agenda | June/Summer 2017

JUNE/SUMMER 2017

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The life of a lioness CONNECTING BUSINESSES

jennifer Houghton new role as chairman of the iod-iom

Gain a sense of direction with the iod

alan Fitzwater, Director of Regional Developments on why the iod is more relevant than ever today

WWW.AGENDA.IM

Entrepreneur steve shimmin

life is good and life is full for the man who turned his back on the pin-striped world of financial services and is now living the dream

the the Island’s Island’s best network! best network!

G2G4G3G2G4G3G4G4 ††

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†Source: OpenSignal.com comparing Operator Mobile Network Stats for “Location: Isle of Man”, download, upload, latency and signal

^Source: Equiendo Isle of Man benchmarking survey October 2016

CONTENTS UPDATE

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WELCOME NEWS MOVERS & SHAKERS HANSARD INTERNATIONAL GLOBAL TEAMS

48 politics is interesting OPINION

INTERVIEW WITH opinion ssx - Debbie Ryan JENNIFER HOUGHTON YOUR IOD - COMMITTEE MEMBERS IOD - CHARTERED DIRECTOR IOD - GAIN A SENSE OF DIRECTION WITH ALAN FITZWATER

IOD - ANNUAL MEMBERS MEETING

IOMBN/ESTERA EVENT WITH SIAN JONES IN A BLINK

SOCIAL STOCK EXCHANGE BY END OF THE YEAR

DISAPPOINTMENT OF ECONOMIC FORCASTS

PWC - MIND THE GAP

BUSINESS BOOKS

COURTENAY HEADING Words By: Les Able UNCONVENTIONAL VENTURES

42

4

CYBER CRIME FIGHT SURE - ONE GIANT LEAP FOR THE ISLE OF MAN ST. JAMES’S CHAMBERS SURE - 10 YEARS OF SUCCESS

62 66 69 70 72

STEVE SHIMMIN KEITH LORD CONOR CUMMINS STUART COLLIGON

42 Plans HEALTH & 44 Afoot For Social WELLBEING Stock Exchange By End 46 Of Year In Bid To 74 50 and Revitalise78 “Disrupt Existing CONTRIBUTORS 72Capital Markets” KPMG - QUIET START FOR FINTECH IN 2017

DONALD TRUMPS HANDSHACK

52 54 56 60

ENTREPRENEUR

IOD - BREAKFAST WITH DICK WELSH

IOD - BREAKFAST WITH RBS ECONOMIST NEIL PARKER IOD - ANNUAL SPRING LUNCH

TECHNOLOGY

COURTENAY HEADING

CAN WE DELAY AGEING? SPEND IT ON…

Claire Veale Wendy Shimmin Michelle P. Tonnesen Matt Mosur Les Able Clive Parrish Alicia Clegg Andrew Hill (FT) John Plender (FT) ON THE AGENDA...

Steven Hannah (KPMG) Tom Richards (THOMAS

MILLER INVESTMENT)

Alison Cregeen (PWC) Shannon Bond (FT) Mike Phillips (SURE) Cynthia Kenyon (FT)

ON THE AGENDA...

CONNECTING BUSINESSES

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INSTITUTE OF DIRECTORS - ISLE OF MAN The Claremont 18-22 Loch Promenade Douglas, Isle of Man IM1 2LX www.iod.com

welcome

I

am extremely proud and delighted to be addressing you as your incoming Chair and hope that you enjoy the third edition of Agenda.

Many of you won’t know much about me but you can find out a little more in an interview on page 20.

I am taking over with the branch in a good place, with a strong membership and a diverse calendar of events.

Your Committee and I recognise that we have the ongoing challenge of ensuring the Institute remains relevant and that members get good value for the membership fees we all pay.

Under Clive’s leadership we have made representations to Pall Mall on how they might make it easier for us to provide a wider range of relevant services, CPD etc. We are exploring some ideas and I will update in due course; once I have my feet a little further under the table.

I look forward to meeting more of you in the future and as always if you have any specific ideas on how we can improve what the branch provides please let me know.

Recycle Agenda recycles all its storage and packing materials, boxes and any old magazines that are returned. We don’t get that many fortunately. We love to know our readers hang on to previous copies but when they take up too much space, drop them down to the recycling bins. If you want to find out more about recycling - call: 01624 686540. Don’t forget you can view all previous issues on our website.

Disclaimer All rights reserved. Any form of reproduction in part or whole is strictly prohibited without the written consent of the publisher. Any views expressed by advertisers or contributors may not be those of the publisher. Unsolicited artwork, manuscripts and copy are accepted

by Agenda magazine, but the publisher cannot be held responsible for any loss or damage. All material, copy and artwork supplied is assumed to be copyright free unless otherwise advised.

Contributions for Agenda should be emailed to editorial@agenda.im.

CONNECTING BUSINESSES

Jennifer Houghton Chairman Institute of Directors - Isle of Man

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update news

JTC acquires merrill lynch’s international trust and wealth structuring business and ENTERS INTO wider STRATEGIC RELATIONSHIP

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ndependent 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.

In addition, Merrill Lynch and JTC have entered into a strategic relationship whereby JTC will offer a range of trust administration services to new and existing international advisory clients.

Merrill Lynch will retain its international wealth management business, including its brokerage accounts, trust assets and international financial advisors.

Morgan Sharpe rebrands to Estera

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stera, a leading provider of global fiduciary and administration services, has announced the successful completion of its acquisition of Guernseybased Morgan Sharpe Administration Limited (“Morgan Sharpe”) following receipt of regulatory approval.

The deal, which completed on Friday 28 April, will see Morgan Sharpe rebranded under the Estera name to become Estera Administration (Guernsey) Limited.

Estera CEO Farah Ballands said: ‘We are delighted to formally welcome the team at Morgan Sharpe to the Estera group.

They bring a wealth of experience in fund administration to our team and we look forward to working with them to expand our presence in Guernsey, an important market and jurisdiction for the Estera group.’

With the acquisition finalised Estera now employs more than 370 people across the 10 jurisdictions it operates in, including more than 50 at the Isle of Man office on Athol Street, Douglas.

Sean Dowling, Managing Director of Estera Isle of Man, said: ‘Acquiring Morgan Sharpe is a great step forward and demonstrates our intention to become a global acquirer aligning ourselves with brands which have outstanding reputations and share our core values. The blending of the companies will enable Estera to continue delivering first class administration services and allow us to offer a greater range of services for our clients.’

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ON THE AGENDA...

FURTHER ISLE OF MAN ENTERPRISE DEVELOPMENT SCHEME DEALS COMPLETED

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urther Isle of Man Enterprise Development Scheme (EDS) investments have continued to complete in the last month, SPARK Impact Limited (SPARK) has confirmed.

It follows April’s announcement that several agreements had been reached and funding of more than £1.2 million committed to help bring new businesses to the Island and expand existing onIsland firms.

As noted previously, SPARK has confirmed the agreements are across a number of sectors, including healthcare, eCommerce and technology, and that advanced negotiations with more businesses are continuing.

SPARK was appointed in March 2016 by the Isle of Man Government Department of Economic Development to run the Accelerator and Relocator elements of the £50 million EDS. Offering flexible funding packages, including loan and equity investments, the EDS is open to businesses at all stages, from start-up to expansion and development.

Among those to have received support is Nimbus Medical Holdings Limited. Founded in Merseyside in 2014, the technology firm has received equity investment as part of the EDS to allow it to expand. As a result, Nimbus relocated to premises in the Isle of Man in late 2016

PHOTO: SPARK Impact Investment Director Mark Borzomato (left) and Nimbus Medical Holdings Limited Chief Executive Officer John Curtis

and has already created three new jobs in the Island.

The company has developed the InterCare® integrated technology platform which enables the elderly and chronically ill to safely live at home rather than in a hospital or care home setting. InterCare® utilises sophisticated software to allow medical professionals to set healthcare parameters, such as blood pressure and temperature, which can be monitored remotely by the computer system and can alert the medical professional on an exception basis when the parameter is outside the expected. www.sparkimpact.co.uk

APPLEBY FIRST TO SUPPORT MARKETING APPRENTICESHIP

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eading offshore law firm Appleby has become the first organisation to sign up to a new marketing apprenticeship scheme launched by the Department of Economic Development and The Marketing Partnership.

The apprenticeship scheme places young adults who have a passion for marketing with a business to give them hands on experience within the industry.

The successful candidate will begin the placement in July and will complete a one year paid placement working in Appleby’s Douglas office four days a week, with one study day to work towards the Chartered Institute Marketing Foundation Certificate in Marketing (Level 3 and 4).

CONNECTING BUSINESSES

The scheme is open to all school leavers, university graduates and young people looking for a career change.

To apply you must submit your CV along with a short review of how a impactful communications campaign successfully engaged its target audience by Friday 16 June. Please visit applebyglobal. com/careers or contact Kezia Lightfoot, Marketing Executive, klightfoot@ applebyglobal.com for more information.

Applicants will also need to submit an application to The Marketing Partnership in order to comply with CIM quality procedures. The application form can be found at themarketingpartnership.im under upcoming events.

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update news

Manx Telecom investing in the future of the business and the Island, says CEO

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very home and business on the Island recently received a booklet from Manx Telecom with some key facts about the company, and its contribution to the Isle of Man. It is part of a £10million Transformation Programme being rolledout by the company over the next 18 months. In this interview, Manx Telecom CEO Gary Lamb explains the background to the programme, and how it represents the start of a new era for the company, and the Island.

Q: The booklet is entitled ‘some things we want to share’ – why did Manx Telecom decide to share this information with everyone on the Island, and why now?

GL: Manx Telecom’s history on the Island can be traced back 125 years.

Throughout that period the company has moved with the times, invested to deliver each new generation of communications technology, played a strong role in the community and adapted to meet the evolving needs of residents and businesses. We’re now entering another significant era of customer driven change through our Transformation Programme, and we felt that the time was right for us to reach out to residents and businesses to explain where Manx Telecom is today, our vision for the immediate and long-term future of the company, and what this will mean for everyone who lives and works on the Island. It’s also an ideal opportunity to highlight some facts about the company’s contribution to the Isle of Man which often go unnoticed – for example, as a major employer we contribute £50million to the local economy every year in the form of salaries, spending with local suppliers, tax, VAT, and capital investment.

Q: How will this era of change affect corporate and residential customers?

GL: A key part of the Transformation Programme is focused on making greater efforts than ever before to listen to our customers. Already this year we have completed a major survey to identify areas on which we need to focus and improve, and this has given us some fantastic feedback about the quality of what we provide to our customers. We will continue to welcome feedback and all of this data – combined with continued investment – will help us to improve the quality of our services and, ultimately, enable us to give our customers a continually improving experience.

Q: What will the Transformation Programme mean for the Isle of Man as an international business centre?

GL: Our success is closely linked to the success of the Island, and we remain totally focussed on providing a communications infrastructure which is capable of driving growth in the domestic economy, and attracting inward investment. Technology is now central to people’s lives, and to every business in every sector, which is why we are making significant investments in people and technology to deliver both world class communications and customer experience.

Our Transformation Programme will underpin the evolution of Manx Telecom into a more agile, more creative company which is able to grow both on and off the Island, and pave the way for us to provide even better services and products to our customers. We are entering an era of major change for the business, but one constant will remain, and that is our commitment to invest to keep the Isle of Man at the forefront of technology.

* A video of Manx Telecom CEO Gary Lamb talking about the company’s commitment to the Isle of Man and customers can be viewed at www. manxtelecom.com/foryou

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ON THE AGENDA...

NEWFIELD DOUBLES OFFICE SPACE TO ACCOMMODATE GROWING BUSINESS

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ewfield, the Isle of Man-based eGaming firm, has completed its expansion to another floor of its Douglas office.

The additional area more than doubles the floor space occupied by the firm to almost 10,000 square feet.

The expansion is in response to Newfield’s increasing business and growing staff numbers, with almost 100 people employed in Clarendon House.

The extra space will allow Newfield to continue its plans to further strengthen the team through further recruitment.

The offices, with incredible views across Douglas bay, are equipped with top of the range furniture and state of the art technology. Newfield promotes a relaxed working environment for its team of skilled professionals and provides fully stocked kitchens on both floors, plus ‘chillout zones’ with activities like pool, ping pong and arcade games to help workers unwind.

Isle of Man Minister for the Department of Economic Development Laurence Skelly officially opened the new office floor during a tour of the firm’s premises.

Established in 2011, Newfield is an international racing and sporting events company which utilises an outstanding IT platform and unrivalled expertise to maintain and grow its position as a market leader. The young and enthusiastic team of talented professionals is at the core of the business, driving growth.

CONNECTING BUSINESSES

9

update news

Further stage of Claremont refurbishment underway

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smart TVs, Nespresso coffee machines and personal mini fridge. Work desks will feature integral USB charger points alongside integrated European and US sockets specifically for international guests.

The new suites represent a further stage in the ongoing multi-million pound refurbishment of the Claremont, underway since 2013 and already resulting in a number of prestigious awards including Bloomberg TV Hotel Design, Word Travel Awards and a recently retained listing in the respected Michelin GB and Ireland guidebook.

he Isle of Man’s only Four-Star Gold standard hotel, the Claremont, is investing a further £750,000 into the development of a second generation of suites for executive business visitors, enhancing its reputation as the hotel destination of choice for travellers to the Island.

This latest phase of work, which has already begun and is expected to be completed by June, will see an additional series of rooms upgraded to luxurious executive suites, each featuring integrated multimedia work spaces, luxury bathrooms and separate lounge areas.

Combining contemporary styling with the hotel’s original Victorian architecture, the design by German architects Bernrieder Sieweke Lagemann includes feature walls with full length images of local scenes from the late 19th century, sourced directly from Manx National Heritage archives.

A rich décor and, sumptuous furnishings will be complimented with bespoke joinery prepared in Berlin and fitted on-site by leading cabinet makers Tischlerei Rodde & Friedrichsmeyer. Each suite will also incorporate a spacious wet room with walk-in amazon shower, super king beds, Tempur® mattresses, 40 inch

Interesting Speakers at April’s ManxBioMed Meeting

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t the most recent meeting of the ManxBioMed Cluster Dr Ken Milne, Director of Corporate Services, Department of Economic Development (DED) presented the findings of the Isle of Man Biomed Strategy Report, commissioned by the Department and conducted by Dave Taggart, operating under Manx Business Connection. Overall the outlook is extremely positive. Through focusing on existing strengths in areas such as data and digital, developing legislation and regulation to foster innovation and enterprise developing

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a broader network of partnerships with academic centres,.

Biomed is already a substantive and thriving sector on the Isle of Man, with a diverse set of companies already operating here with over 100 jobs and a growth rate of 13% since September 2013.

It is clear from the success of companies already operating here such as Panacea, Nasaleze, BodyStat, SEQ and Prometic, that the Isle of Man has great potential as a biomed location, and interest in the Island has been encouraging (over 54 biomed companies have visited the Island over the

PHOTO: Dr Ken Milne, Dave Taggart, Dr Lorin Johnson, Anne Mills, Damian Bond

past three years).

Other speakers at the event were Anne Mills, CEO, Hospice Isle of Man who spoke about challenges facing hospices. Damian Bond, Chief Executive, CynapseDx Limited who provided an insight into early detection of Alzheimer’s and Parkinson’s diseases. And Dr Lorin Johnson to hear about his new venture Glycyx Therapeutics, Ltd, an Isle of Man based pharmaceutical development company.

Visit the Manx Biomed website to read the full article. www.manxbiomed.im | www.mtg.im

ON THE AGENDA...

update Movers & Shakers

PHOTO: Long-serving Junior Achievement volunteer business mentors Keith Green, Terry Bradley, Paul Wiseman and Damon Warr. Back row, Ballakermeen High School’s head of sixth form Ian Kay.

Junior Achievement business mentors: inspiring entrepreneurship in young people

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unior Achievement’s team of volunteer business mentors guide and support Year 12 students taking part in the company programme which, over the course of an academic year, challenges

them to form a company and take a product or service to market.

This year 29 teams competed in the Manx charity’s flagship programme, which culminated in the Company of the Year

awards presentation, an occasion not only for celebrating students’ success but also for recognising the valuable long service of four business mentors: Terry Bradley from Zurich Global Life, Keith Green from the Isle of Man Post Office, Damon Warr from PwC and Paul Wiseman from Barclays. www.jaiom.im

Creechurch Capital named finalist at Investment Week Awards

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iscretionary fund manager, Creechurch Capital, has received recognition from Investment Week being named as a finalist in the Investment Marketing and Innovation Awards 2017.

This year the business is celebrating a shortlist in the Proposition Development category for the multifaceted Time campaign running throughout 2017.

The business is no stranger to these awards, sweeping up two accolades in 2015 for the groundbreaking Peacock campaign; one in the same category and one in the Judges’ Award category.

The Awards, now in their fourth year, set out to honour creativity and innovation within the investment sector and recognise ideas that make a positive impact on the market. Winners will be announced at a ceremony on 30th June in London.

Stewart Quayle from Creechurch CONNECTING BUSINESSES

Capital commented: “To be named a finalist in this category for a second time is testimony to the excellence retained at Creechurch Capital. Our stellar reputation is down to an unwavering dedication to pursue excellence across all areas of the business. We’re thrilled to receive this affirmation as we continue to evolve and challenge the status quo. Through the changing economic backdrop that has shaped recent years, we have kept our eyes firmly on delivering only the best service to our clients. Here’s hoping for another successful evening in June.”

This shortlist is hot-on-the-heels from a double shortlisting at the Citywealth Brand Management and Reputation Awards 2017 with, sister company, Knox Financial Group’s shortlist in the Best PR Campaign category and Creechurch Capital CEO, John Greenwood, named a finalist in the Career Achievement category.

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update Movers & Shakers

Manxman James Shimmin appointed Senior Manager, Risk Consultancy at KPMG

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ames Shimmin has been appointed Senior Manager, Risk Consultancy at audit, tax and advisory specialist KPMG. Born and bred on the Island, James has 30 years’ experience in the financial services industry both in operations and compliance roles. He has worked in a number of other jurisdictions including the Cayman Islands, Malta and UK, gaining ‘hands on’ experience of audit, asset and fund management, international

and retail banking serving both fiduciary providers and eGaming operators.

A Fellow of the International Compliance Association, James is also active as a Fellow, co-founder and the current Financial Director of the Alliance of Isle of Man Compliance Professionals and he is a member of the local branch of the Chartered Institute for Securities and Investments. He was a founding member of the Isle of Man Gambling Supervision Commission’s MLRO forum.

Estera director honoured at IoD awards

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senior figure from Estera, a leading provider of fiduciary and administration services, has been named ‘Director of the Year’.

Gary O’Connor received the prestigious award at the Institute of Directors (IoD) Isle of Man Spring Lunch held on 19 May at the Sefton Hotel. It was attended by members of the IoD and guest speaker Ian Rowland, a corporate speaker, trainer and consultant who has worked with the FBI and British Olympics Team.

The IoD Director of the

Year Award recognises strong corporate leadership and rewards professionals who promote social and economic developments in the Isle of Man. Jennifer Houghton, Chairperson of the Institute of Directors in the Isle of Man, commented: ‘On behalf of the IoD we would like to congratulate Gary on winning this prestigious award at such an early stage of his successful career.

We wish Gary success in the U.K. National awards when they are announced later in the year.’

RL360°’s Steve Noon takes up Middle East role

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L360°’s Dubai office has welcomed Steve Noon to the role of Regional Sales Manager.

Steve, who has spent 7 years with RL360° in Asia, will take over from James Parsons, who was recently appointed Head of Sales at Ardan International, the RL360 Group’s newly acquired wealth platform.

Originally from the Isle of Man,

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where RL360° is based, Steve first worked in Kuala Lumpur before moving on to become an integral part of the Asia sales team in Bangkok.

Steve has 13 years’ experience in financial services and prior to joining RL360° in 2009 worked for Alliance and Leicester and Standard Bank.

ON THE AGENDA...

Top honour for Boston’s Katherine Ellis at European Wealth Briefing Awards

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atherine Ellis, Group Business Director of Boston Multi Family Office, has won a prestigious Women in Wealth Management (Individual Contribution) Award at the European WealthBriefing Awards held at the Guildhall in London.

Showcasing the best providers and individual contributors in the world of global private banking, wealth management and financial advice, the WealthBriefing awards are designed to recognise those who have demonstrated innovation and excellence during 2016. The panel of expert judges said they were “greatly struck” by the range of Katherine’s “accomplishments, achievements and commitments to the industry”, adding: “She is an exemplar to us all.”

Member of ManSat’s Board of Advisors elected President of Asia Pacific Satellite Communications Council

G PwC ISLE OF MAN CELEBRATES AMY’S OUTSTANDING ORDER OF MERIT SUCCESS

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newly-qualified accountant at PwC Isle of Man has achieved first place in the Isle of Man’s Order of Merit from the Institute of Chartered Accountants England and Wales (ICAEW).

Amy Whitty received the recognition for the ICAEW’s Advanced Stage exams, with the Order of Merit acknowledging candidates who have scored the highest average marks in their exams to become an ICAEW chartered accountant.

Having graduated from the University of Leeds in 2007 with a Bachelor of

CONNECTING BUSINESSES

Law, Amy was called to the Isle of Man bar in October 2011. She practised as an advocate until April 2014, when she started training to be an accountant, joining PwC Isle of Man later that year.

regg Daffner, CEO of GapSat and a member of ManSat’s Board of Advisors, was elected and inaugurated as the President of the Asia Pacific Satellite Communications Council (APSCC) at the Council’s recent General Assembly.

The APSCC is one of Asia’s leading non-profit international associations, representing all sectors of satellite and space-related industry, including private and public companies, regional and government ministries and agencies, and academic and research entities.

It works to promote communications and broadcasting via satellite as well as outer space activities in the AsiaPacific for the socioeconomic and cultural welfare of the region.

As the main representative of APSCC, Gregg will be responsible for setting the policies and goals of APSCC in consultation with the APSCC Board of Directors, Vice Presidents and Executive Director.

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update Karen corran interview

Hansard International:

Putting people first 2

017 represents a significant milestone for Hansard International as they celebrate thirty years in business. From its head office base in Douglas, Hansard is proud to have retained its original identity, focus and name, and since 1987 has steered a steady course during an era of unprecedented global economic challenges. In this exclusive interview with Agenda, Karen Corran, Head of HR at Hansard, explains why their ‘People Strategy’ is focused on having a skilled and engaged workforce that shares Hansard’s values and aspirations.

Karen Corran, Head of HR at Hansard

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ON THE AGENDA...

Q: Explain the philosophy behind Hansard’s ‘People Strategy’.

KC: Every organisation will claim their people are their greatest asset. It may sound like a cliché, but we truly believe it, which is why we have a strategic, people focused, goal. We offer the chance to be a part of something really special because we are in control of our own destiny, and with that comes the opportunity to be involved in a variety of projects and see those creative ideas right through to implementation. Our philosophy is all about recognising the importance of our people understanding the overall strategic direction of the company, and the role they play in achieving our goals, both personally and as part of a team. The fact that Hansard is small compared to our competitors is something we use to our advantage because it means that we can cut through the usual layers of corporate red tape, and make decisions quickly in an ever changing regulatory and commercial environment.

Q: How does Hansard’s international dimension shape the working environment?

KC: While the majority of our 205 staff are based in the Isle of Man, we also have people in the UK, Dublin, Dubai, Malaysia, Hong Kong and Japan. This makes for a truly international feel at Hansard and we are lucky to have the opportunity to embrace different cultures around the globe. We work really hard to ensure we are communicating effectively across all our jurisdictions, and technology plays a key role in this. Our people are passionate about innovation and they are actively encouraged to come up with new and creative ways of doing things, whether that’s a process which could be streamlined, a product that should be developed, or a system that can transform the way we work.

Q: From an HR perspective, how has Hansard changed over the last 30 years?

KC: I joined Hansard in 1997, and after a few months moved to the ‘Personnel Department’ as it was then called.

The department’s role was centred on administration and advisory tasks, and an average day would be spent manually inputting holiday records, writing reports, drafting adverts and sorting through applications, references etc. Who would ever have thought we could move to a paperless environment in the future? My role has changed considerably over time, and as a team we now concentrate more on the strategic and advisory part of the job.

While there will always be paperwork to deal with, our preference is to be out there

talking with our people which is where we get the real sense of what’s going on around the business. We have always been one of the market leaders in technology for our clients and we are delighted that in the last few years we have utilised technology to enhance our employee experience by offering a one stop shop for all things related to employment through our online solution.

Q: What makes working at Hansard different to other companies in the same sector?

KC: At Hansard ‘what’ you do is equally as important as ‘how’ you do it, and we have a core set of company values that support the way we do things.

Encouraging our staff to learn and develop with us is a key part of how we work here and we have a dedicated Learning and Development Manager to coach and support our people through an exciting programme of learning events. We have a suite of courses available which are easily accessible through our online platform.

Learning and Development plans are also available to ensure development needs are continually being met. I will celebrate my

20th anniversary at Hansard this year, but this length of service is not unusual – at present we have 21 people with over 20 years of service, and an average length of service of eight years. The wealth of knowledge that our people have about the business contributes to our success – retaining that knowledge and expertise, and recruiting key people who bring new ideas and experience, are goals which are central to Hansard’s HR strategy.

Q: Finally, what’s next from a HR point of view at Hansard?

KC: Our ‘Employee Engagement Programme’, which is in its third year, will continue to focus on generating valuable staff feedback and guiding our action planning to ensure we are working on the areas that are important to our people.

Implementation of GDPR (General Data Protection Regulation) and equality legislation is going to have a significant impact, and will be a key focus for us over the coming months. Celebrations for our 30th anniversary are well under way, and we are very excited about this too.

Find out more about Hansard International’s 30th anniversary at hansard30.com

CONNECTING BUSINESSES

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- global teams update feature iod-iom events

How to fix culture clashes

in global teams Managers need to beware different business conventions of international colleagues

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Words By: Alicia Clegg (FT)

hen a colleague wanted to force customers to complete an online survey before placing their order, Philip Rooke, the Leipzig-based CEO of Spreadshirt, a global online apparel business, was dismayed.

He told him politely - but firmly that “he might want to find another option”.

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ON THE AGENDA...

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update

“US audiences raise a hand to signal they have a question. For the Japanese, locking eyes with the presenter is enough”

<<<<

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Yet when he road-tested the website, he found his way barred by the selfsame survey. What Mr Rooke, a Briton, had intended as a tactful thumbs-down, his German colleague had taken as a green light to choose whichever option he preferred.

“In my early months, some terrible ideas got implemented. A German boss would just have said: terrible idea, find a new one,” he says.

Teams that straddle the globe have become part of working life. Organisations that bring nationalities together are often interesting and creative places to work. But cross-cultural working can be fraught, even when nations might superficially seem similar, as the Anglo-German mix-ups at Spreadshirt illustrate.

Linguistic blunders are a common pitfall but, once discovered, mostly easy to put right. Erin Meyer, a professor at Insead, believes relations are really tested when we forget that how we praise, criticise, persuade and get things done is an expression of the culture in which we grew up - not simply our personality.

As she puts it: “When misunderstandings happen, it’s often not because we assume people from other cultures are different from us, but because

we assume they are like us.” So we see rebuffs and rebukes where none were intended, misconstrue meanings and fail to notice when colleagues have something to say.

Yolanda Lee Conyers, an American and chief diversity officer at the Chinese computer maker Lenovo, knows how easy it is to get off on the wrong foot. Given the job of uniting east and west after Lenovo purchased IBM’s PC business, she embarked on a whirlwind of meetings, only to be told that the Chinese did not like her.

In her eagerness to get things done she had overlooked the weight that the Chinese attach to first building trust by socialising with colleagues. By “requesting” meetings in emails she had also, unknowingly, flouted Chinese etiquette. “To us ‘request’ sounds polite; but the [standard] translation in Mandarin is more like demand, which naturally upset people,” she recalls ruefully.

Encouraging teammates to mentor each other might improve mutual understanding. For Ms Lee Conyers a turning point was buddying with a Chinese executive, Gina Qiao, whose silence in meetings had gained her a reputation with the Americans for caginess.

ON THE AGENDA...

Over a dinner that “was meant to last an hour and went on for three”, the women, who later co-authored a book, pieced things together. “It wasn’t that Gina [who had only recently learned English] was holding back, she just didn’t know when to jump in, because in her culture it’s polite to let others speak first,” says Ms Lee Conyers.

Employees at home in more than one culture can sometimes detect meaning in body language that colleagues who grew up in only one culture miss. Prof Meyer gives an example. While US audiences raise a hand to signal they have a question, for the Japanese locking eyes with the presenter is enough.

Recognising that what gets the job done in one culture might derail it elsewhere is also crucial for team-working.

Rather than gloss over their differences, Mr Rooke’s team, numbering 20 nationalities, jokes about them. “We say if a German isn’t criticising, it’s praise.” Some nations - notably Germans and the Dutch - are taught to give candid feedback, while others sugar the pill.

Those anxious to dodge the crosscultural tripwires can turn to researchbased tools that put culture under the lens, including Geert Hofstede’s study CONNECTING BUSINESSES

of national differences at IBM, and Prof Meyer’s Culture Map. The latter plots the workstyle norms of countries along a series of high-to-low scales. For example, while Germans are taught to ground their arguments in theory and build methodically to conclusions, Americans like to get to the point quickly. In many advanced economies, meanwhile, keeping to a schedule is considered the hallmark of an effective manager. But in countries where the electricity might suddenly fail, the best time managers are the improvisers who can adapt when plans fall through.

In the face of so many crosswinds, how can organisations keep the peace? Ms Lee Conyers’ prescription is straightforward: “We say: before judging people, let’s first be sure that we understand their intention.”

Helen Brown, global head of talent at MediaCom, commented how doing just that averted a fallout when colleagues from Southeast Asia flew to MediaCom’s New York offices for a pitch. The timescales were manic. Yet, at 5pm, the Americans went home while the visitors toiled on and over the weekend, feeling increasingly aggrieved. To clear the air, the visitors’ Indian-born boss took the clock-watchers aside and discovered they were divorcees with childcare responsibilities to fulfil.

“The situation was completely strange to her. In India people tend to stay married, and there’s always a grandparent ready to pop over to care for the children,” Ms Brown says. They resolved the problem by planning a roster that allowed the Americans to work longer and still meet their family commitments.

So when in Rome, should a manager from overseas do as the Romans do, or stay true to his or her business roots? Prof Meyer recommends you should “know how to do in Rome”, and then decide which course will produce better results.

Jose Carvalho, a Brazilian, who heads the commercial payments division of American Express in Europe, agrees. An advocate of egalitarian workplaces, he understands when to play by local rules: “If I went straight into [a hierarchical] market and bypassed three layers of management, I’d disenfranchise quite a few people and wouldn’t get anything done.”

But, what if your host’s style really isn’t for you? Mr Rooke says he has learnt to be more direct - yet still undershoots. “A lot of my team still say my feedback isn’t as constructive [tough] as they’d like it to be. If I was that blunt in England, people would say: ‘how terrible! I’d better find another job.’”

Uniting nations: advice Making assumptions about

individuals based on where they are from is unwise, but appreciating how culture shapes behaviour and perception is essential preparation for working in an international team.

Tips include: n Recognise that individuals are not products of their culture, careers or genes, but a mix of all three n Try not to view others through your own cultural lens. A colleague who only speaks up when invited could be an extrovert being polite — and bursting to have their say n Tune into how different cultures give feedback: voicing dissatisfaction, damning with faint praise, or even praising what was good and leaving the listener to infer what was bad n Identify teammates at home in the country where they work, as well as in your own, who can act as cultural translators, but ensure their credentials are up to date n Ask colleagues to coach you in the niceties of their culture and in return coach them in yours

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update IOd-iom JENnifer houghton

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ON THE AGENDA...

The Life of a Li o ness Interview with Jennifer Houghton, Non-Executive Director Words by Michelle P. Tonnesen

S

he is the epitome of elegance as she gracefully seats herself for our interview. Like a swan gliding effortlessly across the water, but underneath the surface her feet are working harder than most.

Her CV is impressive and hearing her recount her accomplishments and active personal life, you soon reach the conclusion that she is in fact more of a lioness â&#x20AC;&#x201C; a strong inspiration for other business women. In 2015 she was named Isle of Man Business Person of the Year in the Isle of Man Newspapers Awards for Excellence â&#x20AC;&#x201C; the first woman to win this award. And in 2016 she was awarded International Director of the Year by the Isle of Man Institute of Directors. Still, her sunny spirit and sparkling laugh are contagious as she tells us more about her multicultural background. >>>>

CONNECTING BUSINESSES

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>>>>

update IOd-iom JENnifer houghton

Fact File Revelations “I was born in Anaheim, California to a Swedish mother and a German father.

My current nationality is Swedish. I grew up in Bonn, Germany, and attended both international and German schools. At the age of 17, I moved back to California where I completed my education 12 years later as a CPA. I worked the next 17 years for Deloitte and enjoyed an audit career in California, Luxembourg, Stockholm and the Isle of Man.” “I loved California and the US, but I missed the international flavour of Europe.

Luxembourg was a fantastic location as I could use my languages, I could travel more thanks to longer holidays here, and I was near the country of my childhood. My mind set and citizenship are Scandinavian, but I feel very close to Germany. I go skiing and hiking in the Alps, as well as in Sweden’s mountains.”

From being a chartered accountant spanning the globe, she moved into a role as Finance Director and Company Secretary at an online entertainment company in 2008. This together with years of auditing clients in online gaming had alighted her interest in the industry, and in 2010 she worked closely with two fellow owners to set up a new venture: Annexio was born. The company offers online casino games and fixed-odds betting services based on the outcome of national lotteries. Its portfolio includes innovative lottery-style products giving players easy, quick and secure access to some of the biggest jackpots in the world.

The owners grew the business ambitiously, and its staff number increased by 300% in 2013, making Annexio the fastest growing company on the Isle of Man. “It was a challenging, but very exciting time – and one of my greatest achievements so far. Managing regulators, adhering to compliance demands, yet still ensuring all interests were catered for, including a healthy work culture. My Scandinavian management style with a focus on consensus and diplomacy stood me in good stead.”

In 2016 Jennifer stepped down as MD of Annexio.

“I felt it was the right time for me to take a break. I needed to focus on some personal matters for a bit and took the opportunity to reassess what could be the right next move for me.”

She continues to be involved as a coowner and board advisor at Annexio, but her main focus is on her Non-Executive Director (NED) roles at a handful of companies.

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FAMILY? My husband Jay Houghton from Liverpool, a Swedish sister and brother, lots of nephews and nieces, and parents who live in Stockholm, plus many German cousins, uncles and aunties. Then of course there is my family of friends on the Isle of Man too

BEST GADGET? Nutribullet which is used religiously every morning

SPARE TIME ACTIVITY? Running, hiking, skiing, classical piano playing and socialising with my friends and family

FAVOURITE MEAL? Sushi

WORST CHARACTER TRAIT? Being OCD at home

FAVOURITE FILM OF ALL TIME? Titanic

MOST EMBARRASSING MOMENT? Showing up an hour late to a wedding in the south of Sweden, only to realise that I was early when the couple came out of the church, and I found myself throwing rice on two strangers!

GUILTY PLEASURE? Sweets, especially Haribo

BIGGEST INSPIRATION? My life partner and husband, Jay

FAVOURITE SONG? Sweet Child of Mine by Guns n’ Roses

A PERFECT DAY? A morning 10 mile run along the beach, then a massage and spa, before having a meal with close friends, followed by dancing to good music.

BEST PIECE OF ADVICE YOU’VE EVER HAD? Always be true to yourself

WHAT DO YOU MOST DISLIKE? Dishonesty

IF YOU COULD GO BACK IN TIME, WHICH AGE WOULD YOU GO TO? 29 as I had just finished my professional qualifications and the world was my oyster

WHERE IS YOUR FAVOURITE PLACE IN THE WORLD? A beach on the Isle of Man looking at the sunset

YOUR BIGGEST EXTRAVAGANCE? Travel

TOP OF YOUR BUCKET ‘TO DO’ LIST? Go diving with hammerhead sharks at the Galapagos Islands

Jennifer was recently approached by the Institute of Directors (IoD-IoM) to become their Chair. Having been a member since 2008, she is wellversed in the organisation’s work and happily accepted the invitation.

ON THE AGENDA...

“My new endeavours turned out to be very networking focused. I have successfully gone through the selection process and accepted a number of interesting NED roles. I would like to expand my portfolio to continue this career path until retirement.”

“I love the flexibility and variety of being a NED, including working with talented individuals who challenge your skillset and inspire you to be involved with growing an organisation. I get to apply my experience across different industries, mainly online gaming and financial services at present, as well as giving back to charities and interest organisations.”

“The Diana Princess of Wales Care at Home Trust, also known as Hospice at Home, is close to my heart. The charity invited me to become treasurer in 2014 and later a trustee. It is very gratifying work. Charity is a foreign concept in Sweden as taxes pay for the welfare state, thus covering the needs of everyone. So CONNECTING BUSINESSES

fundraising for charity was new to me. My work with the trust has given me a new perspective on charity – how much they do for the recipients, and how much effort it requires to raise over £50,000 per year.

I meet fascinating people through the charity: patrons, politicians and people who have benefited from its work through hospice and care at home.”

Jennifer was recently approached by the Institute of Directors (IoD-IoM) to become their Chair. Having been a member since 2008, she is well-versed in the organisation’s work and happily accepted the invitation.

“My new role as Chairman of the IoD’s Isle of Man Branch is a natural progression from having been a member of the IoD Committee since 2011. I will be able to apply my years of experience working with the other talented and dedicated members of the Committee, and my new role will help me to better fulfil my duties as a NED. Through the excellent work of the subcommittees, the

IoD ensures directors continue to obtain appropriate training and gives them the opportunity to network. My job is to guide the organisation and its members to achieve their goals.”

Jennifer is no stranger to challenges, but she approaches them with her head held high.

“I think you often create your own obstacles. To me, there are only solutions.

I originally studied biology at university, but switched to major in business in order to work in a sector that gave me more international financial opportunities. If I had not made that decision, I would not have been where I am today.”

In terms of her current challenges, she acknowledges that the role of being a NED is different to being an Executive Director.

“You add value through your experience and networking connections, rather than through operational management. You are not involved with the day-to-day processes, but can provide valuable insights at strategic and board level, protect the business by ensuring good ethics and values, as well as its health and longevity through sound corporate governance in a way that will benefit all parties involved, including shareholders. Of the utmost importance is a NED’s independence of the company management and any of its ‘interested parties’. This means you can bring a degree of objectivity to the board’s deliberations and play a valuable role in monitoring executive management.

I hope that my 30 years of international experience as a professional business person will give this added value to organisations.”

What is next on the horizon for the leaping lioness?

“I am now enjoying my career as a NED and continue to appreciate the beauty of the island by savouring its many walking trails, running routes and cultural events. I am a firm believer in keeping your body fit to keep your mind fit. I have completed a number of half marathons – always running for charities.

I am currently training for the Chester Half Marathon which I will be running for the Diana Princess of Wales Care at Home Trust. Later this year, I will be climbing Åreskutan – a stunning, but challenging mountain in central Sweden – with a group of girlfriends. Mountain climbing really puts everything else into perspective and reminds you to live in the moment.”

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update IOD-IOM MEET YOUR INSTITUTE OF DIRECTORS ISLE OF MAN COMMITTEE MEMBERS

JENNIFER HOUGHTON (Chairman)

SUE PRESKEY (Secretary) Duncan Lawrie Private Bank

DAWN WEBB

Treasurer Dawn Webb Advisory Limited

Isle of Man Member Benefits CLAIRE VEALE (Executive Officer)

PAUL MCAULEY

Lloyds Bank International Limited

CLAIRE MILNE Appleby

QUICK LOOK n Discounted entry to

Rendezvous Lounge and Speedy Park at the IOM Airport

n Discounted VIP Business Travel and Airport Transfers with K&B Carriage

n Discounts on Leisure and

JOHN HUNTE

Department of Economic Development

FINDLAY MACLEOD

Isle of Man Creamery Ltd

PETER REID

Lloyds Bank International

Business Travel with Richmond Travel and MannLink Travel

n Discounts on selected training courses with TLC

Additional Benefits for all members

n Access to our local HQ and Business Hub and locations throughout the UK

n IoD Car Rental, provided by

Hertz www.iod.com/carrentalÂ

SALLY BOLTON

Corlett Bolton & Co

ALICE MARTIN

Isle of Man Government

MARK WATERHOUSE

Isle of Man Financial Services Authority

For all benefits www.iod.com/home/ membership/membershipbenefits/default.aspx Institute of Directors - Isle of Man www.iod.com/events-community/ regions/isle-of-man

DEB BRYON

Hansard International

24

ON THE AGENDA...

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A modern accountancy practice built on traditional values of integrity and service.

With over 60 years of experience in the industry, we are ideally placed to help you and your business.

Please get in touch with our expert team today to find out how we can help you with any of your Accounting, Audit, Acquisition & Disposal, Forensic Accounting, Insolvency, Payroll, Taxation or VAT needs.

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update IoD-iom Chartered Director

Alison Kennedy

Simon Scott

Ian Bancroft

Institute of Directors

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Chartered Director

ON THE AGENDA...

Chartered Director is the pinnacle of the Institute of Directors qualifications, says Alison Kennedy who heads the IoD’s education programme in the North West.

She adds: “Chartered directors have a dramatic and positive effect on the success of their organisations. As a long-established professional awarding body, the IoD is the only institute in the world to offer internationally recognised qualifications designed by directors for directors under Royal Charter.

“To perform effectively as a director requires a combination of core competencies in the key areas of knowledge, skills and mind-set. Chartered Director is the only professional qualification for all directors that demands both knowledge and experience of how to make boards effective, and a commitment to continuous professional development.

“However, it is possible to embark on the programme without currently having the experience to achieve chartered director status. However, applications for this status must be made within 10 years of the award of the diploma, giving plenty of scope for career planning.”

Ms Kennedy adds: “Chartered directors have a dramatic and positive effect on the success of their organisations and are able to: Champion standards of good, ethical governance and best practice for boards Improve the board’s effectiveness and personal contribution Build trust and demonstrate to shareholders, stakeholders, clients and customers that their organisation is professional and successful Adopt a common set of business principles and vocabulary Demonstrate strategic leadership and take a long-term view of opportunities, risks and challenges Act independently with judgement and integrity The first step on the journey is, says Ms Kennedy, certificate modules and the next module is ‘The role of the director and the board’ on June 19 and 20.

Further information is available from Alison Kennedy on 07748 147864 or by email to j.a.kennedy@salford.ac.uk.

CONNECTING BUSINESSES

Two high profile business names, Simon Scott and Ian Bancroft, who have each recently become Chartered Directors, outline why they consider it to be an important accreditation, both personally and professionally.

Simon Scott, country head for Isle of Man, Barclays What prompted you?

Many directors take the IOD Certificate followed by the Diploma in Company Direction. Whilst these are excellent qualifications, I was more interested in the chartered qualification as it was an opportunity to validate to myself and the IOD assessors how I had put into practice all of the theory I had learned through my previous IOD studies.

Why did you feel it was so important at this stage of your career?

I felt it was an opportunity to demonstrate my knowledge and experience at a higher level. The Chartered qualification fitted very well with my role as country head for Barclays in the Isle of Man. .

Driving good governance and strategic thinking at board level are important areas which lead to better business performance – so the Chartered qualification was a way of challenging my own thinking and considering what could be done differently, both for me and Barclays What have you learned from it and would you urge others to do it?

The Chartered qualification is a good time for reflecting and considering your successes and where you have contributed to board decisions and the direction of the company. The requirement to provide clear and specific examples of when I have demonstrated good governance as a director really helped to highlight areas where I had added value in relation to business strategy, corporate social responsibility and other areas.

The interview was a great opportunity to discuss my achievements and to be challenged on how I had contributed and the overall impact. For me, it is a step up from the Diploma and I would certainly recommend it to others.

Ian Bancroft, Bancroft Associates Ltd, previously managing director of Cayman National Bank and Trust Company (Isle of Man).

What prompted you?

I am a great believer in continuing education and development. I completed an MBA in my mid forties and a decade later I was seeking a fresh challenge. I had been a company director for many years. Like many people who assume the responsibilities of a director as part of their career progression, one always aims to do the right thing, but the principles of good governance and the proper discharge of one’s fiduciary duties had long interested me.

The Chartered Director qualification seemed both intellectually challenging, but also a worthy aspiration. It was also essential in adding a formal theoretical underpinning to my practical experience.

Why did you feel it was so important at this stage of your career?

Having worked in the Island’s finance sector for around 40 years, the last 20 at MD level for banks and wealth management companies, I wanted to pursue a different direction. After 12 very happy, and I would hope it might be considered successful years as managing director at Cayman National Bank and Trust Company (Isle of Man) Limited, I have just established my own advisory business, Bancroft Associates Limited.

My aim is to combine the technical risk and governance knowledge that I have gained from the Chartered Director courses and to combine this with my long practice experience, in offering my services as an independent director as well as providing a range of risk and governance advisory services.

Having the accreditation of being a Chartered Director is therefore important to the next stage of my career!

What have you learned from it and would you urge others to do it?

I have greatly enjoyed the whole experience. Probably the most important lesson, and perhaps the most challenging for someone in an executive capacity, has been the need to separate in one’s mind the difference between the duties as a member of the executive management team, from the fiduciary governance responsibilities owed to the company itself as a member of the board. It really does require a different mind-set. The Institute of Directors qualification has been instrumental in drumming that into me.

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update iod-iom - alan Fitzwater, DIRECTOR OF REGIONAL ENGAGEMENT

GAIN A SENSE OF DIRECTION

with the IoD

The Institute of Directors has been supporting, representing and serving its members since 1903. Its Director of Regional Engagement, Alan Fitzwater, was on the Island recently and explains why the organisation is more relevant than ever today.

Words By: Wendy Shimmin Photo: Matt Mosur

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ON THE AGENDA...

W

ith headquarters in a historic Nash building in London’s Pall Mall and a history going back over 100 years, the Institute of Directors may on first glance seem like the venerable kind of institution patronised by old boys and members of the establishment.

Which just goes to show how wrong first impressions can be, says Director of Regional Engagement Alan Fitzwater, who has visited the Isle of Man recently as part of a tour of the IoD’s 30,000-strong membership base which spreads across the UK, Europe and as far as the Bahamas.

“Many people assume that unless they are a time-served director of 20 or 30 years, they can’t join whereas in fact the IoD is all about supporting people throughout their journey, as well as setting standards and establishing good governance,” he says.

While the majority of members come from the IoD’s SME heartland – which itself represents 99% of UK business - it also has around 1800 student members who are currently going through university and a community of young entrepreneurs between the ages of 18 and 40 who are busy starting up their own businesses.

Access to such a wide range of dynamic people and entrepreneurs is one of the attractions of joining the IoD but membership offers much more than a networking opportunity says Alan. “We also have an information and advisory service which provides everything from professional research and advice to tax and legal support. We have our very well-established professional training programme which covers everything from half day CPD taster courses all the way up to becoming a chartered director.

And, of course, we have a policy arm that represents members and lobbies government on key issues on behalf of our membership.”

Understanding the key issues in the regions is a major part of Alan’s job and one he is keen to get to grips with. “I’m here to see what we can do to support our branch network and how we can harness the incredible power we have in it. The next few months for me are going to be very much about listening, understanding what is needed and then rebuilding platforms to provide the right support for our members wherever they are.”

One of the pressing key issues across all regions is Brexit and the IoD has run over 100 events since the vote last June to understand the challenges it presents for their members. “It’s a big leap into the unknown but we are doing everything we can certainly to stay ahead of the curve to support members, to engage with them

CONNECTING BUSINESSES

“Many people assume that unless they are a time-served director of 20 or 30 years, they can’t join whereas in fact the IoD is all about supporting people throughout their journey”

For more information about joining the Isle of Man branch of the Institute of Directors please email admin@iod.im

and, where challenges arise, to inform them. We’re looking at how you can future-proof your business to ensure that Brexit is an opportunity rather than just a challenge.”

Other hot topics include cybersecurity, the representation of business interests during the snap UK general election and education on mental health and well-being.

Membership of the IoD costs £295 a year plus an additional election fee of £165 in the first year. This includes 25 free 30-minute sessions with the business information advisory service who will conduct professional research in 24 hours.

There are also four free advisory sessions with a professional expert who will offer in-depth expertise on anything from business plans, to HR issue and financing plus 25 calls a year to the tax and legal services helpline. “When you think about what you get for the membership fee, it’s probably under-priced,” laughs Alan.

Has the role of the director changed over time?

“I think the more dramatic change has been in business,” says Alan. “Certainly technology plays a far greater part than it has ever done before so we are providing more support in the digital arena. Cyber security especially in the last few years has become a massive issue. For large businesses you can potentially recover, for smaller businesses who get caught up in cyber security problems, it can end them. Anything we can do to support our members through professional training, through events, through connecting them with experts in the field, is where we can really add some value and help our members.”

IoD members in the Isle of Man currently number 300+ and have their own branch chaired by Clive Parrish. This provides local directors with opportunities to meet other business leaders informally and share their experiences through inspirational events such as bi-monthly breakfast briefings, networking events and visits to local places of interest. It also plays an active role in representing members’ views and interests to the Manx government.

“Obviously Isle of Man members can connect with the IoD membership globally, whether that’s attending events, undertaking training, feeding into policy or just using some of the working spaces we have available across the world,” says Alan. “One of the best things of having a network of 30,000 people is that you meet people with some incredible skills, you get to understand their journey and what makes them tick. You’re always learning.”

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update iod-iom event breakfast with Dick welsh

I

n April the branch welcomed local Iod member, Dick Welsh, Director at the Isle of Man Shipping Register who ‘introduced’ the audience to one of the Isle of Man’s success stories; much of it unknown to a large number of those there.

Dick outlined the recent history of the registry and how the team works hard to ensure the reputation of the register and Isle of Man is enhanced as a highly professional jurisdiction providing valueadded service. The register has strived to build long-standing relationships with its clients and the Isle of Man flag is recognised as one with a high class reputation in the industry and is definitely not considered to be a ‘flag of convenience’!

The Isle of Man register is now the 12th largest in the world, by tonnage, and is at the heart of a maritime business cluster which accounts for almost 600 jobs and 2.2% of the island’s GDP. The shipping business provides opportunities across a range of other sectors including legal, CSP and accountancy as well as other businesses serving the shipping industry. Dick remains convinced that there are still many opportunities to grow the register and with it the other connected sectors and he encouraged the audience to spread the ‘word’ and become a part of the ongoing success.

Clive Parrish, the branch Chairman, added: “whilst I was aware of the registry I, like many people here this morning, did not realise how successful it has been and continues to be. It certainly is a business that the whole of the business community should be proud of and one to promote as an example of Manx enterprise and international capability”. Clive added: “I would like to also thank HSBC as our sponsor which enables us to provide a good quality breakfast and speakers to our members free of charge”

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ON THE AGENDA...

update iod-iom branch Annual members meeting

T

he Isle of Man branch of the IOD held it's Annual Members' Meeting in the Boardroom of Appleby Global where the attendees were treated 'royally' by their hosts.

Outgoing Chairman, Clive Parrish, gave his fourth and final Chairman's address advising members that once again the branch had enjoyed a successful year.

New members continue to be attracted to membership and whilst there was a small number of retirees etc. overall membership remains strong. Clive also offered his congratulations to all those members who had been successful during the year in achieving the Diploma and Certificates in Company Direction, the institute's highly respected professional qualifications for Directors.

The Members went on to ratify the appointment of the branch's new Chair, Jennifer Houghton an experienced Chief Executive and Director she has served on the Committee for seven years. Jennifer thanked the audience and advised them that she was looking forward to continuing to build the profile of the IOD and find ways to ensure that membership remains attractive to Directors across all sectors of the economy.

Following the meeting the Minister for Economic Development, Laurence Shelly and his CEO, Mark Lewin, who are both members of the Institute were introduced and the Minister gave an update on the current economic climate and gave his views on the future of the island. Whilst acknowledging there are challenges ahead, not least the unknowns surrounding Brexit both Minister Skelly and Mark Lewin expressed optimism for the future when challenged in a lively Q&A debate.

CONNECTING BUSINESSES

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update iod-iom breakfast with RBS Economist

I

n addition to the breakfast meeting in May the branch welcomed Neil Parker, NatWest Markets Strategist, for a review of the political, economic and financial markets issues dominating currently, and a look ahead to what may be in store for each of these.

The first few months of 2017 have, as we all know, thrown up some interesting events and electoral results, as well as significant shifts in monetary policy from the Federal Reserve in the US. Donald Trump has been getting down to business in terms of forming his Cabinet, and bringing forward legislative proposal. We have had elections in the Netherlands and plenty focus in France and, of course, Theresa May called a snap General Election for June 8 whilst Brexit remains a major influence on thoughts for the future.

Neil, who joined RBS Group in 1995 has worked in economic research for 22 years, and worked closely with former Bank of England Monetary Policy Committee member Marian Bell, gave an insightful talk on his thoughts on the economic future of the UK and Europe, interest and exchange rates. With regards to Brexit the timescales appear to be tight with just around 16 months to conclude and the likelihood may be some form of interim arrangement, especially given further European elections on the horizon within this timescale - this in itself potentially brings further uncertainty and with no clear picture of how the crown dependencies will fit in to the overall scheme of things.

Branch committee member John Hunter commented “it is always a pleasure to welcome industry specialists to the island and get their views on what the future might look like. The island faces challenges, as does the UK, with Brexit and the uncertainties currently surrounding it but with it there will be opportunities for which we must be ready - I would also add my thanks to RBS International for their support with this event.”

The new IoD Isle of Man Chair Jennifer Houghton noted in her thank you statement “It was insightful to hear Neil’s personal views on Brexit, the General Election and expected economic changes over the next two years. Although the financial performance of the UK in the first quarter of 2017 was not strong, there is potential that this may change later in the year as markets stabilise. “

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ON THE AGENDA...

applebyglobal.com

update iod-iom annual spring lunch

T

he Isle of Man Branch of the IoD held its now annual Spring Lunch at the Sefton Hotel on Friday 17th May. The guests were highly entertained by the guest speaker Ian Rowland, an internationally acclaimed business consultant and trainer whose clients have included the FBI. Ian, a member of the Magic Circle, gave an interesting insight in to ‘Creative Thinking’ using a simple technique that the audience were able to experiment with there and then! Ian’s unusual style incorporated elements of magic as well to keep the audience spellbound.

Jon Wagstaffe, representing the sponsors Barclays, offered the vote of thanks and added that “Ian covered a lot of interesting ground in half an hour, particularly on the benefits of creative thinking and, combined with some magic tricks, he made for an entertaining lunch” Following Ian, Clive Parrish, in his final official event as Chairman of the Branch, went on to

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ON THE AGENDA...

announce Gary O’Connor as the winner of the Isle of Man’s Director of the Year Award sponsored by Appleby Global.

Gary is a Director with locally based Business Estera Trust. Gary, recently short-listed for a ‘Future Leaders under 40’ award by Citywealth was delighted with his award and will carry the flag for the Isle of Man in the IoD’s National Director of the Year Awards to be held later this year in the ‘Young Director’ category. The runner up was Phaedra Bird a Director with Crowe, Clark, Whitehill.

Faye Moffett, Managing Partner at Appleby’s Isle of Man office, said: “The Director of the Year award recognises hard work, dedication and talent from leading local business figures and I would like to congratulate Gary for winning the award, it’s a very welldeserved achievement.

“We are delighted to continue working with the IoD which is an important platform for developing and connecting the local business community through networking opportunities and seminars.

CONNECTING BUSINESSES

Solving Impossible Problems with Ian Rowland – The Mind Man As you would expect from the IoD, our local CPD sessions are aimed at Directors and have tended to focus on the essentials of Corporate Governance. Our previous Committee Chair, Clive Parish, was looking for a speaker, ‘Somebody a bit different’, for the Spring Lunch. A throwaway remark about a magician and one thing led to another; and so we found The Mind Man, Ian Rowland.

Ian promises to help companies become more successful through his seminars and training sessions which offer specialised, practical skills that help people to manage, sell and communicate more successfully than ever. He offers sessions that claim to be entertaining, fun, inspiring and useful, and unlike anything else you have ever seen. He didn’t disappoint.

Although his visit was primarily to speak at the IoD’s Spring lunch, the evening before he provided a CPD session to people looking for some answers on ‘Solving Impossible Problems’. So on a

sunny evening at the Mount Murray Golf Club, Ian went through 6 steps to viewing our impossible problems in different ways. Excellent examples reinforced how to use the 6 steps and, with a smattering of magic thrown in, we left with a very different philosophy – Nothing is impossible – and wondering how a cube can fit inside its own container. Trust me – it really shouldn’t fit, but it did!

The next day, trailblazing pre-lunch speaking and conscious he was the only thing between sixty people and food, he talked about inspiring people to be more creative in business. Combining incredible magic skills, mind reading predictions, decades of relevant business experience, his practical and memorable techniques are now firmly implanted in our brains. I think we all came away thinking of ways to apply what we had learned in our businesses and, as Directors, wondering if our teams could benefit from a similar experience to help our organisations to be more creative and successful.

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update - events IOMBN/Estera

Sian Jones delivers workplace communications talk at IOMBN event

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V presenter and communications coach Sian Jones delivered an insightful talk during an event organised by the Isle of Man Business Network (IOMBN) and sponsored by leading fiduciary and administration services provider, Estera.

Sian’s motivating and enthusiastic lecture, titled ‘Dynamic Communication Skills in the Workplace’, focused on how to improve communication techniques used in the workplace to ensure business people are confident, compelling and charismatic when interacting with colleagues and clients.

Sian’s TV career spans more than 20 years including presenting the news on ITV, SKY, FIVE, Bloomberg, CNBC and Tech City News, as well as hosting

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ON THE AGENDA...

lifestyle programmes on ITV, the Overseas Property Channel and others.

Leanne Harker, Head of Marketing at Estera, said: ‘When Estera had the opportunity to collaborate on a workshop with the IOM Business Network, we immediately thought of Sian. Sian and I first met two years ago and have worked on a number of projects since, the most recent being the launch of our new brand last year.’

‘The importance of communication cannot be underestimated; Sian’s insight was extremely valuable to us, and has certainly helped us to position the Estera brand where it is today. We are pleased the event was such a success and hope that everyone took something away with them to help improve confidence and communication, be it in the professional or personal context.’

Richard Smith, Chairman of IOMBN, said: “We were delighted to welcome Sian to our event. As we expected, she was a very inspiring speaker and we have had lots of very positive feedback from our Members. I’d like to thank Estera for their continued support of the IOMBN and we look forward to hosting another event together in the future.”

The event was held on 25 April at The Claremont Hotel, Douglas.

CONNECTING BUSINESSES

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update - in a blink

Sure Confirmed as Cisco Premier Partner

Sure has been reconfirmed as one of the Channel Island’s and Isle of Man’s leading IT and communications specialists following its success in being recertified as a Cisco Premier Partner.

Cisco Premier Partners are recognised as having the highest standards of in-house technical expertise and as consistently delivering superb levels of customer service.

Cybersecurity degree launched at UCM The University College

Isle of Man (UCM) will be offering a BSc Hons Cybersecurity degree from September 2017.

The BSc Hons Cybersecurity and UCM’s other IT-based degrees will equip graduates with the skills to not only drive innovation and e-business on the Island but also the capacity to protect business, industry and governments from cyber-threats. www.ucm.ac.im

New IOM company will help mobile FURTHER ISLE OF phone users with MAN ENTERPRISE lossVentures, the DEVELOPMENT SCHEME hearing Vannin subsidiary of Manx DEALS COMPLETED Telecom established to

Further Isle of Man Enterprise Development Scheme (EDS) investments have continued to complete in the last month (May), SPARK Impact Limited (SPARK) has confirmed.

It follows April’s announcement that several agreements had been reached and funding of more than £1.2 million committed to help bring new businesses to the Island and expand existing onIsland firms.

As noted previously, SPARK has confirmed the agreements are across a number of sectors, including healthcare, eCommerce and technology, and that advanced negotiations with more businesses are continuing.

Manx Telecom technology supports MICTA projects Manx Telecom is

supporting the Manx ICT Association (MICTA) by providing high speed internet access and virtual reality devices used for education and training.

The Island’s leading communications company has sponsored fibre connections into MICTA’s new offices in Athol Street, Douglas, which allows for high capacity internet provision to be offered to the Code Club which colocates with MICTA.

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identify new long term growth opportunities, has announced their majority shareholding in a new Isle of Man company, Goshawk Communications Limited, that will provide pioneering technology to help mobile phone users with hearing loss. In the UK alone, nine million people experience varying degrees of hearing loss, affecting their ability to use voice services on mobile phones. Using personalised auditory profiles that are created for each user, the new company combines intellectual property originally developed by the Goshawk team, with the commercial and technological capability of Vannin Ventures.

Businesses Beware

The OFT is warning businesses to look out for an official-looking letter from a German company concerning “VAT Registration Numbers”. The OFT issued a similar warning in 2013 and it looks as though businesses on the Island may be being targeted again.

In the letter, it says that: “As part of the changes to the EU economic package, obligating all companies to provide their VAT Registration Number on various documents since 2010, we as a publisher of leading internet portals, are required to update our database.”

This is complete rubbish, do not be caught out.

BUSINESS EVENT

SUPERYACHT FORUM DATE: 29 June TIME: 3pm LOCATION: London

The Isle of Man SuperYacht Forum will host a special presentation and panel discussion on some of the hottest and most current topics in the superyacht industry at the end of June.

In addition to updating the audience on the latest developments in the Forum’s activities and services, the event will feature a preview presentation on the new Red Ensign Code, an amalgamation of the existing Large Yacht Code and the Passenger Yacht Code, which is due to be officially launched at the Monaco Yacht Show; and the Isle of Man Ship Registry will also present its new “Pleasure Yacht Plus” service.

However, the real “hot topics” will be deliberated during an in-depth panel discussion on what happens when a superyacht has a crisis to resolve.

Using a number of case histories, a panel of industry specialists will cover topics such as fires, tender accidents, terrorist incidents, grounding, oil spillage, crew and passenger issues.

The event Chairman and Moderator will be Martin Redmayne, Editor-inChief of The Superyacht Group, who will lead the panel’s discussions on how to manage a superyacht in crisis, including: who is responsible; the chain of command; liaison with captains, owner’s representative, brokers, insurance and legal representatives; flag state; security; salvage and press issues. The debate will then be opened to the audience for Q&As. Commenting on the forthcoming event, Chairman of the Forum, Andy Roy said: “The Isle of Man SuperYacht Forum has held several presentations and receptions over the years, in London and Monaco. This event is very different to those that we have hosted previously. We will be discussing several highly-topical issues relevant to the industry today and we are looking forward to welcoming delegates to an event which will be both interesting and highly informative.”

The event is being held at the Mermaid Theatre, Blackfriars in London on 29 June 2017, from 3:00pm and will be followed by a networking cocktail reception sponsored by the Shipowners’ Club.

Places, which are strictly limited, may be booked by emailing: pr@iomsf.im.

ON THE AGENDA...

update feature

Why Donald Trump’s weird handshake matters

The gesture is a way to establish dominance — but many get it wrong

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Words By: Andrew Hill (FT)

t was the handshake felt around the world. Two presidents, Emmanuel Macron of France and Donald Trump of the US, locked hands for barely five seconds for the cameras, but with a force that whitened their knuckles.

Applying the zero-sum logic that the US president likes to use for everything from property deals to peace negotiations, analysts focused on the question of “who won?”. Some reckoned Mr Macron’s aggressive approach had forced Mr Trump to release first, giving the younger man first blood.

In previous summit-level encounters, Mr Trump has visibly disconcerted Shinzo Abe of Japan with a 19-second shake (including a patronising pat on the hand), been outsmarted by Justin Trudeau of Canada — who asserted his superior grip at their sit-down photocall — and allegedly snubbed Germany’s Angela Merkel by not shaking her hand at all.

Handshakes combine the ritual of the truce (the hand-clasp first emerged as a signal that a right-hander was not about to draw his weapon) with the preamble of battle. Strong handshake equals strong leader seems to be Mr Trump’s calculation, though as a self-confessed “germaphobe” who once said handshakes were “barbaric” CONNECTING BUSINESSES

perhaps he is simply overcompensating to conquer his deepest fear.

Mr Trump is not the first to consider the handshake important. When anthropologist Chet Creider examined the gestures of east African tribes in the 1970s, he identified seven distinct handshakes, which differed according to age, respect and friendliness.

Similarly, a colleague recalls how a Mexican politician once demonstrated five distinctive abrazos (hugs) used in the 1980s within the ruling PRI party and government, “gradated by rank and proximity to the seat of power”.

Not all US presidents are forceful handshakers. Another senior colleague, who has met a few, recalls George HW Bush’s shake as “very soft . . . barely half his hand engaging”.

Other expert handshakers use a combination of gestures. A novel, Primary Colors, based on Bill Clinton’s presidential campaigns, begins by describing the handshake as “the threshold act, the beginning of politics”, one that Mr Clinton refined into an irresistible combination of hand-clasp and left-hand touch on the arm or shoulder.

While Mr Trump’s fear of germs may be extreme, he is right about the hazards of handshaking. One chief executive, who has to shake 100s of hands a week as he tours his retail empire, told me he had developed a sore spot on the side of his hand where most people grip, giving him a fear of forceful shakers.

Glenn Gould, the pianist, seeing hands extended, would pass well-wishers a card, reading: “A pianist’s hands are sometimes injured in ways which cannot be predicted. Needless to say, this could be quite serious. Therefore I will very much appreciate it if handshaking can

be avoided. Rest assured that there is no intent to be discourteous.”

First-hand accounts from reporters reveal a variety of greeting styles. Anna Wintour, editor in chief of Vogue, “bats your hand away after the merest of intentions to shake it”.

Robert Mugabe, Zimbabwe’s leader, is another forceful shaker, as is Vladimir Putin, who combines a “very, very firm” grip with a piercing stare.

Entrepreneur Sir Richard Branson has “the world’s limpest handshake”, according to another colleague, while Italian executives such as Vittorio Colao, chief executive of Vodafone, often favour “a half shoulder-clasp with handshake combo . . . a sort of step towards the bro hug”.

That almost all these examples are man-to-man greetings is a reflection of the continuing dominance of men at the top of politics and business. But the rise of women leaders poses a challenge to the male old guard’s approach.

George W Bush’s frat-boy backrubgreeting to Ms Merkel at a G8 meeting in 2006 was an early signpost to the etiquette minefield that exists for summiteers and conference-goers. For example, when, if ever, should a man greet a woman with a kiss at a professional meeting? (Jean-Claude Juncker, a singularly touchy-feely world leader, has overcome this dilemma by seemingly embracing everyone, regardless of gender).

In geopolitics, though, the handshake is likely to remain the weapon of choice — as useful as a tool of revenge as of assault. Mr Trump got his own back on Mr Macron later during the Nato summit by giving him a shoulder-dislocating handshake when he met him on the red carpet.

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update - book reviews

Business Books The latest bite-sized recommendations for the busy reader

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f you barely have time to read business books — let alone long reviews — read our short round-up instead.

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Wild Ride:

Inside Uber’s Quest for World Domination,

by Adam Lashinsky

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s Apple changed how we consume music, Uber has transformed how many of us travel. It is fitting, then, that Adam Lashinsky, technology journalist and author of the 2012 bestseller Inside Apple has turned his attention to the disruptive ride-hailing app and Travis Kalanick, its controversial founder.

The book traces Kalanick’s history, right back to the 1990s when he founded a file-sharing site with friends at a university coding club — the long-forgotten Scour, which predated Napster — and through the noughties as he made his name as an entrepreneur, angel investor and fundraiser.

The author uses Kalanick’s life as a lens through which to view the development

of internet innovation and the trends and personalities that have shaped today’s tech industry. There are intriguing vignettes about billionaire Mark Cuban, for example.

Elsewhere, the author casts an eye over the practice of venture capitalists who back 10 businesses in the full knowledge that nine will fail.

Lashinsky, despite being granted full access by Kalanick, does not shy away from criticising the entrepreneur or delving into what he calls “Uber’s reputation as the bad boy of Silicon Valley”.

He notes that Uber has been “dogged by reports” of alleged sexual harassment.

Yet Lashinsky, who signed up as an Uber driver himself to research the book, remains neutral. Uber is “like nothing that came before it”, he says, which means the company is bound to be loved and hated in equal measure.

ON THE AGENDA...

The CEO Pay Machine:

How It Trashes America and How To Stop It, by Steven Clifford

T

he shocking thing about chief executive pay is not that it has reached such giddy heights — somewhere between 300 and 700 times the earnings of the average US worker, according to this book — but that it got there in the face of so little protest.

Clifford charges into battle in a quest to change this. A former chief executive who has served on the boards of 13 companies, he is a take-no-prisoners guide to the US corporate world and the men and women who are its beneficiaries.

Much of the preamble to Clifford’s case is familiar, from his explanation of Jensen and Meckling’s work on shareholder value, which paved the way for the explosion of stock options, to his summary of Thomas Piketty’s recent critique of inequality.

Masters of Craft:

Old Jobs in the New Urban Economy, by Richard Ocejo

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recent FT Books Essay

by William Skidelsky addressed the gig economy and how the landscape of work is changing. Of the three books he referred to, Masters of Craft sees Richard Ocejo examine the revival of craft or artisanal jobs. He focuses on barbering, butchery, bartending and distilling and explains how those careers are luring educated young people away from knowledge sectors such as finance and law.

Fast / Forward:

Make Your Company Fit For the Future, by Julian Birkinshaw and Jonas Ridderstrale

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lenty of business authors have identified the end of corporate bureaucracy, and many have welcomed the rise of meritocracies. Where Birkinshaw and Ridderstrale break new ground is in positing the existence of a third type of organisation, the “adhocracy”, especially suited to uncertain environments and run by “ambidextrous” leaders.

Rather than relying on position, as bureaucrats do, or the power of knowledge and data in a meritocracy, adhocracies favour decisive action. For instance, they test innovative ways forward rather CONNECTING BUSINESSES

Where the book gets going is when Clifford starts naming names, listing the highest paid CEOs and explaining how they made so much despite the theoretical checks and balances of corporate governance.

Clifford is weaker on solutions — a luxury tax on “excess compensation” seems an even longer shot under Donald Trump than it did under Barack Obama.

But this remains a strong introduction to an increasingly important problem.

The book suggests that the evolution of taste goes some way to explain this shift. “Cultural omnivores”, writes Skidelsky, have emerged to replace “snobs” of the past — they make no (or fewer) class-based distinctions and are just as likely to be drawn to hip hop and craft beer as conventionally “highbrow” products, such as opera and wine.

Skidelsky points out that Masters of Craft is academic and is not always an easy read, but he highlights that the author does resist the temptation to mock his “hipster” subjects.

than pondering options, analysing abundant data to death or deferring difficult decisions.

This potentially dry lecture-room material is irrigated with colourful and useful practical examples from business and beyond. Another virtue of Fast Forward: the authors do not gloss over the difficulty of the task, for people and companies.

Moving companies away from their default destiny can be risky, and the greater the change you achieve inside your organisation, the authors point out, the more likely you are to leave it. For those with the courage to make the leap, this book provides useful support.

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opinion ssx - Debbie Ryan

Plans Afoot For Social Stock Exchange By End Of Year In Bid To “Disrupt and Revitalise Existing Capital Markets” Words By: Les Able

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ON THE AGENDA...

T

HE island could have its own fully functional Social Stock Exchange (SSX) by the end of the year offering a focal point for high-quality impact investment opportunities and seeking to allocate capital where there is a clear social and environmental need.

“This will open up a wide array of opportunities to investors who wish to generate both a social impact and a measureable return from their investment,” says Debbie Ryan, a driving force as director of partnerships with the SSX. The SSX, a limited company, was officially launched in June 2013 by then Prime Minister David Cameron as part of the G8 Summit hosted that year by the UK government. Although headquartered in the City of London, it is already a ‘satellite’ presence in towns and cities in England, including a partnership fostered between Liverpool and Wirral Councils.

“Providing access to impact investment opportunities is the core business of the SSX, not only for mainstream institutional investors but also for retail investors,” says Liverpool-born Debbie, who joined the SSX in 2016. Her professional pedigree stretches from 20 years as a senior civil servant in the Home Office to major roles CONNECTING BUSINESSES

in the private sector with both security group G4S and multi-national Interserve plc.

“The SSX has dedicated itself to democratising the investment world by creating solutions that allow retail investors to play an active role in the transition towards a more sustainable economy and to invest in local projects that have a direct impact in their communities.”

Debbie, who was recently guest speaker at an Institute of Directors’ business breakfast in Douglas, makes it abundantly clear that she was so impressed at the interest shown by all those she met while in the island.

“As a result of my visit discussions are already under way within the SSX board which are likely to see a SSX satellite office in the Isle of Man by the end of this year,” she declares.

“Our aim is to help businesses that ‘do good’ in their communities to grow those business,” is Debbie’s succinct response as to what the fundamental philosophy of the SSX is all about.

“The intention is to disrupt and revitalise existing capital markets.

Our disruptive approach creates an infrastructure and gives social entrepreneurs, communities and investors valuable support by changing the way markets work to service society’s purposes.

The role is about how local investment can support local ventures to raise private investment for their journey to perhaps becoming a public company.”

The collective value of the SSX, which has Big Society Capital as the largest shareholder, is £2.3 billion. There are now 55 businesses in the UK which are members of the SSX, ranging from an arts collective worth £700,000 to a private healthcare company with a value of £1.5bn.

It is invariably a minimum of three months before membership of the SSX is approved. “All applicants have to pass a rigorous process before admission is granted by the Independent Admissions Panel,” says Debbie.

“The reaction from businesses to SSX is one of ‘thank goodness’. Why should businesses have to travel to London to raise capital or float on the Stock Exchange there? Why should local advisers to local firms have to hand over that role to advisers based in London to complete the deal? London centric has dominated for too long...

“On my visit to the Isle of Man I was astounded by the forward thinking in terms of social investment, by both those I met from government and the private services sector. It was second to none. I am very enthused and I’m planning a return visit this month in June. Our board is now very keen that we look to have a satellite office in the island and we are currently looking at the logistics.

Debbie Ryan

“Our aim is to help businesses that ‘do good’ in their communities to grow those business”

“In all the areas we go into we develop an advisory board made up of key business people and in the island this will include members of the Government and while there is an initial employment of staff the businesses we work with help the SSX there to grow. Something we are keen on is the Ten Times Initiative where a business spends 10 per cent of its revenue locally. The impact that makes is phenomenal.

“The Isle of Man Government recognises they have an aging population and if they don’t attract younger people and new business to the island it will stagnate. SSX can be a keen player in that process as businesses moving in need help to grow and that is where we can play a part in the process. The businesses were work with come from all sectors.

“We find that the millennials, the new young generation, are more interested in businesses that are going to make a difference, plus sustaining their future.

They want to be part of a company that is committed to protecting the planet and local environment. For them it’s not just about pay.”

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OPINION feature

The constant disappointment of economic forecasts

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ON THE AGENDA...

Words By: John Plender (FT)

M

It would be an understatement to say that economic forecasts are a constant disappointment to investors. The trouble arises because the forecasters’ models are fundamentally flawed.

CONNECTING BUSINESSES

any are over-reliant on extrapolations of the recent past, while the so-called New Keynesian models deployed by professional economists rarely pick up big economic shifts, such as the 1970s oil shock or the rapid rise of China.

Such shifts are inherently unpredictable. Yet there are some fundamental regime changes that ought to be predictable and which forecasters may now be overlooking. The most obvious, which will be hugely important for capital markets, relates to demography and the impending shrinkage of the global workforce.

The experience of the past 35 years has been one of labour oversupply arising from the postwar baby boom in the advanced economies and the incorporation of the emerging markets into the global economy.

This has put downward pressure on wages. At the same time, excessive global saving, notably in Asia and northern Europe, has helped cause low or negative real interest rates.

Today the baby boomers are retiring, and there is nothing remotely comparable in the pipeline to the addition of China to the global trading system. And China itself is ageing rapidly at a relatively early stage in its development. So a negative labour shock is looming, which coincides with declining fertility. That is a recipe for a shift from disinflation back to inflation.

Ah, you say, but inflation is always and everywhere a monetary phenomenon, so the logic is surely flawed. Well, maybe. But in a paper for the Bank for International Settlements, the central bank for central banks, Mikael Juselius and Elöd Takáts found a very strong link between trend inflation and the age structure of the population in 22 advanced economies between 1955 and 2014. The larger the proportion of young and old in the total population, the higher the inflation.

These effects were large enough to explain most trend inflation during the period. In the US, the baby boomers increased inflation by an estimated six percentage points between 1955 and 1975 and lowered it by five percentage points between 1975 and 1990, when they entered working life.

Across the 22 countries in the sample, the age-structure effect explained about five percentage points of the reduction in the average rate of inflation from the late 1970s to the early 2000s.

Why central banks failed to respond appropriately is moot.

What does seem likely in the light of the data is that economists and central bankers have exaggerated the role of expectations in forming inflation.

Given that we know, barring catastrophes, how many people will enter the labour market in 20 years’ time because they have already been born, it ought to be possible to forecast inflation on this basis.

Mr Juselius and Mr Takáts have done that, reckoning that inflation will be about three percentage points higher on average in 40 years from 2017, due to ageing.

That, of course, leaves out the delicate question of timing. If the shift comes sooner rather than later, today’s bond market would see a nasty bust. It is also worth asking what could go wrong with such a forecast.

If baby boomers work longer than their parents, the picture could be very different. Yet so far people in the developed world are extending working lives very slowly. Robotics could provide competition for humans in the labour market, reducing the bargaining power of labour. I believe this scare story is overdone, though that is a story for another day.

More importantly, the record of forecasting on the basis of demography has not been impressive. Many in the 1980s forecast less-buoyant housing markets in the US and UK on the basis of a declining proportion of young people in the population.

They were spectacularly wrong.

The conventional wisdom in Japan in the 1980s was that ageing would be inflationary, which is not how it has worked so far.

For my money, the best case for suggesting a return to inflation is not demographics but debt.

It is hard to see how the rise in developed-world public sector debt to astonishingly high levels since the financial crisis can be managed without informal default through inflation. A demographically induced rise in the general price level would provide a very convenient palliative for overindebted governments.

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OPINION steven hannah - kpmg

$ Quiet start for fintech in 2017 but more promise ahead Steven Hannah, Senior Manager KPMG Isle of Man, reviews Q1 activity and global trends in the fintech sector

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ON THE AGENDA...

A

fter a year marked by blockbuster deals, 2017 started off on a fairly modest footing with fintech deal value hitting $3.2 billion globally.

While not a steep drop from the $4.15 billion registered in Q4’16, it is a far cry from earlier quarters and marks the continuation of the new subdued level observed over the past three quarters.

Q1’17 saw 260 deals closed in the fintech space and, in terms of volume, venture financing now seems to be oscillating around early 2014 or full-year 2013 levels, having fallen from the peaks of 2015. Venture capital (VC) investment, however, remains on the historically high end at $2.3 billion.

Mergers and acquisitions (M&A) deal value was particularly low while private equity (PE) deals activity and investment increased, although both remained well below historical highs.

While the US led fintech investment in Q1’17, with $1.5 billion across VC, PE and M&A, it is evident that a wide variety of fintech hubs have developed around the world. This quarter’s top ten global deals demonstrate this diversity, with deals in the US, Canada, India, China, Sweden and the UK making the list.

In Europe, fintech venture activity was boosted by several huge rounds with a total of $610 million invested, the highest tally in years. Further afield in the AsiaPacific region, fintech is still an emerging ecosystem with considerable fluctuation on a quarterly basis although the outlook is for more mega-deals either as strategic investments or the development of new corporate divisions.

In general terms, there has been exponential growth in fintech over the past few years and with companies and technologies now maturing in leading jurisdictions, investors appear to be looking for early investments to achieve scale. This increasing focus on performance over potential is a natural progression with investors concentrating on making their investments work rather than increasing the size of their portfolio.

Q1’17 saw a number of mature fintech companies and fintech investors focusing on expansion as a means to fuel growth, either geographically or through product or service expansion. Unicorn company, SoFi, is a great example of this, aquiring Zenbanx and gaining the ability to provide more functions of a traditional bank, including customer deposits. SoFi also raised over $450 million in order to fuel expansion into the Australia and Asia markets.

Corporates who have continued to invest in fintech have also demonstrated increased interest in partnerships and alliances in order to leverage potential innovation. Through these models, fintech companies can gain access to

CONNECTING BUSINESSES

Steven Hannah

customers and customer data that may be unavailable to them independently. At the same time, corporates gain access to technologies and tools that can help them provide more attractive and cost effective solutions for their customers.

Q1 saw a limited number of banks leaving the R3 blockchain consortium, including Goldman Sachs and Santander.

Despite this, the consortium model continues to evolve as a way to develop blockchain and the quarter saw a number of new consortia announced, including the State Bank of India’s National Bank Blockchain Consortium. The insurance industry also saw an expansion of blockchain-focused consortia, with B3i announcing a number of new members.

Over the next quarter, there is likely to be a continued focus on developing more robust business cases for blockchain solutions, and further interest in the insurance and asset management sectors.

Q1’17 saw VC-specific insurtech investment drop to $243 million across 43 deals globally as the sector experienced a pause following strong growth in 2016. This lull is not expected to last, particularly as insurance companies around the world seem to have begun to

$

feel the pressure to embrace insurtech innovation.

Investors are showing continued interest in regtech, with strong early investment in Q1’17 following 2016’s peak.

In addition to reducing compliance costs through automation, regtech solutions are increasingly supporting a broader remit, delivering capabilities to support the growth agenda. Regtech startups in the US and UK currently garner the lion’s share of VC attention, but activity in Australia, Singapore and Hong Kong shows signs for growth.

Over the next quarter and throughout the remainder of 2017, fintech investment as a whole is well poised for growth. More established fintech companies are likely to pursue expansion opportunities, either by bringing niche solutions to new markets or by expanding the products and services they provide to their existing markets.

Insurtech and regtech are likely to grow on the radar of investors, with regulatory issues like licensing coming to the forefront. Some larger fintech companies may look at obtaining banking licenses in order to expand their business models and product offerings.

On a technology level, AI is expected to be a key area of focus for many investors, in addition to smart data and predictive analytics. With new Payment Services Directive regulation approaching in Europe, open banking and Application Programming Interfaces (API) offerings are also expected to gain significant attention.

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OPINION TOM RICHARDS - thomas miller

Politics is

Interesting Tom Richards MSc, Chartered FCSI Managing Director Thomas Miller Investment

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T

here are some common themes that pervade the UK’s ‘Brexit’ decision, President Trump’s US election victory, and this year’s Eurozone elections. It is not hard to see the signs of resurgent

ON THE AGENDA...

national sovereignty and protectionism amidst a feeling that the pendulum has swung too far in the other direction.

With a 72% turnout and a 52% to 48% majority in favour of ‘Brexit’, the UK set a new course last June. A look at the UK Government’s Plan for Britain website lists the UK’s key negotiating objectives and sure enough there are some stalwarts including “Taking control of our own laws” and “Controlling immigration”.

It is noteworthy that we must scroll all the way down to number 12 of 12 to find “Delivering a smooth, orderly exit from the EU”. Proponents of a ‘soft’ Brexit will take solace that perhaps these objectives are not listed in order of priority. On the other hand it should not be taken for granted that, in order to secure what the UK Government considers to be the best long term outcome, the short term cost would not be a rough and disorderly exit from the EU. CONNECTING BUSINESSES

Across the Atlantic, the US Presidential election became a very messy affair. In the end, Donald Trump, who started as the rank outsider, was able to capitalise on the feeling that liberal policies on trade, jobs and immigration have not worked for many blue collar American workers and that a change in the political status quo was required.

Trump’s soundbites are simple, clear and easy to digest. Complicated problems sound easy to fix. It will be harder in the context of American political reality to fully satisfy campaign promises to cut 75% of red tape and regulation, invest in the American economy and protect American jobs, drain the “Washington corruption swamp”, dramatically curb immigration, and to more effectively use American influence and military force abroad.

There should be no doubt that President Trump is a big change from what went before and that he has built his Executive Team from like-minded individuals. One of the big problems that Trump’s Administration must deal with is the shape of the US economy. Over the past 50 years, the bottom 50% of American workers have seen their share of total pretax income fall from 20% to 10%; whilst the top 1% have seen theirs double from 10% to 20%. Meanwhile, over the past 25 years the bottom 50% of American workers have seen their average annual wage stagnate at $20k; whilst the top 5% have seen theirs rise from $300k to $700k.

The gap between the “haves” and the “have nots” is not just static but is in fact ever widening. The American dream comes true for some, but for too many it is a concept removed from their and their neighbour’s reality.

The Eurozone too has challenges this year. With the UK heading for the exit door, the Union is facing several key tests including elections in France and Germany. The rise in popularity of anti-establishment leaders with far-right, anti-EU and anti-immigration policies will test the integrity of the European Project as never before.

Here too, immigration has played its part. Angela Merkel’s “Wir schaffen das” (“We can do this”) resulted in more than 1m refugees per annum heading into Europe from war torn parts of the Middle East. The moral rights or wrongs of this policy aside, immigration on such scale causes social issues at a local level and which are driving today’s political debate.

Surely it is the case that, barring major upset, continental Europe will likely survive this year intact. However,

the expansion policy of the past decades has resulted in an unwieldy bloc which contains some very different underlying parts and can be heard creaking and groaning during times of stress. Perhaps it would not be a bad outcome if the Eurozone consisted of a smaller number of countries which were able to be more closely aligned along political and economic lines?

Amidst all this, the past year has seen strong gains across many financial investment assets. Interestingly enough, the equity market performance has been driven by the sectors that typically perform well during the more developed stages of a bull market run: autos, basic resources, industrials, personal and household goods, and technology. Market ‘bears’ will now point to presently high overall equity market valuations; whilst the bargain hunter will note that there are a number of under-valued opportunities at a sector and stock specific level.

In the case that US economic growth becomes ever more sturdy, Trump’s mooted demand and supply side economic policies will surely further stimulate that growth. In the absence of a global trade war, improving US corporate profitability and increasing underlying inflationary pressures will have implications for US equity markets, interest rates and bond prices.

Closer to home, the UK economy remains on a knife edge and now also faces the uncertainty of a snap General Election. Whilst its free floating Sterling currency acts as a valuable cushion for the UK economy, financial markets will be highly susceptible to news flow around the Election campaign and Brexit negotiations. European bond and equity assets also face political risk this coming year, although the bond-buying efforts of the European Central Bank will continue to act as a buffer to limit widening credit spreads across the Eurozone and reduce the effects of any volatility on the peripheral members. The most solid bet is for continuation of the status quo across the big European economies, but after the events of the past year we had best ignore the pollsters.

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OPINION OPINIONPWC alison editorial Cregeen - PWC

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CONNECTING BUSINESSES

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TECHNOLOGY cyber crime

Artificial intelligence and quantum computing

aid cyber crime fight

Businesses set to spend $100bn on protection by 2020

Y

Words By: Shannon Bond (FT)

ou enter your password incorrectly too many times and get locked out of your account; your colleague sets up access to her work email on a new device; someone in your company clicks on an emailed “Google Doc” that is actually a phishing link - initially thought to be how the recent spread of the WannaCry computer worm began.

Each of these events leaves a trace in the form of information flowing through a computer network. But which ones should the security systems protecting your business against cyber attacks pay attention to and which should they ignore?

And how do analysts tell the difference in a world that is awash with digital information?

The answer could lie in human researchers tapping into artificial

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intelligence and machine learning, harnessing both the cognitive power of the human mind and the tireless capacity of a machine. Not only will the combination of person and device build stronger defences, their ability to protect networks should also improve over time.

A large company sifts through 200,000 so-called “security events” every day to figure out which present real threats, according to Caleb Barlow, vice-president of threat intelligence for IBM Security.

These include anything from staff forgetting their passwords and being locked out of the system, to the signatures of devices used to access networks changing, to malware attempting to gain entry to corporate infrastructure. “A level of rapid-fire triage is desperately needed in the security industry,” Mr Barlow says.

The stakes for businesses are high.

Last year, 4.2bn records were reported to have been exposed globally in more than 4,000 security breaches, revealing email addresses, passwords, social security numbers, credit card and bank accounts, and medical data, according to analysis by Risk Based Security, a consultancy.

International Data Corporation, a US market research company, forecasts businesses will spend more than $100bn by 2020 protecting themselves from hacking, up from about $74bn in 2016.

Artificial intelligence can improve threat detection, shorten defence ON THE AGENDA...

“The stakes for businesses are high.

Last year, 4.2bn records were reported to have been exposed globally in more than 4,000 security breaches”

response times and refine techniques for differentiating between real efforts to breach security and incidents that can safely be ignored.

“Speed matters a lot. [Executing an attack] is an investment for the bad guys,” Mr Barlow says. “They’re spending money.

If your system is harder to get into than someone else’s, they are going to move on to something that’s easier.”

Daniel Driver of Chemring Technology Solutions, part of the UK defence group, says: “Before artificial intelligence, we’d have to assume that a lot of the data - say CONNECTING BUSINESSES

90 per cent - is fine. We only would have bandwidth to analyse this 10 per cent.

“The AI mimics what an analyst would do, how they look at data, how and why they make decisions . . . It’s doing a huge amount of legwork upfront, which means we can focus our analysts’ time. That saves human labour, which is far more expensive than computing time.”

IBM is also applying AI to security in the form of its Watson “cognitive computing” platform. The company has taught Watson to read through vast quantities of security research. Some 60,000 security-related blog posts are published every month and 10,000 reports come out every year, IBM estimates. “The juicy information is in human-readable form, not machine data,” Mr Barlow says.

The company has about 50 customers using Watson as part of its security intelligence and analytics platform.

The program learns from every piece of information it takes in.

“It went from literally being a gradeschool kid. We had to teach it that a bug is not an insect, it’s a software defect. A back door doesn’t go into a house, it’s a vulnerability. Now it’s providing really detailed insights on particular [threats] and how their campaigns are evolving.

And that’s just in a matter of months,” Mr Barlow says. “The more it learns, the faster it gets smarter.”

IBM says Watson performs 60 times faster than a human investigator and can

reduce the time spent on complex analysis of an incident from an hour to less than a minute.

Another even more futuristic technology could make Watson look as slow as humans: quantum computing.

While machine learning and AI speed up the laborious process of sorting through data, the aim is that quantum computing will eventually be able to look at every data permutation simultaneously. Computers represent data as ones or zeros. But Mr Driver says that in a quantum computer these can be: “both [zeros and ones] and neither at the same time. It can have super positions. It means we can look through everything and get information back incredibly quickly.

“The analogy we like to use is that of a needle in a haystack. A machine can be specially made to look for a needle in a haystack, but it still has to look under every piece of hay. Quantum computing means, I’m going to look under every piece of hay simultaneously and find the needle immediately.”

He estimates that quantum computing for specific tasks will be more widely available over the next three to five years.

“On this scale, the technology is still a way off, but there are companies that are developing it.”

One company pushing to make quantum computing commercially viable is Canada-based D-Wave, whose customers include Nasa, Lockheed Martin and Google. In January the company sold its newest, most powerful machine to a cyber security company called Temporal Defense Systems, which is using it to work on complex cyber security problems.

But there are risks to using AI technology in security systems. After all, machines that can be taught to think like humans can also be tricked.

“The AI itself is now becoming a target,” says Roman Yampolskiy, a professor of computer engineering and computer science at the University of Louisville in the US, who studies artificial intelligence and security.

Hackers may exploit machine learning by gradually teaching a security system that unusual behaviour is normal, known as “behavioural drift”, he says.

AI can also be used by attackers to fake human voices and create video images that could let criminals into your network.

“If you get a call from someone whose voice you recognise and they say, ‘I don’t have time to talk, give me your password’, you will give it to them,” Prof Yampolskiy says.

Despite these advances in technology, the core challenge of providing security has not changed. It’s always a cat-andmouse thing. As soon as you put the gate up higher, then the people will jump higher to get over it.”

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TECHNOLOGY satellites

One giant leap for the Isle A of Man Mike Phillips Chief Executive of Sure Isle of Man

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ccording to the European Space Agency there are around 1,000 satellites in space and all of them are working constantly to keep us connected and provide key satellite services such as television broadcasting. You might have noticed that the island is engaging in some extra-terrestrial activity of its own at Carnane, where Sure and Stewart Clague Services (SCS) have started work on an exciting project for SES Satellite Leasing.

But what is the project and how will it benefit the island? Mike Phillips, chief executive of Sure Isle of Man, dishes out the information.

International connections The role of many satellites in space is to receive and transmit messages to facilitate connections for those of us on terra firma, blissfully unaware of the hundreds of circling objects that connect us in an instant to services and people around the world. One of the key activities that touch many of our daily lives is the delivery of broadcast television and video services. In order to do this, the messages or broadcasts must be sent from stations on earth; which is where the Isle of Man’s new teleport fits into the process.

SES Satellite Leasing, the world’s leading satellite operator, has commissioned two local businesses, telecommunication company Sure and construction company SCS, to help with the design, installation, construction and maintenance of a purpose-built teleport on the Isle of Man. The teleport consists of four dishes, a fully backed-up power and telecommunications infrastructure, a control centre and connectivity, not only to satellites in space but also via Sure’s fibre network to various locations in the Isle of Man and back into SES’s global network.

Having this type of facility and capability on-island, delivered and supported by local businesses, further diversifies the Manx economy and offers a new range of opportunities.

Telemetry, tracking and command of satellites are the first functions that will be performed by the new facility. Optionally, the teleport can connect the island’s network and data centres via satellite with

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remote areas, ships or aircraft, signalling that the island offers global connectivity and is open for mobile data driven businesses for the first time. Satellite can be used to transport corporate data, voice or video to fixed or mobile locations around the globe.

On-island expertise The teleport project brings Sure’s expertise to the fore as SES are able to take advantage of Sure’s telecommunications expertise and progressive attitude to supporting investments and strategic initiatives on the island. The Isle of Man Government is welcoming the project as it is a significant investment into the island’s high tech telecommunication infrastructure and has already created additional jobs and supports further economic growth.

Sure has been working with SES for more than 18 months on this exciting project, providing a wide range of services and skills as the project has evolved.

During the current construction phase, Sure will provide extensive programme management support and, once the facility is operational, will be responsible for the ongoing support of the facility, its connectivity to SES locations both local and international, and providing onisland data centre hosting. The project is a fantastic opportunity for local companies to work together for the good of the island in both the short and long-term.

The project recognises and embraces international connections in both its practical operation of connecting the island and recognising the important role that organisations with global links can play in the island’s success. As well as Sure’s ability to draw on its expertise from the wider Sure group, the Isle of Man plays a key role in SES’s strategy to connect the world, which includes building more teleports, from Peru to California, and launching more satellites some of which may be directly controlled from the island.

The teleport is just one way that the island is being put right on the doorstep of the rest of the world and the drive towards accessibility of the island’s services is a clear signal to the business community.

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Economic lift off The teleport can send and receive signals from the Isle of Man into Europe, the USA and beyond and the hope is that this level of connectivity attracts new data-driven businesses and also stimulates a new media sector on the island. Anyone, from communications companies to broadcasters, will be able to use the services and the standard of the facility is such that it’s possible to imagine the establishment of a digital media base here.

Economic diversification has long been on the government’s agenda and the teleport facility is one means of achieving that.

A project of this scale demonstrates a significant show of faith in the Manx economy and that the Isle of Man is a desirable, well-connected destination for international business. With SES, SCS and Sure working together, this new venture is in excellent hands and the countdown to lift off in autumn this year is well underway.

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technology St. James’s Chambers

St. James’s Chambers – A 19th Century building with 21st Century facilities 56

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L CONNECTING BUSINESSES

<<<<

ocated on Athol Street in the heart of the Douglas central business district, St. Jamesâ&#x20AC;&#x2122;s Chambers is an historic 19th century office building.

Lovingly refurbished, today the building boasts the very latest 21st century facilities whilst retaining its original charm and character. A mix of old and new, St. Jamesâ&#x20AC;&#x2122;s Chambers is a great example of how tradition and modernity can be brought together in a way that complements both.

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technology St. James’s Chambers

As landlords, our objective is to provide a prestigious business address and attractive environment to those who occupy it; design and aesthetic considerations are certainly part of this, but we also recognise that modern businesses require more than that.

Now, more than ever, they depend on reliable technology – including a robust, high-speed and synchronised internet connection.

In business nothing is more frustrating or disruptive than an unreliable internet connection. It is for this reason that we have chosen to equip St. James’s Chambers with a state-of-the-art fibre line.

This high-speed connection is supported

by Wi-Manx’s Converged Connectivity service, which ensures that our tenants not only benefit from a high-speed connection, but from first-class technical support and a suite of complementary services.

Specifically designed for growing enterprises, the Converged Connectivity service is inherently scalable; delivering symmetrical bandwidth from 10Mbit/s to 1Gbit/s, the solution allows tenants to select and scale their connectivity requirements as and when they require.

Additionally, by offering a comprehensive “one stop shop”, tenants can resolve any IT issue – whether that’s a hosted desktop issue, a broadband issue, a hardware issue, etc. – quickly and effectively, without having to go through a third party.

The Converged Connectivity service increases business efficiency with higher bandwidths and lower

Specifically designed for growing enterprises, the Converged Connectivity service is inherently scalable; delivering symmetrical bandwidth from 10Mbit/s to 1Gbit/s

latency, gives businesses complete protection with a range of security features – including managed firewalls, remote worker solutions and VPN services – and assigns each business a dedicated account manager, able to provide 24/7 expert support. Tailormade for growing enterprises, Wi-Manx’s converged connectivity service is bespoke, comprehensive and efficient. Whatever a business needs – internet, voice, security, back-up, MPLS, cloud services or colocation – Wi-Manx’ can deliver it with a single connection.

Speaking about St. James’s Chambers, existing tenant Peter Adamson, Director at Tres Solutions, said: “Our choice to occupy offices at St James’s Chambers was driven, not only by the excellent aesthetics of the building and the evident passion and care for the structure by the landlord, but also by the high-speed connectivity that has been proactively installed into the premises in readiness for any prospective tenant. This allowed us to establish full operations more rapidly over a stable circuit to the Wi-Manx Hosting Centre at a reduced cost, as installation had already been completed.

“In conjunction with Wi-Manx’s IT services division, we deployed business applications to their hosted desktop environment, which offers us the safety net and security of having their team monitoring the core systems and, at the same time, offers us scalability in a short time frame for the immediate expansion of our business.

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“This allows us to develop focus for our clients and build a sustainable, robust and reputable business with the confidence that our IT systems architecture is suitable and accessible at all times.

“In any aspect of business development there are always unknowns and uncertainties; but we have never questioned our decision to make this move.”

Speaking on behalf of MAC Group, Nigel Gregg MD said “As the Island’s largest Corporate IFA and commercial insurance broker, the MAC Group places technology at the forefront of its business model. The enhancements made to St James’ Chambers by the Landlords both in terms of the refurbishment of the building and the introduction of the super-fast bandwidth capabilities, are fundamentally improving the efficiency of our business and the service we can provide to our clients.”

Gary Shilling, Corporate Account Manager at Wi-Manx, said: “We’re delighted to be able to provide a solution that we know helps local businesses reach their potential and it’s fantastic to work with landlords like Sue, who understand just how important it is for businesses to have access to high-quality connectivity.

We’re confident in the services we provide, and it’s great to see companies such as Tres Solutions and MAC Group making the most of them!”

As Landlords, we are thrilled with the results our partnership with Wi-Manx has so far delivered, and believe that the service they provide has been critical in positioning us as one the leading business addresses for thriving and growing enterprises on the Isle of Man. Wi-Manx are helping to make St. James’s Chambers an easy and stress-free place to run a business.

As Managing Director of St James’s Chambers, I welcome feedback from our existing Tenants and new enquiries from businesses seeking a prestigious address in an historic building of character that provides a first-rate connectivity solution.

For all enquiries please contact Sue McGowan by emailing: sue@stjamesschambers.im

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technology sure 10 years of success

Sure highlights

10 years of success in the Isle of Man with business seminar

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s

ure is celebrating its 10th anniversary in the Isle of Man and to mark the milestone the local telecommunications company hosted a breakfast seminar at the Villa Marina to highlight how the company has developed in a decade to become a full-service telecoms business.

Sure’s Chief Executive in the Isle of Man, Mike Phillips, introduced the event on 18 May which was attended by Sure’s clients and local business leaders and included presentations from the Minister for DED, Laurence Skelly MHK; Dr Richard Arning from SES Satellite Leasing, and Leon Turner, head of IT at Microgaming.

The seminar focused on why the Isle of Man is a great place to do business and covered a range of topics including the exciting construction project for a new teleport, Sure’s investment in a new B2B fibre network, cyber security and the future of telecoms.

Minister Skelly discussed the island’s diverse economy and noted the variety of support available to local businesses.

He highlighted the benefits of the Isle of Man’s world-class digital infrastructure such as the island’s thriving creative industry noting that it is ranked in the top three connected countries in the world for broadband.

The Minister also discussed the economic outlook for the Isle of Man and the government’s plans for creating an environment that allows businesses to flourish, including investing in digital technologies.

Microgaming’s history in the island and why the business decided to set up, grow and invest in the Isle of Man was presented by Leon Turner, their head of IT. He discussed why the company chooses to work with Sure and the benefits of having a competitive telecoms market and resilient digital infrastructure available on the island.

Dr Richard Arning from SES discussed the company’s role in serving more than 700 broadcasters, telcos, enterprises, governments and institutions including Sky, BBC and ITV in 130 countries. The company has recently started work on the construction of a teleport and satellite operations centre on the Isle of Man and has contracted Sure to project-manage the construction, maintenance and connectivity for this exciting initiative.

Chief Executive of Sure in the Isle of Man, Mike Phillips, said: “When Sure arrived in the Isle of Man in 2007 its aim was to provide a viable choice to the island’s consumers and businesses and 10 years on the company has undoubtedly achieved that aim; introducing full competition to the telecoms market has indeed led to more competitive pricing and increased innovation.

“It was great to look back at everything CONNECTING BUSINESSES

the business has achieved so far during the seminar and hear from some of our clients and partners about how Sure is supporting their businesses. It was also a valid opportunity to look to the future and think about what’s next for telecoms, Sure, and the Isle of Man. “Telecommunications has a key role in ensuring the Isle of Man continues to thrive. Sure is proud to be a part of island life and to have a role in supporting the Isle of Man as a major centre for business by investing in and developing an advanced digital infrastructure which allows businesses access to fast, secure and resilient communications systems.

“We’re excited to continue to play our part in driving innovation in the marketplace, providing islanders and local businesses with a choice, better value and the latest products and services for decades to come.”

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entrepreneur - steve shimmin

Words By: Les Able Photos: Matt Mosur

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LIFE IS GOOD AND LIFE IS FULL

FOR THE MAN WHO TURNED HIS BACK ON THE PIN-STRIPED WORLD OF FINANCIAL SERVICES AND IS NOW LIVING HIS DREAM

“I

don’t want to come across as a pushy businessman,” was the opening statement from the man who for the past six years has been behind the promotion of cycling in the Isle of Man while at the same time living his very own dream.

“I prefer to do things in a quiet way,” says Steve Shimmin. “What I’ve done and am still doing is more out of passion for sport, maybe making a few quid on the way, but it’s a lifestyle choice not a business choice.”

It was in 2013 that he walked away from a pin-striped business life in the financial sector and set up SAS Events with the words on its website proclaiming: “If cycling is part of your life then you will enjoy the things we do”.

Events organised under the SAS umbrella include the island’s Microgaming Lighthouse Challenges, offering both long and medium routes around the island’s coastline, with a warning that it’s not for the faint hearted. Last year there were 394 participants; the figure this year is expected to be even higher when the event takes places on Sunday, July 9. The Bikestyle Road Race Series is a nine event league which runs from 11 May to the end of July.

“We organise and promote competitive racing and non-competitive ‘sportive’ events,” says Steve, who has a sporting record which included competitive swimming and rugby. “I retired from rugby when I was 32 and then took up triathlon but then moved into cycling

and from 1992 was a competition cyclist.

From there it was a short step into administration and organisation, which is what I’m now doing.

“I had to consider whether I would make it to retirement. There is that danger age of between 55 and 65, I’m now 58,” he says with a laugh, admitting to a touch of osteo-arthritis.

Born and bred in the island, he left St Ninian’s School at 16 and, in his words, wasn’t invited back to do A-levels. He then served apprenticeship as a motor mechanic but come his mid-20s decided to change direction and went into financial services. “I did that for 28 years and it served me well,” says Steve, whose career path took in the Prudential, Royal Life, the Isle of Man Bank and a stint with Mac Financial.

“By the time my two lads had left university and had stopped costing me so much the choice facing me was either carry on working in what I was doing or change my lifestyle and work to suit life rather than just to earn money, I had spent my time in financial services advising people on the likes of investment planning, pensions etc.

“It made me realise that the majority of people have no real idea of why they are saving and nor what they want to do with their savings in retirement. That depressed me. I had more hobbies and passions for them to fit into the days so I decided to shut one door and open another and see a different future for myself. Yes, I understand for some work can be a passion and perhaps as addictive as a drug, but not when it’s a job you don’t enjoy. >>>>

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>>>>

entrepreneur - steve shimmin

“It was a difficult decision in some respects, I wasn’t in a financial position where I could do nothing, I had to make a living and earn money. I decided there must be a way where you can mix earning money with following your passion and that’s what I chose to do and am doing.

For me, it was also important to keep in communication with different groups of people, I can’t imagine being stuck on my own.

“My two sons, 28 and 24, are doing their own thing, and not costing me as much.

One is a design engineer at Jaguar Land Rover and the other is with a law firm in Manchester. So it’s now just me and my long-term partner Viv Quayle, we’ve been together for 10 years.”

After serving a number of years on the Isle of Man Cycling Association, four as chairman, he moved aside when he established SAS Events. He is also a director of Manx International Cycling Ltd which he and Richard Fletcher set up to re-establish the famous Manx International in 2016, this event was last run in 2003.

This major event for Elite cyclists firmly re-established the Island’s reputation as a great cycling venue and led to British Cycling appointing the Island as host venue for this year’s prestigious HSBC UK British National Championships which take place 22nd to 25th June.

“The biggest influx of new cyclists

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“I had to consider whether I would make it to retirement. There is that danger age of between 55 and 65, I’m now 58”

is in the age group of between 25 to 45, it’s not uncommon to see people who can afford it, paying between £6,000 to £8,000 for good quality bikes. It was a hobby when I first started but it’s not one anymore. Organising a big event still gives me an all important buzz. I’m very much still a competition cyclist, not a cycling evangelist.”

SAS Events, which has raised around £12,000 for charity, including Hospice and the IOM Children’s Centre, is not a limited company and Steve is self-employed. “Of course I would have been better off if I had stuck with the job I had, but I have no regrets at the decision I made. There is no surplus of cash at the end of my financial year going into a savings account, I’m working to live. I’ve got two great guys who support me in the business, Ollie Last and Gary Slack, who bring a wealth of experience with them.”

Steve confesses that he now has a new passion in his life and that is skiing which takes him and Viv to France from the end of November to March each year.

“We rent a place there and have a modest life style, it’s all focused on the skiing. So life is full and life is good. We only have one go at this life, I believe while still active we should use that ability to be active in whatever way we choose and are happy with.”

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entrepreneur - Keith Lord

I Providing a modern Manx welcome Recently celebrating its first anniversary, the Mannin, the Island’s newest hotel, has already become a firm favourite with visitors. Agenda catches up with owner and developer Keith Lord.

Words By: Wendy Shimmin Photos: Matt Mosur

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t’s just over a year since the newly recreated Mannin Hotel on Broadway threw open its doors and it’s definitely been a first 12 months to remember, according to owner and project mastermind Keith Lord.

The 4-star luxury 54-bedroom hotel, which combines the original façade of its Victorian predecessor with a contemporary atrium and distinctivelystyled guest rooms, has already gained a regular clientele and has also attracted many visiting celebrities, especially those appearing at the Villa Marina just over the road.

“We’ve had a fantastic start to business,” says Keith. “It has been far better than what we expected and even than we had hoped. It seems like we only have to attract guests once and then they come back again of their own accord.”

Situated in an excellent location on the corner of Broadway and Douglas promenade, the Mannin has quickly become a favourite with both business and leisure visitors. Its light and airy rooms are equipped with all the latest technology, including smart TVs and complimentary guest Wi-Fi which has recently been upgraded via a dedicated superfast fibre optic connection. It is the only hotel on the Island to have fully air-conditioned rooms and also incorporates energy-saving heating and lighting systems.

With the input of project architect Niall McGarrigle, Keith was careful to create a unique décor for the building based on the ON THE AGENDA...

Arts and Crafts and Art Deco movements.

Drawing heavily on Archibald Knox and Rennie Mackintosh designs for inspiration, the hotel is full of interesting features such as the intricate woven metalwork on the interior balconies and decorative coloured glass panels.

“I’ve been working in building and real estate for 50 years,” says Keith, “and it’s important to me that all my buildings have character. The vision for the hotel was to create high quality accommodation with its own sense of style and identity.

“We have only fitted the very best – every tile in the hotel is porcelain and we have granite worktops and Villeroy & Boch appliances in all the bathrooms. It has taken a £6m investment to rebuild the hotel to the highest standards possible and it’s something our guests really appreciate.”

Overlooking the Isle of Man’s premier entertainment venue as it does, the Mannin has played host to a number of singers and musicians and its very first guests were the rock band 10CC. It has also become a favourite within the motorsport world both two- and fourwheeled vehicles. “We’ve had the Top Gear team here and the visiting TT riders for the TT Press Launch. Over TT itself we become the base for the Honda team and enjoy looking after their guests too,” says Keith. “Our underground parking with its drive-through check in is very much in demand!”

The hub of the hotel is the spacious lounge and bar area located in the atrium which has become a popular spot for coffee meetings or drinks and cocktails later in the day. The atrium also houses Liberties Restaurant which benefits from the skills of five top chefs and is open to non-residents.

With a menu that ranges from pies to lobster and a choice of daily specials, Liberties caters for everyone and is open from midday until 10pm every day, with a two or three course pre-theatre dining option available.

Using Manx produce wherever possible, Liberties has received an Isle of Man Taste Award and is also the venue for the complimentary full Manx Breakfast included in the room rates for staying guests.

The popularity of the Mannin has seen an increase in the number of staff from 24 at the time of opening to 35 today and Keith is keen to ensure they get credit for their professionalism, service and attention to detail. “We have an extremely highly qualified and experienced international staff,” says Keith. “They are exceptional in providing a top quality service and our guests know they are in good hands when they stay here.”

Rooms at the Mannin are available from £105 a night single and £110 double. We also offer very competitive CONNECTING BUSINESSES

“We’ve had a fantastic start to business”

corporate rates for Manx and International businesses. There is a choice between those overlooking the atrium which have their own balcony or outer rooms which have views of the Villa Marina and the Promenade.

In addition there are two guest rooms with full facilities for disabled guests, including accessible wet rooms, and these can be reached from both the car park and the main reception area by lift. There are also family rooms that come with kitchenettes, including a microwave, to make life easier when travelling with little ones.

With TT and the summer season now upon us, Keith says the Mannin is more than ready to provide a home away from home whether it is for a visiting business traveller, a holidaymaker or family members catching up with friends and relatives.

“We extend the same great facilities and hospitality to all our guests,” he says.

“We’ve established personal relationships with many of our visitors over the first year – and look forward to doing the same with many more in the future.”

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entrepreneur - conor cummins

“I had to fully understand what I was doing and what it takes to be successful”

THE TT CRASH WHICH ‘SMASHED HIM TO BITS’ LED TO CONOR’S TASTE FOR COFFEE MANN Words By: Les Able Photos: Matt Mosur

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ON THE AGENDA...

C

OFFEE was once a beverage that racer Conor Cummins had no great enthusiasm for but that all changed when it became something of a life restorer in recovering from his 2010 TT crash in which he only narrowly escaped death.

Seven years on and coffee is now very much his business with Conor selling his own brand of coffee under the banner of Coffee Mann, not only at key events but to an increasing number of ‘blue chip’ businesses in the island.

Looking back to the crash he says: “I smashed myself to bits and it was while I was in rehab and down in the dumps that I started to drink coffee, till then I had been more of a tea drinker. Two or three cups of coffee a day when recovering from so much trauma to my head and body gave me a lift, made me feel good and helped my recovery.”

Two years ago, mindful of the uncertainties and worst case scenarios which are all part of competitive racing, Conor launched Coffee Mann but only after he had done a lot of research and took what he described as a “calculated approach” to launching the business.

“I had to fully understand what I was doing and what it takes to be successful,” says 30-year-old Conor. “I went on a marketing course, did my homework and that included the all important maths on making the venture pay. Finally, I was ready to take a punt.”

He adds: “There was no way I wanted to land on the bones of my backside which is why I need to be sure that I was launching a business which can give me a secure future beyond racing when I decide to retire ,which is some years off yet.”

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“I come from a working class background and had a fantastic upbringing”

“The business has a ‘top deck’ roaster who really takes on what we need to achieve and demand is definitely growing for the four blends we offer. We are putting down more foundations for the business, that includes selling coffee machines and we have a team of engineers involved in that. It’s all very serious, not half-a***d.

There is no point in doing anything unless you do it 100 per cent.”

Conor, who marries fiancée Danielle in November, goes on: “Without the smash maybe I wouldn’t have thought about all this. I might have done something totally different or remained sorry for myself.

The big message that came out of that malarkey is that the world stops for no one, you have to get on with it. I realise how lucky I am to be alive but lots of positives have come out of what happened. I’m just not a negative person.

“We have been asked several times for Coffee Mann to go over to UK events, there is a possibility we will do that at some stage but I don’t want to put in jeopardy all that we have achieved by taking on too much. You can get greedy, the bigger you are the harder you fall.”

Ramsey-based Conor emphasises he couldn’t have achieved all he has without the support of his family and what he describes as the “values” he has learned from them. “I come from a working class background and had a fantastic upbringing.”

Come the TT Conor, when not racing, will be at the helm of Coffee Mann backed up by a team of baristas. “They work their socks off for us,” he declares.

As to his own coffee tastes? “Torn between a Latte or an Americano.” www.coffee-mann.com

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entrepreneur - STUART COLLIGON

“There are untapped and vast opportunities in the Isle of Man but there is also a misplaced vicious circle of dejection and negativity.”

T

hese are the blunt and unequivocal words from 46-yearold Stuart Colligon, one of the island’s most successful entrepreneurs of recent years.

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ON THE AGENDA...

“People who lose their ‘cool’, it doesn’t sit well in the Panacea frame. I like people to be measured, methodical and fun.

I want it to be an enjoyable place to work”

Words By: Les Able Photo: Matt Mosur

CONNECTING BUSINESSES

“The opportunities are huge, particularly for kids who want to go down the science route on leaving school, but we need to harness them,” he adds.

Launched in 2008 Panacea, based in Douglas, is now a major name in the global pharmaceutical world. It has gained an enviable reputation in pharmacovigilance, the process of collecting, monitoring, researching and evaluating the adverse effects of medications, offering a true level of security, both for drugs companies and their customers.

Currently responsible for marketing authorisations in the EU and beyond, Panacea now employs 35 people, four of them in the UK. It has an international reputation which is respected by regulators, last year there was growth of 40 per cent compared with 25 per cent in the previous year.

“Yes, I am personally ambitious for my company but I’m also intensely ambitious for the Isle of Man,” declares Stuart. “I see so many opportunities in the island being missed as a result of an attitude of negativity.”

He adds: There is a need to look past this misplaced spiralling doom and negativity, become more ambitious and eradicate the disease known as Manx Crab. Even if somebody invested £100m in the island there would be critics. We need the energy and culture to look beyond all that, more bravery is needed in an environment where commercial risk-taking seems to be missing.”

When he launched the company Stuart, who had previously worked in business development in the pharmaceutical industry internationally, identified pharmacovigilance as a niche market with considerable commercial potential. He chose the Isle of Man, not only because he was living here at the time, but because the Government was helpful and there was a growing Manx life science sector.

“While the Government is so accessible and willing to listen there is perhaps a need for a better working environment between the private sector and government. The skills are here in the island in vast quantity, the schools are fantastic with kids leaving those schools having benefited from a first class education system.

“The task and the challenge is to get the message across to those kids who want a science career that there are great opportunities for them in the island; that the only opportunities open to them here are not just in finance and e-gaming.

“We need to get that message to them by going into the schools, talking to the kids and their teachers and this is something that Panacea is already doing.

It’s important for our existence going forward and the island at large. More than half of those who work at Panacea were born and bred in the island and came

straight to us from university but that particular pond is running a bit dry.”

The word which Stuart places emphasis on is ‘trust’. “I only want to employ people who can be trusted and who can trust the company, it is one of our strengths. Trust allows people to have autonomy and to get on with what has to be done. I’m not someone for looking over shoulders; people are allowed to grow within the company because of trust and that contributes to something of a family feel to the company.”

So what riles him? “People who lose their ‘cool’, it doesn’t sit well in the Panacea frame. I like people to be measured, methodical and fun. I want it to be an enjoyable place to work.”

Panacea’s ongoing strategy is to ensure it is at the leading edge of pharmacovigilance which is likely to bring significant growth over the next five to 10 years. “That won’t just come from organic growth but also acquisitive growth which is something we haven’t done before,” says Stuart.

Just how important pharmacovigilance is for the end user of drugs was illustrated when Panacea became the first company in the world to spot significant problems with an antiseptic solution used on the skin. It discovered the appropriate remedial action when it found cases in which the product caused burns to premature babies when used at times of catheter insertion. This is why Panacea today finds itself in the top five pharmacovigilance companies in the UK and Europe.

With Brexit looming, the company is already making contingency plans to recruit additional experts in other parts of the EU. This is all part of Panacea’s ongoing strategy to ensure it is at the leading edge of pharmacovigilance.

Panacea, is owned by another of Stuart’s businesses, Auxesia, and is thriving being an integral part of a bigger healthcare picture. In Auxesia, Stuart is building a family of companies working in different types of health-related fields.

In addition to Panacea, currently the largest business in the group, Auxesia boasts medical device businesses, a medicine strategy company, a business health specialist consultancy as well as human health and fitness companies. He expects to realise his visions through the measured growth of Auxesia.

The future of a company, which takes its name from the Greek goddess of motherhood and Spring growth, is indeed looking decidedly good.

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entrepreneur - Courtenay Heading Words By:Wendy Shimmin Photo: Matt Mosur

Unconventional Ventures 72

ON THE AGENDA...

Failing “to fit in” has not prevented entrepreneur Courtenay Heading from getting ahead – in fact, he says, it’s what’s helped him on his way. Agenda catches up with him on his new biomed project in Jurby.

F

or someone who left school with only one O-Level (in maths) Courtenay Heading has displayed a remarkable lifelong love of learning – and enjoyed a level of success that has probably exceeded the wildest hopes of any of his former teachers.

With four very different businesses already under his belt, spanning the recruitment, fire surveying, text messaging and micro-turbine industries, it’s clear he can turn his hand to anything that gets him going and much does. The latest passion of this serial entrepreneur is wellness and in particular the creation of the Jurby Wellness Incubation Centre to nurture start-up businesses in the field of biomed innovation.

Based on the three tenets of transparent science, restorative medicine and the power of natural botanicals, the Centre aims to become a world class hub for wellness thought-leadership and the launchpad for niche businesses that offer an alternative to the huge pharmaceutical conglomerates that dominate the medical landscape in so many countries around the globe.

It seems quite a journey for someone who bunked off school regularly in his childhood and who by his own admission was the “grit in the oyster” who never quite wanted to fit in.

“I wasn’t very good at following the rules and structures of school but I did learn from my peers, older folk and reading,” he says. “Really I was much happier taking mechanical things apart or repairing clutches and grinding valves for friends’ cars.”

The young Courtenay was also heavily influenced by his uncle, “another person who didn’t fit it,” he says.

“The impact he had on me was immense. He lived his life the way I wanted to live it – he was fun, as well as very creative and innovative. When I was six, he took me out in his car and did 100mph, then told me not to tell my mother. It was life-changing: it was fun and we’d broken the rules.”

Originally based in south-east England, it was a chance meeting in 2005 with former MGP winner Paul Barrett of Bladon Jets on an airplane and their shared loved of motorbikes that set in motion Courtenay’s relocation to the Isle of Man. “We just happened to be sitting next to each other and by the end of the flight we’d become friends,” said Courtenay. “After I met him a few times I bought 20% of Bladon Jets on a handshake. We both decided to move here to help start Bladon Jets but it was because of bikes not tax!

“I’ve been a fan of bikes and the TT all my life. To my mind, a wet day on a motorbike is still better than a dry day in the office!”

Once on the Island with wife Judy, Courtenay did some work for the Department of Economic CONNECTING BUSINESSES

Development around clean tech and suggested the Government consider a biomed cluster. “There were about a dozen companies here, all small, all niche and high value but often under-marketed because they were so busy working.

“The idea was to put them together to see if we could get some collaboration. As a result, one of the companies Nasaleze was able to get some clinical trials organised and eventually get Food & Drug Administration approval so it showed what could be done,” he said.

A series of conferences was organised and the possibilities of the Isle of Man becoming a future biomed hub became clearer. “There are still some things we need to work on such as using our legislation as a high standard and competitive tool, but we can do that much quicker than other places. As an Island, we don’t believe in ourselves quite as much as I’d like but we have some unbelievably talented people here and we can reach anyone if we have the will to.”

Courtenay’s interest in complementary medicine (“I’d call it sound medicine”) has been driven by exposure to innovative thinkers and also the experiences of friends and families in our mainstream pill-popping culture. He is particularly aggrieved by the lack of transparency in some drug trials and points to the fact that some of the countries that spend the most on medicine often have the worst outcomes.

“The US spends twice as much as everyone else but doesn’t make the top 10 by any medical measure,” he says. “Putting people on 20 or 30 pills a day is going down the wrong avenue and it’s also unaffordable. The financial cost will force us to help change people’s habits and to normalise better behaviours.”

Despite his natural enthusiasm, Courtenay knows that change can often take a long time coming and acknowledges the Wellness Centre is likely to be a 20-year project to fulfil its potential. He’s been here before though, as it took Bladon Jets 11 years and £30m of investment to get its first $7m order, so he’s learnt to be patient.

“Fledgling businesses are very fragile,” he explains.

“They often hinge on one person’s idea or a small team but they need all parts of the orchestra to make them play.

“As an entrepreneur, you’re quite happy to invent the ‘how’ along the way and not get lost in the ‘analysis paralysis’. I’m much happier getting out and about and leaving other people to make the more detailed plans but we’ve got a first project in the pipeline now so it’s starting to fall into place.

“I think we can do something really different with the Wellness Centre, it’s a great opportunity to move forward.”

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health & wellbeing - feature

Can we delay

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ON THE AGENDA...

ageing?

Words By: Cynthia Kenyon (FT)

Q

uietly, over the past few decades, remarkable discoveries have been made about the biology of ageing. Since we all get older, it might seem that ageing “just happens” and can’t really be changed. In contrast, age-related disease does not seem inevitable, since not everyone gets cancer, heart disease or dementia. Accordingly, much research funding has been directed towards individual diseases, whereas very little has been directed towards ageing itself.

This is regrettable, since ageing is the greatest risk factor for many diseases; far greater than, say, smoking. If we could gain control over the ageing process, we should be able to maintain health and youthfulness for longer, and increase our resistance to age-related disease.

Ageing is a natural progressive decline that affects all organ systems and coincides with an increased risk of death. Many processes in biology, like the formation of muscles in an embryo, are governed by key “regulatory genes”, genes that can co-ordinate an entire programme of events. Evolutionary biologists long argued that regulatory genes for ageing would not exist. Ageing happens after reproduction, they argued, so a gene controlling ageing should have no effect on reproductive fitness, and so would have no way to arise by natural selection.

Thus it was surprising to discover that the rate of ageing of an entire animal could be changed dramatically by altering single genes.

This was first discovered in a microscopic roundworm called C. elegans, where changing a single base-pair in the DNA could more than double the lifespan.

The long-lived roundworms aged more slowly than normal, and looked much younger than they were. In human terms, they would be like people who looked 45 years old but were actually 100.

In the years since the early worm experiment, mutations in these same genes have been shown to slow ageing and extend lifespan in other species, including mammals. How does this happen? It turns out that animals have an evolutionarily ancient genetic circuit that can protect cells and tissues in response to stressful conditions, such as food limitation or other harsh circumstances. The circuitry contains many sensors, each tuned to specific metabolic signals, and it shuttles between two physiological states. When conditions are favourable, it promotes cell growth and robust metabolism.

Under harsh conditions, it shifts to a physiology that favours cell protection.

Defective proteins and structures such as mitochondria (the cells’ energy factories) are replaced, and chaperones, proteins that stabilise and fold other proteins, are activated. Genes that detoxify harmful chemicals are turned on. >>>>

CONNECTING BUSINESSES

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>>>>

health & wellbeing - feature This shift towards cell protection increases the organism’s resistance to environmental stress, and also — presumably because it protects the tissues from damage — extends lifespan. Thus, each species seems to have a hidden potential to live longer, possibly much longer, than it usually does. So it looks like there are “genes for ageing” after all.

Since these genes can help increase the survival of endangered young animals before they reproduce, they could well be subject to natural selection. Thus we have a plausible evolutionary explanation for their existence. In more practical terms, genes that control ageing may provide us with entry points for interventions that could keep us young and healthy for a longer time.

“The dream of adding some youthful, disease-free years to our lives seems increasingly likely to come true”

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What are the chances that using a drug to shift this network towards cell protection might slow ageing and increase lifespan in humans?

We don’t know. However, mutations that have this effect may be responsible, at least in part, for the longevity of some familiar animals. Mutations predicted to activate this cell-protective system not only under harsh conditions but under “good conditions” as well are present in Brant’s bats, which live 40 years (much longer than, say, mice, which live two to three years) and also in small dogs, which tend to live longer than large dogs.

(One consequence of shifting the body’s physiology to the cell-protective state is to reduce rates of growth. However, it is possible to tweak the system — in laboratory animals — such that lifespan is increased with no effect on size.) These natural cases are reassuring, as they demonstrate, at the very least, that lifeextending mutations need not come with crippling side effects.

So far, we do have life-extending drugs for mice. Rapamycin, which targets a stress sensor called TOR, extends the average lifespan of mice by about 25 per cent, and experiments with pet dogs are under way, co-ordinated by scientists at the University of Washington in Seattle.

But rapamycin can have side effects in humans (where it is used to modulate the immune system following organ transplants), so its usefulness may be limited for now.

The lifespan of a mouse can also be increased by feeding it nicotinamide riboside (NR), a nutraceutical that raises energy levels (but buyer beware: clinical trials have not been carried out). On the other, more pessimistic, hand, it is possible that we humans, with our long lifespans, have an already-active cellprotection system. Like small dogs and bats, we live longer than expected for our body size. (Among most species of mammals, a larger body size correlates with longer lifespan.)

ON THE AGENDA...

Right now, many researchers, even those not thinking about ageing, are trying to make drugs that boost this cell-protective network. Their motivation stems from the fact that this network not only counteracts ageing, it also counteracts age-related disease. For example, elevating the levels of FGF21, a hormone normally made in response to starvation, has beneficial effects on overweight mice fed a “western diet”, and thus might counteract diseases associated with obesity, such as diabetes. Activating this cell-protection system suppresses many types of cancer in laboratory mice, and several of its components are targets for cancer interventions. Activating the system can also improve the weakened response that elderly people have to flu vaccinations. So the wheel is turning and, before too long, we should learn whether humans are broadly susceptible to the pro-longevity, healthful effects of this system.

What if we cannot activate this cell-protection system in humans, or not without side effects?

A different life-extending, cellprotective pathway switches on in roundworms and other experimental animals when mitochondria (the microscopic power-packs that provide energy to all living cells) are unable to work at full speed. It is possible that we could learn how to switch on this cell-protective pathway in ourselves, as a way to slow ageing. Here again, it may be that nature has already found a way to switch on this cell-protective pathway during the evolution of longevity. Larger animals, which, as mentioned above, tend to live longer, also have reduced rates of metabolism. Perhaps their longevity results, in part, from switching on this mode of cell protection.

Another possible route for intervention is by tamping down inflammation. Inflammation is an excessive activation of the immune system that promotes many diseases we associate with ageing, such as atherosclerosis, arthritis, dementia and other diseases. The mutants described above, that live long because their natural stress-sensing network is turned on, have lower levels of inflammation and lower levels of “senescent cells”, which are inflammatory cells that accumulate with age. Remarkably, genetically activating or repressing inflammation genes in the brain of a mouse can affect the lifespan of the whole body, decreasing or increasing it, respectively.

One cause of cell senescence is the age-dependent shortening of telomeres (the protective DNA caps at the end of chromosomes), and interventions that extend the telomeres of old mice have been reported to extend lifespan.

Likewise, killing senescent cells in ageing mice greatly improves their health and extends their average lifespan. Together these discoveries support the idea that interventions that target inflammation might also have beneficial effects on ageing and age-related disease in humans.

By joining the circulatory systems of young and old mice, scientists have discovered that young animals produce blood-borne substances that can rejuvenate the cells of old animals.

Conversely, the blood of older animals contains substances, in some cases inflammatory factors, that promote ageing. Whether these circulating substances can extend lifespan is unknown. However, they can have beneficial effects on mouse cognition, and clinical trials are now evaluating the effect

of transfusing the blood of young people into elderly people at risk of Alzheimer’s disease.

Recently, a new type of intervention was reported, one that recalls the biology of germ cells (the embryonic cells that become either eggs or sperm). One of life’s great mysteries is how, through the germ cells, mature adults can have babies that are born with no signs of age. This ability to “erase age” is not confined to germ cells; cells from adult tissues, such as skin, can acquire a new youthfulness and behave like germ cells in response to the activation of four genes named Yamanaka genes (after Shinya Yamanaka, the Nobel Prize-winner who discovered them).

In a wild experiment, scientists introduced extra Yamanaka-factor genes into mice that carry a “progeria” mutation, which accelerates their ageing and shortens lifespan. Longterm exposure to the Yamanaka factors is lethal, because the tissues lose their identities as they become germ-like cells.

However, remarkably, short pulses of Yamanaka factors were able to maintain the youthfulness of the mice while keeping their tissue identities intact. As a consequence, the mice lived much longer.

This surprising study raises many questions. First, would the Yamanaka factors rejuvenate and extend the lifespan of a normal mouse, or do they just prevent the progeria mutation from having its effect? Longer-term experiments with normal mice have not been completed but, encouragingly, the Yamanaka factors did help normal mice recover from metabolic disease and muscle injury. Another question: if these factors can really turn back the clock and rejuvenate the tissues, would memories be erased? It’s early days, but stay tuned.

In summary, many interventions have now been found to extend lifespan in animals. Some are not well understood molecularly, and may turn out to define new biological mechanisms.

Still more may lie undiscovered. For example, very long-lived animals, such as the mouse-sized naked mole-rat, which can live 30 years (or, in fact, we long-lived humans), may utilise yet undiscovered strategies for longevity — strategies that scientists can discover and amplify.

Considering all that we know about ageing, and all we have left to explore, the dream of adding some youthful, diseasefree years to our lives seems increasingly likely to come true.

Cynthia Kenyon discovered some of the first long-lived mutants, which changed how scientists think about ageing. She is a member of the US National Academy of Sciences and vice-president of Ageing Research at Calico, a research and development company working on interventions to increase lifespan.

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spend it on- watches

BREMONT NORTON V4/SS LIMITED EDITION

BREMONT NORTON V4/SS LIMITED EDITION

Bremont is proud to announce that it will again be working with this iconic British motorcycle brand. This time it will also be the team’s principal sponsor and, in a partnership that represents a celebration of the best of British engineering, the Henley-on-Thames based watch maker has created a very special Norton-inspired chronograph to complement the road-going of the racespecial bike - the limited versions of the new Brem Bremont is proud to announce thatderivative it will again be SG6200 edition V4SS.

chronograph will be made available exclus working with this iconic British motorcycle brand. This owners, each watch featuring a 43mm p time it will also be the team's principal sponsor and, in 200 special versions of the new Bremont Norton case, numerals by those seen o a partnership that represents a celebration of the best chronograph will be made availableinspired exclusively speedometer, silvered dials with a black No of British engineering, the Henley-on-Thames based to V4SS owners and to celebrate the unlimitedcarbon fibre inserts to the red-bordered watch maker has created a very specialproduction Norton-inspired Norton V4SS, Bremont has also counters. case back features chronograph to complement the road-going createdderivative a stunning version of The the exhibition watch, limited rotorwill in the of thefor V4’s rims. of the SG6 race bike - the limited edition V4SS. again to 200 pieces that beform available general sale. It combines numerals similar to the classic Norton typeface with gold chronograph borders, a gold Norton logo, and again housed in a beautiful polished Trip-Tick® three-piece case.

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For enquiries contact info@nortonmotorcycles.com or call +44 (01332) 812 119

ON THE AGENDA...

mont Norton sively to V4SS polished steel on the bike's orton logo and chronograph s a decorated

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Find out more at www.rl360.com/thoroughlymanx

RL360 Insurance Company Limited. Registered Office: RL360 House, Cooil Road, Douglas, Isle of Man IM2 2SP, British Isles. RL360 Insurance Company Limited is authorised by the Isle of Man Financial Services Authority. Registered in the Isle of Man number 053002C.

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18 Street, ChurchBlackpool Street, Blackpool FY1 1EW 18 Church FY1 1EW

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