ISSUE 51 JULY/AUGUST 2017
Where are the opportunities for Guernsey and Jersey?
Has the time finally come for regulation?
Are ‘alpha females’ hindering other women’s careers?
chaos in the uk ISSUE 51 JULY/AUGUST 2017
how the general election result might affect the channel islands
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When strength is needed more than ever WHEN THE LAST edition of BL hit the streets, we were already in the process of putting together this issue. We also knew that the general election would have taken place and that the potential impact on the Channel Islands was going to be our lead story. When Theresa May called the snap election in April, the general consensus was that she would walk away with an increased majority and a clear Brexit mandate. In the weeks approaching the election, however, the mood shifted, and Jeremy Corbyn – previously seen by some as a lame duck and by others as too much of a radical ‘leftie’ – started to gain ground. The UK woke up on Friday 9 June to discover that the Prime Minister hadn’t achieved an overall majority and that a hung parliament was, yet again, a reality. A nightmare for the Tories and a very good night for Labour. Were this any other year, the focus would merely be on whether May would be able to form a government. With the main political parties in England, Scotland and Wales refusing outright to form a coalition, she turned to the DUP in order to negotiate an agreement and secure the votes she needed. Of course, this isn’t a normal year by any stretch of the imagination. This is the year when Brexit negotiations were due to start – and when they did, it seemed that the UK was straight onto the back foot. With some pundits hoping that, in the absence of an overall majority, Theresa May wouldn’t push for a ‘hard Brexit’, the EU’s Chief Negotiator, Michel Barnier, set out his stall from day one, saying he was “not in the frame of mind to make concessions or ask for concessions”. Hardly a promising start. Unsurprisingly, politicians and businesspeople in the Channel Islands responded with a ‘wait and see’ attitude. While there are concerns about the possible impact of Brexit on Guernsey and Jersey – the fate of EU nationals working in the islands being just one of them – there’s very little that can be done except to work with their UK counterparts where possible, prepare for various outcomes and roll with the punches. It’s going to be a long two years.
What we couldn’t have imagined when the last issue was published was a series of tragic events that have hit at the very heart of the UK and its communities. On 22 May, Salman Ramadan Abedi detonated a bomb at the Manchester Arena after a concert by American singer Ariana Grande, murdering 22 adults and children in the process. It was an attack that people struggled to comprehend, so soon after the terrorist attack on Westminster Bridge in London, but it was one that brought out the strength of Manchester and its people. The country had barely come to terms with the Manchester attack, when terror struck in London yet again on 3 June. In an horrific attack, three men drove into pedestrians on London Bridge and then proceeded to Borough Market, where they attacked the public with knives. Eight people were murdered and 48 were injured. In the aftermath, the senselessness of the attack was only offset by the remarkable stories of courage among those who went to the aid of the injured and fought off the attackers by whatever means possible. There was an altogether different kind of horror in the morning of 14 June, when a devastating fire took hold of Grenfell Tower in North Kensington. Watching the footage was heartbreaking, but that can’t even come close to the pain and hurt endured by the survivors and the families and friends of the victims, or what they will have to try to come to terms with. And, as we went to press, 47-year-old Darren Osborne drove a van into a group of worshippers near Finsbury Park mosque, injuring nine people, some critically. Many of the victims were helping an older man who had collapsed in the street – he later died. Yet again, a whole community came together in solidarity. It’s perhaps not surprising that my mind, and probably many others’ right now, aren’t quite focused on Brexit and pontificating politicians. There’ll be plenty of time for that. n
It’s not surprising we’re not focused on Brexit and pontificating politicians
Nick Kirby, Editor-in-Chief, BL magazine
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34 57 64 bl guernsey The latest financial and business news and views from the bailiwick
52 7 News
46 FUND REGIMES
A round-up of the latest Channel Island business news
How new amendments should provide clarity to Jersey trust law
34 FAMILY OFFICES
Both Guernsey and Jersey have introduced new funds offerings – so what are they and how do they differ?
Top-level appointments for businesses across Guernsey and Jersey
As the number of wealthy people grows, calls are being made for family office regulation
14 Interview Nick Magliocchetti, CEO of Waves, on the highs and lows of launching an air taxi service
20 general election Just what might a UK hung parliament mean for Brexit – and for the Channel Islands?
Finance 24 INDIA It’s supposedly the land of opportunity, so why has India not quite delivered the goods?
37 TAX evasion Why businesses need to get ahead of a new corporate criminal offence
40 HNW DIVORCE It might make for sexy headlines, but divorce gets messier when money is involved
43 UK TRUST REGISTER A new anti-money laundering measure could affect the Channel Islands
business 52 customer services Recent incidents suggest that the customer is no longer regarded as right – but should firms expect a backlash?
66 bl Jersey A review of the biggest business developments and finance news stories
57 future leaders The CEOs of the future are likely to be a very different breed, with the emphasis on so-called ‘soft’ skills
60 female bosses
Are some women actually going out of their way to hinder the progress of female colleagues?
Everything’s gone blue in our lifestyle section – from baby and cobalt to azure and electric
contributors 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.
There are networks of businesswomen who help each other along the road to success, but business writer Sharon examines whether some ‘alpha females’ are in fact hindering other women’s progress.
It’s something of an auspicious debut for BL first-timer Will, as he gets his head round the result of the UK general election and works out what it might mean for Brexit and for the Channel Islands.
It’s a double header for BL regular Kirsten. First he looks at whether family offices should be regulated, and then he bluffs his way through the new funds regimes in Guernsey and Jersey.
Business writer Dave examines how some firms are getting customer service wrong. Then he revisits how the Channel Islands are doing business in India – eight years after he first wrote about the issue.
july/august 2017 5
Whether itâ€™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. Ogierâ€™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.
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First speakers confirmed for Channel Islands Funds Forum BL EVENTS HAS confirmed the first group of speakers for this year’s Channel Islands Funds Forum. 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 event will take place from 11am-5.30pm on Wednesday 27 September at the Radisson Blu in St Helier. It will be preceded by a presentation from Preqin on the global alternative assets industry and where the Channel Islands sit in that landscape. The event will be followed by drinks and the opportunity to network. 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. The confirmed speakers for the event so far are: ● Amy Bensted, Head of Hedge Funds, Preqin ●M ark Boleat, Deputy Chairman, Policy and Resources Committee, City of London Corporation ● Amy Bryant, Chief Operating Officer, Jersey Finance ●M ike Byrne, Chairman, Jersey Funds Association ● Tom Carr, Head of Real Assets Products, Preqin ●L isa Cawley, Partner, Kirkland & Ellis, London ●M ike Jones, Director of Policy, Jersey Financial Services Commission ●N iamh Lalor, Partner, Ogier ●F iona Le Poidevin, CEO, The International Stock Exchange ●G urpreet Manku, Assistant Director General, BVCA ●R obert Mellor, Tax Partner, PwC, London ● Adam Moorshead, Managing Director – Guernsey, JTC Group ●B en Robins, Partner, Mourant Ozannes, Jersey ● Andrew Weaver, Partner, Appleby, Jersey ●D ominic Wheatley, Chief Executive, Guernsey Finance The conference will comprise a variety of sessions and panels covering a wide range of subjects, as follows: ● A round-up of what’s happened in Guernsey’s and Jersey’s funds industries in the previous year ● The global geopolitical landscape and its impact on funds ● A panel of experts from outside the Channel Islands give their take on the funds industries in Guernsey and Jersey ● The Channel Islands respond – following on from the previous session, Channel Islands funds practitioners respond to the points raised ● 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? Delegate places for the full conference (including Preqin presentation and networking drinks) are £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 information on the schedule and to book tickets, visit the dedicated website www.cifundsforum.com or email Carl Methven at firstname.lastname@example.org. n
Islands sign BEPS convention THE CHIEF MINISTER of Jersey, Senator Ian Gorst (pictured), and the President of Guernsey’s Policy and Resources Committee, Deputy Gavin St Pier, joined representatives of more than 60 jurisdictions at the OECD headquarters in Paris in June to sign a multilateral convention to implement tax treaty measures that prevent base erosion and profit shifting (BEPS). The multilateral instrument (MLI) will modify bilateral tax agreements to make them BEPS-compliant, allowing the islands to strengthen their tax treaty networks without the need for costly and time-consuming bilateral negotiations. It was developed through negotiations involving more than 100 countries and jurisdictions, under a mandate delivered by G20 Finance Ministers and Central Bank Governors in February 2015. Chief Minister Gorst said: “I’m delighted to have signed the MLI. In doing so, we demonstrate our position in complying with international standards on financial regulation, anti-money laundering, tax transparency and information exchange.” Deputy St Pier added: “It is an honour to sign this agreement alongside so many other countries. The agreement evidences again Guernsey’s leading position in international tax co-operation.” n
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GDPR guidance site launched WITH LESS THAN a year to go until the General Data Protection Regulation (GDPR) comes into force across the European Union on 25 May 2018, the Offices of the Information Commissioner in Jersey and the Data Protection Commissioner in Guernsey have launched a website to help island businesses get to grips with the incoming legislation. Emma Martins (pictured), Information/Data Protection Commissioner, said: “GDPR is not a revolution, it’s an evolution of current data legislation. So if you are compliant currently, you have a great base from which to work. Jersey’s and Guernsey’s governments have committed to a harmonised approach. When legislation is finalised, we can start to develop more detailed guidance.” Businesses are urged to gain a detailed understanding of the data they hold and how they process it and put in place a data governance strategy addressing key issues: • What personal data do you hold? • Where is it from and where is it sent? • Where is it stored and how is it secured? • Why is it processed? For what purpose? • How is the processing lawful and fair? • Have you given individuals details about processing their data, including reference to the rights they have? For more information, visit www.thinkgdpr.org. n
Drop in offshore insolvency filings THE TOTAL NUMBER of petition filings across offshore jurisdictions fell 10 per cent in 2016 compared with 2015, continuing a levelling off since the high point of 2013. This was among the findings of Appleby’s Snapshot: Review of 2016 Offshore Petition Filings & Court Orders, which examines company petition filings and the resulting court orders in Bermuda, the British Virgin Islands, Cayman Islands, Guernsey, Isle of Man, Jersey and Mauritius. “Although the number of petitions was down, numerous complex restructuring negotiations were under way, particularly in the oil and gas sector, without having reached the point of petition filing,” said Tony Heaver-Wren, a Dispute Resolution Partner in Appleby’s Cayman office. Fewer filings occurred in the BVI and Isle of Man, where alternative processes to petitions exist for creditors or shareholders, while a high number in Mauritius was fuelled by a significantly larger population and domestic economy. A total of 184 compulsory winding-up petitions were filed and 79 winding-up orders made. The rate of converting winding-up petitions into orders fell as more companies successfully opposed or reached consensual resolutions. n
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Done Deals Appleby acted as local Counsel to Genstar Capital as it enters into definitive agreements to recapitalise independent fund administrator Apex Fund Services and acquire Equinoxe Alternative Investment Services. With the addition of Equinoxe, Apex will increase its suite of middle-office solutions and will administer close to $80bn in assets. Working alongside Appleby colleagues from the Cayman Islands, Seychelles and Bermuda were Partner Andrew Weaver and Associate Paul Worsnop from Jersey; and Partner Jeremy Berchem and Counsel Chet Pohl from Guernsey. SoftBank Group Corporation has selected Jersey for the structuring of its Vision Fund, working alongside law firm Carey Olsen and corporate services provider the Aztec Group. The SoftBank Vision Fund has raised over $93bn in committed capital, making it the world’s largest investment fund. Carey Olsen Jersey Funds Partners Robert Milner and Daniel O’Connor led a team of seven lawyers advising on the Jersey legal and regulatory aspects of the fund’s establishment and regulatory authorisation. Private equity specialist Simon King led the Aztec team, which managed the establishment of the fund’s operational, governance and accounting framework. Carey Olsen’s Jersey funds team has advised technology investment firm TempoCap on the establishment of a new investment vehicle, TempoCap 2S LP – one of the first Jersey Private Funds to be formed since the regime’s introduction. The fund is a closed-ended limited partnership managed by its general partner company in Jersey, which invests in European growth and venture assets. Carey Olsen Partner Robert Milner led the team, assisted by Counsel Chris Griffin and Associate
Joseph Barker-Willis, advising on the Jersey aspects of the fund’s establishment. Carey Olsen’s Guernsey corporate lawyers have advised Pershing Square Holdings (PSH) in connection with the admission of its ordinary shares to the Official List of the UK Listing Authority, and commencement of trading on the Premium Segment of the London Stock Exchange (LSE). The listing on the Main Market of the LSE is expected to improve market access and to increase liquidity in PSH shares. Carey Olsen’s corporate team in Guernsey was led by Partner Annette Alexander, assisted by Senior Associate Gemma Campbell. Crestbridge has provided a range of fund and corporate administration services in the establishment of Jerseyregulated fund EJF Investments and its listing on the Specialist Fund Segment of the London Stock Exchange. A closed-ended investment company, EJF Investments is managed by an affiliate of US-based EJF Capital, a $7.4bn hedge fund that invests across debt, equity and securitisation assets. Crestbridge’s team in Jersey was led by Directors Ana Kekovska and Danny Cole. Mourant Ozannes, working alongside lead counsel Simpson Thacher & Bartlett, has advised private equity and investment advisory firm CVC Capital Partners on the launch of its seventh flagship fund for private equity investment in Europe and North America – CVC Capital Partners VII. The fund closed with a hard cap of approximately €15.5bn – said to be the largest fundraising by a European private equity firm. The Mourant Ozannes team was led by Partner Felicia de Laat and Senior Associates Rachel Fowler and Matt McManus. n
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MERGERS AND ACQUISITIONS
IQE becomes first isle of man member of TISE ISLE OF MAN-based IQE Securities Sponsor Services has been approved as a listing member of The International Stock Exchange (TISE). IQE Securities Sponsor Services, a wholly owned subsidiary of international fiduciary services provider IQE, is the first Isle of Man company to become a member of TISE. It has been approved as a Category 1, Category 2 and Category 3 sponsor, enabling it to arrange and sponsor the listing of debt securities, investment vehicles and trading companies on TISE. TISE introduced Channel Islands and Isle of Man segments of its Official List to increase the visibility of TISE-listed trading companies operating from these jurisdictions. During the first five months of the year, there have been 270 securities listed, 50 per cent more than the same period in 2016. The listings include a range of debt instruments, including high-yield bonds, four closed-ended and eight open-ended investment securities, and one equity, PraxisIFM Group. n
Firms involved in financial complaints to be named THE NAMES OF finance firms involved in complaints settled by the Channel Islands Financial Ombudsman will be made public from January 2018, according to a report in Business Brief. The Ombudsman’s annual report states that in 2016, the first full year of operation, the service received 1,293 complaints – double the number expected. More than 1,000 of these couldn’t be dealt with, either because they involved pre-2010 complaints, didn’t relate to a Channel Island finance firm, or involved services such as trusts or funds not covered by the Ombudsman. Of the 110 complaints resolved, 62 per cent were in favour of
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the complainants and 38 per cent in favour of the financial services provider. The highest compensation awarded was £67,235, with an average of £5,231. Of those cases, 80 were resolved by mediation and 30 by the Ombudsman. Since the service opened in November 2015, statistics have identified neither the firms involved nor their location, in order to allow time to ‘adapt to the existence and approach’ of the Ombudsman. But from January, the pan-Channel Islands service will name the firms involved in complaints and start to distinguish between complaints about Jersey and Guernsey providers. n
Equiom has announced the acquisition of Virtus Trust Group, a Guernsey-headquartered trust and corporate services provider with a presence in the Cayman Islands, New Zealand, UK and US, where it has a US public trustee licence in the state of South Dakota. Founded in 2005, Virtus offers private wealth management services such as succession planning, trust and foundation services and investment solutions. Virtus’ 25 staff members will join the Equiom team, operating from the Guernsey office. Global fiduciary and administration provider Estera has acquired the Heritage Financial Services Group (HFSG), an independent business providing third-party fund administration, depositary, trust and corporate services in Guernsey, the UK and Malta. The transaction was finalised on Monday 5 June and is subject to regulatory approvals, following which the business will be rebranded under the Estera name. Heritage Group’s insurance business is excluded from this transaction and will continue to operate as a separate entity. Independent fiduciary, funds and corporate service provider JTC has confirmed its acquisition of Merrill Lynch Wealth Management’s International Trust and Wealth Structuring business (ITWS) subject to regulatory approvals. The ITWS business provides the administration of trust services for Merrill Lynch Wealth Management’s international advisory clients. The deal will also establish JTC in the Isle of Man, giving it a presence in a total of 20 global jurisdictions. London-based Lloyd’s Market insurer Neon has reached an agreement to acquire Guernsey-based Sapphire Underwriters from Heritage Group. Sapphire, a Lloyd’s underwriting practice, provides directors and officers, professional indemnity and cyber coverage to UK and local offshore brokers and clients. Post-completion, the business will operate under the Neon Sapphire brand. Corporate services provider Vistra has announced the acquisition of the compliance division of Foster Raffan, a boutique chartered accounting firm based in Sydney, Australia. Founded in the 1970s but operating under the current owners since 1995, Foster Raffan provides accounting and tax, audit and wealth management services. The compliance division’s team of 17 staff, led by Partner Vivien Tang, will join Vistra. Vivien will remain responsible for her team while taking up the role of Head of International Expansion in Australia within Vistra. n
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GLOBAL FUND SERVICES REAL ESTATE | PRIVATE EQUITY | STRUCTURED FUNDS | OPEN ENDED FUNDS | ALTERNATIVE INVESTMENTS
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 www.mooremanagement.com/legalwww.blglobal.co.uk july/august 2017 11 regulatory-information. Moore does not provide legal, tax or investment advice and the information in this document should not be regarded as such.
Appointments Appleby has named Alison MacKrill as a new Partner in the law firm’s Guernseybased private clients and trusts team. Alison has extensive experience advising clients in offshore jurisdictions. She joins Appleby after working in Guernsey for the past 14 years, most recently as Senior Associate at Carey Olsen. She has also spent time with Turcan Connell and Ogier. Alison’s legal experience covers trust advisory work, employee share schemes and commercial trusts, along with advising on regulatory matters. Her appointment marks a return to Appleby, having spent time as Counsel in the firm’s Bermuda office some years ago.
Ashburton Investments has appointed Robert Lea (pictured) as its Head of Global Equity Research, leading the firm’s newly created global equity research team in Jersey – from which Ashburton’s entire equity fund range is managed. Robert was a Global Equity Research Strategist with UBS, including eight years in Asia and a period managing pan-Asian equities at UBS’s Fundamental Investment Group in Hong Kong. He is joined by Jonathan AldrichBlake, previously Ashburton’s Investment Manager for its Global Equity, Global Energy and Global Leaders funds, but now working in the same role across all products.
Martin Rowley has joined Deloitte’s Channel Islands practice to lead the Jersey tax team. Martin joined Deloitte in 2012 and is currently a Tax Partner in its US Business Tax Group in London, advising on corporate and international tax matters for clients in a wide range of industries. Martin took on the new role in June but will also continue his London and cross-border client duties in the US Business Tax Group. He acts for private equity houses, real estate funds and sovereign financial institutions, structuring investments, JVs and M&A activities, as well as assisting fund managers with portfolio investments and divestments.
Deutsche Bank has named Jackie Foot (pictured) as Chief Operating Officer (COO) for Wealth Management and Simon Stormer as Channel Islands COO. Simon will oversee governance, risk and controls, technology and corporate real estate services in Guernsey and Jersey. He has more than 30 years of financial services experience, most recently with Deutsche Bank in the UK. Jackie will oversee the bank’s wealth management platforms in Jersey, Guernsey and the Cayman Islands. She has been with the bank since 2006 and its wealth management division for seven years, lately as Head of Corporate Services.
Law firm Sinels has made two Partner appointments within its Jersey team – Advocate Robin Leeuwenburg (pictured) and Advocate Steven Chiddicks. Robin is a litigation specialist in complex commercial, trust and financial services cases. He has worked in Jersey since 2008, when he worked for Carey Olsen, and joins Sinels from Benest Corbett Renouf. Meanwhile, Steven has worked with Sinels since 2007 and qualified as a Jersey Advocate in 2011. During the course of his career he has developed a reputation in commercial and trust disputes.
HSBC in the Channel Islands and Isle of Man has appointed Bradley Bismark as Head of Financial Crime Compliance (FCC), based in Jersey. With two decades of experience in risk and financial crime analytics in banking, Bradley has worked in six countries for HSBC. This is his third role as a national Head of FCC. He said: “Financial criminals are constantly seeking to get past security systems. As international finance centres, the Channel Islands and Isle of Man do not escape the threat by criminals and fraudsters, and it is important for us to stay one step ahead.”
Finding the best brains in the business... 12 march/april 2017 www.kendrickrose.com
Hawksford has named Stephanie Rose (pictured) as Global Head of Corporate Services and Becci Newman as Director. Stephanie will lead corporate services globally, while Becci will lead the corporate services team in Jersey, alongside Daniel Hainsworth. Stephanie began her financial services career at HSBC and moved to Elian in 1999, where she led the corporate services team in Jersey. Becci brings more than 18 years’ experience to her role. Prior to joining Hawksford, she was with Elian, and has worked at Kleinwort Benson, Bedell and Mourant Ozannes. Both have also served as board members in a range of organisations.
The Jersey Chamber of Commerce has named Eliot Lincoln (pictured) as its next President. Eliot, Managing Director of business consultancy BDO Greenlight, has served as Vice-President to outgoing Chamber President Kristina Le Feuvre since May 2015. He set up Greenlight in 2008. Eliot plans to launch the Chamber’s first Young Business Group to help the business leaders of tomorrow. Joining the new President is Mark Cox, Chief Operating Officer of the Channel Islands Co-operative Society, who will become Vice-President. He has served as Chair of the Chamber Retail and Supply Committee for the past two years.
Security solutions specialist West Sealand International has appointed a new Director to its Guernsey headquarters. Nigel Dufty brings with him more than 30 years’ experience in the IT industry, including eight as IT Director at Specsavers. In addition, he is a Director at Guernsey consultancy Jantec and co-Founder of digital marketing consultancy Aipixl. He joins West Sealand’s team to support the company’s activities in Washington, Scandinavia, UK and Saudi Arabia. Nigel will work with businesses to enhance their cyber security and maximise IT expenditure by aligning business strategy with technology and data strategies.
Guernsey Finance has promoted Kate Clouston to Deputy Chief Executive. Since starting with Guernsey Finance in 2015 as Director of International Business Development, Kate has been responsible for leading business delegations and promotional activity in South East Asia, North America and Europe. Her work has focused on developing these markets and attracting businesses to Guernsey. Over the past two years Kate has spent almost 200 days on the road, leading delegations to Sweden, Norway, Switzerland, Amsterdam, New York, Miami, Hong Kong, Shanghai, Beijing, Singapore, Malaysia, and the UK.
Collas Crill has appointed Mike Williams (pictured) and Ian Montgomery as Partners in its corporate and commercial team in Jersey. Both join from Mourant Ozannes, where Mike had worked for more than 14 years and Ian for the past year. Mike is an experienced corporate and banking lawyer, while Ian has built a reputation in the UK and Middle East, advising on all aspects of corporate and finance law. He has significant experience advising on cross-border transactions in the real estate, financial services, energy and technology sectors.
Intertrust has named Ian Rumens as its Global Head of Private Wealth Services, based in the Jersey office. Ian has been a Director of Intertrust’s private wealth team since the acquisition of Elian in 2016. He joined Elian in 2009 from Ogier, prior to which he spent six years as an English solicitor in London. In his new role at Intertrust, Ian will focus on expanding the firm’s client base among wealthy families and high-net-worth individuals. He will lead an international team to deliver services to entrepreneurial individuals with crossjurisdictional requirements.
We call it resourcing excellence. www.blglobal.co.uk march/april 2017 13 email@example.com
interview Nick Magliocchetti With a background in turnarounds, start-ups and tech, making the move into the airline world might seem a little odd to outsiders. But for Nick Magliocchetti, CEO of Waves â€“ a new airline set to launch in the Channel Islands this summer â€“ it makes perfect sense
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Interview Selection Board of Microsoft Ventures – the global accelerator fund at Microsoft – to help them select future businesses to invest in, or back on a monetary or partnership level. This introduced me to about 400 companies a year, and enabled me to see new and exciting technology – some of which I invested in. At the same time, I met my current business partner – a San Francisco-based engineer who led special projects for Microsoft. How that brings us to the present day is that in July of last year, I decided to move to Guernsey to begin the set-up of our tech fund. In the months following, I realised there was a large infrastructure challenge and created Waves to deal with that. So, it wasn’t until you got to Guernsey that you noticed there was a hole in the transport market? We don’t see it as a hole; we see it as an opportunity. I have a very simple way of identifying problems and that’s just by talking to people. I must have spoken to over 1,000 people in a couple of months – from taxi drivers and waiters to friends and business people – and I just asked them: what was the biggest challenge they faced living on the island? What were their top three needs? The same thing came up every time… I didn’t need to make the decision, it was made for me.
Tell us how you got to where you are now. I started my first company when I was 16 and sold it shortly after my 17th birthday – it was an agency that placed overseas students in short-term accommodation. I quickly went into what I thought at the time was ‘consultancy’, but it wasn’t, because nobody was willing to pay a 17-year-old to give them advice on their business! However, what I did find was a niche – that companies who did want my help were going under. So I pushed myself into helping companies that were in trouble – going in, picking up the phone, making sales, helping to dispose of assets, working with liquidators and lawyers – getting dirty and ‘intimate’ with businesses that were in financial distress. I did this with a degree of success over a number of years and ultimately I was picked up by a hedge fund that had a private equity fund, and helped them do the same for their portfolio. I was around 25 at the time. I helped them with a number of interesting businesses over the years – the last company being in 2011. I decided at that point I didn’t want to work with turnarounds or bankruptcy any more – however lucrative, interesting and fascinating it was, it’s not my favourite world to wake up in. It’s fantastic helping the companies and it’s incredibly rewarding, but it’s a tough world to live in when you’re helping people who are in a lot of trouble. So I then decided to focus my efforts on an equally needy sector – start-ups. There are some massive similarities between companies going under and companies starting up. I know it sounds odd, but if you looked in the mirror of a start-up you’d find a bankrupt company and vice versa. My ‘special sauce’ throughout the whole time I helped companies in turnaround, was technology. I’d go in and add tech to existing, old-world businesses to improve efficiencies and create profitability, and prove that the businesses could work. Through a fortunate set of events, I got a position on the
On average, how many flights do you anticipate running every day? We have the ability to run one flight an hour, if not more. But the answer really is how long is a piece of string. We’re an on-demand service, so we’re responding to the requirements. We currently have one aircraft on order and my hope is that we can have another two here by the end of the year. We need to get into the market. We need people to start understanding and utilising our service for us to be able to work it from there. You mention you’ve bought your first plane, so when do you expect to be fully operational? The first aircraft has to be delivered from Wichita in Kansas – which is no mean feat. We anticipate having it in the Channel Islands in the middle of July. We have some proving and safety testing to do. And we anticipate being live, and flying customers, in the early part of August. What sort of fares do you expect people to be paying – or will that depend on the number of people booked on the charter? It’s never dependent on the number of people booked on the charter. All prices will be flat all year round, with no changes whatsoever… ever. We anticipate ticket pricing within the Channel
www.blglobal.co.uk July/August 2017 15
Words: Nick Kirby Photos: Chris George
Waves has been described in some quarters as an Uber-style service, but is that accurate? How will things work in reality? Uber’s an on-demand taxi service and we’re an on-demand air taxi service, so there are similarities, I guess. You could liken us to Uber in that they’ve reinvigorated how to order a taxi – and we’re reinvigorating the way people book a plane. The methodologies will be different though. You’ll be able to book a Waves plane online and on your mobile. You’ll also be able to give us a call and make a booking. That said, it’s ultimately a mobile-first piece of technology. So, for instance, if you want to get from Guernsey to Jersey next Tuesday, you’ll log into the system and you’ll see aircraft that are already chartered and are moving between Guernsey and Jersey, and you’ll have the ability to join that charter. Or you might have a time that you want to travel where there isn’t a charter available, where you request the ability to take an aircraft at that point. In a way it’s no different to a Thomson holiday, where a chartered aircraft leaves Gatwick to Faro on a given date – the only thing people have done is bought a seat on that charter. We’re doing the same thing. There will be aircraft leaving every day and moving between the islands. Because someone will have ordered a charter, there’ll be seats you can join on that charter.
Islands to be between £45 and £65 per ticket, dependent on the route. We’re finalising prices at the moment, but that’s roughly what you’re looking at. So, what routes are you launching with? It’s just the Channel Islands to begin with – Guernsey, Alderney and Jersey are the first locations. Again, we’re an on-demand service, so we’ll fly where the demand is. So, if the demand in the morning is from Jersey to Alderney, we’ll cater to that. If demand in the afternoon is Jersey to Guernsey, we’ll cater to that. And what about flying beyond the islands? That would be phase two. Phase one, for the first couple of months, will be the Channel Islands. Then we’ll look to expand our operations into northern France and southern UK, and then further afield in 2018. Not long after you’d announced your launch, a similar service, Isle-Fly, launched in Jersey. Are they direct competitors? I know the Jersey Jet Centre guys – they’re a great bunch and we get on very well. They’re offering a very different service to what we’re offering. As an ecosystem, we’re actually complementary. Yes, they’re an air taxi like us, but my understanding of their business model is that they’re chartering the aircraft for longerdistance requirements. We’re trying to specialise in these 30-minute hops. They would prefer to specialise in further afield, so they’ll be flying immediately into France and the UK and Europe. Moving on to more practical considerations, and the Cessna Caravan that you’re using. How would you respond to concerns about it being a single-engined plane piloted by one person? We appreciate that concerns remain, and we respect that opinion, but I’m not going to get into an argument between single- and two-engined planes. We’re 100 per cent comfortable and confident in the aircraft we’ve chosen – because of the airplane, its reliability, its safety record and the fact that there are 2,500 in circulation right now flying all around the world doing exactly what we are planning to do. The Cessna Caravan has a jet engine with a propeller on it – that’s a very different proposition to a piston engine, which has been used on the inter-island route previously. My second point is we’re going through an Air Operators Certificate under EASA rules. As an operation, we have to disclose the aircraft we’re using in order to receive that AOC. If the Director of Civil Aviation deems us, and the aircraft, as a viable, reliable and safe mode of transport, that’s a better answer than I can possibly give to convince you. In terms of regulations, are you overseen in the same way as a scheduled airline? We’re regulated in exactly the same way. We’re going to be carrying passengers for payment and we have to go through the same requirements to get our AOC as British Airways does, as Virgin Atlantic does, as Blue Islands and Aurigny do. An AOC is not given away willy-nilly to anybody. Is the goal ultimately to expand into larger aircraft and to build on the business model so that you can offer scheduled flights? We’re entering a world that’s slightly unknown to us on the demand side. We’re building a business for the purpose of interisland travel. When we see what the demand signals tell us, then we’ll adapt – we’ll consolidate, upscale or downscale depending on that. I think the best thing to say is: we’re building this for the purpose of demand, so watch this space. The Channel Island mentality can be quite negative, full of naysayers. Do you think people expect you to fail? People are entitled to their opinion. But I would say we’re a
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FACT FILE Name: Nick Magliocchetti Age: 39 Position: CEO, Waves Married to: Emma Children: Luca Hobbies: Segway polo, flying (a new one) Interesting fact: I was on a boat off Phuket in Thailand on 26 December 2004 when the tsunami hit
Guernsey business, we’re doing a Channel Islands AOC, we have a Guernsey bank account, we have Guernsey shareholders and employees, we’re looking to set up a Jersey company, and we’re looking to hire Jersey people. We’re not a Swiss company, we’re not a Tel Aviv-based tech company… we’re Channel Islands. Regardless of what positive or negative things people say, this is being built in the islands. People might have negativity around an idea or might not believe in it, or the people or technology. But one of the things I love about the Channel Islanders is that they’re incredibly, and almost religiously, passionate about the islands. We’re a Channel Islands-based business through and through, so whenever I meet that negativity, I say: “Listen, you should always hope for the best for a Channel Islands business.” Do you have other irons in the fire outside of Waves? I’m an investor in many different businesses. I’m a geek, and I love crazy stuff. I own a few Segway businesses in Spain and about eight years ago we decided to pick up a pastime of San Francisco-based geeks – playing polo on Segways. Now the UK is in the World Championship and are known as Segway polo players. Odd? Yes. A load of fun? Massively! I also own a number of different companies to different degrees. I bought into a sleep business a number of years ago, and I have a great time being involved in that, trying to improve the world’s sleep. What does success look like for Waves in 24 months’ time? Success for me is a team thing rather than a personal thing. We know we’re going to sell tickets. We know we’re going to have bums on seats, and we know we’re going to be flying aircraft. Success is about having as much fun running the business as we’re having building it – that we’re growing it for us, for our shareholders and for the islands. Success for me isn’t a number – I know that the numbers will come. n NICK KIRBY is Editor-in-Chief of BL magazine
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BVI | CAYMAN ISLANDS | GUERNSEY | HONG KONG | JERSEY | LONDON
A BL event
THIS YEAR, THE DEFINITIVE CHANNEL ISLAND FUNDS EVENT WILL COMPRISE: ● A PRE-CONFERENCE SEMINAR BY PREQIN – 9.30-10.30AM ● A SERIES OF PANELS AND PRESENTATIONS (SEE OPPOSITE) ● POST-CONFERENCE NETWORKING AND DRINKS THE PREQIN SEMINAR WILL ADDRESS THE GLOBAL PICTURE IN THE ALTERNATIVE ASSETS INDUSTRY, AND WHERE THE CHANNEL ISLANDS SIT IN THAT LANDSCAPE. THE FULL DELEGATE RATE INCLUDES THE SEMINAR AND CONFERENCE. TICKETS FOR THE SEMINAR ONLY CAN BE PURCHASED SEPARATELY FOR £40. In partnership with:
channel Islands funds forum
A SHARPER FOCUS THE MAIN CONFERENCE WILL RUN FROM 11AM-5.30PM. TOP-CALIBRE SPEAKERS WILL COVER A RANGE OF SUBJECTS, INCLUDING: ● WHAT THE PAST 12 MONTHS IN FUNDS HAS LOOKED LIKE ● THE GLOBAL POLITICAL LANDSCAPE AND ITS IMPACT ON FUNDS ● THE VIEW FROM FUNDS PRACTITIONERS OUTSIDE THE ISLANDS ● THE CHANNEL ISLANDS’ RESPONSE TO THE OUTSIDE VIEW ● AN UPDATE ON THE LATEST TAX ISSUES ● WHERE THE MONEY IS FLOWING IN FUNDRAISING ● WHAT NEXT FOR FUNDS IN GUERNSEY AND JERSEY? THE FULL LIST OF SPEAKERS CAN BE FOUND AT WWW.CIFUNDSFORUM.COM
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: £395 (+ 5% GST if applicable) Places can be booked by visiting www.cifundsforum.com or emailing firstname.lastname@example.org
UK general election:
Keep calm and carry on? The hung parliament in the UK has heaped confusion on top of uncertainty – and with the spectre of Brexit looming large, just what might the result mean for the Channel Islands? Words: William Green Illustration: Thinus Slabber
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Democratic Unionist Party (DUP), as other major parties ruled out any pacts. A ‘supply and confidence’ deal with the DUP would see May leading a minority government. The DUP would support her on big issues like the Queen’s Speech and the Budget. But that confidence can be quickly withdrawn. The fact that the Queen’s Speech was delayed while the two parties haggled over the minutiae of the deal was hardly an auspicious start. So, the main picture in the UK right now is one of uncertainty, leaving many in the Channel Islands to fathom just how they may be affected as things move forward.
HARD OR SOFT BREXIT? Probably the main question on islanders’ lips is what will happen with Brexit, now that negotiations are finally under way. During the election campaign, May repeated her conviction that no deal was better than a bad Brexit deal. That could lead to the UK leaving the European single market and the customs union. On the eve of the negotiations, however, Chancellor Philip Hammond appeared to undermine the PM. Speaking to the BBC’s Andrew Marr, he stated clearly that “no
deal would be a very, very bad outcome for Britain”. So, could ‘hard Brexit’ be dead? DUP leader and Northern Ireland First Minister Arlene Foster has spoken against it and wants to avoid a hard border with Ireland, which could affect the Common Travel Area between Ireland, the UK, Channel Islands and Isle of Man. Another option is the UK leaving the EU but remaining a member of the European Economic Area (EEA), and retaining single market access. That would need unanimous agreement of EEA members. Membership fees, immigration concessions and little say on single-market rules are other hurdles. A final deal may take years to agree with the EU. And there could be another general election and a new prime minister before then – a Survation poll immediately after the election gave Corbyn a six-point lead. Whoever gets the job, they may have little choice but to try and forge a consensus across the political divide on domestic and international issues. But that won’t be easy. So, where does this leave Guernsey and Jersey? The final details of any Brexit deal will be of huge interest to the Channel Islands. The impact on freedom of movement, which could affect foreign
STRONG AND STABLE leadership? That may be why Prime Minister Theresa May called a snap general election in the first place. But at the time of writing, some might argue she’s looking as strong and stable as a bowl of blancmange. When May called the election, it was expected by many to be a victory walk. As we all know, however, things didn’t go according to plan. Instead of a Brexit mandate, May was described as a ‘dead woman walking’ on political death row by former Chancellor George Osborne. As Big Ben chimed at 10pm on Thursday 8 May, there was a sharp intake of breath (and a fair few cheers from Labour supporters) around the country as a hung parliament was predicted. And while polls have been wrong before, this one was bang on the money. The Conservatives eventually lost 13 seats and their Commons majority. Labour leader Jeremy Corbyn won 32 more seats than in 2015. Still holding the most seats – at 318, just eight short of an overall majority – May won the right to form a government. To avoid a Corbyn-led government, she sought a deal with Northern Ireland’s
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workers in tourism and agriculture, fishing, financial services and even administration of air space, could be felt here. Negotiations could see more compromise on the UK side, however. “We might expect to see an early guarantee of EU citizens’ right to remain in the UK, and a more protracted process generally if each stage needs to be agreed by the main parties,” explains Arabella Murphy, Head of Wealth at boutique private wealth law firm Maurice Turnor Gardner. More immediate domestic UK legislation will also have an impact, including on the finance industry. Experts in the Channel Islands’ financial sector have suggested Tory proposals previously announced on detailed tax plans can’t be taken as read in a setting of a minority Conservative government with support from the DUP. “Non-dom reforms are likely to go ahead, as they would be supported by other parties. But previously proposed reductions or reliefs may be less likely if the government can’t be sure of avoiding defeat,” says Murphy. “As regards the undefined Conservative pledge to focus on misuse of trusts and on transparency, this is likely to find support from other parties.” For investors, the election may have a lingering impact on UK property. While more active investors may take advantage of discounted prices in the property and stock market, it’s anticipated that transactions will continue to fall in central London, according to Lauren Kemp, Senior Manager, Investment and Communications at London Central Portfolio. In particular, the luxury end of the new-build sector could suffer, having already been battered by new residential taxes. “For the domestic housing market, outside prime central London, the recent evidence of a downturn by most data analysts, due to concerns over a weakening UK economic position and rising inflation, is unlikely to be reversed in light of the current events,” says Kemp.
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Whilst Brexit may offer opportunities, it’s impossible to think the channel islands can avoid any negative impacT
Eliot Lincoln, President of the Jersey Chamber of Commerce, also fears it won’t be plain sailing in the wake of the election even if a ‘softer Brexit’ is on the cards. “Whilst Brexit offers many positive commerce opportunities for Jersey, it’s impossible to think the island can avoid any negative impact,” he says. He points to the increased cost of importing goods following the pound’s post-Brexit fall in value, with inflationary costs inevitably being passed on to consumers. With Jersey going to the polls in the next 12 months, Lincoln says a stable probusiness government in the island is vital. In the meantime, he urges the Chief Minister to engage in regular talks with the UK government to ensure Jersey is at the forefront of UK-EU Brexit negotiations.
BUSINESS AS USUAL? Local political leaders, however, were quick to stress it was business as usual. That means working with whatever UK government emerges so that the Channel Islands’ constitutional position and reputation as well-regulated offshore
jurisdictions are understood. “I am confident we will be able to work productively alongside any new government to ensure the best possible deal is achieved for the island in the forthcoming Brexit negotiations,” said Jersey Chief Minister Ian Gorst. There was uncertainty whether Gorst would be the man working with the UK after a vote of no confidence was lodged against him in June. He survived the vote, however, and continues in his post. Sir Philip Bailhache, Jersey’s External Relations Minister, expects a “high degree of continuity and stability” having established a network of Whitehall official and political contacts on a range of issues. The Channel Islands can also benefit from relationships established through the British-Irish Council. The forum, set up under the Good Friday peace agreement, is made up of the UK, Irish, Northern Irish, Scottish, Welsh, Isle of Man, Jersey and Guernsey governments. Its role is to develop positive links and co-operation between its members. Last summer, for example, Jersey and Guernsey Chief Ministers took part in a Brexit summit also attended by DUP leader Arlene Foster. There is also the UK All-Party Parliamentary Channel Islands Group. It aims to promote a better understanding of the issues facing the Channel Islands and develop better relations with the UK. As a general rule of thumb, however, business dislikes uncertainty. Martyn Dorey, President of the Guernsey Chamber of Commerce, says the incoming government has to focus on fiscal discipline and manage overall levels of risk and uncertainty in the economy to allow business to flourish. “The UK needs leadership and unity, and Guernsey business stands ready to be part of the Brexit discussions,” he says. Might there be an opportunity for the Channel Islands to benefit from the current situation? Gavin St Pier, President of the Policy and Resources Committee in Guernsey, says the island will closely monitor developments and engage with the new government as early as possible. Guernsey stands out as “a jurisdiction of economic and political calm in a world of uncertainty”, he adds. “That’s an opportunity for us to exploit, and one that our promotional agencies, Locate Guernsey and Guernsey Finance, will not let pass.” The fact that the UK government may need to work across the political spectrum to reach a consensus could work in the Channel Islands’ favour. Among the clouds of uncertainty, there might just be some silver linings. n William Green spent six years as a Political Editor in the Houses of Parliament. This article was edited on 21 June 2017
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www.blglobal.co.uk July/August 2017 23
The passage back to India It was seen as a land of opportunity, yet Channel Islands businesses have struggled to make inroads into India – will the abolition of certain tax treaties open the door once more? Words: Dave Waller BACK IN 2009, BL magazine turned its attention
towards India. We weren’t alone – Hollywood was busy bestowing Oscars upon Mumbai morality tale Slumdog Millionaire, while those who’d rather be staring at the ticker tape than the cinema screen while munching their popcorn were equally transfixed. The Asia Development Bank was saying that, thanks to consumer spending and changes to monetary policy, India’s economy was set to grow 8.5 per cent that year; entrepreneurship was thriving among India’s highly educated middle class; while, according to Forbes, India’s 40 richest people were worth a spicy $351bn. But if India’s economy had all the hallmarks of a Hollywood blockbuster, the UK was fast becoming Betamax. Alongside other struggling western economies, it was suddenly learning what it meant to slum it in a new-found stagnation. So, you can hardly blame many in the Channel Islands’ financial sphere for hoping India’s success would rub off on them – would wealthy Indians turn to Channel Island holding companies to access the world’s stock markets, or perhaps use the islands to safeguard their private assets? Or would flows of foreign investment into India come via island shores? Eight years after our first examination of India, it seems the economic opportunity has been difficult to capitalise on for players from the Channel Islands. “A number of Channel Islands businesses were looking at it and going in for one or two years,” says Neel Sahai, Director at Minerva Trust & Corporate Services. “Expectations got raised too high and lots of people were disappointed by the level or speed of returns. It required firms to be in the region regularly to build their profile and make local advisers more confident to recommend them. But for firms that don’t have an anchor relationship in India, the decision to invest is a hard one. It’s put a lot of people off.” Sahai has seen all this before. Minerva is one Channel Island-based company that’s been working with Indian clients for 35 years, and it knows the
24 July/August 2017
importance of patience and long-term relationships when dealing with the region. Sahai also understands the scale of competition in India from Mauritius and Singapore, two international finance centres that have earned that trust there already. For the rest, he reckons sentiment towards India “fluctuates massively between being overhyped one year and underwhelming – almost pessimistic – the next”.
PLAYING THE LONG GAME It is certainly telling that the Channel Islands have since seemed far quieter about the Indian opportunity than those in, say, the Far East or Middle East. Back in 2009, Jersey Finance was busy setting up permanent representation in Mumbai and New Delhi – doing a “good job of raising the profile of Jersey”, according to Sahai – and partnering with the UK government to promote links. But now? Its online Links with India brochure hasn’t been updated since 2013. Meanwhile, Guernsey Finance replied to a BL enquiry by stating that India wasn’t one of its target markets and that, as it simply couldn’t be everywhere, it just wasn’t a focus. Richard Nunn, Head of Business Development at Jersey Finance, says it’s always taken a long-term position. “We’ve seen a return on the investment we’ve made in India, but as it’s very much a market built on long-term relationships, returns have been slower than in other markets where we’re active,” he says. “A lot of the focus in India is behind the scenes, building relationships with key gatekeepers.” As regards more concrete results, Nunn concedes there has been a greater flow of high-value business coming from the Gulf and Far East, where “there are perhaps fewer barriers to entry”. Back in 2009, we spoke to Mehul Kotedia, CEO of Mekad, one company that saw potential in India. Since then, Mekad has opted not to attempt to scale the Indian peak. “Our company was very small in terms of the advisory side, and with the legislation changing over the years on both sides, it wasn’t cost-effective to be nurturing those clients when we had opportunities to seek easier wins elsewhere,” says Kotedia. “We still think there are opportunities, but as a small
business we need to be realistic about where we stretch ourselves. And it makes no sense to add anything when other areas are proving lucrative.” Sahai says only two or three Channel Island companies have a presence on the ground in India, aside from the major banks. Minerva may well be the exception that proves the rule – having worked with India for 35 years, the investment of time and money makes good business sense. It’s profitable. “For us, it’s turned out as we’d have hoped,” says Sahai.
GROWTH MARKET The country’s performance is still staggering. India is the fastest growing large economy in the world. Highnet-worth wealth is increasingly vast and its population is still expanding, with 65 per cent under 35 years old. Its middle class is on course to be the world’s largest by 2030, and spending is set to rise from around US$950bn in 2010 to $1.7 trillion in 2020. “We believe strongly in India,” says Simon Finch,
Investment Manager at Ashburton Investments. His Jersey team manages Ashburton’s India Equity Opportunities Fund, which has more than $100 million of assets under management. “First, it’s differentiating itself from the typical commodity-sensitive emerging markets such as China, Brazil and Russia, through strong corporate governance, a reformist government and investment in its domestic consumption. “And there are significant opportunities for investors to tap into world-class companies and internationally recognised brands, such as Tata Motors and ICICI, or technology firms, as India overtakes the US as the second-largest smartphone market globally.” Crucially, the Indian government has proven willing to massively liberalise investment. Campaigns such as Make In India and Invest India have been successful in building bridges, and India has become one of the top
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India is now the fastest growing large economy in the world. High-net-worth wealth is increasingly vast and its population still expanding, with 65 per cent under 35 years old
destinations for foreign direct investment globally. “With its government opening up to foreign direct investment and investing significantly in infrastructure projects across the nation, India will continue to grow much faster than China in the years to come,” says Finch. “Its progressive liberalisation of its foreign investment policy in recent years has stimulated inflows and created unprecedented opportunities for India to achieve accelerated economic growth.” In the private client realm, things haven’t been quite as simple – exchange controls remain in place and the trust industry remains young, largely alien and not yet commercially viable. “Families are using trusts but still tend to use a local accountant or family and friends they genuinely trust, over professional firms at this stage,” says Sahai. “The market needs to develop and that may take time. We’re keeping a close eye on it. But it’s an opportunity for Channel Island firms. Jersey and Guernsey are seen as world leaders in estate management.” Sahai is convinced the islands offer plenty of appeal. The flexibility of Jersey Private Funds is proving attractive to clients, many of whom are impressed that Jersey has attracted the world’s largest fund, Japan’s $100bn SoftBank Vision Fund. “That had them listening,” says Sahai. “They’re now saying: ‘Hang on, if Jersey is attracting SoftBank, and it has a private fund regime, I’m willing to find out more about it’.” There’s been one other critical change. Last year, India announced it was reviewing its double tax treaties with Mauritius and Singapore. The capital gains tax exemptions that had
Potential sources of business ● Fund administration India is crying out for new infrastructure, and its government has made no secret of its desire to pull foreign direct investment into the country via avenues such as private equity. The Channel Islands are well placed to benefit – not only do they have attractive fund regimes in place, but the huge advantage previously enjoyed by Mauritius and Singapore in servicing India has now been eroded. Their double tax treaties used to offer huge capital gains tax benefits; since April this year those are being phased out. With the playing field suddenly level, the Channel Islands’ reputation, professionalism and regulation could give them the edge. ● Holding companies More western companies are launching joint ventures with Indian businesses. And these western investors typically prefer not to invest directly into Indian companies, instead choosing to go via an overseas holding company. This offers greater ease of listing on foreign exchanges, such as the London Stock Exchange, plus a greater flexibility when it comes to exiting. ● General private client and trust structuring India’s high-net-worth population is growing rapidly, while their families and assets are diversifying beyond India’s borders. Many are moving from India to the UK or US, and need help structuring that move, a pattern that’s set to increase over the next 20 years. Meanwhile, the appetite for UK real estate appears to be never-ending – the interest is there for buying large commercial real estate such as hotels, as well as lavish Mayfair properties.
previously been so attractive have, since April, begun to be phased out and will be gone altogether by 2019. At which point, the Channel Islands will be on an equal footing when it comes to persuading advisers which structures to use. In many ways, the islands would be at an advantage. Even if their provision is likely to be more expensive, if they’re attracting investment in from the West, for example, certain backers would be more comfortable using a better regulated, arguably more professional Channel Island structure as the pooling vehicle. Sahai highlights one “really nice structure” that Minerva set up last year, from an Indian technology company attracting private equity investment, work that would previously have gone via Minerva’s Mauritius office. “The client said: ‘No, the treaties are changing, so it’s now about what jurisdiction we and our private equity investors feel comfortable with. We want Jersey’.” Just like India’s booming Bollywood market, it seems that the Channel Islands’ star is rising, and it may well land more roles in the showstopping opportunities that the country offers. Perhaps now, thanks to India’s new-found appetite for international business, the islands would be right to make a song and dance about it. n DAVE WALLER is a freelance finance writer
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www.blglobal.co.uk July/August 2017 27
Trust law to take a step forward Kellyann Ozouf, Partner and trusts specialist at Collas Crill, takes a look at the proposed amendments to the Trusts (Jersey) Law 1984 DESPITE BEING MORE than 30 years
old, the Trusts (Jersey) Law 1984 continues to provide a framework, whilst allowing Jersey’s courts to apply and develop general trust law principles. To ensure that Jersey’s position as a leading trusts jurisdiction is maintained, the law has been amended six times since 1984 and, after a consultation last year, we’re awaiting the seventh amendment. In producing the proposed amendments, the States of Jersey and Jersey Finance's Trusts Law Working Group considered the island’s competitor jurisdictions to ensure that we’re not at a competitive disadvantage on the international stage. The proposed amendments aren’t ground-breaking or revolutionary, but they do clarify certain areas of the existing law and introduce new provisions, all with the aim of preserving the integrity and flexibility of Jersey trusts; developing existing jurisprudence; and evolving industry practice in order to build upon the strong foundations already in place. The seventh amendment is rather technical, but we set out below a summary of some of the amendments that we're expecting to be made.
RIGHTS OF BENEFICIARIES TO INFORMATION The provision in the current law regarding the information to which a beneficiary
is entitled is confusingly drafted. The amendment will clear this up while also proposing to: ● Allow the terms of a trust to restrict or enlarge a beneficiary’s right to information ● Provide the trustee with discretion to refuse disclosure if it considers that it’s in the interest of the beneficiaries to do so – noting that a beneficiary should have the right to apply to the court where insufficient information is forthcoming. Unlike Guernsey, however, the law won’t be amended to allow a prohibition on the disclosure of any information whatsoever, because it’s considered that to do so would hinder a beneficiary’s ability to hold a trustee to account for its actions.
RESERVATION OF SETTLOR POWERS The law permits a settlor to retain certain powers in relation to a trust. The powers that may be reserved by a settlor are listed in the law. The amendment proposes to: ● Allow a settlor to retain all the powers listed in the relevant provision of the law ● Confirm that if a settlor reserves one or more or all of those powers, such reservation shall not constitute that settlor a trustee ● State that any powers reserved shall cease upon death, incapacity or bankruptcy, unless stated otherwise in the trust instrument.
TRUSTEE INDEMNITIES It’s common practice for a retiring trustee to require the incoming trustee to indemnify its officers and employees against particular liabilities that might ensue following the change of trustee. The law will be amended to reflect this practice so that officers and employees will be able to benefit directly from
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indemnities from a new trustee (including where an indemnity has been extended or renewed by subsequent trustees). It’s also common practice for indemnities to be sought from a recipient beneficiary upon distributions being made during the trust period and on its termination. The law will also be extended to expressly provide for that.
VARIATION The Royal Court of Jersey has limited statutory powers to vary a trust under the law. It can currently vary a trust on behalf of minors, interdicts, unascertained or unborn beneficiaries, provided that it’s of the view that it’s for their benefit. The amendment seeks to allow the court to provide consent to a variation on behalf of beneficiaries who the court is satisfied cannot be found, despite proper attempts to locate them, or who, due to their number, it’s practically unfeasible to contact, and then only if the court determines that such variation is in their best interests.
STATUTORY LIEN The amendment will also introduce a statutory lien for trustees, which will bring Jersey in line with Guernsey on this particular point. It’s proposed that a trustee should have: ● A statutory non-possessory lien to secure its proper expenses and liabilities even after having retired and having transferred the trust property to a new trustee ● A statutory lien to secure the payment of authorised remuneration to the trustee and reimbursement of all expenses and liabilities reasonably incurred by the trustee. We anticipate the amendment being lodged with the States of Jersey shortly, and hope it will be in force by the end of 2017. It will bring some much-needed clarity for trust practitioners and help retain our competitive advantage. n
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www.blglobal.co.uk July/August 2017 29
local to global in 30 years
it’s said that mighty oaks from little acorns grow – and that’s very much the case for JTC Group, which has grown from humble beginnings to become a leading company on the global stage
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A DIFFERENT APPROACH As with most businesses that have grown and succeeded over decades, there were ‘sliding door’ moments that fundamentally shaped the direction of the firm. One such moment was a change in ownership structure in the 1990s, which put in place a young, dynamic leadership team that, with the benefit of hindsight, had just enough experience to succeed and just enough inexperience to follow their hearts as well as their heads. An overriding priority of that team was a determination to stand out from the crowd and differentiate JTC’s offering in an increasingly competitive market. As a proud owner-managed business that had broken free of its original law firm ties, JTC chose to focus first and foremost on service excellence and the experience it delivered both to clients and intermediary partners. The ‘9-5 with an hour for lunch’ mentality that typified much of the offshore financial services world at the time was firmly kicked into touch – JTC aimed high, benchmarking its approach, standards and brand against the biggest London players.
GROWING AND GOING GLOBAL This ‘service first’ strategy met with success and the business grew steadily, albeit still rooted firmly to its Jersey foundations. However, after more than a decade of building its position and reputation as a
MUCH HAS CHANGED since 1987. Back then, Three Men and a Baby did well at the box office; Pat Cash won Wimbledon; Margaret Thatcher was re-elected as the UK Prime Minister; and Michael Fish failed to forecast the worst storm to hit southern Britain in several centuries. It was also the year in which the JTC Group (or, more accurately, its predecessor) was established in Jersey. As the firm looks to open the doors of its new state-of-the-art headquarters on The Esplanade in St Helier this summer, it’s fair to say that things are very different to 30 years ago. JTC, or Praetor Management as it was known in 1987, certainly started life in Jersey without its current level of global ambition. As the classic administration offshoot of a law firm, the business commenced trading at a time when offshore administration was just beginning to blossom as a sector in its own right. The fact that JTC now employs more than 600 staff across 20 global locations, and administers assets totalling more than US$80bn, shows not only how far the Group has come, but, more importantly, what a clear vision and deep belief in the power of company culture can achieve.
JTC now has a presence in 20 global locations
ACCELERATING THE STRATEGY With the need to keep developing the business and a market trend of consolidation among smaller players – largely driven by the increasing cost and
JTC’s appetite for growth and innovation shows no sign of slowing, yet the company’s unerring commitment to client service sits at the heart of its behaviour
burden of international regulation – JTC once again opted to take charge of its own destiny. In 2012, a decision was made to sell a minority stake to CBPE Capital, a well respected ‘mid cap’ private equity firm, in order to accelerate the ‘local to global’ vision and strategy. In the five years since partnering with CBPE, the business has not only maintained an impressive organic growth rate, it’s also made over a dozen acquisitions. These have ranged in size from small books of business in established locations such as Jersey, to major deals involving hundreds of employees and the establishment of entirely new offices in the JTC network.
leading independent trust services provider, a London office was opened in 2001. This was soon followed by offices in the British Virgin Islands, Switzerland and Luxembourg, as JTC’s ever-expanding client base and intermediary network drove demand for multi-jurisdictional solutions. In addition to ‘platform’ expansion, JTC also recognised the need to widen its service offering. In the early noughties it was quick to spot the common threads between traditional trust administration services, corporate services and fund administration. This was particularly relevant to JTC’s client base, which, like the firm, was often entrepreneurial in nature. Clients increasingly had commercial interests that demanded corporate and fund service solutions, as well as private wealth needs for themselves and their families. This ability to spot adjacent market opportunities and adapt its core skills and experience to new service lines has been a hallmark of JTC’s growth over the years and has proven prescient as other firms have sought to expand their service offerings in much the same way.
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A CHAT WITH NIGEL LE QUESNE
JTC’s new offices in The Esplanade, St Helier
1987 was a good year for JTC’s Group CEO and Chairman, Nigel Le Quesne. It was the year in which he joined Praetor Management (the Group’s original name) as its fifth employee. As the architect behind the build-out of the JTC Group, Nigel shares some of his insights into the world of international fiduciary, funds and corporate services.
HOW HAS THE INDUSTRY CHANGED OVER THE PAST 30 YEARS? It’s unrecognisable today from what it was like when we started out in the late 80s. We’ve seen a change from largely unregulated (or at least under-regulated), single-jurisdiction businesses with tax avoidance and confidentiality as the key ingredients, to a highly regulated, rapidly consolidating industry requiring joinedup, multi-jurisdictional solutions for a whole host of services to institutional and private clients.
WHAT DO YOU CONSIDER TO BE JTC’S BIGGEST SUCCESSES?
This expansion has given the Group scale in all its business lines. Many are surprised to learn that today JTC’s global fund administration business accounts for over 35 per cent of revenues, with approximately 40 per cent coming from corporate services and the remainder from private client services. In addition, JTC continues to be a market leader in terms of innovation and has successfully delivered a raft of groundbreaking initiatives. These include a highly successful Alliance Partnership to enter the notoriously challenging Asian market place; one of the largest independent networks in Latin America; the first ever Jersey Managed Trust Company (MTC) for a mainland Chinese wealth manager; and a soon-to-be-launched online portal for high- and ultra-high-net-worth clients and single- and multi-family offices. JTC’s appetite for growth and innovation shows no sign of slowing, yet among the acquisition headlines and increasing global scale, it’s the company’s culture and unerring commitment to client service excellence that sits at the heart of its behaviour and decisions. Thirty years might be a long time, but, for JTC, it’s just the beginning of a journey that continues to be enjoyed and embraced one day at a time. n
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It’s probably for others to say! But one highlight is that from 1998 onwards – the same year that I effectively became CEO – we committed to shared ownership of the group. So everybody who works at JTC becomes a shareholder. When the very first Employee Benefit Trust, which held 18 per cent of the Group, was realised, it paid out £12 million to the JTC team and changed the lives of our stakeholders at all levels of the business. I would add that we’ve always had our own style and a ‘JTC way’, which has always worked for us – and I’m delighted to say still prevails today, in spite of having more than 600 staff in 20-plus locations. Finally, we’ve always been committed to client service excellence and have managed to instill this across the Group – on the basis that if we’re not going to do a job well, we shouldn’t be doing it at all.
HOW MUCH OF A CHALLENGE HAS IT BEEN TO SUSTAIN JTC’S CULTURE AS THE BUSINESS HAS GROWN? I have to admit that when we set out our stall in 2012 and the phrase ‘local to global’ was coined, I had my concerns. What I have learned, however, is that there are great people all over the world and if you find them and explain JTC’s philosophy and approach, they’re delighted to come on board and assist in adapting the JTC way to what is now a global business. This is testament to the JTC principles and to the honesty and integrity that we aim to bring to all our dealings with our stakeholders and clients alike.
HOW DO YOU SEE THE LANDSCAPE EVOLVING OVER THE COMING YEARS? I always find these questions difficult. If I could predict the future, I’m arguably in the wrong job. And if I look at the recent changes across the political landscape, I think we’d probably all have lost our jobs as pundits! I will, however, have a stab: ●C onsolidation in our industry – with greater emphasis on winners and losers, driven by ongoing interest from capital markets – will continue to develop apace, with further listings to follow. ●T he costs and risks associated with global compliance will lead to a greater degree of outsourcing of these responsibilities to expert administration firms such as JTC. ●T echnology will play an even larger part in delivery to institutions and private clients, with accuracy, convenience, risk and security being key elements. ●C lients will increasingly choose one global service provider rather than several, for ease of internal administration and to assist with fee mitigation. There’s one thing that will not change, however – do an excellent job and you will keep your clients, increase the services they desire and have them endorse you into new relationships.
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Family offices… As the number of wealthy individuals grows around the world, so does the number of family offices – leading to calls in some quarters for tighter regulation. But is it actually necessary?
THOSE OF US who’ve never had enormous wealth – that’s the vast majority of us – are known, every once in a while, to speculate about what we might do if we came into money. Such conversations among friends tend to include a litany of dreams that include buying property, cars, jewels or businesses. They generally don’t mention family offices. However, those who actually do have wealth dream of setting up their own family office. And although there’s no definitive figure for the number of family offices in the world, most experts within this area of finance agree that the number is growing. “All the empirical data we have suggests that there are more family offices than there used to be,” says Keith Johnston, CEO of the Family Office Council. A key factor in such growth is the increase in the global population of ultra-high-net-worth individuals. The WealthX World Ultra Wealth Report 2015-2016 claims that, as of 2015, the global ultra-high-net-worth (UHNW) population stood at 212,615, making up more than 160,000 households and holding $30 trillion in wealth. By 2020, there are expected to be 318,000 UHNW individuals, whose wealth will have increased at an average nine per cent per annum to reach a total of $46.2 trillion. The problem with finding a figure for the number of family offices is that there’s no single definition of what a family office is. “One of the key issues that bedevils all aspects of working with family offices is
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that there’s a huge continuum of what a family office might be – and we see family office clients at all points on that spectrum,” says Marcus Leese, Partner in the Guernsey office of law firm Ogier. “We see everything from a single individual all the way to highly staffed, highly organised offices of several hundred people. Some are focused on investment advice and are essentially taking the banker/adviser role in-house. Another area is the management and administration of legal structures, replacing an external trustee or corporate administrator. Another is for professional advice, providing in-house legal, tax or accounting advice. And yet another area is focused on lifestyle administration – all that travel doesn’t book itself!”
WHERE TO BEGIN Whilst the media may focus on the lifestyle or concierge role of some family offices, it’s the scale of the investment and asset management sides that’s led some to call for such offices to be regulated. But this isn’t as straightforward as it sounds. “Vaguely saying you should regulate family offices isn’t helpful,” says Catherine Grum, Head of Family Office Services at KPMG. “What are you trying to achieve with regulation? I’m not sure where the issues and concerns are – and some family offices are already regulated because of the types of investments they’re making.” Gillian Browning, Director of Fiduciary Supervision Policy and Innovation at the Guernsey Financial Services Commission,
says the regulator already plays a role with family offices. “If [family offices] undertake investment or asset management advice, they would need to speak with us to decide which regulatory regime they best fit,” she explains. “It’s possible they might be exempt from financial services regulation because they may not be undertaking specified regulated activities by way of business – simply booking family travel arrangements, for instance.” From Keith Johnston’s perspective, family offices are already regulated at the level of the activities they perform and by virtue of the regulations under which their advisers work. “When family offices use lawyers, trustees, bankers, accountants and other advisers, they’re entering a world replete with regulation, including on matters regarding ‘dirty’ money such as anti-money laundering regulations,” he says. “A lot of regulation is focused on protecting customers, which makes sense for banks. Family offices don’t have public customers and are using family money.” If family offices are regulated when they undertake regulated activities, the question has to be asked: why are people calling for their general regulation? “There are three main reasons why you might want to regulate the family office itself, rather than just the activities it undertakes,” says Leese. “First, there’s a general trend towards greater regulation of all financial services, which means there’s a drive to regulate more entities.
Words: Kirsten Morel
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The second reason is that the value of assets under the control of family offices is growing by a significant amount. If they aren’t regulated, there’s considerable value not subject to regulation – and to some people and regulators this is a concern. “The third argument is specific to the US and concerns an exemption from Securities and Exchange Commission regulation when activity is undertaken by family offices. The exemption extends to family and friends, and there’s concern that this exemption is being extended to cover more and more people, which creates an anti-avoidance issue.”
GLOBAL CHALLENGE If it were decided that family offices should themselves be regulated, you would then face the problem of defining which types of office to regulate and where to regulate them, given that the family and their interests are most likely based all around the world. In all likelihood, as the family office will be registered as a legal entity in a particular jurisdiction, the regulation would take place there. But given that it’s the
It’s the scale of the investment and asset management sides that has led some to call for such family offices to be regulated
activities that matter, there seems to be little sense in taking this approach. “The current regime is fit for purpose,” says Gillian Browning. “It focuses on the activity undertaken, and whether this is by way of business rather than simply regulating an entity because it’s called a ‘family office’. “There’s no common definition of what a family office does or what services it provides. And that means extra, potentially unnecessary, regulation could have commercial implications and unintended consequences. I believe we have sufficient oversight of those that require regulation at present.” At the moment, there are no moves in the Channel Islands to specifically regulate family offices. In fact, whilst some people may be calling for their regulation, there isn’t evidence of any jurisdictions following this path. “There are larger problems in the world of financial services than regulating family offices, and I’m not aware of any plans to regulate the industry,” says Catherine Grum. With or without specific family office regulation, increasing numbers of family offices do seem to be choosing to base themselves in the Channel Islands. “More family offices are looking to set up in Jersey and Guernsey,” says Grum. “Other international finance centres have targeted a mass-market clientele, but the Channel Islands have particular expertise in dealing with complexity. I’m working with clients looking to move from another jurisdiction to Jersey because of the strength of expertise here.” As the popularity of the Channel Islands as a location for family offices increases, so regulators are seeing greater diversity in the aims of those offices, including some less traditional requests. “People do like the status and kudos of being regulated,” says Browning. “If an entity seeks regulation, it must have substance and undertake regulated activities in a meaningful manner – for instance, undertaking that activity at least once a year. “If a family office is unsure whether they should be regulated, we would encourage them to seek their own legal advice or contact the GFSC for a chat.” Perhaps this is where the calls for regulation come from – the family offices themselves. If that’s the case, then there will likely be some disappointed wealthy families out there. Given the activity-based nature of the existing regulatory regimes, there doesn’t appear to be any near-term prospect of family office regulation. n KIRSTEN MOREL is a freelance finance writer
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THE EXPERT VIEW Simon Foster, CEO of TY Danjuma Family Office, gives his take on the state of play in family offices. “The regulation of family offices is an interesting issue. In recent years, the regulation we’ve all had to deal with has grown phenomenally. Relatively recent developments such as FATCA and CRS are just the tip of the iceberg. In my opinion, given initiatives such as BEPS, further regulation is inevitable. Whether the form of this is general or specific remains to be seen. “There are a number of issues from a family office perspective. There’s no doubt that family offices are becoming more relevant to financial services as a whole. There are more family offices than ever before, and they directly control a larger proportion of economic wealth. In many ways, the family office world feels like the hedge fund industry in the 80s – deep pools of wealth with very thin regulatory attention. I don’t think this will continue in perpetuity. At some point, the regulators will want a deeper understanding of this corner of financial services. “I’m also very interested by another impacting trend. A number of funds and regulated entities are returning external funds and saying they are now family offices. Effectively this is a movement from regulated financial services to unregulated spheres. Again, I don’t think the regulators will allow this to continue in perpetuity. “As CEO of a family office, I don’t think regulation is necessarily a bad thing. In some circumstances, it can be very beneficial. We represent a family from an emerging economy with politically exposed person (PEP) status. This means we spend huge amounts of time explaining background and dealing with KYC issues. If there were some form of regulation, it could dramatically streamline our process – it would be far more efficient to explain who we are and what we do once to the regulator than the current situation of in-depth KYC with each and every financial counterparty.”
New Act targets facilitation of
Anthony Williams, Partner at Appleby in Guernsey, examines how Channel Island firms may be affected by a new corporate criminal offence ON 27 APRIL 2017, the Criminal Finances Act 2017 (UK)
received Royal Assent. It’s expected to come into effect in September 2017, and will introduce the new corporate criminal offence of failing to prevent the facilitation of tax evasion. The Act will have extraterritorial effect and potentially render financial services businesses in the Channel Islands, and more broadly, criminally liable for the acts of their employees in connection with tax evasion. The new corporate criminal offence will attach to ‘relevant bodies’, including companies and partnerships, that fail to prevent the facilitation of UK and foreign tax evasion. It will not apply to ‘natural persons’. For either the UK tax offence or foreign tax offence to apply, there must first be a criminal offence of tax evasion by a taxpayer. The second element of the offence is criminal facilitation of tax evasion by an ‘associated person’ of the relevant body, who may be an employee or agent or ‘any other person who performs services for or on behalf of’ the organisation. In respect of both these offences, there doesn’t need to be an actual conviction – but prosecutors will be required to prove to the criminal standard (beyond reasonable doubt) that the two underlying offences have been committed. The provisions of the Act dealing with the offence of failing to prevent the facilitation of UK tax evasion will have extraterritorial jurisdiction in that they may apply to organisations and conduct outside of the UK – a Guernsey- or Jersey-based regulated corporate service provider or bank with no nexus to the UK, for instance. In the case of the offence for the failure to prevent the facilitation of foreign tax evasion, the relevant body must have a sufficient nexus to the UK – be incorporated or conduct business in the UK, for instance – or its associated person must have carried out the criminal facilitation in the UK. There must also be dual criminality in that: ● Under UK law, the actions of the taxpayer and facilitator would be a criminal offence
● The foreign jurisdiction has equivalent offences at both taxpayer and facilitator level. In the event that the first two elements of the offence are made out, the relevant body will be strictly liable for the offence. This aims to overcome the difficulties in attributing criminal liability to a relevant body for the criminal acts of employees, agents and those that provide services on its behalf. Therefore, there will be no need for prosecutors to prove that the directors and senior management of the organisation knew that the offences were being committed. In the event that the relevant body is guilty of the offence under the strict liability regime, potential sanctions include unlimited financial penalties. Any convictions may also have regulatory reporting requirements and consequences in terms of possible sanctions for the organisation and its officers. The only defence to the facilitation offence is if the relevant body has put in place reasonable prevention procedures to prevent the criminal facilitation of tax evasion by an associated person, such as an employee or agent. What is a ‘reasonable prevention procedure’ will be specific to the nature and risks of the business and involve a proportionate risk-based assessment. It’s expected that guidance will be published about what constitutes such reasonable procedures. It’s clear that the impact of the new corporate criminal offence will be significant and far reaching. The UK has demonstrated its commitment to fighting tax evasion and in doing so is prepared to police such conduct beyond its normal boundaries. Offshore providers of financial services may be exposed to the risk of serious criminal sanctions in the event of a successful prosecution by the UK authorities. In the interim, however, those companies that may be affected by the new corporate criminal facilitation offence can mitigate risk by reviewing and updating their policies and procedures as soon as possible. In particular, affected businesses ought to undertake the following: train staff; review tax evasion risk profile; review policies and procedures; monitor risks; conduct due diligence on service providers; and ensure a strong corporate governance and reporting structure (including procedure for whistleblowing). n
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International pensions find a home in the Channel Islands Mark Lindsay, Head of Pensions at Intertrust, explores what Guernsey and Jersey have to offer the international pension markets and how recent trends are playing their part in shaping that offering THE POPULATION OF the developed Western world is ageing as the workforces of developing nations are growing. These factors are resulting in an increased focus on planning for the future and a subsequent examination of international pensions as viable vehicles for planning. The Channel Islands have a long history of providing pension services to a range of international clients as part of their broader financial services offering. These services range from bespoke individual investment management to administration services for large institutional pension schemes, and complement the islands’ associated skills in fund and trust services. Today, the islands provide the full gamut of pensions services, including trustee and administration services for international and domestic pension schemes, legal and actuarial services, payroll support and other fiduciary services. Yet the landscape is changing. Defined benefit (DB) schemes are neither as prevalent nor as popular as they once were; changes to Qualifying Recognised Overseas Pension Schemes (QROPS) could have a significant impact on the islands; and there’s a greater appreciation among today’s workforce that they need to be aware of their pension arrangements and potentially be playing an active role in managing them. Change always yields opportunity, however, and the islands have historically risen to the challenge. In recent times, an established, mature financial services
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industry with a relatively large number of experienced professionals has been the bedrock of stability that’s allowed the islands to adapt to and innovate in the face of change – and that should prove to be the case with pensions as well. The range of services available, and the level of expertise, make the islands the jurisdictions of choice for the provision of pensions and related services, a message that the islands need to highlight more vociferously to the world at large.
TIGHTENING REGULATION One of the most significant changes to the industry is an increased emphasis on regulation. The financial services industry has always been highly regulated, but there is now an increased focus on pensions, with factors such as pension release scams and mis-selling of investment products helping to drive better governance. The recent introduction of QROPS transfer taxes, FATCA and Automatic Exchange of Information regulations are designed to enhance the regulation and governance of all cross-border arrangements. While this may initially seem problematic, the changes and subsequent drive to regulation have actually been largely welcomed in the islands. There is recognition in the industry that the relative lack of regulation on pensions and providers of pensions-related services is a hindrance to marketing the product, and the islands’ offering can only be enhanced
by appropriate levels of regulation. The very fact that dialogue between industry bodies here, HMRC and other global authorities is ongoing is a positive factor and testament to the islands’ reputations. Both Jersey and Guernsey are currently looking to extend the remit of their respective regulatory bodies to bring the pensions industry more closely under it.
GREATER GOVERNANCE Aligned to regulation is the issue of good governance. Sponsoring employers of defined contribution (DC) pension plans are under increased scrutiny as a result of the recent changes. This is an important area of focus in the onshore world and is becoming an equally important issue in the offshore world. So what should sponsoring employers know against the backdrop of increased regulatory scrutiny? 1. Make sure the trustee has the required knowledge and understanding to fulfil its role. 2. Ensure your trustee works efficiently with you as the sponsoring employer of the pension scheme. 3. Work together with your trustee to recognise and manage conflicts of interest. 4. Demand good administration of the pension scheme and communication with members. 5. Be clear about the trustee’s responsibility around investment governance.
6. Understand how the trustee can get value for the pension scheme members. These are just the basics for good governance, but each point is important and worthy of serious consideration and interrogation in the current landscape.
THREE PILLARS OF EXCELLENCE If the Channel Islands are to be taken seriously as the jurisdictions of choice for pension services, then practitioners and the industry need to be more vocal in stating the credentials of the local sector. The Channel Islands are particularly suitable for providing pension plans, thanks to three key areas of focus: expertise, a stable political environment and supportive governments. Pensions don’t exist in isolation; they rely on a network of support functions – from administration to large-scale trustee services – to operate smoothly and perform to their optimal level. The Channel Islands have these functions in abundance; there are truly excellent people and firms on the islands to fulfil the needs of sponsoring employers when it comes to requiring those services for their international pension schemes. This certainly helps set the islands apart as jurisdictions of choice. We’ve heard plenty over the past few months about the virtues of a ‘strong and stable’ government, and in the islands we can certainly attest that these attributes are conducive to business. The political systems in both islands benefit from longevity and strong reputations internationally in both political and financial circles. Furthermore, both governments are supportive of the industry and provide the correct legislative frameworks to help it achieve its goals and objectives. That includes working collaboratively to find
we are the guardians of people’s future income; people need to know their money is safe
solutions to problems and offer innovative products that the market wants. These three factors engender one key emotion in clients – trust. Trust is especially important in the pensions industry because we, as practitioners, are the guardians of people’s future income; people need to know that their money is safe and being invested, saved and managed in a responsible way.
INVESTING IN THE FUTURE Jersey recently held its inaugural Jersey International Pension Conference as a means of discussing the industry and putting it front and centre of the Channel Islands’ financial services offering. The three pillars of the industry were referred to time and again and Intertrust’s experience with our clients shows that these truly are the reasons why the islands are so highly regarded. Additionally, we believe the future is bright when it comes to the expansion of the pensions industry on the islands. Most employers we speak to still have a sense
of duty when it comes to providing good, well-managed pension schemes to their employees. While it’s true that many employers are still very serious about offering high-quality pension schemes, it’s also the case that individual scheme members are increasingly looking to be empowered and take some ownership over their plans. At Intertrust, we’ve recently launched InVision, a financial modelling tool that provides clients with a detailed analysis of expected outcomes and empowers users to feel confident in their decision-making. InVision is interactive and user-friendly and will provide our clients with an indication today of what their pension savings will provide them with in the future, when the time comes to draw down their entitlement. Plan members taking ownership and being responsible for their future financial planning is music to the ears of employers and many in the industry – and that, together with new work from developing economies such as the Middle East, South America and Africa, suggests that there is plenty of scope for expansion in pensions and pension services in the islands and we’re right to regard ourselves as the field’s jurisdictions of choice. n
PENSIONS AND INTERTRUST
To learn more about international pension plans, get in touch with Mark Lindsay on +44 (0)1534 504000 or email mark.lindsay@Intertrustgroup.com Intertrust Jersey is regulated by the Jersey Financial Services Commission and Intertrust Guernsey is regulated by the Guernsey Financial Services Commission.
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Acrimony and alimony the world of high-net-worth divorce Divorce can be messy at the best of times, but when vast sums of money and complex assets are involved, it can make the whole sorry business far more difficult Words: David Burrows THERE’S NO SHORTAGE of bitter divorces these days and the tabloid papers
are invariably on hand to divulge all the lurid details. One minute, a celebrity couple are pictured in Hello! as the epitome of domestic bliss; the next they’re in the courts assassinating each other’s good name. Divorce among the rich and famous can make for enthralling reading – the amounts of money can be one thing, the level of acrimony something else altogether. Comedian and actor John Cleese was incensed at the size of the divorce settlement he was forced to pay his third wife, to whom he was married for 16 years. He claimed it made her richer than him. In 2009, Cleese was ordered to give his former wife, Alyce, £8 million in cash and assets, which included a New York apartment, a £2 million mews house in central London, and half the proceeds from the sale of a beach house in California. The Monty Python and Fawlty Towers star publicly claimed that the severity of the settlement forced him to go back into work. Unlike his two previous divorces, Cleese’s third was anything but amicable. He commented caustically at the time: “I got off lightly. Think what I’d have had to pay Alyce if she had contributed anything to the relationship.”
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Unsurprisingly, expensive and fractious divorce settlements can also be incredibly drawn out, with the wealthier party not exactly bending over backwards to disclose their total net worth. As Samantha McFadzean, Counsel specialising in family law at Carey Olsen, explains, the time taken to settle can be quite tactical. “In terms of a spouse securing a financial settlement, it’s not uncommon for this to take eight to nine years. The court needs to know the value of assets to make a settlement, and husbands aren’t always willing to disclose their assets.” She stresses that the court will make a decision eventually, but the process can really drag. The intransigence on the part of the husband is often in the hope that the spouse will either lose heart or, in some extreme cases, die.
Even when a divorce is amicable, valuing assets accurately can often be difficult. Barbara Corbett, Partner at Benest Corbett Renouf, reveals: “It’s relatively easy to value houses and trust assets, but it’s more complicated when you have to value businesses with assets in far-flung areas of the world. There are often wild fluctuations in the valuations of overseas businesses.” Charlie Bell, a specialist lawyer in matrimonial finance at Vardags, takes a similar line. “You can spend many thousands of pounds on an evaluation of what a business is worth. It’s far more complex than property as there are more moving parts,” he explains. “A husband might deliberately try to understate the value of the business. This is far more common than just outright non-disclosure.” Is it harder to get a true value of the assets when they are so large? McFadzean explains that it’s not necessarily the size of the sums involved that prove challenging, but more the unwillingness of one or both parties to be transparent and settle amicably. If there’s a willingness to reach an agreement as swiftly as possible, and the assets are straightforward and predominantly onshore, the sums involved aren’t a pivotal factor. Bell agrees: “With some divorces, the sums involved might be relatively modest, but there may be a large overseas property portfolio. There could be complex tax implications with tax charges applicable in, say, the US and the UK.” That said, it’s not uncommon for the wealthier person in a marriage to try to hide their finances, so that their spouse can’t get it. And the methods employed to do this aren’t always legal. Matt Heyworth, Partner at Pitmans Law, believes it goes beyond just non-disclosure of a bank account. “We’ve seen people forging documents, scanning a letter and then changing the figures. You need to look at every document and question the authenticity. There have been cases where an original letter from HMRC is requested by a legal team and it’s massively different from the one submitted [by the husband or wife].” In some cases, parties are put under surveillance to get to the truth. “The old-fashioned private eye is sometimes used – not to establish who’s sleeping with who, but whether an asset exists or not,” says McFadzean. “For instance, if a husband alleges that a classic car doesn’t belong to him, a private eye will endeavour to provide evidence to a legal team that he is, in fact, driving it around.” Of course, such levels of scrutiny, whether it be private eyes or forensic accountants, are only worth financing when the sums involved in a prospective settlement are very large, as it’s a very expensive procedure. Even when a ruling is given on a protracted divorce, there’s a possibility that it might be overturned. As Hayworth explains: “A judgement can be overturned if material non-disclosure can be proved. For instance, if there’s a bank account with £250,000 in it which hasn’t been disclosed, the court is within its rights to overturn and make a new ruling.”
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SHOW ME THE ASSETS
It’s not necessarily the size of the sums involved that prove challenging, but more the unwillingness of one or both parties to be transparent and settle amicably
McFadzean makes the point that if, say, two years after an agreement it becomes apparent that a husband does have an interest in a company to which he’d previously denied any link, the court can reopen the case. She also refers to what are termed ‘Barder Events’. “This relates to changes in circumstances that couldn’t have been contemplated before,” she says. “It might be the case that six weeks after an agreement is reached, the husband is told he has three months to live. The court could then reopen proceedings.”
YOUR CHEATING HEART Hollywood prenuptial agreements make for interesting reading. The infidelity clause in Justin Timberlake’s prenup with Jessica Biel is a case in point. It’s reported that Biel will be compensated to the tune of $500,000 if Timberlake strays from the matrimonial bed. There’s trust for you! But away from the absurd world of A-list celebrities, are prenups and postnups on the rise? The general consensus is that there’s been a marked increase in both the UK and the Channel Islands. “We’ve definitely seen an increase of prenups in the islands,” says Barbara Corbett. “In Jersey, you can make a claim even if the spouse isn’t included in the will. A prenup can deal with this. It’s not just a case of a wealthy person protecting their assets; it’s about providing surety and reassurance, particularly when children from a first marriage are involved.” Bell agrees that prenups are on the increase and serve a very practical purpose. “Prenups aren’t sinister or about distrust, but about providing clarity and assurance.” He adds that there’s been a big increase in prenups post-2010 following the ruling that German heiress Katrin Radmacher’s prenup (an attempt to protect her £106 million fortune) was enforceable. Before then, there was little weight attached to prenups. This is a point that Heyworth echoes. “Prenups are now worth the paper they’re written on. Assuming there’s provision for a
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spouse’s defined needs, then both parties should expect to be held to the prenup and that any capital built up before the marriage is protected.” Postnups are also growing in popularity. As with prenups, they’re more likely to be enforceable post-2010 and they do offer distinct benefits. “If you’re very close to the date of a wedding, it might be more appropriate to opt for a postnup rather than rush into a prenup arrangement,” says Bell. “Another scenario might be that there’s been adultery on one side and while the other party is prepared to give the marriage another go, they want some security in place if things don’t work out.”
IN YOUR COURT With regards to laws and how different jurisdictions treat divorce cases, there are notable differences that can affect where court proceedings take place. For instance, in Jersey you must be married for three years before you can file a divorce petition (in the UK it’s one year) and there’s no pension sharing order. In terms of how cases are treated, McFadzean says the paying party tends to be better off in a Jersey court. “London has a reputation for being more generous when it comes to maintenance payments,” she says. But she adds that the Channel Islands are behind the curve on divorce law – and cites the three-year rule. Heyworth agrees that England is still more generous in terms of spousal maintenance payments but that’s starting to change – particularly how long payments are made for. He argues that the Channel Islands now have an opportunity to lead the way in pushing for all prenups to be legally binding and for ‘no fault’ divorces – where no party blames another party for the breakdown of a relationship. The court determines whether the marriage has failed and what for. Whether the islands rise to the challenge is another matter. n DAVID BURROWS is a freelance finance writer
Weighing up the UK Trust Register EMMA HOSKING-WILLIAMS, a director in Private Client & Trust at EY in the Channel Islands, considers the impact of a new anti-money laundering measure IN JUNE 2015, the EU introduced the
Fourth Money Laundering Directive (4MLD), which requires Member States to have implemented it through national law by 26 June 2017. The Directive introduced numerous measures designed to increase transparency and identify beneficial owners of companies, partnerships and trusts. The UK has adopted most of the measures introduced by 4MLD – the Public Register of Persons with Significant Control (PSC Register) for companies and partnerships is one of the most high profile. The final measure to be introduced by the UK is a new central Trust Register. On 19 May 2017, HMRC quietly announced that Form 41G (a form used to register trusts and estates for UK self-assessment tax returns) had been withdrawn and would be replaced by a new Trusts Registration Service during summer 2017. Little has been made of the new service, which is being introduced as part of HMRC’s Making Tax Digital agenda. Previous announcements and updates have been lost among the proposals for wide-reaching changes to the UK’s nondom and residential property tax regimes. However, whilst those changes were postponed in the run-up to the general election, the new Trust Register is to be introduced as planned.
WHAT DOES THE REGISTER ENTAIL? The Trust Register will be a central register held by HMRC and updated annually by trustees. Information to be provided includes: ● Details of trust assets, including values and addresses where relevant ● The identity of the settlor, trustees, protectors, beneficiaries or class of beneficiaries, and any other persons exercising effective control over the trust. Identity information required will include: • Name • Date of birth •N ational Insurance number if UK resident, unless they are a minor • For those with no NI number, an
address and passport or ID number. The register will apply to any and all trusts with a UK tax consequence, which could include an income tax, capital gains tax, inheritance tax or stamp duty land tax liability. Registration also applies to trusts that have already registered with HMRC.
WHEN CAN TRUSTS BE REGISTERED? The Trusts Registration Service isn’t currently available, but is expected to be fully operational this autumn. Trustees have been asked to delay notifying HMRC of a new trust or complex estate until the new service is up and running. The Trusts Registration Service is being delivered through a number of phases – initially only lead trustees or personal representatives will be able to use it.
WILL THE REGISTER BE PUBLIC? There’s no requirement for the Trust Register to be made public at this stage. Instead, it will only be made available to law enforcement and other relevant authorities on request. Notwithstanding the above, on 28 February 2017 the EU’s Economic and Monetary Affairs Committee and the Civil Liberties Committee agreed amendments to expand the scope of the 4MLD to introduce a public beneficial ownership register for trusts. The changes are being debated by the European Parliament, EU Commission and the European Council, and the European Parliament has indicated a desire for negotiations between the three EU bodies to be completed by 30 June 2017. This doesn’t yet mean such public registers will be implemented, but it’s clear that there are strong views in Europe, both for and against the measure.
IMPACT FOR TRUSTEES The requirement to provide ownership information for
trusts to a central authority will be a new obligation for trustees and is likely to present a number of challenges. The category of persons to be reported is very wide, going far beyond what was required on Form 41G. The initial consultation suggested that any persons named on a letter of wishes would need to be reported. This requirement hasn’t been included in the latest guidance and we await further clarity on the extent to which beneficiaries need to be reported. The valuation of trust assets also takes on added importance as there will now be a requirement to report asset values. It’s currently unclear whether formal valuations are required, or if valuation rules under acceptable accounting standards can be used when reporting the value of assets. The lack of clarity on these matters makes it very difficult for trustees to plan for the new Trust Register. However, in the absence of further guidance, trustees should ensure that they at least have up-to-date documentation for settlors and active beneficiaries. n
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A BLUFFER’S GUIDE TO: Finance
THE CHANNEL ISLANDS NEW FUNDS REGIMES In the past year, both Guernsey and Jersey have sought to improve their funds offerings by creating new private funds regimes – but what exactly are they and will they bring the benefits many expect? 46 July/August 2017
AGAINST A BACKDROP of regulatory and market pressures increasingly weighing on the Channel Islands’ finance industries, the funds sector has been a bright light in attracting new business and helping the islands maintain their reputation as leading international finance centres. In revamping their fund offerings, both Guernsey and Jersey have focused on private funds that target sophisticated and institutional investors rather than the retail market. In contrast to Guernsey, Jersey has had a private funds regime since 2012, but the new offering, introduced in March of this year, is intended to be more attractive than its predecessors. Guernsey’s Private Investment Funds regime became a reality in November 2016. It’s intended to give the island’s finance sector an entirely new regulatory framework that it hopes will bring new business to the island. Here’s what you need to know about these new offerings…
WHY HAVE GUERNSEY AND JERSEY INTRODUCED THESE NEW FUND REGIMES? At the end of 2016, Jersey was home to 1,195 regulated funds and 120 unregulated funds totalling more than $300bn in net asset value. At the same point, Guernsey played host to approximately 1,000 funds with an overall value of more than $250bn. Given the clear success of the funds sector in the islands, it has to be asked why the industry hasn’t adopted an ‘if it ain’t broke, don’t fix it’ mentality, rather than choosing to tinker with its offerings. “It’s mainly in response to demand from fund managers and investors, but it’s also a response to competitor regimes,” says Mike Byrne, Chair of the Jersey Funds Association and Partner at PwC in Jersey. “The new offering represents a move to a more private and less regulated funds regime, which reflects the institutional nature of investors in Jersey funds.” In contrast to Jersey’s revisions to its existing regime, 2016 saw Guernsey introduce its Private Investment Funds (PIF) regime. “Guernsey introduced PIFs in response to market demand,” says Annette Alexander, Partner at law firm Carey Olsen. “The new regime ensures that fund managers have a choice of products to meet their investors’ needs.”
WHAT ARE THE MAIN DETAILS OF GUERNSEY’S PIF REGIME? One of the key aims of Guernsey’s new PIF regime is to enable smaller funds to operate within a clearly defined regulatory environment whilst also allowing for faster speed to market.
WHAT ARE THE MAIN DETAILS OF JERSEY’S NEW REGIME? As in Guernsey, Jersey’s new private funds regime limits the number of investors to 50 – under both regimes, a single investor can be a fund with many investors itself – but it also limits the number of people (legal entities) to which it can be marketed to 50. Jersey has had a private funds regime for some time but the new system is designed to bring a complex, three-pronged approach under one, easy-to-use umbrella. “Simplification of the regulatory framework is the main thinking behind the new regime,” says Nick Solt, Managing Director at Moore Stephens Funds Services. “Whilst we previously had all areas covered with the COBO [Corporate-Owned Business Only], Private Placement Funds and Very Private Funds regimes, you had to explain each one to prospective clients. “Besides simplification, the main points of interest are the 48-hour registration period, 50-investor limit, and no requirement for promoter approval.” This last point is important and common to both islands. Rather than seeking to approve and regulate the fund promoter and manager, regulation falls at the level of the administrator, essentially putting the administrator in the position of approving the other parties. Unlike Guernsey, Jersey has created a
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Words: Kirsten Morel
“In Guernsey, there’s been a gap in the market,” says Matt Sanders, Group Partner at law firm Walkers. “Previously, funds needed to be authorised or registered and there was quite significant time and expense associated with setting them up. “You were either a fund and therefore had to do quite a lot of work to become authorised, or not a fund, which created an incentive for smaller arrangements to be ‘not a fund’.” Whilst the new PIF regime includes a promise that the Guernsey Financial Services Commission (GFSC) will turn around the paperwork within one working day, Sanders feels that the regulator was never the reason for the slow speed of the established regime. “The time it takes the GFSC to turn a fund around isn’t the issue,” he says. “It’s the work to be done before then that takes the time.” As well as the faster speed to market, Guernsey’s new regime places a limit of 50 investors on funds that operate as PIFs, but it doesn’t limit the number of people to whom you can market a fund. The rules also stipulate that a maximum of 30 new investors may join the fund on a rolling 12-month basis. There’s no monetary definition of a ‘professional investor’ and the fund must have a licensed manager, although no rules are set against them.
HAS THIS POSITIVE START TRANSLATED INTO UPTAKE? “Within four weeks of launch, five funds had been set up under the Jersey regime, a mixture of private equity and real estate funds,” says Di Santo. As to Guernsey, he says: “Uptake has been a bit slower, but leading private equity fund managers are showing interest.” Guernsey’s regime was put in place four months prior to Jersey’s regime and, at the time of writing, Alexander says: “Four funds have been set up, of which Carey Olsen was involved in three.”
financial definition of a ‘professional investor’ by imposing a minimum initial investment threshold of £250,000.
SO, WHAT DOES THE INDUSTRY THINK? To say that these changes have been warmly welcomed wouldn’t be overstating the strength of positive feeling coming from the islands’ fund sectors. “The launch of the PIF has been enthusiastically welcomed by service providers,” says Annette Alexander. “They see it as increasing the choices available to fund managers to serve investors’ needs and for reducing the time and cost to launch.” Jersey’s regime was put to stern test at the Jersey Finance funds event in London in March, but according to Alex Di Santo, Director of Funds Services at Intertrust, it passed with flying colours. “Jersey Finance spoke to a lot of fund practitioners in London and there was definitely a general sense of excitement about the new regime,” he says.
the PIF has been enthusiastically welcomed by service providers. They see it as increasing the choices available to serve investors
WILL ONE ISLAND HAVE AN ADVANTAGE OVER THE OTHER? This brings a resounding “No” from Alexander. “The regimes in the two islands have slightly different features, and fund managers may be attracted to either island depending on their particular needs. For instance, in Guernsey, you need a Guernsey-based licensed manager, which lends itself to PE vehicles. At the end of the day, promoters will choose the regime that suits them best.” “It’s good for both islands,” says Nick Solt. “There are slight nuances between the two – for instance, there’s no investor warning in Guernsey, but the new regimes give both islands something to offer investors. The only real measure will be in 18 months’ time when we look at the numbers to see how popular each island has been.”
HAS BREXIT HAD ANYTHING TO DO WITH THESE NEW REGIMES? Although the new regimes don’t appear to be a direct reaction to Brexit, that doesn’t mean they won’t play a role in helping the islands deal with the aftermath. “Brexit forces us to be more nimble, so we can show we are a credible alternative jurisdiction,” says Mike Byrne. “The new regime demonstrates that Jersey offers alternatives.”
SO, GOOD NEWS ALL ROUND… “There’s no doubt that the new regime has been welcomed by the industry,” says Matt Sanders. “There was a gap in Guernsey’s offering and there was a perception that work was being lost as a result.” “It really is good news,” concludes Alex Di Santo. “The products are attractive for speed, efficiency and cost. And they give a positive message about the Channel Islands making it simple to set up funds. I’m certainly optimistic.” n KIRSTEN MOREL is a freelance finance writer
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Moore Stephens Fund Services An offshore, specialist, bespoke service. Providing fund accounting and administration services for both private and institutional clients. We have long standing relationships with investors from multiple jurisdictions, delivering high quality reporting that can be created to suit client needs and requirements. For further information please email: email@example.com or telephone: +44 (0)1534 880088
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www.blglobal.co.uk July/August 2017 49 Regulated by the Jersey Financial Services Commission.
a place you can call home
Geri O’Brien, Director, Residential Sales, at Savills in Jersey, explains what the island has to offer and why people choose it as a place to work and live LONG SANDY BEACHES, tiny coves and heather-covered cliffs sloping down to picturesque beaches and harbours. The lanes in the countryside run past a mixture of modern and period properties – the older buildings constructed from the rose-coloured granite of the island. With its picture-postcard image, famed golden beaches, pretty countryside and spectacular historic sites, Jersey is a wonderful place to live. While there’s no particular favoured area on Jersey – all parts of the island are desirable – cosmopolitan and historic St Helier is an obvious focus for many. The island’s landscape is astonishingly varied, and it’s this that often dictates the choice of location. The northwest corner, around St Ouen and St Peter, is very like Cornwall, with sheer cliffs and high ground. In the southeast, near Grouville, the flat scenery is redolent of the Lincolnshire Wolds. There’s a superb choice of property on offer on the island, both old and new, ranging from chic apartments and cottages to
we understand that such an intensely local market needs a highly personalised service to accommodate the requirements of our clients 50 July/August 2017
traditional granite farmhouses and sizeable estates. New-build homes on the island are also popular, designed with the wants and needs of modern house-buyers in mind. There are lots of exciting projects under way, with new-build properties being reserved very quickly across the island. There are pros and cons of buying old and new. Much like buying a car, it’s a choice between the vintage and charm of the original (with all of its quirks) or whether you want a slick model that’s been customised and built for you. At the moment, the majority of those relocating are families moving from the UK mainland, attracted by the beautiful scenery, safe community and excellent schools. These include St George’s Preparatory School in St Peter; St Michael’s Preparatory School and Jersey College Preparatory School in St Saviour; Victoria College Preparatory School in St Helier; De La Salle Roman Catholic College for boys and Jersey College for Girls in St Saviour; and Victoria College for boys and Beaulieu Convent School for girls in St Helier. The beauty of Jersey’s landscape and its coastal waters means that there are endless sporting opportunities available – sailing and watersports are particularly well catered for and there’s an extensive marina at St Helier. For those who are more inclined to a spot of retail therapy, the island features numerous independent businesses alongside top-end high street names.
MAKING THE MOVE It’s important that anyone thinking of moving to Jersey understands the residency rules – and that starts with registration cards. These have replaced social security cards and show a person’s name, social security number, residential and employment status, and the card’s expiry date. You will need a registration card if: you move to Jersey; you live here and buy or lease a new property; you live here and start a new job with a new employer.
Rich pickings: Tamarisk (facing page) has been on the market for £2.95m; Thornhill (below) for £1.495m; and Francfief Farm (bottom) for £3.45m
or is married to someone who’s ‘entitled’, ‘licensed’ or ‘entitled to work’. They can buy property jointly with an ‘entitled’ spouse/ civil partner, and can lease ‘registered’ (previously ‘unqualified’) property as a main place of residence. They are allowed to work anywhere and don’t need a licence to be employed. l Registered – Someone who doesn’t qualify under the other categories can lease ‘registered’ property as a main place of residence. An employer needs to have a licence to employ a ‘registered’ person. There are also two housing categories in Jersey. ‘Qualified’ properties include those classed as ‘A-H’, ‘A-J’ and ‘A-K’ before July 2013. In general, all other property is ‘registered’, which was previously ‘unqualified’. There are exceptions to the rule, however. In Jersey, the Chief Minister can grant ‘entitled’ status to a high-value resident if he is satisfied that doing so will have a social or economic benefit, and is in the best interests of the community. If entitled status is granted, you can buy or lease property in Jersey as your main place of residence on the island. The Population Office normally requires that you buy or lease a high-value property – generally valued in excess of £1.75 million. The island is actively encouraging applications from potential high-value residents and those who are looking to move their business to Jersey.
IN THE MARKET
Due to the relatively small size of the island, there are special housing categories and rules designed to control population. Under the Control of Housing and Work (Jersey) 2012 – the system for residential qualification – four categories determine where you can work and live: l Entitled – Someone who has lived in Jersey for 10 years can buy, sell or lease any property. They can work anywhere and don’t need a licence to be employed. l Licensed – Someone who’s an ‘essential employee’ can buy, sell or lease any property in their own name provided they retain licensed status. An employer needs a licence to employ a ‘licensed’ person. l Entitled to Work – Someone who has lived in Jersey for five consecutive years immediately before the date the card is issued,
Property prices in Jersey have seen three periods of strong growth during the past three decades, according to the States of Jersey, with increases in house prices peaking in 1989, 1998 and 2008. For each of these years, annual price increases of more than 20 per cent were recorded. In the past, such peaks were followed by periods of slower growth. Having proved resilient during the global financial crisis, price growth has been flat over recent years, but the latest statistics from the States of Jersey show that the turnover of properties in Q4 2016 was the highest recorded quarterly figure since 2006. Overall housing market activity, on a rolling four-quarter basis, was four per cent higher than in the previous quarter (Q3 2016), and 17 per cent higher than in Q4 2015. As Jersey’s only residential agent with a global profile, Savills has an unrivalled reach and the widest range of expertise on the island. Yet we understand that such an intensely local market needs more than scope and profile – an insider’s knowledge and a highly personalised service are essential to accommodate the requirements of our clients. Buying property on Jersey differs from mainland transactions because of the different jurisdiction – we offer all the practical support and legal guidance you need, tailoring our service to our buyers’ requirements. Our teams share Savills’ register of UK buyers, and we liaise closely with our London and international offices to make sure we achieve the widest possible exposure for our clients’ properties. This unrivalled access to worldwide markets maximises opportunities for a successful sale. We find that this tailored approach is perhaps the most rewarding aspect of working in this market. And it’s obviously appreciated, because we have a high level of repeat business. Savills Jersey is your gateway to a comprehensive range of expertise in all aspects of property ownership. Whether we’re selling your property or helping you to buy one, our time and knowledge are yours. The continued growth of global wealth management represents a compelling opportunity for Jersey’s economy. Such an active economy is very much reflected in an active housing market in Jersey. n
SAVILLS IN JERSEY
To find out how Savills in Jersey can help, call Geri O’Brien on +44 (0)1534 722227 or email firstname.lastname@example.org
www.blglobal.co.uk July/August 2017 51
WAS always right With social media regularly exposing company failings, it seems that many firms have their own interests at heart rather than their customers’
Words: Dave Waller EARLIER THIS YEAR, David Dao, a 69-year-old doctor and father of five, was sitting aboard United Airlines Flight 3411 at Chicago’s O’Hare airport, about to enjoy a routine trip back to Kentucky to treat patients the following day. Then three airport police officers arrived and asked him to get off the plane. And when he refused they dragged him from his seat, carried him down the aisle like a corpse and ejected him from the craft. Why? Because the flight was overbooked and United Airlines needed space on board for the crew from a partner airline. It was an everyday problem that could have been so easily sorted in civilised calm back in departures. But soon, the same phones that had eagerly captured the unfolding incident were filming Dao returning to the plane, glasses broken and face bloodied, pacing around bewildered and repeating the mantra: “I have to go home…” And suddenly the world had graphic evidence of a very distorted view of customer relations. United’s CEO Oscar Munoz’s immediate response was to write off Dao as ‘belligerent’. It seems United may have paid too much heed to the words, and the bellicose tone, of Ryanair boss Michael O’Leary. He once responded to the notion that the customer is always right by saying: “You know what – they’re not. Sometimes they’re wrong and they need to be told so.” Indeed, while the United incident was a rare case of a corporation violently informing a customer of its decisions, others are at it in more subtle ways. Take British Airways,
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which received a raft of complaints when its IT systems failed over the May Bank Holiday, grounding passengers at airports around the world, including Heathrow and Gatwick. It left customers up in arms about the lack of assistance they received as they camped out on the airport floor. BA’s Chief Executive, Alex Cruz, maintained a conspicuously low profile. All of which prompted The Guardian to point out that the customer was meant to be king, and to suggest such treatment was now the ‘new normal’. So, is the idea of the customer always being right now an anachronism? The slogan was popularised by the likes of Harry Gordon Selfridge, founder of the eponymous London retailer, way back in the early 20th century. It certainly was a different time back then – Selfridges boasted reading and writing rooms, and even a Silence Room, where punters could ‘retire from the whirl of bargains and the build up of energy’. If a customer wished to contact the shop, all they had to do was dial its phone number – 1. These days, customers are likely to be dealing with sprawling corporations, having to endure interminable instructions from an automated phone voice if they wish to query their gas bill, and paying upwards of £100 for a four-hour train journey, yet still finding themselves standing. And if they have a complaint? The increasingly well-remunerated bosses will be on another planet – and it’s more time lost in the limbo of an automated phone queue.
Of course, it may simply be the case that it’s harder to maintain close customer ties in an era where companies are getting bigger, margins are being slashed, and everything happens at a speed that would have sent Mr Selfridge not only to the Silence Room, but barricading himself in. “I’d say it’s harder to get customer relations right these days,” says Charlotte Dunsterville, Customer Experience Director at Sure Communications in Jersey. “Let’s face it, it’s not an easy thing to do in times of cost-cutting and efficiencies. And now there’s massive customer expectation that just grows and grows – companies can’t afford to stand still.” The cost of inertia could in fact be very high. Bank of England Chief Economist Andy Haldane recently suggested that UK corporations risk ‘eating themselves’ because they’re too focused on the short-term goal of pleasing their shareholders, rather than truly sharing the benefits of their business with their customers. Meanwhile, Edelman’s annual Trust Barometer (this year headlined Trust in Crisis) shows that globally, only around half of people trust business to do the right thing. In the UK, that figure is down to 45 per cent. You only need look around to see the connection between declining trust in our systems – which people don’t feel are on their side – and the disconcerting rise of populism, where vast power shifts towards those who can exploit these feelings and offer a sticking plaster, no matter how simplistic or divisive. “I’d say that there’s no excuse for poor corporate behaviour,” says Adam Riddell, a Director at Crystal PR in Jersey. “Trust is at an all-time low, and you see the likes of Google or Starbucks making almost voluntary large-scale public tax payments as demonstrations of good societal behaviour. That would never have happened five years ago.
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These are obvious examples of companies realising that they need to be doing more to appease their customers and the wider public.” Riddell makes a compelling point. These businesses are canny enough to realise that these days, customers do still wield a great deal of power – maybe more than ever. And one of the great enablers of this is social media. The only reason most of us were able to see the horror of the United Airlines violence is that people could film it and share it on their phones so quickly. And you only need to look at United’s eventual climbdown – after three days Munoz finally related his ‘shame’ at the incident – to see the power of the viral corporate disaster, especially in an age when some customers run to social media at the drop of a hat.
PEOPLE POWER “Customers have the power,” says Dunsterville. “It’s a case of ‘I’ll tell all my friends and everyone will find out’. As an organisation, it’s harder to get it right – and you’re under more pressure to do so. With social media, there’s so much visibility around how brands interact. Businesses have to be aware that everything these days is in the spotlight.” That’s not to say businesses are in a no-win situation. Everyone makes mistakes; the key is how you respond. Companies that can harness the power of social media may find themselves flourishing. “Customers will be spreading their opinions on companies via social media and letting everyone decide for themselves, and it’s these opinions people now trust more than CEOs, politicians or journalists,” says Riddell. “That is a challenge for businesses, which now have whole avenues they need to be monitoring. “But at least it’s a two-way communication,” he adds. “So companies need to view that as an opportunity to engage and build trust, rather than
being cautious or treating it as too great a challenge.” There are other steps companies can take to ensure their needs stay aligned with those of their customers – listening to them and empathising. Dunsterville, whose company has run Channel Islands customer service awards for the past few years, believes the key is to put yourself in the customer’s shoes. “If United Airlines had just one person actually saying: ‘Imagine this happening to me’, it would have been dealt with in a far more sympathetic way,” she says. “But no one stopped to think that they’re not delivering what the customer booked and paid for.” Dunsterville says Sure operates a simple values system that guides all internal decision-making, and that bleeds out into how its team responds to, and instils trust in, its customers. It’s about asking whether an action is the right thing to do, whether it’s simple, and whether it shows the company acting as one team. “What’s more efficient for a company often turns out to be what’s better for the customer too,” she says. This advice sounds simple, and companies would do well to remember it. For United Airlines, it may be too late. Having settled out of court with Dr Dao, United staff have since managed to upset its customers in several spectacular ways – killing a giant rabbit that was on course to be the largest in the world by locking it in the plane’s freezer; trying to wrestle a violin from a classical musician because she asked if she could carry it in the cabin; and reporting a passenger to the authorities for having his hand too close to his fiveyear-old son’s genitals (later issuing an apology that the passenger insisted ‘wasn’t an apology’). In each case, not only was the customer clearly not considered right, but their needs were barely acknowledged at all. n DAVE WALLER is a freelance business writer
These days, customers are likely to be dealing with sprawling corporations, having to endure interminable instructions from an automated phone voice if they wish to query their gas bill
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56 July/August 2017
As technology advances and business evolves, the people who lead companies in future are likely to be very different to today’s bosses
THE WORLD OF work is changing at
speed. And the demands of a rapidly evolving workforce – not least the oft-cited millennials – mean that leadership is having to change with it. The freedom to use your skills across projects is highly sought after among the adult workforce, and people want to work for companies that foster a feeling of everyone pulling together. Employees also want to work for companies where the boss doesn’t believe life outside the office is simply an
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Words: Jess Furseth
impediment to you working late. But what skills will be vital for future leaders as the workplace becomes more flexible in response to people’s wants and needs?
SOFT SKILLS The fact that interpersonal factors such as approachability, listening and empathy are called ‘soft’ skills shows that they’ve previously been considered less important to business success. But this attitude is becoming oldfashioned. Future leaders will need to place these skills at the centre, because they’re increasingly crucial – and not just because it’s something young people want. “It’s a change we’re seeing across society. We’re starting to think that work isn’t the be-all and end-all. We have a far more creative view as to what life should look like,” says David Cadin, Managing Partner at law firm Bedell Cristin. As artificial intelligence and robots start to make more of a mark on the workplace, Cadin thinks it’s interpersonal skills that will make businesses competitive
in the future. “What will be the important skills where humans can excel? Empathy and engagement,” he says. “These aren’t soft skills – they’re powerful things that can’t be replicated. This is what we should be focusing on. This is what’s going to make organisations flourish in the years to come.” Engaging with people and listening to their wants and needs are also central to good leadership believes John Harris, Director General of the Jersey Financial Services Commission (JFSC). This is particularly true in globally uncertain times, which call for clear leadership. “That means setting a context, direction, strategic understanding, and giving people some semblance of hope for the future,” Harris says. While that used to mean standing up in front of your staff giving them a speech, it now means being visible. “Visibility isn’t just walking around – it means being relevant to people in their daily work life,” Harris continues. “It’s really about engagement – and that means bosses
The fact that interpersonal factors such as approachability, listening and empathy are called ‘soft’ skills shows they’ve previously been considered less important to business success
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should be listening more than talking.” Conversations about what leadership will look like in the future often turn to how we actually go about achieving that much-vaunted ‘flexibility’. Increasingly, people are keen not to be chained to their desks, with ‘part-time’ – historically a dirty word in many corporations – finally becoming a reality. “It’s better to have someone who’s really good for 50 per cent of the time than not to have them at all, if you can accommodate their work-life balance in more creative ways,” says Harris. That may mean, for example, allowing someone to only work during school terms because they have young children. How much you can accommodate people’s desire for modern work arrangements depends on the job, says Harris. If you work in construction, you’ll have to be on site, but in an organisation like the JFSC, there’s no reason why people can’t do some of the work from home. “This is something that’s always been there, but the opportunity to grant it has been accelerated by modern circumstances such as technology, mobility and an increasingly globalised world,” he says. The leadership challenge is then to make sure that this works, not just for the employee, but also for the company. This can be tricky – not everyone can be given special hours, yet the policy needs to apply to everyone.
CLIENT DEMAND It’s generally accepted that the leaders of the future won’t be sitting in ivory towers issuing proclamations. Instead, the nextgeneration boss will be approachable and seen much more as ‘one of the team’. And in the same way that internal leadership has become less formal, the same can also be said for external leadership. “I have clients who want to correspond with me on WhatsApp,” says Lucia Perchard, Director at trust, corporate and fund services firm Zedra. “A lot of their questions will come to me through SMS instead of the more typical routes, such as email or face-to-face meetings.” The younger generation isn’t concerned about how information is delivered to them, says Perchard – though they certainly don’t want to get it in the post. “They want to see it as clearly and
The next generation Kids competing at the Channel Islands Student Business Challenge – a scheme involving schools in Guernsey and Jersey working alongside a range of business partners – are assigned the traditional roles of manager, treasurer, secretary. But once the work starts, they know those names don’t matter. “As the kids go through the project, it becomes clear there’s a naturally strong leader,” says Coordinator Lydia Chambers. And that person isn’t always the one who’s officially in charge. “Kids aren’t hierarchical. They just get on with it.”
quickly as possible, and they want the information delivered in a manner they can absorb instantly.” Sometimes that means simplification. While portfolio evaluations for older generations would mean delivering lots of numbers and figures, Perchard says presentation styles are changing, as the market demands it be “more immediate and visual”. Communication channels aren’t the only thing changing for companies in traditional industries such as finance and law. In order to stay competitive, it’s increasingly important to ensure the company leadership represents the customer base by including women and people from minority backgrounds. “It would be prudent to ensure you have a cross-section of people in a relationship business, so you can offer a variety of relationships,” says Perchard. As someone who specialises in the Middle East market, Perchard is an example of this. “I get to meet with 100 per cent of the market, whereas men may struggle should they wish to hold a private meeting with women in the Middle East. Clients choose the person who they feel reflects their values and who they are.”
Participants are non-territorial while also having a lot of respect for each other’s strengths, says Chambers. She sees the young teams’ fluid thinking as a valuable opportunity to learn. “So many corporations are siloed in their approach, and the younger people I work with are definitely not. They want to use their skills across different areas.” Perhaps this is an approach that future successful companies should be following more closely in developing their leaders.
The best way to keep up with what matters to young clients is to look to the young people in your own company, says Perchard – after all, these are the likely leaders of the future. Perchard often brings junior staff to client meetings to help build up their experience. “Staff retention is always at the forefront of mind in a small place like Jersey, so we try and involve our younger team members and encourage them to start thinking as leaders.” Keeping junior staff happy is a win-win proposition, she says: “People want to be proud of the company they work for, they want to feel valued. That plays across into the client arena – people want to be doing business with a well-regarded firm.”
LEADING EDGE Competition for staff is an ongoing problem in the Channel Islands, but the most successful organisations are those whose leaders know how to stomp out internal rivalry, says Phil Eyre, Founder and Director at consultancy Leaders. “In theory, the Channel Islands is a brilliant place to foster collaboration because we pass each other in the high street all the time. We have the potential
to create a business climate that’s very desirable to those who’d want a more trusting work environment.” The Channel Islands are still going through the growing pains of embracing workplace flexibility, but John Harris thinks there’s plenty of willingness to embrace new ways of working. “We tend to be followers in the Channel Islands,” he says, as it pays to wait to see which solution works out before making the change. But he adds: “On this particular issue, we need to be faster followers than we have been.” Eyre thinks there’s a growing shift towards leaders recognising that staff are people first and foremost, instead of just a resource to be utilised. “The core of good leadership is to establish a community of trust in the organisation – that sense of ‘I’ve got your back’, rather than ‘I’d like to stab you in the back’. Then we’ll see success,” he says. “Talent wants to work in these kinds of companies, as they’re drawn to the culture that nurtures humanity.” n JESS FURSETH is a freelance business writer
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Do some female bosses It’s been argued that certain ‘alpha females’ are deliberately hindering the career progress of other women. But is the issue really about personality, both male and female, rather than gender? Words: Sharon Gethings
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So, there’s obviously still a problem in some sectors.” In her book Lean In, Sheryl Sandberg says that because there are still relatively few women in the most senior roles, it creates a perception that such roles for women are scarce. Therefore, a woman trying get what she sees as a rare female opening on the board may well see other women as competitors. Others argue that so-called ‘alpha women’ are just behaving like alpha men. Jill Britton, Director of Supervision at the Jersey Financial Services Commission, comments: “There’s context to what Nigel Wilson said. In that article, he also noted: ‘There’s always been a bit of pulling up of the drawbridge. People don’t want a younger version of themselves, who might be better than them in a couple of years, sitting in the wings. That applies to men and women’.”
BALANCING ACT Britton believes the alpha women theory is a red herring. “In my experience, alpha female terminology has been associated with perceived negative behaviours in women, such as aggression, single-mindedness, being a loner, selfishness and being highly competitive,” she says. “It’s more important to focus on why females aren’t advancing and what we can all do – both men and women – to ensure the balance is achieved.” Karen Jones, CEO of Citywealth, describes her personal experience of alpha female behaviour. She says: “My first encounter with an alpha female was an Executive Director who used to throw her red stiletto across the room at people’s heads to get their attention while screaming at the top of her lungs. So, yes, there are definitely some women who act aggressively – but their style will lead to difficulty for anyone, whether male or female.” She points to research from Muna Jawhary, author of Women and False Choice: The Truth about Sexism, which suggests the gender argument is white noise and asks why an alpha female has to be seen to help other women. Jawhary wonders whether it’s
AT A CAMPAIGN event for Hillary Clinton in 2006, former US Secretary of State Madeleine Albright declared: “There’s a special place in hell for women who don’t help other women.” It highlighted an unwritten assumption that women can, and should, help each other advance. Traditionally, women have had to fight hard to gain work equality, especially in bigger companies and in senior roles. And while things are better than they were, it seems that progress is still painfully slow. Grant Thornton’s Women in Business 2017 report, for example, states that the percentage of women in senior leadership roles has hit 25 per cent globally. However, this is an increase of just one per cent since 2016, and just six per cent in the 13 years since the research began. It’s not surprising, then, that there’s a growing number of professional networks for women, providing advice and support for those wanting to climb the corporate ladder. But scratch the surface and is there a darker underside to this ‘business sisterhood’? Indeed, do some senior professional women actively stop other women progressing? The boss of Legal & General, Nigel Wilson, stirred the hornets’ nest in March this year when he told the Daily Mail: “Do enough women promote other women? The data is very mixed on that. I’m not a woman, so I don’t know why, whether they are the alpha female and don’t necessarily want other alpha females around.” So, what do professional women think? Jo Sumner runs several businesses and is also a Regional Director for the Athena Network, an international organisation for businesswomen. She thinks there may be an issue in certain kinds of company. “Our focus is entirely on the mindset that there is enough for everyone,” she says. “That we can learn from each other’s success and from the mistakes we’ve made along the way, and all do better as a result. “From time to time, however, I do meet women from more corporate backgrounds coming into our network, who find it incredibly refreshing that we actually have each other’s back.
stop women advancing?
There are a growing number of professional networks for women, providing advice and support. But scratch the surface and is there a darker underside to this ‘business sisterhood’? because we’re programmed to expect ‘better’ behaviour from women. Jawhary’s research prompted Citywealth to do its own. The Citywealth Power Women Report involved 153 board-level women representing 123 organisations such as UBS and Deloitte across the UK, Jersey, Guernsey, Switzerland, the Caribbean and Bermuda. It found that women have a new style of management – which its researchers christened ‘synergetic leadership’ – where they gravitate to a collaborative style that resonates with the millennial workforce. While they are confident, result-orientated, innovative and push themselves, they also have high emotional intelligence, kindness and integrity, and believe in ‘we leadership’.
LEADERSHIP TRAITS Sarah Bartram-Lora Reina, Associate Director at Zedra, has worked for both male and female bosses over her 25-year career in finance. She believes that even if women have a different working style, all good leaders tend to have similar traits. “There are some people who have a certain charisma that just makes them a good leader,” she says. “People who can articulate and keep their head under pressure, who have expertise in a particular area. I think that applies whether you’re male or female – as does feeling protective about your role if you feel it’s threatened.” As for the pay gap and the lack of women CEOs, Bartram-Lora Reina argues: “When you drill down, it’s partly historical – elements left over from a previous way of doing things. Some individuals, both male and female, will always have an issue around women taking time out to have
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children and then choosing to work parttime, not recognising that they may have obtained other skills along the way.” She believes things are slowly changing and that companies are recognising new benefits in hiring women. “Boards often seek out women now for the alternative viewpoint we can bring,” she says. Many women see encouraging others to follow in their footsteps as a no-brainer. “While the Jersey Financial Services Commission is a relatively small organisation, having a highly skilled and diverse workforce is essential in achieving our goals,” says Jill Britton. “Given my gender and the opportunities I’ve had, I do believe I have a key role in attracting and retaining female talent.” So perhaps it’s time we tore up the gender rulebook and approached things in a new way. “Isn’t it just a case of everyone having the chance to progress equally on merit, be they male or female?” asks Bartram-Lora Reina. Karen Jones agrees. “As an alpha female myself – I’m CEO of an eight-person business – I take great pride in my company having both a feminine and a masculine side. In business, you need both to survive.” For those who believe things are still changing too slowly, there’s always the option of entrepreneurship. In fact, there are signs that an increasing number of women are eschewing in-house power battles to go it alone [see right]. After all, you don’t have to fight to get to the top if it’s your own company. n SHARON GETHINGS is a freelance business writer
An alternative route to the top According to the Office for National Statistics, the level of self-employment in the UK increased from 3.8 million in 2008 to 4.6 million in 2015, continuing a trend that started in the early 2000s. One reason for this could be a shortage of work for all after the recent global financial crisis. But it could be that women are realising that if the business world won’t change to suit them, they need to change the way they do business. Since the downturn of 2008, the majority (58%) of the newly self-employed have been female. Furthermore, in 2014 alone, 70 per cent of those becoming selfemployed were women – and in 2016, self-employment started to decline for men, but not women. Another reason women go it alone could be that self-employment offers more flexibility, sitting more comfortably with childcare, for example. Here to Stay: Women’s selfemployment in a (post) austerity era, a 2016 report by the UK Women’s Budget Group, states: ‘Part-time self-employment grew by 88 per cent between 2001 and 2015, compared to 25 per cent for the full-time mode.’ The research also found that among younger and mid-aged selfemployed women, in particular those working part-time, their lifestyle is one of choice not circumstance. These women don’t want to work full-time, and aren’t seeking an alternative job.
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BL guernsey Positive Q1 for housing market
States announces £24.9 million surplus
he latest House Price Index for Q1 2017 shows that prices in Guernsey have risen by 4.4 per cent on the previous quarter and are 2.4 per cent up on the same period last year. There were 163 local market transactions during the first quarter – up 34 (26 per cent) on the first quarter of 2016. The mix-adjusted average purchase price for local market properties was £432,341, with the annual rise reflecting the Retail Price Index. Jim Coupe, Managing Director of
Skipton International, commented on the figures: “The volume of transactions and modest increase in house prices indicate a positive start to the year for the housing market in the island.” But he added: “Although the latest figures show signs of growth, it’s important not to take any quarter in isolation, as the housing market in Guernsey is far from returning to the heights of a few years ago.” House prices in Guernsey reached £468,878 in Q2 2014. n
Funds hit £100bn private equity milestone
he total value of private equity business in Guernsey has surpassed £100bn for the first time. Figures from the Guernsey Financial Services Commission show that the net asset value of private equity funds under management and administration in the island grew by £25bn over the course of 2016, to stand at £110.3bn at the end of December. Substantial launches during the
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course of last year by big ticket private equity promoters – including Permira, Apax Partners, Cinven, Macquarie, Partners Group and Inflexion – all contributed to the record-breaking high. Guernsey Finance Chief Executive Dominic Wheatley (pictured) said: “There’s been a consistent undercurrent of fundraising, on top of which we’ve seen a number of showstopper launches. This type of activity continues to underline the fact that Guernsey is an attractive destination for private equity funds due to our first-class financial services infrastructure.” n
he States of Guernsey has reported a £24.9 million surplus in public finances recorded last year. The 2016 States of Guernsey Accounts detail a big improvement on earlier indications that a combination of lowerthan-anticipated revenues and higher expenditure would result in a deficit. The States attributed the turnaround to improved underlying tax revenues in the second half, and measures to improve the in-year position and returns from investment funds. Revenue expenditure by committees was also £9 million below budget, with underspends recorded in pay and non-pay budgets. Deputy Gavin St Pier (pictured), President of the Policy and Resources Committee, applauded committees for their financial restraint, but said: “While the end-year position is to be celebrated, we’re not out of the woods yet. The surplus position was only made possible at all by a reduction of £23.9 million in the appropriation to the capital reserve. “This reduction in the amount put aside for capital investment was an appropriate short-term response to balance the budget. But the implications of this adjustment, if continued, would limit our ability to appropriately invest in the island’s infrastructure. “As such, there remains an underlying structural deficit if the one-off measures for 2016 and excellent investment returns are removed. We can neither simply cut nor tax our way into a sustainable financial position. This deficit will only be tackled through a combination of targeted revenue-raising, largely from those best able to pay more, and a reduction in the cost of providing public services through public service reform.” The accounts can be viewed on the States website at www.gov.gg. n
regulator publishes 2016 Annual Report
Court of appeal rejects scheme of arrangement
he Guernsey Financial Services Commission (GFSC) has published its 2016 annual report and financial statements. The report highlights the GFSC’s policy work in 2016, including the launch of the Manager Led Product and the Private Investment Fund regime. The GFSC was also asked by the States to lead on the development of new policy proposals for pensions regulation, and has supported the States of Guernsey in its planning following the Brexit vote. The GFSC says it continued to develop and consult on draft proposals for the regulation of lending, credit and finance which, if implemented, will help to improve the level of protection for consumers. A consultation paper is expected later this year. As to the 2016 financial outturn, the Commission achieved an operating surplus of £632,000. However, it says this is set against its overall financial position, with its reserves exhausted following the application of Financial Reporting Standard 102. While total employment costs were up on those of 2015, this was principally due to fewer unfilled vacancies in 2016 and a pay rise totalling around 1.5 per cent awarded to some staff on a performance-related basis. The full report is available at www.gfsc.gg. n
Review of States of Guernsey Bond Issue
he Scrutiny Management Committee at the States of Guernsey has released an independent report by KPMG Channel Islands on issuing the States of Guernsey Bond. The Committee commissioned KPMG to undertake a review as a result of political and public concerns about the £330 million bond, which was raised in December 2014, with a 32-year tenor. The report looks at several areas – including the portrayal of need for the bond, the cost of issuance and due diligence – and recommends areas for improvement. The Committee intends to discuss the report with representatives from the Committee for Policy and Resources at a public hearing in July in the Royal Court. President of the Scrutiny Management Committee Deputy Chris Green said: “The report, and the forthcoming public hearing, will provide the clarity that members of the States’ Assembly and the public have been seeking on this matter. “At this time, less than three years into a 32-year bond, it is not possible to comment definitively on the relative merits of the decision to issue the Guernsey Bond. “However, the KPMG report raises concerns and questions that do merit clarification.” To view the report please go to www.gov.gg/scrutiny. n
ourant Ozannes’ litigation and corporate teams in Guernsey have resisted an appeal by Puma Brandenburg against the refusal by the Royal Court of Guernsey to sanction its scheme of arrangement. The Guernsey Court of Appeal was highly critical of the scheme, describing the manner in which Puma Brandenburg pressured minority shareholders to accept a significantly discounted offer price on their shares as ‘oppressive’. Mourant Ozannes acted for a minority shareholder in an attempt by Puma Brandenburg to implement a selective share buyback using the scheme of arrangement procedure. A scheme of arrangement, rather than a traditional takeover bid under Part XVIII of the Companies (Guernsey) Law, 2008, was the chosen transaction structure due to the significant blocking stake held by the minority shareholder. This would have prevented a statutory ‘squeeze-out’ had the takeover been undertaken by a third-party bidder. If successful, the scheme would have resulted in the majority shareholder (also a Director) acquiring sole ownership of Puma Brandenburg and its assets. However, unlike traditional third-party takeover schemes, it was Puma Brandenburg itself that was to pay for the shares rather than the person or entity who would benefit from the takeover. Had the scheme been sanctioned, minority shareholders would have been forced to accept a 43.6 per cent discount to the net asset value of Puma Brandenburg, resulting in a transfer of value of at least €37 million from the (collective) minority shareholders to the majority shareholder. The Mourant Ozannes team challenged the scheme in the Royal Court at the sanction hearing. In a judgment delivered on 24 February, the Royal Court refused to sanction the scheme, finding that it was contrary to the share buyback provisions in the Companies Law, which specifically requires a shareholder to ‘consent’ to the acquisition of its shares. The Royal Court went one step further and found that when voting in favour of the scheme, the members who approved the transaction (which included the significant shareholding of the brother of the majority shareholder) were not acting in the bone fide best interests of the class as a whole. Puma Brandenburg appealed. In a hearing before the Guernsey Court of Appeal, Justices Mr Nigel Pleming QC, Mr George Bompas QC and Sir Michael Birt dismissed the appeal, confirming the Royal Court’s decision. n
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BL jersey States seek Brexit feedback
T Jersey house prices on the rise
he Q1 2017 Jersey House Price Index from Skipton International shows that the price of houses on the island has risen three per cent on the same period last year, taking the average price of a house to £465,000. The price of property in Jersey is more than double the average UK house price of £216,000, but is still below the average London house price of £476,000, according to Office for National Statistics figures. Lorraine McLean, Mortgage Sales Manager at Skipton International, said: “The figures for the first quarter are typically the lowest of the year. Turnover
for this period is usually down on the previous quarter, and house prices with it. So it is important not to look at any quarter in isolation but to consider the bigger picture. "Overall, the latest HPI figures show that Jersey’s housing market is continuing to progress, with house prices generally heading upwards. It is, nevertheless, a good time for buyers, as finance remains at very attractive rates.” A total of 321 properties were sold in Jersey in the first quarter of 2017, a higher number than in Q1 2016 (284) and Q1 2015 (264). n
he Government of Jersey is inviting businesses on the island to complete an online survey giving their views on Brexit and the potential impact that it might have on their sector. As part of the ongoing Let’s Talk Brexit public engagement campaign, the survey – which will be available until Friday 28 July – can be completed online at www.gov.je/letstalkbrexit. The responses will help the government understand the issues that will have the greatest impact on the island economy, helping to inform the development of policy and feed into Brexit negotiations to ensure the best outcome for Jersey. The Let’s Talk Brexit Residents’ Survey, which ended on 19 May, was accessed online by more than 1,000 islanders, with 977 providing full or partial answers to the questions. A total of 80 also responded by completing paper-based surveys. The results of all the paper and online surveys are being analysed and the results will be available from mid-July. n
commission wins beneficial ownership award
he Jersey Financial Services Commission (JFSC) has received an international award for its preliminary work to enhance the island’s Central Register of Beneficial Ownership and Control. Presented by the International Association of Commercial Administrators (IACA), the Merit Award recognises the work undertaken by the JFSC to implement a secure channel to exchange sensitive information and intelligence with law enforcement and tax authorities in the UK on request. The initial phase of this work assessed for the award by the IACA was carried out from November 2016 to February 2017. This followed the signing of an agreement between the island and the UK to improve the interchange of beneficial ownership information. The JFSC is one of only three jurisdictions to win an award from the IACA this year; the other two are Indiana and Ohio in the US. It is the fifth IACA Merit Award that the JFSC has won.
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Julian Lamb receiving the award from IACA JFSC Director of Registry Julian Lamb commented: “To the best of our knowledge, we are the first jurisdiction to provide such a working solution, and it highlights our continued commitment to the international transparency agenda.” n
JFSC publishes 2016 Annual Report
Housing and work fees to rise
he Jersey Financial Services Commission (JFSC) has published its Annual Report and financial statements for 2016. The report documents the JFSC’s performance against its strategic objectives to facilitate access to international financial markets for Jersey, match international standards, and meet legal and other requirements. Key achievements during the year included engaging with Jersey’s finance industry on cyber security and fintech, consulting on MiFID II/MiFIR and Basel III, and working on various registers for the government of Jersey. The regulator also cites progress in its own internal change programme – restructuring the team, transitioning to risk-based and entity-based oversight, and developing a new risk model. JFSC Director General John Harris commented: “We have made real headway towards becoming a more progressive, enabled and accessible regulatory organisation, aligned to the needs of the market and Jersey’s place within it during challenging times for financial services everywhere.” He added: “We’ve moved forward on all fronts – people development, technological advancements, refreshed supervisory practices and a maturing relationship with industry.” To view the annual report, visit www.jerseyfsc.org. n
Funds business hits record high in Q4 2016
he value of funds being administered in Jersey rose to a record level at the end of 2016, according to the latest figures from Jersey Finance. In the final quarter of 2016, the total value of funds serviced through Jersey rose by 15 per cent over the year to £260bn, the highest value ever recorded. This growth was driven by the alternative asset classes, which increased annually by the same proportion to £189.2bn, representing 73 per cent of Jersey’s total funds activity. Within the alternative asset classes, private equity fund values performed particularly strongly, rising by 30 per cent year-on-year to stand at £59.7bn. There was also a significant jump in the combined total of specialist funds, including infrastructure, credit and debt funds (48 per cent). Real estate fund values also rose by seven per cent during the course of the year, while hedge fund values remained steady, ending the year at £52.4bn. The full set of quarterly statistics can be found at Jersey Finance’s website, www.jerseyfinance.je. n
inisters are planning to increase fees under the Control of Housing and Work Law to invest more in migration controls and skills development to support businesses. The changes include new annual fees for businesses employing registered staff, and employment agencies placing registered staff, and a rise in the fees payable by contractors visiting Jersey. The measures will raise £600,000 per year – half will be dedicated to support additional investment in skills and training, the other half will be used to fund migration controls, including initiatives to remove permissions from businesses, and to support compliance activities. Ministers say these measures will help support employment, while investing in the skills of the workforce. Among the proposals are: ● Increasing the maximum amount payable by visiting businesses in any one year from £1,500 to £3,500 ● Uprating the cost of a registration card for registered and licensed people from £75 to £80 (cards for entitled and entitled to work people remain free) ● Increasing the amount paid by new high-value residents for registration cards when they arrive from £5,000 to £7,500 ● Increasing the cost of employing a licensed employee from £175 to £225 per year ● A new fee for employment agencies of £500 for every registered member of staff they are permitted ● A £50 fee payable each year by business for each permission they hold to employ a registered member of staff, excluding seasonal permissions Not everyone was happy about the proposed increases. In a response, the Jersey Chamber of Commerce said the proposed changes are ‘yet further tax increases for businesses operating in Jersey. These increases to existing fees and the creation of new fees will once again raise the cost of doing business in the island. ‘Whilst Chamber is encouraged by the proposal of funds being invested into Skills Jersey and a population office that can provide effective support for the business community, government cannot consistently expect commerce to keep absorbing the costs of their policy proposals.’ President of the Jersey Chamber of Commerce Eliot Lincoln said: “There needs to be a sensible debate about population, a discussion that will help form policy across all government departments… “Our members continually tell us they are facing an uphill struggle in finding new ways of absorbing the increasing cost of operating in Jersey. These latest fee increases will force some businesses, especially those in the building industry who are facing new land taxes under the proposed community infrastructure levy, and now an additional £500 land or property tax, to seriously consider whether trading in the island is viable.” n
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The Agenda is compiled by BL’s Fashion and Lifestyle Editor, Thom O’Dwyer, with additional material by Danny Cobbs
1. BOLT FROM THE BLUE Elle Decor and Wallpaper* may write that deep forest green and similar dark hues are the go-to colours for decor lovers this year, but don’t believe everything you read. High-impact cobalt blue is poised to make huge waves in 2017. The electrifying shade is beloved by artists and tastemakers, from Yves Klein, Matisse and Sir Terence Conran, to Yves Saint Laurent and his intensely blue Jardin Majorelle in Marrakesh. It’s going to be everywhere. And why not? Like denim, cobalt blue is an easy colour to combine with other on-trend shades – white, blush pink or earthy terracotta – and materials such as rattan, cork, copper and light wood. Designers Guild is overflowing with a wealth of cobalthued and China blue statement patterns and textures to mix and match to your heart’s content. Everything from Delft-inspired wallpaper and upholstery fabrics to cushions and rugs. Indulge yourself. Arabesque Cobalt wallpaper, £195 per roll; Lino Modules Sofa in Reticello Cobalt fabric, £4,845; cushions from £60, www.designersguild.com
INSIDE THE AGENDA: ACCESSORIES, CARS, DRINK, FASHION, FITNESS, FOOD, FOOTWEAR, FRAGRANCES, FURNITURE, INTERIORS Everything you need for a more stylish life.
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2. LIFT YOUR SPIRITS What could be more perfect on a hot summer’s day than a refreshing, thirst-quenching G&T? Thanks to The Tipsy Tart – a South African purveyor of offbeat spirit infusions and specialist liqueurs – here’s a G&T that will be far from a ‘mother’s ruin’. To bring a bit of fun and originality to your al fresco occasion, why not try the mouthwateringly mellow lavenderinfused gin created by Elizabeth Grinke, the name behind The Tipsy Tart. With a splash of tonic, it’s a guaranteed crowd pleaser. And its enticing, pale purple-blue colour makes this award-winning warm weather libation as pretty as it tastes. And to top it all, every one of these award-winning unusual liquid concoctions is crafted in small batches and filled by hand in Grinke’s wacky, off-kilter ‘tipsy’ bottles. £28, 500ml; £18, 200ml, www.yumbles.com
3. DREAM TICKET “Softness and serenity in movement” was how Stella McCartney quite rightly described her triumphant SS17 collection. She went on to say that the show “was about the spirit of love and hope and being in the moment”. Nothing sums up her message better than the diaphanous Santi Star Top pictured here. In the palest shade of cool ice blue, it’s delicately embellished with metallic thread detailing and delicate star print. Semi-sheer – a huge trend on all the designer catwalks – the translucent top has a nude ‘modesty camisole’ attached, and a zip and hook fastening down the back. Finished with fairytale frilled sleeves and flounce detailing on the front, this must-have piece looks as if it stepped straight out of the enchanted forest in A Midsummer Night’s Dream. £585, www.morganclare.com
4. SPLASH HIT Lisa Marie Fernandez is both a New York stylist and a global luxury lifestyle brand encompassing swimwear, activewear and that new genre of year-round, beach-friendly clothing dubbed ‘destination wear’. Launched in 2009, LMF has gone from strength to strength, and now boasts a wide and eclectic celebrity following, including Elle ‘The Body’ Macpherson, Rihanna, Oprah Winfrey and author/humourist Leandra Medine – famous for writing that “good fashion is about pleasing [other] women not men”. The Marie Louise wrap bikini, pictured, is crafted from denim-effect cotton jersey that has a firm, stretchy quality. It features a draped front that ties at the back for a clever, customised look. The bikini bottom is classically cool and flattering. From Positano to Patmos, any poolside enchantress will feel confident and beautifully wrapped in this stylish creation this summer. £355, www.mytheresa.com
THE AGENDA 5. UP, UP AND AWAY Inspired product designer Tomas Kral set up his design studio in Lausanne, Switzerland, in 2008, and just two years later won the prestigious Swiss Federal Design Award. Using glass, wood, plastic or porcelain, he works on projects as diverse as lighting, furniture and home accessories. Taking his cue from the traditional and the ordinary, he translates everyday objects into clever, innovative mini-works of art. In collaboration with Nude Glass – the cutting-edge manufacturer of contemporary glass, based in Paris and Milan – Kral came up with Blow, an extraordinary and original lamp that combines poetry and wit. The two parts of the lamp are assembled using simple rubber bands, referencing the top of a hot-air balloon. Nude’s design dictate is ‘Simple Is Beautiful’ – and Blow is the epitome of that maxim. €488, www.nudeglass.com
6. STEP OUT IN STYLE One standout from the SS17 catwalks was that they were knee-deep in boots: see-through boots, metallic Star Wars-style boots, thigh-high boots, western boots, athletic-inspired boots like knee-high sneakers, ripped denim boots, the new sock boot and the ubiquitous ankle boot. All of them trotted down the catwalk as essential summer footwear. There’s a multitude of different styles, funky patterns, eye-catching prints and off-beat materials to satisfy the whims of the most demanding fashionista. One 24-carat winner strode down the Maison Margiela catwalk. The chunky round-heeled boot, pictured, has been finished with a swirling, abstract floral print inspired by the famous cobalt blue and white Delftware pottery of the Netherlands. For a bold-yet-classic statement, these boots are perfect to wear with the Maison Margiela shirt dress on page 75. Stunning design at its best. £555, www.mytheresa.com
7. CREATIVELY COOL Fashion label LongJourney is the brainchild of two cool LA dudes named Alex Carapetian and Alonzo Ester. Launched in 2012, the guys’ vision was to create relevant, minimalist-yet-modern silhouettes using vintage recycled fabrics. Literally 99.9 per cent of all pieces incorporate some or all vintage recycled fabrics. The result is edgy but highly wearable urban sportswear that mixes unexpected elements – patchwork and Sixties-style tie-dye – to create standout pieces. With a huge cult following, the brand is now found in all the most fashionable boutiques and department stores worldwide, as well as on the better e-commerce websites. The cooler than cool Hangar shorts, pictured, are a perfect example of the label’s fine craftsmanship. Made from contrasting panels of vintage recycled denim, some with tie-dye splashes, the kneelength elasticated-waist shorts have raw hems and a loose silhouette and feature tonal top stitching and discreet zip fastening pockets. Perfect for poolside posing. £410, www.matchesfashion.com
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9. ARTISTIC INFLUENCE The now-popular deconstructed blazer blends smart with casual, and can be worn with anything and in any fashion. Go sporty with jogging pants and trainers, or more formal with chinos or matching trousers, as shown here. Designer Christopher Bailey paid direct homage to one of his artist heroes – renowned sculptor Henry Moore – in his Burberry SS17 collection. The single-breasted workwear jacket was inspired by photos of the sculptor in his studio, the herringbone finish referencing the artist’s work apron. Tailored in Italy to a contemporary slim fit and accented with light blue topstitching, it features notched lapels and three roomy patch pockets. Unlined for a softly deconstructed, lightweight feel, it’s the embodiment of the on-trend sporty-chic aesthetic. It also comes with matching easy-fit mid-rise trousers, with knee-panel details for a subtle patchwork effect and a wide-leg silhouette that grazes the ankle. A totally modern approach to chic tailoring with a distinct casual vibe. Jacket, £595; trousers, £394, www.matchesfashion.com
8. ELECTRIC BLUE Welcome to the future – which comes in the shape of the Tesla Model X and revolutionises electric-powered cars, writes Danny Cobbs. The Model X is a spacious, sensible and luxurious sevenseater SUV that equals the Swedes on passenger safety and the Germans for build quality. The cabin is a bubble of serenity and modernity, where changing gears is a thing of the past – because there aren’t any. There’s no engine noise either, because there’s no engine. Instead, there’s a bank of lithium-ion batteries, which sends power to an electric motor attached to each axle. But the challenge has always been to make this system work on a practical level – getting you where you need to go, when you need to go, with enough battery life to get you there – and this is where the Model X trumps over all the electric vehicles that have gone before it. Tesla reckons the Model X will do 303 miles on a single charge and can be recharged in 30 minutes, for free, from one of its nationwide charging points. Extra range though, means extra weight, and this mid-sized SUV weighs more than a Bentley. But that extra bulk sits below the floor, which gives the Model X a low centre of gravity, resulting in a flat, even ride. What’s more, its electric motors deliver maximum torque from a standstill, so 0-62mph can be achieved in 2.9 seconds – that’s supercar territory – while emitting zero emissions in the process. The rear electric-powered falcon-opening doors add the sort of drama expected from a futuristic car, and it doesn’t end once you’re inside and sat behind the wheel. A huge centrally mounted touchscreen acts as the Model X’s nerve centre, from which every element of the car can be controlled. Buttons and switches have been consigned to the history books. And it’ll even drive itself, if the fully autonomous drive system has been chosen from the options list. This technology doesn’t come cheap, but when you’re paying for the future, do you really care? From £75,400, www.tesla.com
10. SOCIAL BUTTERFLY At the start of his fashion career, in attempting to define his idiosyncratic take on traditional British styling and tailoring, Sir Paul Smith described it as ‘classic with a twist’ – meaning an ingenious update of conventional items of clothing with the addition of unusual colours and eccentric design flourishes. Gresham Blake and his unique sense of style and respect for True Brit sartorial heritage is a man cut from the very same cloth as Sir Paul. A perfect example of Gresham’s signature combination of quality garments and a quirky dose of fun is his limited edition Blue Large Butterly Net Shirt, pictured. With its semi-cutaway collar, bespoke silhouette and triple-button cuff, this is quintessential Savile Row. Add a crosshatch background design and a kaleidoscope of pretty butterflies, and you’ve got yourself a major sartorial talking point. £120, www.greshamblake.com
11. HOME STRETCH Sick and tired of your invariably over-crowded communal gym either pre- or post-work? Assuming you’ve got the space – and the spare dosh – it may be time to relocate a little closer to home. You’ll find some of the most effective, exclusive and definitely the most glamorous workout gear on the market at the new UK-based company Custom Gym Equipment. Founded in 2014 by David John Bowden after a 30-year career in engineering, the brand’s in a league of its own when it comes to fitness equipment. It offers personalised weights and functional but beautifully designed apparatus that will suit the most exclusive uses – from the super-rich yachting world to private homes. Pictured here is its baby blue flat-to-incline fitness bench. In hand-stitched quality leather, the bench has a gleaming stainless steel frame that’s a joy to behold. And visit the website to check out the company’s brilliant range of very exclusive, super-high-quality, gold-plated dumbbells, custom-made to every client’s specifications. Bench, £5,000, www.customgymequipment.co.uk
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12 12. SAY IT WITH FLOWERS Rosita Bonita is the glamorous nom de guerre of exceptionally talented jewellery designer Rowenna Harrison. She launched her ahead-of-the-game brand in 2010, after some fruitful screen-printing tests on leather and other materials. Tactile printed leather is now the main component in her dramatic statement jewellery. Each piece is printed and handcrafted in the designer’s East London studio. Her inspiration comes from seductive fantasies of past times and faraway lands, encompassing myth, folklore and legend. Everything she designs has a sense of dreamy fun. The elegant tropical orchid lariat necklace and matching earrings pictured here are a perfect example of her intricate work, and will add an elegant arcadian charm to any high-summer ensemble. Hand-made to order, the flowers and delicate leaves are laser-cut from luxurious soft-as-butter leather and individually formed, then hung from either a gold-plated chain or suspended from extra-long ear wires. This is the stuff that dreams are made of. Orchid Lariat Necklace, £48; Earrings, £32, www.rositabonita.com
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THE AGENDA 13. SCENT OF SUMMER For the sun-splashed, blue skies of summer, the master perfumer Alberto Morillas Firmenich brings a vibrant signature to Issey Miyake’s special summer fragrance editions for men and women. L’Eau d’Issey Eau de Toilette pour l’Eté is a radiant, exotic fragrance for women destined for the beach. The fruity-floral aroma opens with a splash of tangy grapefruit and lychee, then builds to the fruity freshness of passion fruit, guava and dragon fruit, as well as subtle aquatic floral notes. Complementing its feminine counterpart, L’Eau d’Issey pour Homme Eau de Toilette pour l’Eté is a dazzling fragrance for men that unleashes a burst of fresh, sunny, summer warmth. Notes of exotic kiwi, bitter grapefruit and coriander are followed by fragrant pineapple and a soupçon of sweet nutmeg. The bottle and packaging are dressed in a beautiful azure blue brilliance to reflect this stunning summer concept. Now just lay back in the sun and let the sweetness of summer delight your senses. Women’s EDT, 125ml, £43; men’s EDT, 100ml £43, stores nationwide
14. POM-POM PANACHE Since launching her accessories label in 2011, Sophie Anderson’s striking designs are loved by fashionistas and celebrities alike. Uma Thurman, Sienna Miller and Thandie Newton have all been papped carrying her eye-catching hand-woven bags. Born in Kuwait, raised in Oman and now residing in South America, the designer’s wanderlust has informed her covetable brand of playful bohemia. Exquisitely created with artisan techniques, and fizzing with eccentric, quirky detail, her bags are all made with locally sourced material by Columbia’s indigenous Wayuu people, who live across the remote La Guajira desert. Anderson started with a group of three weavers and now employs over 750. The vivid tribal and ikat patterns, the searing Latin-inspired colours, and the intricate craftwork on her bags pack a bold sartorial punch. Pictured here is the Lilla pom-pom bag. A fabulous high summer addition to any girl’s wardrobe. £200, www.morganclare.co.uk
15. TREADING SOFTLY The Dandy Moccasin from Hugo by Hugo Boss is an ultra-cool mixture of top-quality suede and cleverly intricate detailing. The shoe’s upper features a digitally perforated argyle pattern detailing, which is complemented by the distinctive corded seaming in contrasting colour. The insole can be removed and the rubber outer sole provides perfect grip. Although style-wise these slip-on moccasin-style shoes may not be groundbreaking in the extreme, they combine easy wearability and functionality with subtle futuristic styling. A modern look for the classically attuned Modern Man. £149, www.stuartslondon.com
17. KEEP YOUR SHIRT (DRESS) ON! Ladies, it’s official – the classic shirt dress is back. This super versatile ‘throw-on-andgo’ piece took the SS17 catwalks by storm. But with a big difference. The coolest ones dipped into the Savile Row fabric archives as a source of inspiration. Think classic men’s shirting stripes. The newest spin on this new season wardrobe essential, pictured here, appeared deconstructed and redefined in the new Maison Margiela collection, shown in Paris last September. In 2015, the fashion brand founded in 1988 by Belgian designer Martin Margiela, appointed the controversial British couturier John Galliano as Creative Director. The merger between Margiela’s cerebral approach to design and his unique, uncompromising conceptualism has merged perfectly with Galliano’s grand poetic-historicist vision and eye for streetwear, resulting in a new era of creatively challenging elegance. £955, www.mytheresa.com
16. NAILED IT! Girls, you’re already planning to replenish your summer wardrobe with stripes, floaty florals and dreamy sheer asymmetric tops. But it’s time to think about updating your manicure too. For summertime nails, blue shades are totally on-trend. Every shade from bold, energising cobalt and stormy azure, to baby blue and muted greyblue. Burberry, Gucci, Dries Van Noten and a host of other designers featured blue high-gloss nails at the SS17 shows. For a sophisticated take on the season’s modern blue nail, opt for a ‘squoval’ shape – a new hybrid of square and oval – on short or medium nails. Luxury oxygenated (or breathable) lacquers from Nailberry come in a wide spectrum of blue hues. Containing no formaldehyde, ethanol, toluene or other nasty additives, Nailberry’s become a fashionista favourite. Vogue magazine’s Beauty and Health Editor Nicola Moulton is reportedly mad about Nailberry’s gorgeous Baby Blue shade for her summertime nails. There’s also another soft blue hue called Hope that’s totally dreamy. £14.50 for 15ml bottle, www.style.com
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Directory To advertise in the directory in print or online contact Carl Methven on + 44 (0)1534 615886 or email@example.com
Great learning boosts performance It’s a simple fact of business that people who know how to use their IT systems properly are more productive and happier at work. At ALX Training, it is our mission to ensure that every person we work with can use their essential applications properly, saving time, smoothing processes and creating a more productive workplace.
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:
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Learning starts at induction We are well-known for our range of Microsoft Office courses which includes Office 365, Excel, Outlook, PowerPoint, Word, Project, SharePoint and Visio but our clients know we can do much more.
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.
Not only do we train on well-known accounting packages such a Xero and QuickBooks but we create courses on bespoke in-house systems. We design unique courses specifically for your organisation, so that your staff learn precisely the information they need to work efficiently and effectively.
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We know there’s no better place for your new colleagues to start learning than during their induction programme, so we develop bespoke induction courses that give your new starters all the information they need to hit the ground running. We can even deliver content online, so training can be ongoing and continuous.
Michael Cushing Managing Partner, Jersey +44 (0)1534 818 395 firstname.lastname@example.org Wendy Benjamin Managing Partner, Guernsey +44 (0)1481 755 603 email@example.com
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 firstname.lastname@example.org www.ashburton.com
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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: www.baccata.co.je Tel: 00 44 1534 870670 or Nicholas Falla firstname.lastname@example.org Mrs Ann Williams email@example.com Mrs Áine O’Reilly firstname.lastname@example.org Licensed by the Jersey Financial Services Commission in the conduct of trust ompany business
Carey Olsen is a leading offshore law firm advising on British Virgin Islands, Cayman Islands, Guernsey and Jersey law across a global network of eight international offices. We are a full service firm working across banking and finance, corporate and M&A, investment funds and private equity, trusts and private wealth, dispute resolution, insolvency and property law. Our clients include global financial institutions, investment funds, private equity houses, multi-national corporations, public organisations, sovereign wealth funds, high net worth individuals, family offices, directors, trustees and private clients. We work alongside all of the major onshore law firms, accountancy firms and insolvency practitioners on corporate transactions and matters involving our jurisdictions. Our advice is delivered by an approachable and experienced team of commerciallyminded lawyers, led by 48 partners, who help our clients achieve their objectives. We have the expertise and resources to handle the most complex international transactions combined with a personal approach to business. Contact: email@example.com T +44 (0)1481 727272 firstname.lastname@example.org T +44 (0)1534 888900 www.careyolsen.com
Deloitte LLP Deloitte LLP offers professional services to the UK and European market. The company has the broadest and deepest range of skills of any business advisory organisation and employs over 14,400 exceptional people in 28 offices in the UK and Switzerland. We provide professional services and advice to many leading businesses, government departments and public sector bodies and publish many influential studies and thought leadership pieces. Deloitte LLP employs 160 professionals across the Jersey, Guernsey and the Isle of Man offices. It is the UK member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its global network of 150 member firms, each of which is a legally separate and independent entity. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. For further information please do not hesitate to contact: John Clacy, Partner, Guernsey Email:email@example.com Phone +44 (0) 1481 724011 Greg Branch, Partner, Jersey Email: firstname.lastname@example.org Phone: +44(0)1534 824325 www.deloitte.com
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Equiom is fast becoming the stand-out business in the professional services sector, with offices in Europe, Asia and the Middle East. We provide a range of innovative and effective business partnering solutions. Our experienced and highly qualified teams support corporations and high-net-worth individuals around the world with their fiduciary and related support-service needs. We are an independent, managementowned 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. 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
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 email@example.com +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: firstname.lastname@example.org T: 01481 717 435 Andrew Dann, Managing Partner, Assurance E: email@example.com T: 01534 288 655 Richard Le Tissier, Associate Partner, Assurance E: firstname.lastname@example.org T: 01481 717 468 Chris Matthews, Partner, Assurance E: email@example.com T: 01534 288 610
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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 firstname.lastname@example.org D / +44 1534 714551 M / +44 7700 712839 www.firstnames.com 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 firstnames.com/legal
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 email@example.com Simon Mackenzie Managing Director Intertrust Jersey Tel: +44 (0)1 534 504 000 firstname.lastname@example.org www.intertrustgroup.com
KPMG in the Channel Islands is a leading provider of professional services, including audit, tax and advisory. With offices in Jersey and Guernsey, we employ over 260 members of staff across the two islands. We work closely with our clients, helping them to identify and grasp opportunities, and mitigate risk. KPMG’s global network enables us to draw on our international resources to meet our clients’ needs. Our member firms are located across 152 countries and employ more than 189,000 people around the world. With passion and purpose, we work shoulderto-shoulder with our clients, integrating innovative approaches and deep expertise to deliver real results. Jersey Jason Laity Chairman email@example.com Andrew Quinn Deputy Head of Audit firstname.lastname@example.org John Riva C.I. Head of Tax email@example.com Robert Kirkby Advisory Partner firstname.lastname@example.org Guernsey Neale Jehan Managing Director and C.I. Head of Audit email@example.com Tony Mancini Tax Partner firstname.lastname@example.org Ashley Paxton C.I. Head of Advisory email@example.com www.kpmg.com/channelislands
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Marsh & Parsons has been selling and letting property in London for over 160 years. We now operate 28 offices which are situated in prime positions across central and Greater London. We have an intimate and extensive knowledge of these areas as well as the ability to reach a global audience through our strong links with international corporates. Our people deliver the perfect balance of professionalism, transparency, enthusiasm and determination. It’s this, combined with our ongoing assessment of the local property market, that means we can deliver the best possible service and results. Since 2009, we’ve won 44 industry awards – most recently Overall UK Estate Agency of the Year and Best Large UK Estate Agency of the Year at The Sunday Times and The Times Estate Agency of the Year Awards 2016. For a free up-to-date valuation of your property portfolio speak to William Hughes-Ward on 020 7590 0801. Sales • Lettings • New Homes • Residential Investments www.marshandparsons.co.uk
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: firstname.lastname@example.org www.minerva-trust.com
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 email@example.com www.mooremanagement.com 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 www.mooremanagement.com Moore is a First Names Group company
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www.blglobal.co.uk To advertise in the directory in print or online contact Carl Methven on + 44 (0)1534 615886 or firstname.lastname@example.org
Specialty: Bespoke IT Development & Business Consultancy
Building trust in society and solving important problems
Puritas is an award-winning provider of intuitive software and business solutions for the financial services industry.
We focus on three things at PwC in the Channel Islands: assurance, tax and advisory services. But how we use our knowledge and experience depends on what you want to achieve. So whichever one of our 390 staff in the Channel Islands you work with (or 225,000 people across the PwC global network of member firms), they’ll start by asking the following questions:
Specifically designed to meet the increasingly complex accounting, compliance, and reporting needs of our clients, all software features robust audit and control capabilities which can be easily updated to reflect changes in the regulatory environment. Our products include: l PureFunds - a unitized product platform specifically designed to support many different types of asset class and fund structures and help fund administrators and portfolio managers better manage investor activity l P ureClient - an advanced customer due diligence/client management system which will maintain and update client records for any entity or relationship and provides the necessary transparency and look-through reporting that is needed to manage sophisticated structures l P ureManager - a bespoke software package for fund and investment managers which provides for effective control, analysis, reconciliation and reporting of daily trading activity. As well as software development, our services include: l Systems integration and implementation l Programme and project management l Project and business consultancy
Are you looking to build trust? Give your shareholders more value? Or do you want to do something completely different with your strategy? When we work with you we really listen, to understand you better. We’ll get to know you, your business and your goals. Then we’ll share what we’ve learned to help you get there. We want to deliver the value that you, our clients, our people and our communities are looking for. Talk to us about your issues and aspirations. For further information, please contact: John Roche, Partner, Guernsey Phone: +44 1481 752040 Email: email@example.com Karl Hairon, Partner, Jersey Phone: +44 1534 838276 Email: firstname.lastname@example.org
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: email@example.com T: +44 (0) 1534 888 666 W: www.viberts.com
Follow us: @PwC_CI URL: https://www.pwc.com/jg
To find out more how Puritas can help your business. Contact: Mike Feighan - Director Phone: +44 (0) 1534 874100 Email: firstname.lastname@example.org
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➤ Tea or coffee? Strong Cuban coffee wins the day for me, although a cup of black Earl Grey tea has its place -- with a slice of Victoria sponge cake.
questions with DAVID FOSTER
Favourite movie? I was recently reminded what an excellent movie Some Like it Hot is. I was on a visit to the Hotel Del Coronado in San Diego, where they have the film on repeat play. Much of the movie was shot at the hotel and it’s hardly changed. Most amazing place you’ve visited? Phang Nga Bay, Thailand – it’s stunning. I’d recommend sea kayaking around the lagoons and caves for a truly extraordinary experience. Scariest thing that’s ever happened to you? I was on board a Boeing 747 approaching LAX in a storm, and the plane was getting hit by lightning. The roof panels collapsed, the airbags were deployed and the engines seemed to cut out for a time as the plane went into a dive. There were lots of tears and praying going on. When the plane was back in control, the pilot broke the tension by citing an English cake manufacturer and announcing: “Mr Boeing makes exceedingly good planes”! Your best quality? Modesty. The worst thing about you? Obsession with food. Last meal on death row? A 10-course tasting menu served slowly, with a rare ribeye steak in there somewhere.
FIT FOR A QUEEN
FOOD TO DIE FOR
Cats or dogs? We have both at home, but I prefer dogs. Our family dog is a Shih Tzu. When we recently relocated to Jersey from the Caribbean, we found out that Shih Tzus may have breathing difficulties at high altitude, so our dog was unable to fly across the Atlantic. We set our relocation company the task of finding a way to get our dog to Jersey and the only available option ended up being to take the Queen Mary II, which has kennels on board. Most embarrassing moment? Putting in an expense claim for a dog travelling on the Queen Mary!
Your first job? At a bank. It was only meant to be a summer job, but I loved it so much I’m still working for a bank. Worst job you’ve done? I’ve loved every moment of a long financial services career. Well nearly every moment… Favourite item of clothing? A tailor-made suit. Sweet or savoury? Savoury: we’re back to the ribeye steak. Mind you, one of those 10,000-calorie cinnamon pastries with warm icing is pretty good too! Can you play a musical instrument? Not yet, but I’ll learn the guitar when I have a bit more time. Something that drives you nuts? Cream cheese in sushi rolls. It has no place there. Best piece of advice you’ve ever been given? Before you criticise anybody, walk a mile in their shoes. That way, after criticising them, you’re a mile away and you have their shoes! Last time you cried? 8 January 2017, after eating real, fresh wasabi root with some sushi. Not only was it so hot that I cried, but a long-term partial hearing loss I had was cured and a dental crown came loose! Buzzword you hate the most? Rehydrate. What’s wrong with ‘have a glass of water’? What do you eat for your breakfast? A poached egg on top of porridge, and a fresh veg or fruit juice. Something about you that people might be surprised by? I didn’t go to university. I did all my higher education part-time and once I got started I couldn’t stop. There’s always something new and exciting to learn in my profession. I recently trained to become a dispute mediator – which has proved especially useful in my personal life, as I have teenage kids! David Foster is Head of Fiduciary Services, RBC Wealth Management
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TROUBLEMAKERS Every now and then it’s important to see the world from a fresh perspective, be willing to break the mould and make the bold moves first. When you work with us, quality, responsiveness and availability are a given - but we want our clients to expect even more. We’ll take the time to get to know you, your situation and what matters to you most - because anyone can give you an answer, but we’ll put our reputation on the line to find the answer that’s right for you.
To find out how a fresh perspective can help your business visit collascrill.com BVI // Cayman // Guernsey // Jersey // London // Singapore
We are dedicated asset guardians, more than just a service provider.
A partnership built on trust.
Equiom is a well-established, international professional services provider offering a range of innovative and effective business partnering solutions. We support corporations and high-net-worth individuals around the world with their fiduciary and related support-service needs.
Trust | Corporate | Tax & VAT | Real Estate | eBusiness Yachting | Aviation | Payroll | Management Accounting www.equiomgroup.com Equiom (Guernsey) Limited is regulated by the Guernsey Financial Services Commission. Equiom (Isle of Man) Limited is licensed by the Isle of Man Financial Services Authority. Equiom (Jersey) Limited is regulated by the Jersey Financial Services Commission. Equiom (Malta) Limited is authorised to act as a trustee and fiduciary services provider and as a company service provider by the Malta Financial Services Authority.
Published on Jun 26, 2017
This issue of BL leads with the result of the UK general election, how it might affect Brexit negotiations, and its possible impact on the C...