to pay Ireland €13bn in unpaid taxes. “On the face of it, we’ve seen that there are limits to what the EU is willing to

In the aftermath of Brexit, might the UK start offering low-tax incentives to companies and individuals – and what effect would that have on finance in the Channel Islands?

Finance may/june 2017 41

Finance put up with, and this suggests to me that the UK knows it would be wise not to go down this route.”

UK VERSUS CHANNEL ISLANDS Only time will reveal how far the UK wants to go down the road towards becoming a tax haven, but the question remains: should the Channel Islands be concerned? As international finance centres, the islands have a symbiotic relationship with London that may have the potential to blossom should London grow its financial services business in the wake of Brexit. “Brexit could be beneficial to London and the islands,” says Wheatley. “Jersey and Guernsey are very much complementary to the City of London. About 70 per cent of business in Guernsey comes via London, and it benefits the City to have access to an alternative environment and the niche expertise that the islands offer.” Another reason not to be concerned about the possibility of competition opening up between the UK and Channel Islands is that a low-tax, low-regulation environment on the mainland would likely have very different aims to similar environments in the islands. “If UK tax rates were lowered, you may find it providing competition for other jurisdictions looking to attract large companies, but smaller jurisdictions like the Channel Islands aren’t really in the business of attracting large industry,” says Steve Meiklejohn. Whilst there may be no direct threat from a UK tax haven in the form of competition, could a hardline stance from the UK in Brexit negotiations lead to Channel Islands interests being affected? “I don’t think it’s likely EU negotiators will see Jersey and Guernsey as bargaining chips,” says Christensen. “What they’ll be doing is putting matters like passporting rights on hold to see how things develop.”

If London wants to keep selling financial services to the EU, companies there will have to set up branches inside the EU, or the City will have to attain passporting rights There’s no doubt the Channel Islands would prefer their affairs not to be caught up in Brexit negotiations, particularly as they weren’t involved in the referendum, but as Christensen points out, passports provide an incentive for the UK to stay in line. “If London wants to keep selling financial services to the EU, companies headquartered there will either have to set up branches inside the EU, or the City will have to attain passporting rights, and for that it will have to display equivalence to EU standards of regulation.” In reality, the tax haven route is the nuclear option and Philip Hammond will likely have known this when he spoke to Welt am Sonntag. There’s an enormous amount of negotiation ahead for the UK, as it finds a compromise with 27 other nations

and a union that doesn’t want Brexit to signal its own end. And, at the time of writing, there’s the additional question of who will be doing that negotiation after the general election on 8 June. If Meiklejohn is right and Hammond’s words turn out to be no more than “bluster, laying down a marker for negotiations”, then the post-Brexit tax haven scenario may well follow ‘soft Brexit’ into the bin of once-mooted Brexit options. Whatever the final deal, Pinel makes a point that all parties would do well to heed. “I hope the shared histories of France, Germany and the UK would lead to a reasonable approach to future relations between the nations.” n KIRSTEN MOREL is a freelance writer

The end of the Double Irish Following disastrous economic policies of the 1980s and early 1990s, Ireland sought to begin the new millennium on a stronger footing. To do so, it slashed its corporation tax rates in an effort to attract business from overseas. It also created Free Trade Zones, including one in Shannon, and the International Financial Services Centre (IFSC) in Dublin. These changes had an almost immediate impact. The EU felt happy enough with the new economic direction to invest €10bn in Ireland’s infrastructure. Multinationals saw Ireland’s 12.5 per cent basic tax rate as a huge incentive, and the likes of Citibank were drawn to the 10 per cent tax rate and local tax exemptions offered by the IFSC. Well, that’s the story presented by Ireland’s economic establishment. Others see membership of the European single market in 1993 as the trigger for the nation’s recent economic success. And some believe it was the opportunity presented by Ireland’s tax haven-style policies that attracted Eli Lily, Google,

42 may/june 2017

Starbucks and others. One of the best known of these business solutions was the ‘Double Irish’ arrangement, which took advantage of the ability for an Irish-registered company to be tax-resident elsewhere. As a result, plenty of firms started to use a transfer pricing play that involved little or no tax paid to Ireland as revenues made there were handily moved offshore. The Double Irish is coming to an end. No new firms could use it from 2015 and those that already do use it have until 2020 to find other arrangements. But, credit-crunch and recession aside, Ireland is still faced with the same problem that many international finance centres face. In the rush to reduce corporation tax, the tax burden has moved to the individual. As a result, 42 per cent of tax revenues come from people and just 11 per cent from businesses. It seems that the Irish are no longer happy with the balance. A consultation closed in February that’s set to plot a new way forward for this slightly wounded Celtic Tiger.


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of the heart trust industry Phil Le Cornu, Head of Private Wealth at Intertrust, takes a look at what makes the Channel Islands special, how they continue to attract business from around the world, and why he envisages a global future for the islands WORLDWIDE, TRUSTS HAVE come out of the shadows over the past 10 years. Moves towards transparency and the global sharing of information have demystified them to a wider audience who previously viewed them with a mixture of scepticism and confusion. In the Channel Islands, this process began decades ago with strong regulation, a professional outlook and high-quality products. Intertrust is at the forefront of the industry in the islands, with a private wealth team of more than 200 professionals working across Jersey and Guernsey.

comfort to advisers and intermediaries looking across the world for jurisdictions in which to locate trust structures for their clients. London is certainly still the centre of the private client world – many of our referrals come from long-established London contacts who have working experience of the quality of service we offer from our Channel Island offices.

Globalisation has, if anything, increased the socio-political power of cities such as London, which are viewed by wealthy people worldwide as locations with a desirable lifestyle, culture and business scene. This is why many families from the United States, Far East and Middle East have a foothold in the UK’s capital, whether that be owning a business or

SMALL SIZE IS NO BARRIER The Channel Islands have a total population of around 165,000 people, but this is no barrier to accommodating a fiduciary sector that can rival those of much larger jurisdictions. Indeed, the islands’ legacy of providing trust services means that today they are home to a mature industry with a host of high-level complementary professions embedded in the local economy – from lawyers and accountants through to providers of administration services and fintech entrepreneurs. Additionally, the islands are known, and seen, to be well regulated, with a stable political foundation and a strong legal system – factors that have contributed to a positive international reputation despite the islands’ geographic and demographic scale. Proximity to the UK, and specifically London, is another string to the islands’ bow in their international appeal. For practical reasons alone, a strong link to the UK and London is beneficial as the Channel Islands are in the same time zone and have a similar legal system. This offers

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property, or sending their children to one of London’s private schools or admired universities. For the past decade at least, while our client base has been international, many clients are anchored to London in some way. This lifestyle choice, coupled with London’s centrality to the private client industry, means clients solicit advice from experts in the City, which benefits service providers in the Channel Islands.

STABILITY IN A CHANGING WORLD The trust industry has changed a lot in the past decade. Five years ago, big-name, wealthy families would look to large, global banks to fulfil their financial services requirements. Now, for many wealthy families, this is simply no longer likely to be an option. Many banks have divested themselves of trust businesses entirely, and those that do maintain a presence in the sector have significantly altered their risk profiles and deal less readily, if at all, with customers from the Middle East, Africa, Latin America and Eastern Europe. A huge increase in mergers and acquisitions (M&As) over the past few years has also had an impact on the makeup of the sector as there are fewer independents and more companies that have an element of private equity, be that a minority or majority interest. With fewer banks in the space, fewer independents to choose from and a rise in private equity, global families now have a choice to make when considering the best strategy for managing their wealth in an increasingly uncertain landscape prone to greater shifts than ever before. Intertrust offers stability in the face of uncertainty as a strong, global group listed on the Euronext Amsterdam Stock Exchange. The altered

many of our referrals come from established London contacts who have experience of the quality of service we offer from our Channel Island offices

risk profiles of banks have presented opportunities for companies such as Intertrust. While being mindful of varying jurisdictional and client risk factors, we have sophisticated structures, high levels of risk experience and a robust architecture to assess and manage risk. Changes in the composition of the trust sector aren’t the only factors that clients face when considering how to manage their wealth – 2016 included its fair share of surprises that will have an impact on planning for many. Of course, in the UK the great unknowns are Brexit and the impending general election. We know the former will happen but are unsure how long it will take and what sort of position Britain will be in once it is finalised. And, thanks to the snap election, we’re unsure who will be in charge of the country and lead the process of leaving the EU. Historically, change on this scale has paved the way for rapid, large-scale wealth generation and we’d expect Brexit to present similar opportunities for enterprising individuals who spot where these opportunities arise – which is good news for the private client sector.

year’s acquisition of Elian, we look forward to what lies ahead. The acquisition of Elian has resulted in Intertrust having a presence in Jersey for the first time, and the integration of the office into the Intertrust Group has been seamless. The benefits of a Channel Island presence are clear: any adviser looking at Intertrust sees that we have another jurisdiction in our toolbox; it gives us a wider base from which to work and strengthens the heart of our trust business in the islands. Furthermore, multi-jurisdictional structuring is the norm for many trust clients – often families with touchpoints in a number of countries – and it’s a huge benefit to them if they can set up multiple holding companies and structures through one provider.

A GLOBAL FUTURE The world, and the trust industry, may have changed around us, but some basics remain the same. Excellent service is still the key to running a successful trust operation and the Channel Islands is lucky to have offered this for many years. Trust business is still desirable and sought-after, with many other jurisdictions around the world eager to see an increased inflow of trust work. The Channel Islands attract business globally – we are in regular contact with referrers in Switzerland, Miami, New York and Hong Kong, for example, as well as in London. And if this is to continue, then high service levels are essential. Competition for business is particularly strong in the islands and this means that any firm in the market has to continually offer a high level of client service. This is a positive factor that will ensure complacency doesn’t set in and the islands maintain their position at the forefront of the trust industry. n

THE HEART OF A GLOBAL BODY Change is therefore not necessarily a bad thing, but it still pays to take protective steps in the face of it. At Intertrust, our strength is in our global presence. With offices in 30 jurisdictions, we are a global leader in the private wealth space. We offer trust services in jurisdictions as varied as Hong Kong, Curaçao, the Bahamas, the Cayman Islands, Dubai and Singapore, yet the heart of our trust offering is right here in the Channel Islands. The scale of our operation in the islands is unmatched in any of our other locations – 200 professionals comprise our private wealth team here and, with last


To learn more about Intertrust’s private wealth offering in the Channel Islands, please contact Phil Le Cornu, Global Head of Private Wealth, on +44 (0)1534 504000 or or Julia Church, Director, on +44 (0)1481 211 258 or Intertrust Jersey is regulated by the Jersey Financial Services Commission and Intertrust Guernsey is regulated by the Guernsey Financial Services Commission. may/june 2017 45


As we prepare for yet another piece of regulation to come into force, just what might it mean for the finance industry in the Channel Islands?

MiFID II: Words: Richard Willsher

46 may/june 2017

NEW EU RULES governing securities trading and increasing investor protection come into effect at the beginning of next year. The question on many lips is whether they present a threat or a real opportunity for Channel Islands financial services firms. From 3 January 2018, MiFID II and MiFIR (see overleaf) will bring new disciplines to the EU’s financial investment industry. The previous EU directive, MiFID I, which came into force in 2004, aimed to produce a single market in investment services and improve competitiveness. It also set out rules for trading in shares and in related financial instruments. MiFID II updates these rules and broadens the scope of regulation. Its key aim is greater investor protection – and it reaches into many corners of the financial services sector. “Any EU investment firm or thirdcountry firm doing business in the EU will be affected by MiFID II,” says Claire

Wallace, a Senior Manager in PwC’s asset management regulation practice. “It’s the overarching EU regulation that governs the way in which investment firms are authorised and run. Every aspect of an investment firm’s business – from authorisation, product creation, selling, trading and execution – will be caught by MiFID II.” In terms of Channel Islands firms, the businesses that could fall within the scope of MiFID II are those that deal in investments and/or manage them, and those that give investment advice, such as banks, stockbrokers and financial advisers. They must also be delivering these services to clients within the EU. For them, the work involved could be arduous. “They’ll have to know their way around the regulations,” explains Ben Morgan, Head of the corporate and finance group at law firm Carey Olsen. “They’ll have to know when a client is caught by MiFID.



A WAITING GAME ‘Equivalence’ is EU legal jargon for approval of third countries to offer their services within the single market. On the face of it, MiFID II would seem to be the latest wave of onerous regulation to break over financial services firms. This may be the case for some firms, but its impact may not be as hard-hitting across the industry as a whole. “We did a survey of all the investment businesses in the island,” says Mike Jones, Director of Policy at the Jersey Financial Services Commission (JFSC). “Around half of the 90 responded. We asked them where

their clients were located and what sort of category of clients they were. We learned that about a quarter of them had clients in the EU but the vast majority of these were based in the UK. “We’ve had to review the situation again in light of Brexit, because after Brexit, the UK will be outside of the EU. For Jersey to rewrite its financial services regime for a small percentage of EU clients – excluding the UK – may not be worthwhile.” For the time being, regulators in both Jersey and Guernsey are biding their time. “We’re still reviewing the situation and liaising closely with industry,” Jones continues. “We’ll be making a strategic decision in the first half of this year and issuing some consultation on exactly what we’ll be doing, and any necessary changes to our regime, later in the year.” At the Guernsey Financial Services Commission (GFSC), its Director of Financial Stability and International

Policy, Dr Andy Sloan, believes it’s “very much continue as you are”, and compares MiFID II compliance with that for the Alternative Investment Fund Managers Directive (AIFMD). “AIFMD contained a strict regime for alternative investment funds marketed into the EU, where you had to conform to the rules,” he explains. “There was no alternative and there was a stated timetable for turning off national regime routes to EU market access. MiFID II, however, contains rules for harmonised regimes with no particular signposted road map for the national rules to be turned off.”

ALL THINGS BEING EQUAL For the majority of firms, then, MiFID II isn’t an urgent matter, especially if they’re part of larger businesses such as banks and fund managers that are based in the EU. They will follow the lead of their parent companies through which they’re may/june 2017 47

They’ll be reviewing all of their policies and procedures and all of their compliance manuals to make sure that they do comply. “This is quite a big deal, but the thing they’re most closely focused on is working with our regulators to make sure that we get the equivalence recognition.”


likely to be able to passport their products into the EU. Longer term, however, there are bigger fish to fry, and this comes back to equivalence. If Channel Islands jurisdictions receive approval from the European Commission that their financial services regulation is equivalent to MiFID rules, then the firms they regulate will be able to sell their products and services across the EU to non-retail clients without being subject to the national regulation of EU member states. “Without equivalence, firms in the Channel Islands can’t tap into what is, in effect, a new market,” says Ben Morgan. “The excitement of MiFID II is that it provides access to a market that wasn’t available under MiFID I.” The excitement has, however, to be tempered by the added complication of the UK’s decision to leave the EU. “The whole equivalence process is up in the air due to Brexit and concerns about setting a precedent with the UK,” says the JFSC’s Mike Jones. The GFSC’s Andy Sloan adds: “In January, the UK said it would stick to its national regime for access to retail clients rather than introducing the MiFID II branching requirement, which, as an island, was something we lobbied for. “Generally, in terms of dealing with the UK, it will mean keeping things as they are. So now the question is whether a MiFIR equivalence assessment (a passport for services to institutional clients) is desirable. In terms of dealing with the other EU 27, we’ll need to take a view of whether an equivalence assessment would bring any benefits to the island.” So, while Channel Islands regulators are taking a wait-and-see approach on whether to seek equivalence status, both Jones and Sloan strike a note of caution. They say the devil of what MiFID compliance may actually mean is likely to be in the detail.

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MIFID II in a nutshell Compared with FATCA and CRS, the potential negative business impact for financial services firms of non-compliance with MiFID II is far less onerous

Compared with the mandatory tax transparency and reporting measures associated with FATCA and CRS, for example, the potential negative business impact for financial services businesses of non-compliance with MiFID II is much less onerous. MiFID II compliance may, in the end, turn out to be more of an opportunity than a risk for Channel Islands firms, because it would potentially open up the professional client EU market to them. While there would be penalties for non-compliance, it would enable them to scale up their businesses to cover 450 million potential clients. n

The Markets in Financial Instruments Directive (MiFID) and the accompanying Markets in Financial Instruments Regulation (MiFIR) will take effect in the EU on 3 January 2018. Together, their aim is to revise the existing MiFID I directive, which was largely targeted at equities, and make financial markets more efficient, resilient and increase their integrity. The measure will also make for a level playing field in financial instruments across the EU. Specifically, MiFID II and MiFIR are intended to: ● Bring greater transparency to pre- and post-trade activities for both equities and non-equities ● Move more trading to regulated venues, particularly derivatives and bonds ● Impose greater controls on trading in derivatives ● Make access to capital easier for small- and medium-sized enterprises ● Improve investor protection for retail investors ● Regulate high-frequency trading ● Provide for equal access to trading and post-trade services ● Strengthen regulation across the EU and cooperation between national regulators

RICHARD WILLSHER is a freelance financial writer

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A great year for


Having launched only last year, ZEDRA has already made great strides in establishing a presence in the Channel Islands – something it will build on as the company grows and its reputation strengthens ZEDRA IS AN independent specialist in trust, corporate and fund services. The company was acquired from Barclays in 2016 by an independent investor group with ambitious plans to grow the business and strengthen services offered to clients around the world. ZEDRA’s Jersey office is the largest in the group and its operations are closely integrated with the company’s teams in Europe, Asia-Pacific and the Caribbean. As a genuinely independent company, ZEDRA is dedicated to creating and delivering bespoke solutions for an international client base.

A STRATEGY FOR GROWTH ZEDRA Jersey houses the firm’s largest team, with over 140 employees. The office is led by Managing Director Ashley Cox (pictured), who is joined by an internationally recognised team of 20 directors and associate directors. Key hires in 2016 have enabled ZEDRA to expand and strengthen the services it offers to clients and position itself as a key player at the core of the industry. All directors are highly qualified and, importantly, all retain responsibility for client service. Over the past year, ZEDRA Jersey has made six director appointments – Paul Nayer (Finance Director), Joe Donohoe (Client Director), Paul Fauvel (Client Director), Greg Murray (Head of

Compliance), Mark Cleary (Head of Relationship Management and Funds) and Michael Capraro (Head of Business Development Funds Services). The business has also attracted Ryan Taylor as an Associate Director in the Funds Services Business and promoted Lucia Perchard to Client Director. To top off an excellent year, ZEDRA merged with Azure Trust and appointed Alan Tidy as Chairman of the Board. Employing leading industry experts with an average experience of 20 years each, the ZEDRA Jersey senior team are the trusted providers to many of the world’s wealthiest families and also the top legal, tax and accountancy firms.

AN EMPLOYER OF CHOICE ZEDRA is a people-centred business and has fast become an employer of choice. The company’s focus on building lasting relationships with both clients and staff ensures that people remain a core priority and candidates are attracted by a dedication to professional development and growth. The company’s ethos of ‘Do More. Achieve More’ attracts individuals who are motivated to offer excellent customer service and drive innovation. Ashley Cox says: “We’re always looking for passionate and committed individuals who deliver excellent client service, develop market opportunities and work as part of a strong team.”


The ZEDRA Jersey launch party was held in the impressive Chart Room at Castle Quay

Over the past year, ZEDRA has supported clients on numerous legislative changes: ● Changes to the taxation of long-term UK-resident, non-domiciled individuals ● Changes to the taxation treatment of UK residential property owned by structures ● The Limited Liability Partnerships (Jersey) Law 2017, which was registered in the Royal Court with a view to making Jersey LLPs more attractive to local and international businesses

● The introduction of the Common Reporting Standard for the Automatic Exchange of Financial Account Information (CRS), providing for the automatic exchange of financial information between participating jurisdictions for tax purposes. ZEDRA Jersey has also been instrumental in further developing local legislation in relation to complex trust and foundation law matters during 2016.

AWARDS ZEDRA Jersey has been shortlisted for the WealthBriefing European Awards 2017 in the ‘Independent Trust or Fiduciary Company’ category. Showcasing ‘best of breed’ providers in the global private banking, wealth management and trusted adviser communities, the awards are designed to recognise companies demonstrating innovation and excellence. ZEDRA was also Highly Commended as ‘Advisory Firm of the Year’ in the Foreign Direct Investment Awards 2017.

WORKING GLOBALLY Based in offices across key jurisdictions, ZEDRA’s team of nearly 500 industry experts is dedicated to creating and delivering bespoke solutions to clients. The company now operates from 12 jurisdictions, having added Hong Kong, Singapore, New Zealand and, most recently, Australia to the mix. Building on the success of the past year, ZEDRA has an ongoing strategy for growth. The company will pursue recruitment of the best experts in the market and will continue to diversify and innovate. The company looks set to uphold its ethos of ‘Do More. Achieve More’ for many years to come. n


To find out more about ZEDRA, you can visit or contact Director Julie Fairclough on 01534 844247 or email may/june 2017 49

EGAMING solutions with GLOBAL reach JT oer world-class, fully managed and accredited data centre and cloud services for the eGaming industry. With a global reach, this enables operators to distribute and provide gaming content in multiple jurisdictions, through a single point of contact.


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The global journey of EGaming Jon Stuckey, Head of EGaming Sales and Solutions at JT, explains how the company is helping EGaming firms expand globally like never before EGAMING IS ONE of the world’s fastest growing industries. Its technical aspects, artistic design, communication and innovation often outstrip all other sectors when it comes to technological ingenuity. Pushing the boundaries once more, the eGaming industry is now expanding quickly across jurisdictions. Like all industries, we’re faced with key market changes. The industry’s diminishing margins and increase in player acquisition costs have created a critical climate of fast-paced innovation. eGaming companies now seek to share their gaming content across networks and platforms globally. Their plan: to appeal to new regions, new cultures and new customer bases, with their impressive gaming platforms. Going truly global is a dream that companies and industries rarely achieve. However, if any industry is capable, the eGaming industry certainly is. To achieve this aim, the eGaming sector has unknowingly set telecommunications providers the challenge of providing eGaming with the simplest, yet most effective way to expand its reach. Previously, legal draftsmen across the world struggled to modernise the law fast enough to keep up with the rate of change in eGaming. But legislation has finally caught up. Changes in licensing requirements across the world now mean eGaming companies may need separate licences from different regulators in each country or jurisdiction they expand into. It goes without saying that dealing with a different service provider in each jurisdiction too would make this journey even more time and resource consuming. At JT we anticipated this shift – more and more of our eGaming customers

were asking us to provide data centre partnerships in other jurisdictions. The solution was clear – we had to provide and facilitate eGaming expansion by creating our own global data centre partnerships with likeminded and trusted partners. Following the establishment and maturity of global eGaming regulators, the eGaming market is now expanding successfully. The Asian market opened up into the UK and Europe as they crossed the cultural barrier with their content. The US, Europe and UK have since been mirroring this expansion in parts. Online gaming shifts are also driving market consolidation. We predict that, as larger players in the gaming sectors reach out into new markets, there will be fresh rounds of mergers and acquisitions as existing leaders take over their niche competitors. In this climate of change, eGaming companies will rightly look for the best and easiest solution to help them globalise their offering. Telecommunication providers need to be ready and position themselves as the solution if they’re serious about the eGaming space. Industry leaders in telecommunications should open their doors and join this global activity, so that they can take advantage of this shift in the eGaming industry. At JT, we have already recognised the opportunity to expand into the eGaming sector by offering a full-service capability for operators and platform providers, which has been based on insight from customers around the globe. If, for example, an eGaming customer is operating in Asia and taking services from another client provider in that area, but also wants to sell their data and services

into the European market, JT can be the enabler. By connecting the customer’s platform to the secure JT Cloud, customers don’t need to invest in further new hardware in yet another data centre. Single-supplier simplicity and centralisation with single-source accountability is key for the eGaming industry at this point. Having multijurisdictional capabilities requires setting up hosting and IP-providing capabilities in each location. Having to liaise with different data centres in each jurisdiction is costly and inefficient. Partnering with a company that has the knowledge in each country, and the capability to seamlessly provide the multi-jurisdictional services, solves these complications and will be increasingly in demand. For hosting and IP service providers to produce a trusted multi-jurisdictional offering backed by accreditation, reputation and experience will be crucial. By creating data centre partnerships across new jurisdictions with accredited organisations, service providers will be primed to help customers expand their businesses. We've seen that telecoms providers have the most reputable and secure experience of doing so. At JT, we’re already responding to these changes in the marketplace and look forward to working with all innovators across the eGaming industry. n


To find out more about JT’s innovative solutions, visit may/june 2017 51


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All change

As business moves away from the stereotypical older, white, male boss, could we be ready to do away with the CEO and traditional management structure altogether? may/june 2017 53


at the top?


Words: Dr Liz Alexander ‘ENDANGERED SPECIES’ ISN’T a term you normally associate with men who’ve dominated leadership since the East India Company established the modern multinational in 1600. More than four centuries later, a look at Harvard Business Review’s annual list of leading CEOs offers overwhelming evidence that those jokingly described as ‘pale, male and stale’ remain in the driving seat. Yet recently, Tesco Chairman John Allan suggested the old guard is endangered, because the signs are that leadership is starting to look very different. And that could mean doing away with the CEO altogether, giving employees far more autonomy. As technology and globalisation have accelerated the pace of business, many organisations have restructured in response to these trends. According to Deloitte’s latest Human Capital Trends report, The new organization: Different by design: “In some ways, businesses are becoming more like Hollywood movie production teams and less like traditional corporations, with people coming together to tackle projects, then disbanding and moving on to new assignments once the project is complete.” Hence the need for distributed or ‘federated’ leadership – a model that at the anti-hierarchical extreme is known as ‘holacracy’. Add to this the changing expectations of employees. As Julie Fairclough, Director at trust business Zedra in Jersey, points out: “The internet, combined with a younger generation brought up to be less respectful and deferential towards authority, has meant that leaders are having to become much more accountable. Increasingly, employees want to know about their values and ethics, and ask: ‘Why should I follow you? Why do you deserve to be my leader?’.” At the same time, says Daina Middleton, author of Grace Meets Grit: How to Bring Out the Remarkable, Courageous Leader Within, millennials “want to be coached more frequently and regularly, and to have a close relationship with that leader; to have them be interested and invested in helping them be more successful, not just the organisation overall”. This may be hard to swallow for senior executives still invested in the ‘Great Man theory’ that’s very much associated with power and ego, says Phil Eyre, Founder of Leaders consultancy in Guernsey. Yet there are huge business benefits in moving

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away from the command-and-control model – which Eyre believes millennials find “borderline repulsive” and may cause problems for businesses trying to attract talent and reduce staff turnover. “Leaders who move away from focusing only on their technical skills to take a more human, holistic approach to leadership, who allow people the autonomy to find their own way within good boundaries, deliver the best business results,” he says.

DECISION MAKING Supporting teams further down the food chain to make their own decisions enables organisations to respond faster, in line with local conditions, adds Fairclough. Gone are the days when leaders can expect to know everything. She sees no point in trying to develop a social media strategy, for instance – an area about which she admits to knowing nothing – if it makes sense to hand that over to someone younger. “A significant part of leadership today, yesterday and certainly tomorrow is the responsibility to grow your people,” she says. “Development used to be around how much water you could put in the glass. Going forward, it will be

about how you make the glass bigger.” But there are potential pitfalls associated with distributing responsibility too broadly, as a case study entitled ‘Is Holacracy for Us?’ in a recent Harvard Business Review identified. Criticisms of decentralised power and authority include that it “creates silos, does little to remove hierarchy, and is difficult to organise and maintain”. Worse still, Dutch engineering services company Royal Imtech, the company on which this case was based, was bankrupted in 2015, following a series of localised accounting fraud scandals resulting from the leaders’ unswerving belief in promoting local entrepreneurship and autonomy. This only highlights what’s always been important for leaders – to clarify and hold onto the organisation’s vision, values and culture – and why doing away with leadership is unlikely, even if we’ll see those roles increasingly filled by women and those whose strength is collaboration, communication and foresight. Futurist Joel Barker, the man who introduced the concept of paradigms to the business world, defines a leader as someone others choose to follow to a place they would not go to by themselves. “The ideal


Managing Director of Prosperity 24.7, sees the role of the modern chief executive. “There’s a large fund business in the Channel Islands that’s seen as an organisation everyone wants to work with – they make big personal development investments in their people and have a very supportive and permissive culture. “When leaders help to shape and influence a trusting, enabling and engaging workplace, people know they can innovate and maybe get things wrong, but not be hung, drawn and quartered when they make mistakes,” he says. There’s an argument that it’s easier to share responsibilities across a smaller business than in a big corporate. But multinationals such as US manufacturer WL Gore or GE Appliances company Haier in China have created happier, more trusting ecosystems by, as Clark puts it, “carving off chunks of the ship, putting them in a speedboat and allowing them to be intrepreneurial”. However, one of the reasons he thinks it’s difficult to have an organisation with no leadership is that “shareholders and clients still want that throat to choke if anything should go wrong”.


some Businesses are becoming like movie production teams, with people coming together to tackle projects, then moving on

leader is a visionary leader/manager who inspires people to take risks because if they had to make the decision themselves, they wouldn’t do it.” This requires not only the capacity to look into the future and see appropriate ways forward, he says, but to have a track record of making good decisions and instil a supportive culture where innovation and autonomous decision making can thrive. This is very much the way Chris Clark,

So, if the concept of leadership is safe, at least for the time being, what kind of models are we likely to see emerging? Daina Middleton believes we’re in a transitional period in which many different models will operate simultaneously, succeeding (or not) depending on what’s best for the company concerned. But outcomes won’t necessarily be focused on how past and present leaders rate success. “My largest client is a private equity firm, the type of business usually focused on productivity and efficiency and costcutting,” Middleton says. “But they absolutely believe that their ‘secret sauce’ is getting leaders to become better leaders and to think about power and leadership as influence potential and empowering others, rather than success being all about their own personal wealth. This includes asking: ‘How can I be a better human being, not just at work but at home and in my community?’ or ‘What type of impact am I going to make in the world?’.” As demand increases for diverse decision making and employee autonomy, and anti-elitist sentiment percolates through society, it’s debatable whether ‘pale, male and stale’ can – or should – survive these transitional times. n DR LIZ ALEXANDER is an author, educator and business strategist, and Founder of consultancy Leading Thought

Does ‘binning the boss’ always work? Many organisational structures now in play address the question: do we need leaders? Revolutionary Dutch homecare provider Buurtzorg prides itself on having no hierarchy. Each self-supporting team of nurses receives coaching tailored to their specific needs, but no manager tells them what to do or how to do it. Established in 2007, Buurtzorg has grown rapidly and enjoyed remarkable success. According to KPMG, it has high productivity and employee satisfaction rates, while reducing costs and resources per patient. Swedish software consultant Crisp went through an annual process of changing its chief executive to find the right leader, only to come to the conclusion that none was needed. Key responsibilities were either handed over to the board or shared among employees. The result? Workers are more motivated ‘because they are all in charge’. Similar enthusiasm surrounds Spain’s Mondragon Corporation, whose 74,335 employees generate revenue of over €12bn, ‘united by a humanistic concept of business’, by operating as a federation of workers’ cooperatives across finance, manufacturing, retail and knowledge industries. On the other hand, online retailer Zappos tried replacing bosses with non-hierarchical decision making, only to see its staff turnover increasing to 30 per cent. And online publishing platform Medium, founded by Twitter’s Evan Williams, also abandoned holacracy after a three-year experiment, saying: “The system had begun to exert a small but persistent tax on both our effectiveness and our sense of connection to each other.” may/june 2017 55


The Brave New World of

Data Science

As companies gather massive amounts of data, making sense of it all and turning it into competitive advantage is all-important – and that’s where data scientists come in Words: David Burrows

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If data science is primarily about ‘big data’, does that mean data scientists are only worth employing at the biggest companies? Not so, according to Claudia Imhoff, President and Founder of Intelligent Solutions. “Big data to me is not just the volume and variety of the data, but the complexity. Small companies can have very complex sets of data and can ask very complex questions. So, if you’re a small company with complex questions and complex data, you need a data scientist.” Whatever the size of company, there’s frequently a lack of understanding at boardroom level of what data scientists provide. Malcolm Williamson, Commercial & Enterprise Director at business support specialist Exemplas, agrees with this view. He suggests that the effective organisation of colossal levels of data into something that’s coherent, focused and directly beneficial to the business is a challenge and one that many firms shy away from. But this is where data scientists prove their value, he insists. “If you’re dealing with enormous volumes of data, effective analysis is likely to be significantly more valuable than any product or service being made,” he says. “I don’t have a problem with paying people large sums, so long as they demonstrate a return on investment. I suspect the best data scientists repay their costs 10 or 20-fold.”

WEALTH OF INFORMATION Despite the abundance of data, the ‘scientists’ making sense of it all are a relatively new breed. They’re able to demand large salaries because expertise in this area isn’t widespread – but as Graham Coultas, Innovation and Programme Director at Exemplas, points out, their god-like status is unlikely to last long term, as salaries level off once supply increases. In terms of levels of data available for analysis, Coultas highlights the ever-increasing sophistication of information gathering. He points to a supermarket chain in the US that uses face recognition software to know when someone has visited the store, then logs where they go in the store and how long they spend in each aisle. Wearable technology has also proved something of a game-changer. Activity bracelets can provide up-to-the-minute data on anything from blood pressure, heart rate and body fat, to diet and exercise. There are also apps enabling people to take an instant ECG on their phone or to scan a meal to calculate and record calorie and nutrition levels. This is of interest to healthcare and insurance companies in terms of improving claims management and reducing costs. Data from mobiles can also provide crucial data for analysts. Using wireless technology linked to may/june 2017 57

AS ALBERT EINSTEIN famously said: “Information is not knowledge” – and he knew a thing or two. You can have all the information at your disposal, but if you don’t know how to interpret it, it’s useless. And that’s probably never been more true than in this fast-moving technological age. Smart cards, smart phones, smart cars, smart washing machines and a whole host of sensors, allow us to analyse a vast amount of data in a way we’ve never done before. This stack of information that companies or organisations collect is usually referred to as ‘big data’. However, deriving meaning from big data – transforming information into knowledge – is what’s crucial. And it’s creating a booming, lucrative industry for skilled ‘data scientists’. As Aonghus Fraser, Group Chief Technology Officer at C5 Alliance, explains, while the term data science is new, the general concept is not. “In the past, the term was ‘data mining’ or ‘machine learning’ – the principle is the same, but the difference now is the sheer volume of data that companies are working with.” The potential for transformation using insights from data analytics spans every industry – from healthcare, retail and banking to transportation, manufacturing, policing and leisure. Analysis of data sets can unearth new correlations that can help identify business trends, prevent diseases and even fight crime. Early adopters of data science have already been able to reshape their business either through new products or an overhaul of customer delivery and engagement. At a very simple level, rather than bombard a customer with multi-product recommendations, a bank may focus on a home loan recommendation based on increased recent customer transactions at B&Q. However, not all companies are up to speed with what data science brings to the business equation. Essentially, a data scientist combines analytic, machine learning, data mining and statistical skills with experience in algorithms and coding. This information is complex and difficult to grasp for the lay person, so the data scientist is tasked with having to explain the significance of specific data in a way that can be easily understood. As Fraser points out, some companies have looked to third parties to make more sense of collected data. “The Netflix Prize is a good example,” he says. “The company offered $1 million to the firm that could improve the algorithms for the business and ultimately see more clearly what was happening in their consumer base.” In 2009, the prize was awarded to BellKor's Pragmatic Chaos team, which improved Netflix's own algorithm for predicting film user ratings by just over 10 per cent.


consumers’ smartphones, retailers can now track shopping patterns in the same way that online retailers have done for years. The data can help make informed decisions on staffing levels, what fashion lines to carry more of and how to maximise store displays. However, finding patterns and significance in recorded data isn’t always as straightforward as this retail sector example. Nor is it always easy to make accurate predictions. As Coultas explains: “Even the best brains can analyse a raft of data, but can they translate that into what future trends may be?” This is where the skill factor comes in – the nuggets of useful data are pinpointed and strategic decisions are made that, in theory, should benefit the business. “You’re never going to have 100 per cent certainty, but using sophisticated calculations of probability, you’re able to make the best of your data,” says Aonghus Fraser. The more often data scientists can demonstrate their value to a business, the more they will be viewed as a necessity rather than an option. However, a Digital Masters roundtable earlier this year (organised by digital networking and recruitment specialist The Up Group), suggested data scientists needed to be integrated more into companies to fully utilise their skills and showcase their effectiveness. There was general consensus at the meeting – which included representatives from Accenture, ASOS, Barclays, Burberry, Camelot Group, eBay, Experian, Facebook, and Prudential – that data scientists working alongside product managers would provide a clearer understanding of each other’s roles. Farming and interpreting meaningful data would prove far less taxing if these two skill sets communicated more closely. However, it was noted that this would inevitably prove more challenging for less new-age businesses and those with legacy issues as a result of M&A activity.

RECRUITMENT CHALLENGE Undoubtedly, data analysis can help improve operational performance and, where necessary, help transform a business and ensure it remains relevant. But not all businesses have the capabilities or the understanding to fully embrace data science – yet. Recruitment is another challenge too. Demand for experienced data scientists comfortably outstrips supply. To combat this, one delegate at the Digital Masters roundtable suggested bypassing what can often be a drawn-out search and application process. He proposed that if an impressive CV were received, a direct call to the applicant (not via HR) should be made immediately. And rather than bombard a potential recruit

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The effective organisation of colossal levels of data into something that’s coherent, focused and directly beneficial to the business is a challenge

with 10 pages of application forms, the first step should be a test of technical aptitude. Only after this should the standard boilerplate process come into play. While the benefit of big data analysis are clear, there are also privacy and security issues. As data security specialist Darren Harmer explains: “Data is collected every day on where people go, who they communicate with, what they eat, what they read, what TV programmes they watch, what physical exercise they do and even their sleep patterns. Their lives are analysed in ways inconceivable a decade ago.” Undoubtedly, big data allows companies to make objective decisions – insurers responding positively to healthy lifestyle statistics, for instance – but what if data files on individuals are inaccurate or the algorithms are questionable? And what if big data in the hands of banks, insurers and employers has an impact on someone getting a job or qualifying for a loan? Does the individual have any powers of redress with regard to limits on the personal data that companies collect and retain? “Yes,” says Harmer. “You do have a say in who you share information with and for what reason. But this means consumers reading privacy policies and terms of service agreements, which in reality seldom happens.” We live in a brave new world, where data is king, and the companies that make most sense of it are arguably the ones that are going to succeed well into the future. Having so much personal information floating around in cyberspace may make some people uncomfortable, but the harsh reality is that it’s nigh on impossible to put the genie back into the bottle. n DAVID BURROWS is a freelance writer

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Change vs project management management Companies looking to drive business change need to recognise that project management and change management are part of the same puzzle. Ashley Hillier, Director at Altius CI, explains why WORKING IN THE field of business

change, it’s not uncommon for me to hear both clients and peers comparing the disciplines of change management (CM) and project management (PM). The terms are often used interchangeably. However, each area requires a specific skillset and often works towards different priorities to reach the overarching objective: to successfully implement change. That said, there’s often a lot of crossover between the two disciplines, and it’s my belief that you simply can’t have one without the other. CM and PM should always go hand in hand. Although each field of expertise serves its own purpose, they are invariably linked. But what are the key differences and why should businesses acknowledge both CM and PM when it comes to planning for change? ● Project management – PM focuses on achieving the desired outcome by agreeing goals and actioning the plan. Essentially, it’s the process of delivery through selecting and applying the right knowledge, skills, tools and techniques to meet the requirements of the business project. ● Change management – In comparison, CM is far more focused on organisational orientation. It differentiates itself from PM by instead focusing on outcomes that are often the results of several different individual projects. By nature, it’s usually highly unpredictable and deals with desired outcomes that may change over time. The change manager needs to understand how projects are delivered, but more

importantly, how the benefits are to be delivered across the whole business. Most of the time, this will mean changing existing working practices and processes. Whilst PM uses structured processes to deliver, CM doesn’t usually operate with such formalised guidelines and processes. It’s often the case that there isn’t even a defined start or end date. A project can appear to be successful in that it delivers the solution on time and within the constraints of its budget. But if employees are resistant to change and sufficient emphasis isn’t given to managing any changes to working practices, then the overall outcome will be disappointing. Essentially, if PM provides the processes and project development to make the vision of a change project a reality, CM aims to win the hearts and minds of the organisation, making the implementation of change a much smoother process. While business change can be realised with just a project manager, and each discipline can still function independently, an all-encompassing and collaborative approach provides a much more powerful proposition. Working in tandem, PM and CM flip the perspective to the whole business, rather than just the scope of the specific project. Most business leaders in 2017 will understand the importance of their people, with employee satisfaction and workplace culture now high up on their list of priorities. This only highlights the importance of implementing both PM and CM into your change strategy because, fundamentally speaking, your

organisation is the sum of a team of individuals working together. It’s therefore essential that your change strategy isn’t only people-focused, but that it’s people-led from the outset. After all, the best results are achieved when employees feel they’ve undertaken the change themselves. Although most businesses will have a clear idea of what they want, having the resources to successfully deliver change while addressing both PM and CM can be a different story, which is why outsourcing to an expert can bring some significant advantages. Taking a pragmatic approach, a business change expert can combine experience and best practice gained from several industries with both PM and CM skills, to help achieve your organisation’s vision for change. With no ties to the business, an expert can also provide an outsider’s perspective, and will often have knowledge of what has and hasn’t worked for similar organisations. While PM provides the disciplined approach and structure needed to realise the outcome, CM empowers individuals, reinforcing the change for the future. And that makes both approaches vital pieces in the business change success puzzle. n


To find out more about how Altius can help you, visit If you need help with your business change project, please get in touch with Ashley Hillier at may/june 2017 59


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The merits of a broad

career ‘jobs for life’ are a thing of the past, so employees are looking for more varied career experiences – but what benefits are there in this approach?

“YOU CAN’T CONNECT the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future.” So said Apple founder Steve Jobs to an audience of university graduates about his meandering career path. Follow your curiosity, intuition and heart, he urged, because eventually they will come together in unexpected ways. There’s an argument that a broader career centred on one area of interest is more fulfilling and more beneficial to business than a career that’s highly specialised. Considering there are few jobs for life now, and with more career changes becoming the norm, is it better to set out with a broad career in mind? And does the millennial generation instinctively appreciate this as they choose to chase variety, continuous learning and flexibility? A 2016 Manpower survey of 19,000 millennials from 25 countries found

Words: Emma De Vita may/june 2017 61


that while they expect to work harder and longer than previous generations, they anticipate greater variety and more career breaks. Millennials prioritise money, security and time off, though they define job security differently. They establish long-term career security through jobs that give them continuous skills development, because that’s what keeps them relevant and employable. They see individual jobs as stepping stones to self-improvement rather than a final destination. A career journey that’s broad in experience rather than constrained by narrow specialisation is a good thing, argues Nick Lovegrove in his book The Mosaic Principle. “The world is increasingly obsessed with the power of narrow, specialist expertise, but if we always shape our lives that way then we all too easily become one-trick ponies,” he says. Not only does this result in us being unfulfilled, but it also leaves companies with too few staff able to solve complex problems.

A STRONG CORE So what does a broad career entail? Lovegrove sees it as a career based on a key area of interest – be you a doctor, lawyer or management consultant – but one that ranges across organisations to give you different perspectives. You could work for a charity or a government department, you could become a non-executive director or chair an industry organisation within a given sector or across sectors depending on your skills and expertise. It’s an attitude that can be cultivated at any stage of your career, argues Lovegrove, whether you’re in your 20s or your 60s. The key to a broad career is to build it around a central interest, develop your transferable skills and be able to demonstrate how your career has progressed. “The most important thing is that you have to be able to tell a coherent story,“ says Lovegrove. “There has to be a structured narrative to your life.” This means showing your career has some organising concept behind it. The biggest pitfall is to come across as random and lacking in commitment, says Lovegrove. “If you lack any kind of

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central concept, then you come across as undefined – nobody can understand what you’re for,” he says. John McLaren, based in London, is the perfect example of someone who’s enjoyed a broad career – though he proudly admits he’s never had a masterplan. He started out in the Foreign Office, before moving into investment banking and then becoming a novelist. He now enjoys a varied career across the arts, and is also a serial Non-Executive Director and Chairman of mergers and acquisitions consultancy the Barchester Group. “I was a bit of a forerunner of what’s happening now,” he says. One of the negative aspects of having a broader career, McLaren concedes, is that the outside world doesn’t recognise your career progression, so you risk being seen as someone who just does a bit of this and that. “When you get to 50, on the face of it you’re no smarter than a 30-year-old,” he says. A bit of this and that might work well early in your career, says McLaren, but it will get tougher as you get older and your stamina flags. It’s important to have a key skill – or what McLaren calls a ‘home base’, in his case an ability to negotiate and read situations or people. But if you get it right, a broad career will make you more adaptable and able to learn continuously. As Sarah Bartram, Associate Director at Zedra, explains: “Things change so quickly that you have to be able to learn continuously, and you can draw on so many different skills. There isn’t a job for life anymore.” A broader range of experience gives you more career opportunities, she says, as well as peace of mind when there’s a downturn and you have to turn your hand to something new. Michele Gallagher, HR Manager at Estera, agrees. “Being able to adapt more readily and to respond well to change, as well as thriving in collaborative working environments, are among the benefits of having a broad career,” she says. It can also lead to “the gift of perspective, the ability to see the bigger picture, and having views on how to improve and innovate”. But do companies help to facilitate a broad career among their employees? Nick Lovegrove believes large organisations are shying


Millennials see individual jobs as stepping stones to self-improvement rather than a final destination

away from it. Demands from professional services or consulting clients for greater specialisation from those they employ have led to these firms guiding their employees into ever narrower roles. “I witnessed that happening in front of my eyes at McKinsey,” he says. “The range of experiences people had gained in the firm was significantly narrower than when I was a young consultant. If anything, the trend’s been in the wrong direction.”

FLEXIBLE EMPLOYERS Shelley Kendrick, Director at executive recruitment business Kendrick Rose, says employers should give millennials flexibility to keep them engaged in their work, offering them time out for portfolio work. “It’s about providing millennials with the

opportunity to progress quicker,” she says. But is all this flexible working possible in the Channel Islands? Kendrick says there’s a brain drain on the islands – those who leave to go to university in the UK often don’t return until their late 30s, when they have a young family in tow and are in search of a better quality of life. But with a limited number of sectors offering good-quality work on the islands, people need to think laterally. Originally from Manchester, Kendrick set up fashion retailer Next’s Jersey branch, before moving to the US to do the same in Boston and Washington DC. When she decided to return to the Channel Islands, she switched to working for a law firm. “There weren’t those senior roles available in the retail world here, so sometimes you’ve got to consider what the island can offer,” she explains. As Kendrick has discovered, developing your transferable skills makes it possible to leap between sectors. “A key factor about changing careers is that there may be one area within your present field that you’re very good at, that you can transfer into another area,” she adds. For her, it’s been recruitment – a constant theme throughout her career – that’s led to her starting up her own business. “It’s interlinked,” she says. “It takes time to find out what you’re good at. Bringing experiences from different organisations, cultures or working practices always adds value across any generation.” All of which begs the question: is having a broad career essential? “Arguably not,” says Michele Gallagher. “Certain careers require a specific and highly specialised skillset.” However, she says a broad career has the potential to encourage innovative thinking and the ability to analyse, adapt and improve. “Employability is having knowledge, understanding and personal attributes conducive to a productive, proactive and collaborative working environment,” she says. And which manager wouldn’t want that? n EMMA DE VITA is a freelance business writer may/june 2017 63

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Stars of the future Open for business: Lamborghini Aventador

While savvy investors are adding classic cars to their portfolios, the real smart cookies are identifying the ones that aren’t even classic yet

HAVE YOU EVER fancied dabbling in the classic car market? If the answer is yes, then you’re not alone. New research suggests one in five investors are now considering the inclusion of a vintage set of wheels into their investment portfolio. Over the past 25 years, some classics have proven to be an excellent choice of investment. This has been confirmed by Historic Automobile Group International (HAGI), which compiles an index of

mid- to top-end classic cars. HAGI shows how high-quality classic cars have outperformed against other, more established, asset classes, such as prime London property and art. Yet, despite this rise in prices, the financial world remains divided as to whether this growth is sustainable or is heading in the same direction as it did in the early 1990s. Back then, having been overstimulated by ungoverned borrowed money, market

values unceremoniously nosedived as the recession started to bite. Since those dark days of chancers and plunging prices, the classic car market has found a new breed of wealthy investors from across the globe – ones who are less likely to liquidate their stock should values take a tumble again. Of course, this doesn’t guarantee anything, but it does add a certain amount of confidence as to the robustness of the market and its credibility. may/june 2017 65

Words: Danny Cobbs

Cars Top-flight supercar: Porsche 911 GT3 RS

For the newcomer entering the market, the key to maximising investment is to identify a future classic before it becomes known to a wider audience, which is easier said than done

Speed demon: Koenigsegg One.1

Looking at the HAGI Index, prices soared to a record all-time high in 2015, but have since cooled off slightly. Forecasters now expect a more sensible seven to eight per cent rise over the next three years. For the newcomer entering the market, the key to maximising investment is to identify a future classic before it becomes known to a wider audience, which is easier said than done. This will demand both extensive knowledge and foresight – a little bit of luck always helps, too – and should be approached with exactly the same due diligence and caution as any other type of asset investment.

WHAT MAKES A CLASSIC? Before anything else, however, any prospective classic car owner must first determine what constitutes a classic car and how much it’s actually worth. “Everyone

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has their own definition, their own set of criteria, their own ideas about what makes a car ‘classic’,” says Paul Michaels, CEO of Hexagon Classics. “But the three common parameters are desirability, scarcity and heritage.” Age, according to Michaels, should be a secondary consideration. “Just because a car was built in the middle of last century doesn’t mean it automatically becomes more valuable than a modern day supercar. The new £1.9 million Bugatti Chiron [see page 81] is a good case in point. By virtue of its exclusivity [only 500 units are planned], and it being the fastest and most expensive production car ever built, it will undoubtedly command a huge premium, should one ever be offered up for sale.” TV’s Mike Brewer, who presents Wheeler Dealer, believes cars from the 1980s or 1990s are now seen as the rising stars of

the future, especially those that had a cult following when new. “Not so very long ago, a Mark 1 VW Golf GTi had a near-worthless second-hand value, but today this iconic hot hatchback, in pristine condition, can command a premium north of £15,000.” There are even newer cars that could make sound, long-term investments, too, he says. “The first generation of Audi TT was pivotal in shaping the current automotive industry and should be valued as such.” He thinks the BMW i8, the first all-electric production supercar, is also worth considering as it was “a game-changer in the way we now view alternative fuelled cars”. This brings us to how you identify the classic cars of the future. Whether it’s a speculative investment or one bought out of passion, some makes of car are obvious


Mind-blowing: Mercedes AMG GT

classics and will always be sought after. British marques remain a popular choice among collectors. Taking a mean average of the cars sold at auction over the past year, it shows that certain classic Aston Martins performed the best, rising in value by 80 per cent, followed by Jaguar, up 68 per cent, and Austin Healey, up 52 per cent. Bentley, meanwhile, during the same period, rose 39 per cent in value. But you don’t necessarily need to look to the past to find a future classic. Some current production cars are deemed classics before they’re even rolled off the production line. By applying the same rules as above – appeal, rarity and provenance – it’s possible to buy tomorrow’s classic today. Think along the lines of the new Porsche 911 GT RS – the race and track version of the road-going sports car – and you won’t go far wrong, especially if it has a convincing racing pedigree.

CHOOSE WISELY That said, James Haithwaite, First Names Group’s classic car expert and Client Services Director, notes that not all cars, even by the same marque, are equal. “The headline increase in value for a particular marque can be misleading. For example, Porsche has, overall, increased in value substantially over the years, but not all models have increased at the same pace,” he explains. “In 1994, a 1973 911 2.7 RS was around half the price of the new 911 model of the period, the 993. “The 993 initially depreciated, as most new cars do, but in recent years it’s performed strongly due to being the last of the air-cooled 911s. Taking inflation into account, it’s now worth around £60,000 for a good, unmolested and normally aspirated example. However, the better performer by some margin is the 2.7 RS, which was made in small numbers and is now worth in excess of £500,000 and regarded as the ultimate driver’s 911.” Haithwaite continues: “There are also the cars produced recently by manufacturers, again in smaller numbers, that good and consistent customers are ‘invited’ to purchase – for example, the

LaFerrari or F12 TDF, Porsche 918 or 911R, McLaren P1 and Jaguar F Type Project 7, to name a few. These have all appreciated on delivery, owing to their quality, the finite numbers produced and – above all – fantastic marketing programmes causing high demand and often an increase in price two or three times over list.” With money being relatively cheap to borrow, it would make sense to finance a classic car purchase through some type of lease or HP agreement. “Unlike the lending frenzy of the 90s, current credit legislation now requires us to lend responsibly and check for affordability”, explains Steven Halstead, COO of JBR Capital, which specialises in arranging loans for classic cars. “A typical finance agreement would be with a 20 per cent deposit, the balance payable over a three- to four-year period, and a one-off balloon payment at the end.” He recommends a classic car be seen as long-term investment, perhaps 10 years or more – if the market continues on a similar trajectory as recently, the loan interest would soon be offset against any gains. Irrespective of how a classic car is purchased, other inescapable costs of ownership can’t be ignored. Insurance is the most obvious and, again, there are specialist insurers that cater solely to the market. Savings can be made on premiums by agreeing an annual mileage limit (usually 3,000-5,000 miles) and keeping it garaged throughout the year. Another, more sobering, cost will be the maintenance and servicing of a classic car. Older cars demand attention, and obtaining essential parts, especially for those rare and more exotic machines, can be both expensive and time-consuming. Having satisfied the practical and financial preconditions of ownership, Mike Brewer has one more piece of advice: “Resist the temptation to buy the first car you see. In the world of classic cars, you can be certain of two things: you’ll eventually find a better example, and it will be worth waiting for.” n DANNY COBBS is a freelance motoring writer

Five classic cars of the future Make and model is always important when choosing a future classic, and if they’ve become a poster-car – the sort of thing boys (and girls) of all ages will lust after – it should send out a strong signal as to whether they’re worth investing in. Below are five current sub-£200,000 production models that tick all those boxes.

PAGANI HYUARA A spectacular cottage industry supercar with active aero, AMG-built 720bhp twin-turbo V12, and an interior more decadent than a Roman orgy.

MERCEDES AMG GT The SLS replacement is smaller (just), cheaper (considerably) and blessed with a 4.0-litre twin-turbo V8 that will blow your mind.

LAMBORGHINI AVENTADOR Caught between the Ferrari 458 and LaFerrari-like hypercars, the Aventador is expensive and a bargain at the same time. Incredible noise. Harsh ride. Better than the Ferrari F12.

KOENIGSEGG ONE.1 So fast (0-249mph in 20 seconds) that they called it a ‘megacar’ (hypercars are sub-1000bhp, this one is 1380bhp). Looks sane beside the new 1500bhp Koenigsegg Regera plug-in hybrid.

PORSCHE 911 GT3 RS New engine, PDK-only transmission, electric steering and rear steering too. Epic drive. Half the price of a ‘proper’ supercar, but every bit as good, and then some. may/june 2017 67


High life on the Want to rub shoulders with movie stars and oligarchs? Then a superyacht might just do the trick – provided you’ve got eight or nine figures in the bank

WHY DO PEOPLE buy superyachts? The most common explanation is the desire to escape the spotlight or the daily pressure of business competition. Bragging rights play their part too. So it must be incredibly frustrating to moor your precious new toy in the marinas of Monaco, St Tropez, Sardinia, Croatia or the Caribbean, only to see the horizon slowly wiped out by a larger and shinier yacht pulling up at the next berth, with a pop of Champagne and a cocky “dobryj vyechyer!” If the superyachts themselves are growing at a rate of knots, the asset class is too, with 298 of the things sold in 2016. A superyacht is traditionally defined as any motor or sail yacht with a load length of 24 metres or more. But as the yachts have evolved, the smallest tend to be 30 to 40 metres (these will set you back around €20 million). Yachts as long as 100 metres are increasingly common. These are, of course, dwarfed by the world’s current largest, Azzam, which measures a ridiculous 188 metres – nearly as long as the Dover to Calais ferry. Cost: $600 million. “I remember the school 100 metres sprint, and it’s a long way,” says Edward Leigh, Director of Aviation and Yachting at Equiom, which provides fiduciary services for $4bn of yachts and aircraft. “But you can’t just judge these yachts by their length, it’s the volume of the vessel too. The features may seem nothing out of the ordinary, but putting them on a floating vessel incurs a great deal of expense.” Nothing out of the ordinary? Helipads have become so common on superyachts that some owners have started installing two. Some have submarines; others ice-breaking capabilities. There are basketball courts and indoor gardens. Some boast bays within the stern for the tender (the smaller vessel that takes guests ashore) for discreet docking; some tenders are amphibious and can

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BACK IN CALMER WATERS Not that it’s always been plain sailing. The financial crash of 2008 took (some) toll on the superyacht market. Prior to the crash, people were speculatively buying up coveted build contracts in order to sell them on at a premium. After the crash, a lot of new constructions were delayed or cancelled. Many of those holding contracts got their fingers burned. “During a period like that, if you’re making people redundant, it’s best not to go out and buy yourself a new superyacht,” says Nick Walker, who heads up Marine and Aviation at JTC Group. The superyacht market is now thriving, however, sailing at an average of four to six per cent growth year on year, with the 100 metre-plus sector growing at four to five times that. Walker puts the number of superyachts currently being built at “around the 500 mark”. The world’s wealthy have apparently realised that things aren’t about to get any more stable, so they may as well enjoy themselves. “The good yards are full, with a lengthy waiting list,” says Leigh. “We’re also seeing a trend towards people owning multiple yachts. An owner may need one yacht for the Caribbean, one for the Mediterranean and perhaps a smaller third one for shallower waters.” Maltwood points out that for someone earning hundreds of millions of dollars, buying a superyacht (or three) is “like buying a lawnmower for the rest of us”. A lawnmower being dragged by a trawlersized ego, of course. In 2013, the launch of Azzam

Words: Dave Waller

drive people onto the beach. Floor-to-ceiling glass is common, as are infinity pools and large saloons that fit 100 people and can be used for parties – the owner flying in DJs specifically for the occasion. “Whatever the owner wants can be organised,” says Bruce Maltwood, Director of Sarnia Yachts, a marine fiduciary in Guernsey. “I’ve heard of some guests on board a yacht asking for a specific brand of vodka, and the owner sending the private jet shooting off from a nearby airport to Russia to bring it back. It makes sense if you can afford it. “It’s fascinating – one day I may be on board with a captain in the South of France, then it’s back home to Waitrose and a £4.99 bottle of Sauvignon Blanc.”


high seas may/june 2017 69

Lifestyle had the Daily Mail salivating over how it would ‘put Roman Abramovich’s nose out of joint’, because, at 180 metres, it was 17 metres longer than Abramovich’s yacht, Eclipse, which had been the world’s largest from its launch in 2010. Azzam’s owner is said to be Sheikh Khalifa bin Zayed alNahyan, President of the United Arab Emirates. Right now, the Sheikh will have a jealous eye on reports of Double Century, a 200-metre yacht currently being built for $770 million; and Triple Deuce, a rumoured $1bn construction that, if genuine, will smash all records at a frankly ridiculous 222 metres.

RIDING THE WAVES There’s a snag with getting so big, beyond where you’ll actually park the thing – the larger the superyacht, the more phenomenally expensive it is to run. The rule of thumb is that the yearly running cost of a superyacht is 10 per cent of the purchase price. Payroll alone can be in excess of €1 million a year, with some captains getting €25,000 a month cash in hand – and the crew tends to be employed year-round just in case. “A full crew will keep the boat fully provisioned on the off-chance the owner wants to use it,” says Maltwood. “I have a friend working on a very large yacht. The owner said he may come next week, so to get everything ready; then he changed his mind, and now the crew are living on steaks and lobster.” There are plenty of other costs. “An 80-metre yacht would probably cost around €5 million a year to keep going,” says Walker. “Other costs include fuel, harbour fees, maintenance, communications, and food and supplies. This is a significant amount of money.” Indeed, a new paint job, due every few years, will likely cost €1 million alone. And how do people pay for superyachts in the first place? According to Leigh, most sell for between £5 million and £10 million, less if pre-owned, so are within the reach of those with more modest amounts of wealth. Many owners choose to buy their yachts outright without financing: the low ratios being offered by banks means it’s not pertinent. There are other options for getting involved. The most popular route is chartering, at the cost of around £1 million a week for a large yacht. This is also a good way to try before you buy. Fractional ownership, where various people own a share in a particular yacht, hasn’t taken off as it has with private jets – yachts are more of a personal toy, so aren’t so easy to share. Yet according to Steve White, a former superyacht captain, only three per cent of the world’s high-net-worth individuals are involved in yachting. He believes he’s found a new way to

If it floats your boat… Four things to think about if you’re in the market for a superyacht…

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Floor-to-ceiling glass is common, as are infinity pools and large saloons that fit 100 people and can be used for parties – the owner flying in DJs specifically for the occasion

lure them in. He’s co-founder of Maha Yacht Club, a new members club model offering ‘smarter yacht ownership’. It takes fractional ownership and removes what White describes as “the bad parts”. Users pay one fee for 10 years of access to a fleet of custom-made yachts positioned in various desirable spots around the world. “This way they can enjoy a yacht and the luxury standards, but without a crew talking to them about refits and the upcoming winter programme,” says White. “A lot of people like the idea of ownership as a path to freedom, but aren’t able to see the value of the expense.” Perhaps you needn’t be Roman Abramovich or Sheikh Khalifa bin Zayed al-Nahyan to chart your course away from the stresses and the masses. However, owning a superyacht may not be quite as stress-busting as it sounds – according to the Daily Mail, Abramovich’s Eclipse has its own missile defence system. Suddenly that £4.99 bottle of supermarket plonk doesn’t seem so bad. n DAVE WALLER is a freelance writer

1. It will cost more than you think The running costs of

superyachts are astronomical, and it really doesn’t make sense financially as an investment. It’s one thing forking out £80 million for an 80-metre yacht, but you have to spend another £5 milllion a year to keep it going. 2. Charter first “I’d highly recommend chartering for a couple of seasons, trying different yachts in different places,” says Nick Walker, Head of Marine and Aviation at JTC Group. “It’ll give you a feel for what you want, for the luxury, and for the cost.” If you love it, go for it. 3. Watch out for VAT A £100 million yacht can land you with a massive tax bill. But if it’s bought or sold in international waters – at least 12 miles from shore – VAT doesn’t apply to the transaction. Get proper advice on that – the penalties for getting it wrong could scupper you. 4. Beware the one-upmanship As soon as your mate gets a yacht as good as yours, you’ll need to go one bigger. But there’s a limit on that – once you get into the 150 metres-plus market, you’ll struggle to find a marina that can accommodate you. Which means berthing with the hoi-polloi of cruise ships. It doesn’t bear thinking about…

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BL guernsey Digital Sector Strategic Framework published


he States of Guernsey has published a document detailing how government will support development of the digital economy over the next decade. The Digital Sector Strategic Framework sets out 10 strategic actions for the States, including: ● Targeting high-value, low-footprint, digital industries ● Direct government support to stimulate the digital economy (micro-economics) ● Establishing a flexible and world-class digital infrastructure ● Delivering responsive legislation and regulation ● Creating a robust and successful data protection framework It’s expected that actions from the framework – part of the Committee for Economic Development’s work on the Policy & Resource Plan to be debated in June – will help increase tax revenue from sector growth and create jobs.

Deputy Andrea Dudley-Owen, the Committee for Economic Development member who leads on digital, said Guernsey was well placed to seize opportunities in the digital sector. “The information services sector was Guernsey’s third largest in terms of employment in 2015, with more than 1,000 people working in it,” she said. “We hope this figure will grow within the next decade. “The upskilling of our current workforce and students is, I believe, essential to support this growth. If this can be achieved, the increase in value to the economy and government revenues would be significant.” The digital economy is a catch-all term that includes sectors such as IT support services, software and web developers, creative digital designers, fintech, data centres and telecoms operators. The Digital Sector Strategic Framework document is available on the States’ website, n

First Boeing certified for charter


uernsey-based civil aviation registry 2-Reg has granted an air operator certificate (AOC) to Business Aircraft Services (BAS) Guernsey – the recently formed aircraft management subsidiary of Hongkong Jet. The first aircraft to be registered on the certificate is a Boeing BBJ 787-8, which was originally registered in August 2016 for private use only, but can now be offered for commercial charter. The BBJ787-8 is under the operational control of BAS Guernsey and will be available for worldwide charter under the registration number 2-DEER. It’s the first 787-8 and first Boeing Business Jet to be registered by 2-Reg, and is also the first AOC issued by the registry for an aircraft

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operating in the Asia region. An AOC allows the operator to promote its charter services for public carriage for remuneration. BAS Guernsey attained the highest safety standards for public transport by satisfactorily complying with the 1,000-plus registration requirements. Concept Private, a division of Guernseybased fiduciary services provider Concept Group, incorporated BAS Guernsey and will provide local management services to the company. Director Marianne Domaille said the commercial registration drew significant attention to Guernsey’s aviation proposition. “This puts Guernsey at an advantage over Jersey and the Isle of Man, which can only register aircraft used for private flights,” she said. n

Employment Permit policy approved


lmost 240 jobs have been included in a policy that will allow employment permits to be accessed more easily under Guernsey’s new population management system. The Committee for Home Affairs has approved the Employment Permit policy following recommendations from the independent Population Employment Advisory Panel, appointed by the States of Guernsey last September. The panel spent six months engaging with the business community before submitting its proposals about which roles should benefit from the certainty provided by a formal policy. Employment permits under the new law are short-term (one year), medium-term (five years) and long-term (eight years). Short-term permits can be renewed for postholders each year until they reach five years’ residence, before the employee must leave the island. Medium-term permit holders can rent or buy their own home but must leave the island on the permit’s expiry. Long-term permits are given to essential posts, where the skills are in short supply internationally, or where there is a clear need for long-term continuity. The employee can remain on the island permanently once they have completed eight years in the job. Jobs eligible for long-term permits include commercial pilots, cyber security specialists, senior fiduciary specialists, nurses and certain care home staff, social workers and secondary school teachers in maths, English or science. Hospitality roles including head chef, hotel manager and restaurant manager will also be eligible. Deputy Mary Lowe, President of the Committee for Home Affairs, said the committee had approved every job recommended for permit by the Population Employment Advisory Panel, with minor amendments to category descriptions. The Employment Permit Policy is at n

BL Guernsey

Funds of the future identified

Guernsey signs two agreements with China


s the appetite for alternative investments grows, there’s likely to be increased demand for investment funds in the emerging asset classes of public-private infrastructure projects, traditional healthcare, energy consumption, ‘hardware’ such as ships or aeroplanes, and litigation funding. So said investment fund specialists addressing the annual London Stock Exchange (LSE) Investment Fund Conference in London in March, sponsored by Guernsey Finance. The direction of investment funds was a focus of discussion, in the context of greater demand for new income strategies and the swifter redemption of investments – an advantage of funds in the uncertain post-Brexit environment. While it was agreed that 80 to 85 per cent of shareholders in new funds remained UK-based, Guernsey – which has 124 funds listed in London – remains the top offshore jurisdiction through which to set up funds for listing on the LSE markets. “The connection between Guernsey and London is very well established – the island provides almost twice as many listings for London as our nearest offshore rival,” said Guernsey Finance CEO Dominic Wheatley. “Fund managers from further afield should know Guernsey offers them a proven and expert platform from which to launch into the City.” n

Year-on-year growth for funds sector


atest figures from the Guernsey Financial Services Commission (GFSC) show that the net asset value of funds under management and administration in the island grew by £6.5bn (2.6 per cent) in the fourth quarter of 2016. This built on the £21.9bn growth during the first nine months of the year to take the total value of funds business in Guernsey to £255.9bn at the end of December 2016. It means the total value of funds in Guernsey grew by more than £28bn during the year. The Guernsey closed-ended sector was valued at £159.4bn at the end of December – up £6.8bn (4.5 per cent) in the final three months of 2016 and up £19bn (13.4 per cent) compared with 12 months earlier. Guernsey-domiciled open-ended funds stand at £42.3bn, a decrease of £3.3bn (7.2 per cent) during the quarter, but up £3.3bn (8.5 per cent) year-on-year. Non-Guernsey schemes – those not domiciled in Guernsey but with some aspect of management, administration or custody there – increased by £3bn (5.9 per cent) in the fourth quarter of 2016 to be valued at £54.2bn – up £6.2bn (12.9 per cent) on the same point in 2015. n


uernsey is building on its insurance offering in China after signing a Memorandum of Understanding (MoU) with a key Chinese business centre. The MoU between the Beijing Airport Economic Core Zone (BAECZ) and Guernsey Finance, on behalf of the island’s finance sector, was signed in Beijing by BAECZ Management Committee Deputy Director Jie Hu and Guernsey Finance Chairman Lyndon Trott (pictured). Under the agreement, the parties will cooperate in areas of captive insurance market development, financial innovation and international information exchange to promote the viability of the Chinese captive market and wider communication between China and the global captive industry. They will also encourage the efforts of Beijing Shunyi to become the regional captive domicile centre of China and support Chinese business in setting up captive insurance companies domestically and internationally. The MoU came on the heels of another MoU signed between the Guernsey Financial Services Commission and the China Insurance Regulatory Commission (CIRC), which will enable a flow of information between the regulators to ensure compliance with relevant laws in each jurisdiction. Guernsey Financial Services Commission Director General William Mason signed the MoU in Beijing with the Director General of the CIRC), Jiang Bo. The MoU sets out a statement of intent to establish a framework for mutual assistance and to facilitate the exchange of information between the authorities. Mason said: “The GFSC now has MoUs with all of China’s financial services regulators, including the China Banking Regulatory Commission and the China Securities Regulatory Commission. China and its financial services firms have embarked on a policy of international expansion to better serve foreign clients and expatriate Chinese under the ‘One Belt, One Road’ strategy.” n may/june 2017 73

BL jersey New sanctions law enacted

Jersey stays confident over Brexit


t the beginning of April, the Minister for External Relations, Senator Sir Philip Bailhache, brought into force the United Nations Financial Sanctions (Jersey) Law 2017. The law enables Jersey to comply with its obligations under the UN Charter to put financial sanctions restrictions in place ‘without delay’ – the Financial Action Task Force says this means within 48 hours. UN Security Council (UNSC) sanctions, once implemented by the EU, are given effect in orders made by the Minister for External Relations. However, as a result of the processes by which EU legislation is drafted – which includes translation into several different languages – there can be a delay of up to four weeks before

these sanctions resolutions take effect. The new law means any new persons or entities designated by the relevant UNSC sanctions committee for an asset freeze will be automatically designated in Jersey. It also means any new sanctions regime created by the UNSC will have effect in Jersey within two days. Subject to further legislative changes enabled by this law, the maximum penalty for breaching sanctions will increase from a fine and two years’ imprisonment, to being a fine and seven years’ imprisonment. Jersey currently has over 20 international financial sanctions regimes in force, in addition to measures targeting entities such as the Taliban, ISIL (Da’esh) and Al-Qaida. n

IoD Directors of the Year announced


ersey Finance has said it will continue to monitor the UK’s Brexit negotiations closely, but that they will not affect Jersey’s position as an international finance centre. The UK formally notified the European Union of its intention to cease to be a member state at the end of March. Negotiations will now begin towards a deadline of 30 March 2019, when the UK will exit the Union. According to Jersey Finance, regardless of the outcome of these negotiations, the ability of Jersey’s finance industry to access the EU as a third country will remain unchanged. It says the UK remains Jersey’s largest trading partner for financial services. Geoff Cook, CEO, Jersey Finance, said: “There is clearly uncertainty about the outcome of the Brexit negotiations, and what the relationship between the UK and EU will look like in two years’ time, but for Jersey’s financial services industry, trade with the EU and UK is governed by bilateral agreements which are unaffected by Brexit. "Our access to European markets continues under the same terms, and we continue to be a conduit for investment into the UK and EU.” According to Jersey Finance, an independent report last year concluded that Jersey was a conduit for €188bn of foreign investment and supported almost 90,000 jobs in the EU. It also found that Jersey was a conduit for nearly £500bn of foreign investment into the UK, helping the UK to generate around £4.5bn in tax revenues each year and supporting 250,000 British jobs. n

he annual IoD Jersey Director of the Year Awards took place on Friday 28 April, with local directors claiming the titles across five key categories. The black-tie event, which took place at the Hotel de France under the watchful gaze of regular host Gyles Brandreth, celebrates and recognises the outstanding contribution made by directors in companies of all sizes. This year’s winners were: ● Small Business – Charlotte Valeur (pictured), Board Apprentice ● Medium Business – Tim Crowley, La Mare Wine Estate ● Large Business – Paul Savery, Barclays ● Young Director – Pippa Davidson, Fairway Fund Services ● Public/Third Sector – Nigel Crocker, Grace Crocker Family Support Foundation n

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BL Jersey

JFSC launches Jersey Private Fund Guide


he Jersey Financial Services Commission (JFSC) has introduced the Jersey Private Fund Guide, setting out the criteria for Jersey’s new private fund product, which can be marketed to up to 50 professional investors. The launch follows a joint consultation between industry and government, undertaken in 2016, which focused on the ‘rationalisation and consolidation of Jersey’s private fund and unregulated fund regimes’. The launch of Jersey’s new single private fund product will see the phasing out of all other Jersey private products, although existing private funds will be able to continue to operate until the end of their natural life. Alternatively, existing private funds can apply to the JFSC to convert into another Jersey fund product, including the JPF. Jersey Finance CEO Geoff Cook

(pictured) welcomed the move. "Jersey’s funds industry has shown strong growth over the past five years, and the new regime positions us for continued growth,” he said. “Our industry is built on speed to market and expertise, combined with appropriate regulatory oversight. And by offering a 48-hour authorisation for funds with up to 50 investors, this product will further cement our position as a market leader." The Jersey Private Fund will also be available to managers seeking to market funds into Europe through National Private Placement Regimes, a strong growth area for Jersey’s funds industry. The new regime will operate alongside existing regulatory frameworks to meet the requirements of all managers and investors. The Jersey Private Fund Guide can be found on the Commission's website at n

Funding agreed for finance review


he States of Jersey is to make available up to £900,000 for a strategic review of the island’s financial services industry. The review, which will be commissioned by Jersey Finance, will take into account the opportunities and challenges that may arise from the UK government’s changing relationship with the European Union. The Chief Minister, Senator Ian Gorst (pictured), has cited recent changes to the political landscape as the driving factors behind the decision to refresh the island’s financial services strategy. The Finance Industry Strategic Jurisdictional Review, published by consultancy McKinsey in April 2013, remains at the heart of the strategy. However, the new review will also focus on the following key areas: ● Potential opportunities and threats arising from Brexit, and the implications for the island’s financial services strategy ● Possible responses to the wider developments affecting the financial services industry, including the impact of changes in digital technology ● Identifying means for the industry to secure new growth ● Developing proposals to support the banking sector to respond to macroeconomic challenges, pressures on their business models and threats from digital disruption. The report is expected to be published towards the end of the year. n

Charity Commissioner to be recruited


he recruitment process has started for Jersey’s first independent Charity Commissioner, who will be responsible for determining which organisations are charities, registering those charities and ensuring they meet their legal requirements. His or her initial work will be to establish the publicly accessible charity register, which is planned to go live during the first half of 2018. The aim is to promote public confidence in the charitable sector, to help it develop and flourish. As set out in the Charities (Jersey) Law 2014, the Commissioner will be appointed by the Chief Minister and the interview process will be overseen by the Jersey Appointments Commission. The post is initially advertised in Jersey only, as knowledge of Jersey’s voluntary and community sector and finance industry is highly desirable. The Assistant Chief Minister, Senator Paul Routier, said: “The appointment of an independent Charity Commissioner is key to building and maintaining public trust and confidence in Jersey charities, which in turn allows those charities to flourish. "The Commissioner will need to balance the varying needs of very different organisations, from small unincorporated community groups to household name charities and private trusts set up by wealthy individuals who wish to support good causes.” n may/june 2017 75



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

1. BEYOND DIOR When it comes to couture, nobody does it better than Ralph & Russo. That’s why the design duo – Tamara Ralph and Michael Russo – were the first British brand in over 100 years to be allowed to show their collections on the official schedule at Paris Haute Couture Week. Their spring/summer 2017 collection was a knockout. A dizzying array of gowns showered with feathers, flowers, frou-frou and fanciful decorations. Pure haute couture in the traditional sense. But alongside the mountains of tulle underpinning the show, there were a number of unexpected twists. Like the dress pictured here. The sleeveless trench coat-style dress in rose gold double satin is lovingly and painstakingly hand-embroidered with metallic silk thread, crystals and glass beads in a beautiful floral design. The simplicity of this almost architectural style is perfect for the modern woman of today. Sheer beauty! Price on enquiry,




2. MILE-HIGH-EARNERS CLUB Fancy travelling the globe in a custom-designed Boeing 757 private jet, staying in some of the world’s poshest hotels and exploring some of its most fascinating destinations? Then be prepared to raid your bank account! The Four Seasons Private Jet Experience has to be the most luxurious and extravagant package holiday known to man. This is an über-luxe all-in deal for the well-heeled traveller, where a lifetime’s worth of adventure can be experienced in one spectacular journey. The Culinary Discoveries Tour (27 May14 June 2017) – curated by René Redzepi, the lauded Danish chef and co-owner of two-Michelin-star restaurant Noma in Copenhagen – takes in nine countries. It’s the highest haute cuisine all the way! The International Intrigue Tour (3-26 September 2017) allows you to discover nine of the world’s most intriguing cities and arresting landscapes. From thrilling game drives in the Serengeti to lavish palaces of St Petersburg and a private dinner on the Great Wall of China, the world will be your oyster. Finally, the Timeless Encounters Tour (1-24 March 2018) is a round-the-world journey taking in some of alluring destinations, such as the beaches of Bora Bora and the sparkling white marble splendour of the Taj Mahal. This 24-day itinerary touches down in seven other vibrant cities and tranquil island paradises. Then, after all that luxuriant pampering, it’ll definitely be a bumpy landing and back to the real world. From £110,583 (based on double occupancy),

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3. A NOVEL IDEA The main reason for buying a book is the pleasure of reading it. But what about literature as an investment? First edition, first printing books are at the heart of this burgeoning market. They’re even more valuable if signed by the author. According to the Daily Telegraph, the value of rare first edition books has risen 398 per cent in a decade. Books that have risen the most in value are the ones people still want to read – Harry Potter or Lord of the Rings, Agatha Christie or James Bond. Fuelled by the timeless allure of 007 and boosted by the movie franchise, Bond books have rocketed in value over the past two decades. Obviously, the condition of the book is everything. And always judge a book by its cover – those with their dust jackets intact can add 10 times more to the value of a book than one without the wrapper. Finally, make sure you go to a reputable antiquarian book dealer – like Peter Harrington in London. Established in 1968, it’s one of the leading rare book firms in the world. Shown here, a first edition, first impression, author’s special presentation copy of On Her Majesty’s Secret Service, inscribed by the author, Ian Fleming, and still in its original dust jacket. £12,500,

4. BOMBS AWAY! Alessandro Michele, Creative Director at Gucci, has created his own quirky, sometimes chaotic aesthetic and resurrected the Italian luxury brand to such an extent that it’s hard to recall what it was like before he took over. The spring/summer 2017 collection was a great, beautifully chaotic adventure that proved 100 per cent that Michele is an unashamed maximalist. No strict architectural lines and monochrome for him. As evidence, take the resplendent silk satin bomber jacket pictured here. An American classic meets sleek Italian chic, with a riot of ornate embroidered appliqués of tropical birds, butterflies, and golden threaded tropical foliage embellishments. It also features the Gucci signature red and navy rib knit trims and has a lustrous champagne-nude satin lining, so it sits smoothly over sweaters and tees. PS. The back of the bomber is even better than the front! £4,850,




5. REMEMBRANCE OF THINGS PAST Released on 6 January 2015 to celebrate his mother’s date of birth, fragrance specialist and perfumer Roja Dove’s A Goodnight Kiss is an intensely personal fragrance that captures the childhood memory of his mother bending down to kiss him goodnight on her way out to a party. As she leaves the room, the remnants of her presence remain – the powder of her make-up, the soapy whiff of her perfume, the muted leathery musk of her handbag. This Roja Parfums fragrance opens on a flurry of green notes and fresh citrusy bergamot that ushers in a rich bouquet of spicy carnation, buttery rose, jasmine, orange blossom and violet, all tied up in a puff of silky face powder. This is not just a perfume, it’s a beautifully scented time capsule! £1,250 100ml,

6. HERE COMES THE HOT STEPPER In pursuit of creating the perfect sneaker, hip American designer Jon Buscemi established his eponymous shoes and accessories label in 2013. The brand’s elegant and sophisticated street-influenced aesthetic may have been a difficult and complex concept to crack, but the main man has done it in spades. Just three short years since launching his business, Buscemi has attracted a fanatical following worldwide despite the hefty price tags. The iconic 100MM high-top trainers, pictured, are handcrafted in the finest full-grain calf leather. A single pair requires more than 50 hours’ work – undeniably the Rolls-Royce of that humble shoe once called the plimsoll. Just check out the design features. Detailed with woven leather ankle straps and the brand’s signature 18-carat gold-plated padlock charm and hardware embellishments, the rubber soles guarantee durable traction. This is definitely elite, gilt-edged footwear. But only for the well-heeled! £680,


7. DESIGN INSPIRATION American potter, interior designer and bestselling author Jonathan Adler launched his first ceramic collection in 1993. This expanded into home furnishings five years later, when he opened his namesake boutique in the wildly fashionable SoHo area of downtown Manhattan. He now has 30 stores and runs an eponymous interior design empire worldwide. He describes his style as ‘Modern American Glamour’. But ‘Modern Global Glamour’ would be a more appropriate epithet. The Tabitha Console Cabinet pictured here epitomises Adler’s design aesthetics. Nickel-plated metal with a hand-stamped starburst pattern is applied to a minimalist, modern form, creating a dazzling, lustrous glow. With its abalone handles, this console is jewellery for the home. Adler’s designs span myriad categories, from the tiniest ceramic pots to the swankiest sofas – all dripping glamour and with his own unique sense of quirky fun. £2,499.60, may/june 2017 79



8. HAUTE HORLOGERIE From Hollywood and the red carpet to the world of sport, Frost of London in Mayfair has supplied a host of stars with the most exclusive jewels and luxury time pieces available. The latest luxe timepiece to grace their glass display cabinets is the newly launched Golden Bridge Rectangular Watch by top-end Swiss watchmaker Corum. This is a new, more refined version of its unique and emblematic Golden Bridge collection, originally designed by renowned Italian jewellery designer Dino Modolo. Following the geometric symmetry of Art Deco design, the case of the new watch shows timeless and discreet elegance. Ideally complementing the case and movement, the elaborate gold micro structures suspended between the panes of sapphire crystal add eye-catching brilliance. The watch fits beautifully on the wrist, in perfect proportion with its sleek alligator strap. This is undoubtedly the capstone of all Corum’s watch collections. An ongoing illustration of Swiss horology at its best. Price on enquiry,

9. THE PERFECT PURSE Harking back to the golden age of luxurious haute couture, the Ralph & Russo approach to design is painstaking attention to detail, great emphasis on technique, and boundary-pushing, time-consuming concepts. Balanced simplicity, elegance and old-style Hollywood glamour are the design duo’s hallmark, whether it’s a magnificent tulle red carpet gown or a simple evening handbag like the one pictured here. The Eden Classic Clutch in nude alligator with rose gold leaves has been lovingly crafted in France. Created with the finest, most perfect, handselected alligator skins, this small, utterly divine evening accessory epitomises the Ralph & Russo aesthetic. Utterly gorgeous, even if it does come at a price. £6,950,

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10. CHERRY ON TOP Following in the footsteps of his famous father Sergio – the Milanese grand master of ladies’ luxury footwear for over 50 years – Gianvito Rossi, has found his own niche as footwear designer to the stars. He’s struck the perfect balance between up-to-the-minute modern design and traditional Italian craftsmanship, using only the very finest materials. And whatever a woman’s personality, there’s a shoe to fit every occasion – from saucy peep-toe ankle boots or more demure ballet pumps, to glittery, mega-glam, high-octane stiletto sandals. These hint-of-a-tint pink sandals are the perfect style to complement slinky evening ensembles. Encrusted with glistening crystals, the delectable cherry motifs bring a certain tongue-in-chic touch to this vampy footwear. As the fashionistas would put it, these shoes are a total lust-have. £1,340,

THE AGENDA 11. SPEED MERCHANT The new Chiron hypercar from Bugatti has mighty big shoes to fill, writes Danny Cobbs. It was over a decade ago that Bugatti launched the Veyron and broke the record for the world’s fastest production car. The Chiron starts where the Veyron ends and is set to break that record – and then some. Faster, more powerful and better looking than the Veyron, the Chiron boasts diamond-infused audio speakers. Like its predecessor, it uses an 8.0-litre quad-turbo W16 engine, but this time power has been boosted to an incredible 1479bhp and 1180 of torque, which is 300bhp more

output over the Veyron. This means the Chiron will propel itself from a standing start to 62mph in 2.5 seconds and can make the run to 186mph in just 13.6 seconds. Top speed has been electronically muzzled for road use to a piffling 261mph – so expect an even faster track-day version sometime in the near future. Underpinning the Chiron is a fully carbonfibre monocoque chassis, which Bugatti says is as stiff as an LMP1 race car. And it’s the only car in the world whose airbag punches through its carbon-fibre housing. C-shape design elements in the Chiron’s

styling hark back to Bugatti’s Type 57 Atlantic, its art deco heyday. Taking centre stage in its handcrafted cabin is a gauge pod that’s been carved from a single piece of aluminium and houses a large speedo flanked by two infotainment screens. Only 500 Chirons are planned for production and each one comes with a staggering price tag. For the lucky few though, the Chiron will provide the ultimate bragging rights – a car with the power of a jet engine but technology to keep it very firmly rooted to the ground. £1.9 million,


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12. SHINING BRIGHT The brainchild of architect and maverick industrial designer Massimo Buster Minale, Buster + Punch is just about the coolest and hippest design studio around. Minale cleverly describes the brand as a ‘home fashion label’. Founded in 2012 in a garage in East London, he and his mates had a passion for making things that are loved. That and a fervent devotion to impeccable craftsmanship. Inspired by London’s fashion, music and sub-culture scenes, they collaborate with like-minded street artists, bike builders, musicians and fashion designers. The studio now turns out extraordinary domestic and commercial lighting, as well as classy functional hardware, furniture, amazing home accessories, and even super-cool custom motorcycles. The LED Heavy Metal Chandelier, pictured, perfectly embodies their impeccably crafted design acumen. Either 19 or 31 solid metal pendants are available in smoked bronze, steel or brass finishes. This magnificently fashioned chandelier is then custom built to fit the intended space perfectly. Elevating the ordinary into the extraordinary – that’s what it’s all about. £3,700,

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13. CREATIVE LUXURY New Delhi-based luxury scarf and shawl company Janavi started life with one woman’s vision circa 1998. The business that started small is now one of the premier manufacturers of luxury cashmere products worldwide. The brand is sold by more than 200 of the world’s most select retailers, including Harrogate-based Morgan Clare, which was voted one of Britain’s Best Boutiques by Vogue in 2016. Janavi is known for the unique use of exquisite embroidery and intricate embellishment on the finest woven cashmere and cashmere blends. Pictured here, a neutral-coloured pure cashmere scarf is intricately decorated with embroidered feathers and delicate beading. The other scarf, a cashmere and wool blend, features totally on-trend Mexican Day of the Dead skull and hot air balloon embroidered imagery with beaded embellishments. This is accessory design at its best and most luxurious. Skull and Balloon Scarf, £390; Feather scarf, £445,


14. STATEMENT SHADES These dramatically over-sized shades – the Supra Round Sunglasses from Victoria Beckham – radiate head-turning appeal. They’ll add just the right je ne sais quoi touch to the light, airy, ultra-feminine new season’s looks. Despite being very big and bold, they’re actually quite dainty at the same time. The shades are finished with goldtoned frames and gold-tinted lenses for a refined yet ritzy accent. Pure Victoria Beckham. £625,

15. JUNGLE VIBE Since the ex-assistant to Valentino Garavani, Pier Paolo Piccioli, took over as Design Director at the eponymous Italian luxury brand, the label has undergone what can only be described as a dramatic renaissance. For a few seasons now, Valentino menswear has been appealing to a new breed of contemporary, fashion-conscious customer. A more youthful, couture-sport aesthetic has been combined with its more classically refined signature-smart tailoring. Tradition and innovation now sit side by side. For spring, the label looked to Cuba for inspiration. Lush rainforest foliage, exotic palm tree and Che Guevara-esque camouflage prints dominate the casual styles. A prime example being the pyjamastyle pure silk shirt pictured here. It exudes a kind of louche, self-confident cool. Just made for sipping a cubra libre on a sunny spring day. £850,


16. A GOOD EGG Unquestionably the grandaddy of all barbecues, the Big Green Egg does just about everything but kill the cow! Based on the kamado, the traditional Japanese domed wood or charcoal-fuelled clay cook stove, this modern reinterpretation in high-spec ceramic provides excellent heat retention, fuel efficiency, and unbelievably moist food. What’s more, whereas metal barbecues take 45 minutes to reach cooking temperature, the Big Green Egg is ready in a third of that time. It also offers seven different cooking modes – roasting, searing, baking, low and slow, pan cooking, plancha or wood plank cooking (fantastic for fish) and wood chip warm smoking. There are four different sizes to choose from – mahogany or hardwood tables (£845-£945) or a metal ‘nest’ (£300) to house your egg are costed separately. Al fresco dining never had it so good! £599, Minimax; £850, Medium; £950, Large (most popular size); and £1,250, Extra Large,

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17. PRIME CUTS What better way to christen your swanky Big Green Egg barbecue than with mouthwatering, melt-in-your-mouth Wagyu steak burgers! Thanks to the quality of the Wagyu breed and the rearing standards – including indulgences like daily massages and being fed beer – this really is the apotheosis of burgers. Genetic predisposition and special pampering produce sublimely tender and exquisitely marbled meat resembling an intricate lace shawl. The resulting patties are unparalleled in flavour and texture. And don’t forget the buns! A definite must has got to be beautifully buttery, golden-hued brioche burger buns topped with sesame seeds. Lightly toasted, they make the perfect envelope for this gourmet al fresco extravagance. Enjoy! £12.95, 170g Wagyu burger; £8.95 (10 units), brioche burger buns,

18. MIRACLE IN A BOTTLE Searching for the Fountain of Youth, ladies? Well, look no further. Two revolutionary award-winning products created by every girl’s best friend, Cetuem Cosmetics, have arrived. First up is the skin cell renewal (SCR) Gold Cellulite Body Serum. This miraculous restorative unguent helps to tone body skin all over by improving elasticity. It effectively attacks the orange-peel effect that strikes horror into every woman – the dreaded cellulite. The highly concentrated gel contains extracts of seaweed and caffeine, which expel toxins, while essential oils of juniper, rosemary and grapefruit combined with vitamins C and E promote smoother, silkier skin. And there’s much more... Cetuem’s signature product is the SCR Gold Serum, the ultimate antioxidant in reversing and delaying the ageing process and protecting the skin from further damage. These powerpacked bottles contain pure plant marine extracts, hyaluonic acid, colloidal gold, vitamins C, A and E, and natural UV protection. Girls, you can’t afford not to go for gold! SCR Gold Cellulite Body Serum, £65 100ml; SCR Gold Body Firming Lotion, £30 100ml,

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

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.

Equiom is fast becoming the stand-out business in the professional services sector, with offices in the world’s premier International Finance Centres. We create innovative and effective structures to protect private and corporate clients’ hard-earned wealth.

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.

Our experienced and highly qualified teams offer services in specialist sectors including trust, corporate, property, family office, eBusiness, yachting, aviation, crewing, tax and VAT.

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.

We are an independent, management-owned company focused on strategic thinking and quick responses to clients’ requirements. We continually seek to develop our product range, in order to provide an unrivalled range of options and opportunities.

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

Equiom’s Jersey and Guernsey teams have a wealth of experience relating to the set up 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 One The Esplanade St Helier Jersey JE2 3QA Tel: +44 1534 760100 Email: Web:


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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 David Moore, Partner, Assurance and Advisory E: T: 01534 288 697 Wendy Martin, Partner, Head of Tax CI E: T: 01534 288 298

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

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

86 may/june 2017 To advertise in the directory in print or online contact Carl Methven on + 44 (0)1534 615886 or

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.

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.

Jersey Jason Laity Chairman

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.

Andrew Quinn Deputy Head of Audit

For a free up-to-date valuation of your property portfolio speak to William Hughes-Ward on 020 7590 0801.

John Riva C.I. Head of Tax

Sales • Lettings • New Homes • Residential Investments

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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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 Kenya, as well as India where services are provided through affiliates. For further information, please contact: Steven Bowen Group Managing Director & Head of Jersey Office Minerva Trust & Corporate Services Limited T: 01534 702940 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

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Specialty: Bespoke IT Development & Business Consultancy Puritas is an award-winning provider of intuitive software and business solutions for the financial services industry. 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 PureClient - 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 PureManager - 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 To find out more how Puritas can help your business. Contact: Mike Feighan - Director Phone: +44 (0) 1534 874100 Email: To advertise in the directory in print or online contact Carl Methven on + 44 (0)1534 615886 or

Building trust in society and solving important problems 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: 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 public authorities. 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:

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20 questions with JOHN DAVISON

➤ Tea or coffee? Both! Coffee in the morning and tea in the afternoon. Favourite song? This is hard as I genuinely like all sorts. I guess my absolute favourite is True Love Ways by Buddy Holly. Most amazing place you’ve visited? I’m lucky to have travelled lots in my younger years. Thailand is a truly amazing place, particularly the less-trodden south. Scariest thing that’s happened to you? I was on a plane back from South Africa and it caught fire. A large lady in the seat next to me took her rosary beads out and started praying whilst gripping my hand. That was a pretty scary experience.


Your best quality? Definitely loyalty. The worst thing about you? Depends who you ask. I guess I find it very hard to switch off for any length of time, which often and irritatingly during a conversation means I might be deep in thought about something entirely different – sorry! Last meal on death row? Fillet steak, medium rare, with a peppercorn sauce and sautéed vegetables – yum! Cats or dogs? Cats. I have two – Messi and Mia – who are brother and sister. They’re still at the young and comical age. Most embarrassing moment? Honestly? Before I got ‘middle aged’, I used to go commando (skipping the underwear). I once had an accidental exposure incident whilst giving a presentation to 100 or so people in London. Oops! PURR-FECT


First job you had? Washing dishes in a golf club when I was at college. Worst job you’ve done? I honestly value each and every job I’ve ever done and don’t really think I can single out any. When I was young, paper rounds, washing dishes or working in fast food restaurants taught me the satisfaction of self-earned money.

As my career unfolded, even the difficult or high-pressure jobs have been useful experiences to me. Favourite item of clothing? A nice warm coat. I’m supremely fortunate to live right on the coast and I like nothing better than a meander along the beach – whatever the weather. Sweet or savoury? Mostly savoury, although I am partial to a bag of sweets! Any hobbies? When time permits, I play golf. Most of my time off is spent with my three boys – you can’t really call it a hobby, but I love spending the weekends getting mucky with them. We walk a lot, allowing my wife to have some peace and quiet. Something that drives you nuts? I shouldn’t say it, but people who don’t have any ambition – I just don’t get it. Best piece of advice you’ve ever been given? A psychologist once told me that (recognising) my vulnerability is my biggest strength. I like that and remember it regularly. Most expensive gift you’ve ever bought? I gave my wife a new car recently – that’s pretty expensive. I’ve also given her a Tiffany necklace. Am I spoiling her? Buzzword you hate the most? Ooh, that’s a difficult one. The term ‘digital’ is pretty overused and misunderstood, in my opinion. What do you have for breakfast? I’m ashamed to say I almost always skip breakfast – despite recognising (and being regularly reminded!) of the importance of eating it. Something about you that people might be surprised by? I meditate. I’ve got 10-minute meditation down to an art. I like to find a few minutes each day to clear my head and ground myself. John Davison is Chief Information Officer at First Central Group


90 may/june 2017



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