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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

DEAR MEMBERS

welcome

to the sixth edition of Agenda.

e are well into the first quarter of 2018 and the many Christmas festivities of 2017 may already seem a distant past. With a break from tradition, the IoD Isle of Man Branch held its annual Wine Tasting Quiz at The Claremont in December. Well over 40 guests had the pleasure of taking part in a lively quiz hosted by Anne Berry from The Wine Cellar. Due to the popularity of the event we will be hosting the next quiz on the 8th of November so that other festivities can be enjoyed closer to Christmas. On 23rd January, Alison Teare, owner of Simply Marketing Limited, gave an excellent lunch presentation on social media policies and strategy. Alison has worked with hundreds of individuals, organisations and businesses to assist their transition into the world of online marketing and social media, and her message was clear: social media is here to stay and businesses need to embrace this. Not least because of Alison’s presentation, the Committee has looked at refreshing our local IoD Facebook page. We hope to keep this social media tool active with reminders of upcoming events, including feedback from those that we’ve held in the past. In January the Committee held its first Round Table with the interim and deputy CEO of the Department for Enterprise, Mark Lewin and Carl Hawker. It was an opportunity to have an informal discussion about the restructuring of the department and the progress made with the new Executive Agencies. The IoD has no formal role with the department, but we agreed to continue to exchange ideas on how to better support local business interests. The IoD on the Island continues to focus on education as its primary USP. In partnership with Salford Professional Development, lectures are given locally on Island which can lead to a Certificate in Company Direction and/or the IoD Diploma in Company Direction. In February 2018, the IoD launched a cuttingedge digital CPD platform that puts you in control of your learning, offering IoD members, course delegates and the wider business community an opportunity to learn and connect on the go with the IoD Academy app and website. Local members on the Island will certainly benefit from the Digital Academy as it will make available a wider range of courses without the need to travel off island. I hope you enjoy reading the Agenda, and I look forward to seeing many of you at our upcoming events such as the AMM, Dining Club with Jo Haigh and Prestige Spring Lunch with Minister Chris Thomas. Lesh yeearreeyn share - with best wishes.

Jennifer Houghton Chairman Institute of Directors - Isle of Man

CONTENTS 22

UPDATE

3 6 11

WELCOME MESSAGE

BRAND VOICE

BUSINESS NEWS

24 28

BUDGET FEBRUARY 2018 IN A BLINK

ADAMSON MIDDLETON LTD - SOCIAL EVENT WHIRELAND INTERNATIONAL WEALTH - BITCOIN

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WORKPLACE FEATURE MANAGEMENT FADS

APPOINTMENTS

H ITIS BR T ’ EA ‘GR WALL CK 54M E FIR S BLO ACKS T LP HE ER AT B CY

ALEXANDER BELL THE TRUTH ABOUT TAX HAVENS

IOD – IOM

WORKPLACE FEATURE - DO LESS THIS YEAR BUT DO IT BETTER

SPECIAL REPORTS

OPINION

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14 16

IT IS NOT UP TO FILM STARS TO SORT OUT WORKPLACE HARASSMENT

KPMG ISLE OF MAN CYBER SECURITY

38 40

2018 - MEMBERS OPINION BUSINESS LEADERS SEE A TUMULTUOUS YEAR AHEAD

COMBATTING SEXUAL HARASSMENT IN THE WORKPLACE

IOD MEMBER INTERVIEW – JADE ZORAB 4

ON THE AGENDA...

47-51

EVENTS

THE BRAVE BREXITEER - ALLIE RENISON

WHAT’S ON

A 10-POINT PLAN FOR YOUR BUSINESS - JOY ALLEN

ENTREPRENEURS

IAN PLENDERLEITH – MANX GAS

CLIVE PARRISH – CDP ASSOCIATES LTD

CONTRIBUTORS

Claire Veale Matt Mosur Michelle P. Tonnesen Les Able Alexander Bell Jaq Greenspoon Joy Allen Alan Gough CONNECTING BUSINESSES

BryanBeesley (KPMG - Isle of Man)

David Bushe, Chris Bell & Mike Ingram (WHIreland International Wealth)

Andrew Hill (FT) David Bond (FT)

update news

Business Confidence Survey

Standard Bank in the Isle of Man awarded diversity accreditation

tandard Bank Wealth International in the Isle of Man has been awarded the DIFERA employer accreditation, demonstrating its credentials as a diverse, inclusive, fair, equal, respectful and accepting place to work. Diversity charity Liberate conducted an audit of Standard Bank’s policies and procedures and surveyed Standard Bank’s employees in the Isle of Man and Jersey to find out how diverse the workforce is, what it is like to work for Standard Bank, how employees feel about DIFERA (Diversity, Inclusion, Fairness, Equality, Respect and Acceptance) and how fairly development opportunities, including promotion,

remuneration and training, are distributed across the workforce. From these results, Liberate produced a comprehensive report that will act as the benchmark from which to measure Standard Bank’s journey on the DIFERA scheme. Will Thorp, CEO for Standard Bank Wealth International, said: “We are delighted to have been able to have this resource available to us, particularly through a charity. This work has been invaluable to us and we are looking forward to continuing with this partnership as we focus on our organisational culture.”

he results of the first Business Confidence Survey have been released by the Economic Affairs Division of the Cabinet Office. The Isle of Man Business Confidence Survey invited feedback from local employers to gauge business activity, optimism, future employment and investment for all sectors of the economy. The survey also asked a number of questions regarding employers’ perspectives on any skills gap they have, the Living Wage and cyber security, amongst others. The report indicates a general business environment of optimism and the anticipation of growth, although different sectors show different levels of confidence. The most confident sector is Financial Services whilst the Construction sector is the least confident. Other headlines from the report are: n Employers across all sectors anticipate an increase in employment in the next 6 months. n Employers across all sectors, on average, are more optimistic about growth over the next six months compared with their growth over the previous 6 months. The majority of businesses indicate that they already pay all employees at or above the Living Wage rate of £8.61. Nearly three quarters of employers feel that it is easy to do business on the Isle of Man. www.gov.im

GOUGH LAW LAUNCHES NEW WEBSITE FOLLOWING BRAND REFRESH

ouglas-based litigation advocates Gough Law has launched a new website following an exciting rebrand. The firm, which opened in 2012 as a boutique practice provides litigation services to companies and individuals, has updated its brand and logo to a new modern look. Director at Gough Law Alan Gough said: .We pride ourselves on providing top class advocacy combined with unparalleled service, and our new professional and modern look perfectly epitomises who we are and the specialist services we offer. ‘The future for Gough Law could not be better as we start a new chapter and continue to provide trusted litigation advice to clients across the globe.’ www.goughlaw.im

ON THE AGENDA...

anx Telecom has won a major Isle of Man Government contract to provide fixed line communications for essential public services across the Island - including critical services for police, fire service, coastguard, Noble’s Hospital, and 999 emergency lines. The three year contract - which runs from 2018 and was awarded following a rigorous tender procedure - means that the company will provide services to around 300 Government sites across the Island, and more than 7,000 fixed line phones. Gary Lamb, Manx Telecom CEO, commented: “We are extremely pleased and proud to be awarded this significant contract by Isle of Man Government. The scope of the services we will provide means that Manx Telecom will deliver a platform which underpins critical communications for most essential public services, and in doing so we will also be playing a vital role in helping Government to achieve its goals for economic growth. This contract represents an endorsement of our ongoing strategy of investment in infrastructure, and of our commitment to the Isle of Man.” Laurence Skelly MHK, Minister for the Department for Enterprise, said: “A good-quality, reliable and secure telecommunications service is absolutely fundamental to the Isle of Man Government and the people we serve. Manx Telecom is a trusted business partner with a long-standing commitment to the Isle of Man and we look forward to working with the company over the term of this contract.”

Manx Telecom wins Isle of Man Government critical communications contract

Under the contract, Manx Telecom will supply fixed line voice, SIP VoIP (Session Initiation Protocol and Voice Over Internet Protocol) and Ethernet circuits - with service and support provided by Manx Telecom’s nearly 300 on-Island staff, which includes the largest, most qualified, pool of skills and experience in telecoms and related industries on the Island. In addition to the services covered by this latest contract, Manx Telecom continues to provide a range of other services to Isle of Man Government under existing agreements. The company’s ConnectMann and HostMann contracts cover the provision of wide area

(WAN) and local area network (LAN) connectivity, and data hosting at Manx Telecom’s twin Tier 3 designed data centres. Manx Telecom has invested more than £120million in the Island’s communications infrastructure over the past 10 years, the most recent examples being in fixed line broadband for consumers and business, with a range of new services which were launched in December 2017. Later this year the company will be rolling-out Lightning Fast Optimal Fibre broadband to consumers and businesses in selected areas, depending upon customer demand and commercial viability.

Tynwald ombudsman will make Government more accountable

former UK parliamentary ombudsman and Clerk of Tynwald has taken up a new role in the Isle of Man that will bring a further degree of challenge and scrutiny to the work of the Manx Government. Malachy Cornwell-Kelly has been appointed as the Island’s first Tynwald

Commissioner for Administration. He will provide independent oversight of administrative processes and decisions, as well as investigating complaints against Government Departments if certain conditions are met. A solicitor of the Supreme Court of England and Wales, Mr Cornwell-

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Kelly brings a wealth of experience to the role having served as Director of Investigations for the UK Parliamentary Commissioner for Administration. He also has extensive knowledge of the Island’s parliamentary system and laws after 7 years as the Clerk of Tynwald and Secretary of the House of Keys (2001 - 2008).

update news

RL360 refreshes its brand

R TOP 25 FINISH FOR NEDBANK PRIVATE WEALTH AND NEDGROUP TRUST

xceptional levels of staff engagement at Nedbank Private Wealth and Nedgroup Trust have yet again placed the company on The Sunday Times 100 Best Companies to Work For listing for 2018. Following many years of growth in the business, this year the company moved up from the small companies listing to the mid companies listing, and achieved a highly impressive top 25 finish. Coming in at number 24, it was the only private bank included in the 2018 list. Special recognition was given to Nedbank Private Wealth by Mark Durden-Smith, who was the compère for the evening, in front of the 1,000 plus audience, for the achievement of 12 years in the small companies listing prior to stepping up to the mid companies listing. This listing, and a three-star “extraordinary” accreditation* in this year’s UK Best Companies Guide, results from the UK’s largest ever survey into workplace engagement, involving almost 800 companies and over 400,000 employees. Greg Horton, Executive Head of Nedbank Private Wealth internationally, said: “We are thrilled to again receive such a positive endorsement from our own employees. This is particularly pleasing to see during the protracted period of strong business growth that we have been experiencing. Our principal aim as

a company has always been to serve our clients better than any other financial services organisation and we appreciate that employee engagement is crucial to achieving this. Nedbank Private Wealth has had an impressive track record over the years, having appeared on the 100 Best Small Companies to Work For listing for 12 out of the past 13 years. In 2014 the company received a special award for the exceptional achievement of appearing on the list for 10 consecutive years. It was one of only three companies across the UK to attain this and the only financial services company to have ever achieved such an unbroken run of awards. Jonathan Austin, CEO and founder of Best Companies, said: “I would like to congratulate Nedbank Private Wealth and Nedgroup Trust on their achievement. This year it is encouraging to see that more and more organisations are recognising the value of employee engagement and are willing to benchmark themselves against the best to ensure they are offering their employees the best possible experience. Organisations like Nedbank Private Wealth and Nedgroup Trust have continued to focus on their employees and have been rewarded with an engaged workforce who tell us that this is a great place to work.”

L360, one of the island’s biggest offshore life companies, is refreshing its brand. “Over the last few years RL360 has grown ever stronger, moving from an up-and-coming company to one of the biggest players in the offshore life market,” said RL360’s Marketing Director Simon Barwell. “To reflect our progress and celebrate our strengths as a company, we’ve decided to refresh our brand. “While our colours and company name will remain the same, from 5 February we will have a new logo and a new look and feel to our marketing materials. We are shifting our brand to reflect what we are now - a dynamic and ambitious organisation which is renowned for good service and employs staff who are committed to going that extra bit further.” At the same time, the name of the Isle of Man head office is to change from RL360 House to International House, reflecting the name of RL360 parent company International Financial Group Limited (IFGL) and its global nature. Simon continued: “We want our new branding to reflect our growth and our confidence in what we are able to provide. We do not intend to tackle everything all in one go but will begin on 5 February and roll out the rebrand over several months.” The change does not affect the Ardan or RL360° Services (formerly CMI) brands, which are also owned by IFGL.

ON THE AGENDA...

Independent experts find Sure has best mobile network in the Isle of Man

ure’s mobile network has been awarded the title of best overall and fastest in the Isle of Man following a network quality assessment carried out by independent telecommunication network experts Systemics. Systemics PAB, which also undertakes benchmarking for Vodafone UK, was commissioned by Sure to perform the measuring campaign to international standards, evaluating the quality of experience of mobile services provided by both Sure and Manx Telecom over 600 miles throughout the Isle of Man. Sure’s 4G mobile network was found to be the fastest for data downloads, with speeds averaging nearly 40% faster than Manx Telecom. Sure has invested heavily in 4G+ (also known as LTE-Advanced), which is the latest, market-leading mobile technology that means peak speeds can CONNECTING BUSINESSES

be twice as fast, and users can consistently get a higher speed, even when a lot of people are connecting at once. Following this significant, ongoing investment by the company the mobile coverage provided by Sure was assessed to be much stronger and more widespread with 75% of the island able to access 4G+ services compared to just 4% on the Manx Telecom network. The independent report also noted that Sure is ‘clearly ahead of the competition in terms of voice quality,’ achieving a 28% higher Mean Opinion Score for voice quality compared to Manx Telecom. “The results of the independent study show that Sure not only has the fastest mobile network, but we also provide the highest quality mobile experience on the Isle of Man. This is especially rewarding as breadth and depth of coverage is so

important for our customers’ everyday mobile experience,” said Mike Phillips, CEO of Sure in the Isle of Man. “Sure’s 4G and 4G+ networks are the result of a multimillion-pound investment made to equip the island with an infrastructure that enables it to punch well above its weight when it comes to superfast mobile services. We’re enormously proud that our networks deliver the very best mobile experience and Systemics’ findings back up our investment commitment. “We know that our customers enjoy using our mobile services because mobile internet use has rocketed since the launch of our 4G and 4G+ networks. For business, trends towards home working and heavy data usage on-the-go mean that mobile services are a vital part of an island’s infrastructure and critical to its economy. “We will continue to invest in our mobile network across the island to improve the experience for our customers.”

update News - Budget 2018 comment

Isle of Man Chamber of Commerce Budget comment

hris Allen, President, Isle of Man Chamber of Commerce, said: “Overall, Chamber considers this to be a good, solid Budget which shows that the Isle of Man is in a healthy state. Going into more detail, we are particularly interested to hear the details regarding measures to support the availability of skills to businesses, and also initiatives that will encourage business growth. Chamber has been vocal for some time about the need to increase the Island’s working population to support the growing cost of services that contribute to the quality of life here. With this in mind, we are pleased to see changes to personal tax allowance which will help the lower paid and enhance the rewards of finding employment. The increases in Child Benefit and pre-school credit may also help working couples with childcare costs and, in turn, help more parents return to work. Chamber also welcomes additional spending on health and social care services, and schools, which all contribute to the quality of life on the Island. “While it is good news that unemployment is down 60% over three years, this statistic also highlights an enduring concern among many businesses which are Chamber members: the challenge of recruiting employees with the necessary skills and experience needed to support business growth. Chamber has long held the view that the greatest barrier to further expansion of the economy is the skills gap, and the recruitment challenges faced by companies in many sectors of

the Island’s economy. We welcomed Government’s decision to relax Work Permit rules last year, but there remains a question mark over whether further relaxation of those rules is required. “The Capital Investment Programme is a very good initiative for the construction sector, which has been struggling recently. If funding is released in a sensible, phased manner to avoid peaks and troughs in development, it should enable sustained work and investment opportunities for this important sector of the local economy.” “It is always good to see investment in the Island’s education infrastructure with school development programmes. Of particular interest is the increased science and technology accommodation because these skills will fuel future growth opportunities.” “Chamber also supports the continuation of the Enterprise Development Fund and the growth in support packages to aid economic growth. These funds promote the development of future technologies and services that will help differentiate the Isle of Man from our competitors. “Finally, we welcome investment in the Island’s glens and footpaths to enhance enjoyment of the countryside – this will be seen as a positive for businesses in the visitor economy sector that are hoping to further capitalise on the Isle of Man’s UNESCO Biosphere credentials through increased visitor numbers.”

ZURICH WELCOMES GOVERNMENT’S RESPONSE TO PENSION REFORMS

hambers Zurich International Life welcomes the Isle of Man Government’s response to the recent consultation on Pension Reforms, and congratulates Treasury Minister The Hon. Alf Cannan MHK and his team on both the innovative outcome and their collaborative approach. Peter Huber, CEO of Zurich International Life, commented: ‘In the short time that I have been on the Island I have been impressed with the progressive manner in which the Isle of Man Government engages with residents and businesses. ‘We welcome the approach the Government is taking to encourage long-term savings while allowing people the freedom to choose how to fund their retirement, and opening up the market to competition can only help improve retirement outcomes for Island residents. ‘Increasing life expectancy and shortfalls in retirement savings are key risks for all developed countries. Zurich is a great supporter of long-term savings and aims to help its customers

to protect their futures by bridging this savings gap. The Government’s response provides Zurich with great confidence in maintaining and growing its presence on the Island, and integrating our products and services further into the communities we serve.’ Simon Foster, Global Head of Zurich International Corporate Solutions, added: ‘Although Zurich International has a significant and growing Pensions business in the Channel Islands, this is not something we currently offer as a product in the Isle of Man. The changes in the Pensions regime will accelerate our ongoing review of the attractiveness of the Island as a market to enter.

Simon Foster

Peter Huber

ON THE AGENDA...

update News - Budget 2018

In a blink

ISLE OF MAN BUDGET FEBRUARY 2018

Income tax receipts

National Insurance receipts

up by £13million

up by £3.5million

for Health and Social Care services

Child Benefit to

An increase to the personal income tax allowance

Taxpayers will be

up to £150 better off, or up to £300 better off for a married couple

rise by 3.3%,

building on last year which saw the first increase in Child Benefit payments for seven years

An additional

£5.5 million

of £750 to £13,250 lifting 1,700 people out of the tax net

A five-year capital investment programme of £428 million, including a replacement Castle Rushen High School, an extension to QEII’s Science and Technology block and a national glens and footpaths improvement programme Continuation of the £50 million Enterprise Development Fund and a £4.2 million business support package to aid economic growth

£3.1 million will be allocated to infrastructure A further

10% increase in the rate of the nursing care contribution

Pension triviality limit

increased to £100,000

Basic state pension to

rise by 3%

A top up of £1 million for the Brexit Fund, for the continued negotiations arising from the UK’s departure from the EU Total Isle of Man Government spending projected for 2018-19 equates to around £12,667 per head for every man, woman and child of the Island’s population The benefit in kind incentive to encourage cycling to work to be Extended to include electric

bikes

CONNECTING BUSINESSES

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Five buzz phrases we love to hate and one to like Too many management fads distract us from getting things done Words: André Spicer (FT)

he workplace is supposed to be where we get things done. Today, however, it seems to be the last place you can be productive. There is a stream of management fads, fashions and buzzwords distracting us from our to-do lists. We have been invited to obsess over quality, excellence and customer centricity. More recently, we have seen well-meaning gurus pushing happiness, hackathons and holacracy. Here is my pick of management ideas that mysteriously maintain their grip on business. Workacise Giving staff access to a gym is no longer enough. You must turn your entire workplace into an exercise zone. “Workacise” is when work and physical exercise become indistinguishable. This can involve walking-meetings and installing treadmill desks. Some companies encourage employees to wear bands that track their steps, heart rate and much more. Executives of some fitness obsessive companies brag about their latest Iron Man or mountain climbing trip. Sadly, being able to negotiate an ascent of Everest does not necessarily mean you can negotiate the perils of corporate life. Awesomeness It is almost a decade since management writer Umair Haque penned his “awesomeness manifesto”. He claimed innovation was dead and awesomeness was taking over, and the key to this was

passionate people doing “insanely great stuff”. Today, staff are being encouraged to let their inner awesomeness loose. Nick Riggle, a rollerblader-philosopher, says we can be awesome by breaking out of our work role in a way that allows others to express themselves. Being good or even great at your role is no longer good enough. Authenticity The ubiquitous business book in Australia in recent years was The Naked CEO, by Alex Malley, former chief executive of CPA Australia, an accountants’ professional association. His was one of the more recent iterations of the “authenticity for managers” movement that emerged at the start of the century, thanks to Bill George and his book Authentic Leadership. Today, many middle managers are trying to show who they really are by sharing their “authentic story”. While some honesty might be welcome in corporate life, there are many things we do not want to know about our bosses. The movement is still going. Mr Malley, however, was sacked last year from CPA Australia. Curation Curators used to work in museums. Now curating is the act of assembling anything. You can curate a website, speakers at an event or a dinner party. You can curate your strategy, your brand and data. Baristas have already become coffee curators. Will we see curators of groceries

stacking shelves? As a management idea, it is probably more pretentious than harmful. Purpose The corporate buzz word of the moment is “purpose”. Every leader worth their bonus package has to have one. One exercise for getting in touch with your purpose involves imagining you have just died and you are lying in your grave, looking back on your life. In South Korea, chief executive Shin Chang-jae, tells how he got into a coffin that was nailed shut. The idea was to emerge, reborn with a new sense of purpose. One that might work: Switching off Companies have become increasingly greedy of employees’ time. Now those employees are starting to kick back by creating clear boundaries around their time. Bruce Daisley, a managing director at Twitter, recently issued “The new work manifesto”, which says “40 hours is enough” and individuals should have a “digital Sabbath”. I have started to receive emails with a sign-off informing me that the sender checks their emails only twice a day. Limiting our working time in this way might actually help us get things done. The writer, André Spicer is professor of organisational behaviour at Cass Business School and the author of ‘Business Bullshit’. ON THE AGENDA...

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update workplace feature

Do less this year

but do it better A century-old tale of polar exploration offers modern clues to what works in your job Words: Andrew Hill

ON THE AGENDA...

“less is more”: “Yes — but if less is more, think how much more ‘more’ will be!”

Take the commitment to be busy, busy, busy all the time. Workaholism beckons for those who cannot turn down requests. Being absorbed in the task can mitigate workaholism’s worst effects, according to an Academy of Management Discoveries study published last year, but still anxiety about the job or obsessive ambition paves a pathway to health problems. Accumulating multiple commitments poses other risks, too. If you try to do more than one thing, you will not be as efficient as if you concentrated on a single task. A 2001 paper found that people toggling between tasks took longer to solve complex maths problems than those who concentrated on one job. A separate 2015 study of Milanese judges determined that those who tried to handle several cases simultaneously took longer to complete them. Still, the cult of busyness is a powerful one. If you started this year with a view to doing less, you will quickly have felt guilty about the jobs you turned down — and the possible missed opportunities. I am always reminded of overachieving sitcom shrink Frasier’s retort, when his brother Niles reminds him that “less is more”: “Yes — but if less is more, think how much more ‘more’ will be!” Academic Morten Hansen, whose book is just out, is Norwegian. To illustrate the importance of prioritising, he cites his compatriot Roald Amundsen, who won the race to be the first person to reach the South Pole in 1911. In the UK, this is usually told as a tale of heroic failure: explorer Robert Falcon Scott and his team arrived at the pole to find the Norwegian flag flying. On the return leg, they were caught in the encroaching winter blizzard, falling a few miles short of safety and perishing in the Antarctic snow and dark.

and the best training, was far quicker. “By the time Amundsen reached the pole, he was more than 300 miles ahead,” writes Prof Hansen. “Amundsen had chosen one method and mastered it. He had done less, then obsessed.” That catchphrase is an antidote to the assumption that just saying no will automatically yield a better outcome. Doing less “comes with this harsh requirement that . . . you have to obsess [about what you choose to do],” Prof Hansen said, “if you don’t obsess you don’t have an advantage over the people who are doing more things”. Prof Hansen studied the performance of 5,000 people and discovered that those who pursued a strategy of “do less, then obsess” ranked 25 percentage points higher than those who did not embrace the practice. He and his team also found that it was dangerous to assume that “passion” was a key to success. In fact, passion can lead people down the wrong road, to failure or burnout. The best performers in the study were those who matched passion for their job with a purpose, which could be as simple as making a meaningful contribution to the organisation. Beware the danger of collaborating too little — or too much. While sharing important information can be critical, the fad for “busting silos” can go too far. Expert teams may be distracted by “helpful” outside contributions they did not need. “Think about actual corn silos: if you bust those, you’ve got corn everywhere,” points out Prof Hansen. Finally, do not assume that achieving more is entirely down to the individual. Managers have a responsibility to help employees exercise self-discipline. Too often, organisations measure success by volume of work done — the law firm’s billable hours, say — or try to match the size of a team to the perceived importance of the project. Sometimes, though, the best approach may be to simplify a process, cut the size of a team, or impose a new strategic focus. How can you and your team achieve more this year? Try taking something away.

ypically, people start a new year resolved to achieve more than the previous year. How, though? Some people make what I have always thought is a frankly strange commitment to “say yes to everything”. Others do the opposite, resolving to say no more frequently. In reality, either of those extremes could lead to bad outcomes.

CONNECTING BUSINESSES

Prof Hansen believes Amundsen’s success came down to his obsessive focus on using only dogs and sleds to transport his team. Scott was better resourced: he had raised more money, had a larger crew, and set off with multiple options, including motorised sleds, ponies and dogs. But the complexity of the Scott approach — in an ominous insight, the naval officer referred to his “disorganised fleet” — proved fatal. The different British cohorts had to set off at different times and try to co-ordinate their speed. Amundsen, who had concentrated on getting the best dogs, the best handlers

update Movers & Shakers

APPLEBY ISLE OF MAN ANNOUNCES SENIOR PROMOTION

eading offshore law firm Appleby has announced the appointment of Mark Holligon as the new Dispute Resolution Local Practice Head for the Isle of Man. Currently a Partner within the Dispute Resolution Department in the Appleby Isle of Man office, Mark specialises in onshore and offshore law with a focus on commercial litigation, insolvency and restructuring. He has a particular interest in distressed funds and their restructuring. Mark, said: “I am delighted to be appointed as the new Dispute Resolution Local Practice Head. It is an honour to be recognised in this way, and I am very much looking forward to getting stuck into my new role.” Mark began his career in England, qualifying in London in 1995, and gaining experience with two leading UK firms before spending five years with offshore law firm Walkers in the Cayman Islands, before moving on to the Isle of Man in 2008 and joining Appleby in 2012. He has had involvement with many large crossborder insolvencies during his time at the firm. Mark has been named as a ‘Leader in his Field’ by respected publication Chambers UK for the past three years, and also as a ‘Leading Individual’ in Legal 500 UK for Dispute Resolution. Faye Moffett, Managing Partner of Appleby Isle of Man, said: “As a leading law firm in a competitive industry, it is critical that we have a high-quality team of professionals at our core to ensure that we deliver the very best service to our customers, and enable us to achieve our strategic goals. ”I would like to offer my personal congratulations to Mark and wish him the very best of luck in his new position. His expertise and experience made him an obvious choice for this senior appointment, and I am confident that he will be very successful in this challenging new role.”

NEW CHIEF EXECUTIVE FOR ISLE OF MAN POST OFFICE

sle of Man Post Office announces the appointment of Simon Kneen as its new Chief Executive. Mr Kneen joined IOMPO with a wealth of senior business change and IT software delivery experience from a range of financial sector companies operating internationally. Prior to joining the Post Office he spent a number of years working for Zurich and Capita on the Island. Mr Kneen’s new role will see him responsible for leading the organisation to build on success and maintain a sustainable business, play a pivotal role with the Board, lead the Executive and management teams throughout the business in developing and implementing the five year strategic plan and successfully manage key stakeholder relationships. On his appointment Mr Kneen said: “As a Manxman I am honoured to be afforded the opportunity to lead the Post Office at a time when the business faces a number of key challenges. The postal industry is a rapidly changing field which poses lots of challenges whilst also opportunities for Isle of Man Post

Office. I am very much looking forward to undertaking the role and helping to shape the business to be a modern and fit for purpose post office in this era of ever-increasing digital advancements and changing customer habits with physical mail.” Julie Edge MHK, Chairman of Isle of Man Post Office, said: “The Board of IOMPO are looking forward to working with Mr Kneen and wish to extend our appreciation to Lisa Duckworth, who has been interim Chief Executive, for her hard work, dedication and commitment to the role.”

RBS International appoints new Head of Resourcing and Talent

BS International has appointed Selina Camara, who has been employed by the bank since leaving school, as its new Head of Resourcing and Talent. Selina’s career has spanned 23 with the bank. This has included a range of roles within Retail banking, time as a Relationship Manager in the International Private Banking team, and most recently as a Performance Coach, dedicated to helping the business’ leadership population develop and grow their skills. Steve Scott, Head of Human Resources, commented: “Having joined the Bank as a teenager and worked her way through to a senior management position, Selina has the relevant experience to source and attract talented individuals as well as encourage and nurture their career development within the bank.” Selina, who is based in Jersey, will

be responsible for further developing the bank’s talent strategy in all its jurisdictions, as well as delivering its strategic workforce plan to respond to the changing way we live and work. ON THE AGENDA...

HSBC strengthens front line capabilities with senior Financial Crime Risk appointment

SBC in the Channel Islands and Isle of Man has strengthened its commitment to fighting financial crime with the appointment of Pawel Kusiak as Head of Financial Crime Risk Transformation across the jurisdictions. Based in Jersey, Pawel will take on responsibility for ensuring that HSBC across the Crown Dependencies implements the changes needed to meet the requirements of financial regulators and enhance HSBC’s culture toward

countering financial crime. Pawel brings with him 20 years of international banking experience. Most recently he was Regional Lead for Financial Crime Compliance, Regulatory Compliance and Conduct for HSBC Global Banking Europe, located in London. He first joined HSBC in Poland in 2006, and over the years has worked in the UK, Poland, Spain, Italy and Bermuda and can speak Polish, Spanish and English.

GOUGH LAW WELCOMES FIRST-CLASS GRADUATE TO THE TEAM

irst-class law graduate Jorden Rafferty joined Gough Law in January 2018 to begin her Articles. Having completed Northumbria University’s unique MLaw (Exempting) Bar Professional Training Course, Jorden graduated with First Class Honours in her Masters in July 2017. Jorden was then Called to the Bar of England and Wales at the Honourable Society of Lincoln’s Inn in November 2017 by the Rt Hon Lord Neuberger of Abbotsbury, the previous President of the Supreme Court of the United Kingdom. During her time at University, Jorden was heavily involved in life at the Law School. In her role as Lincoln’s Inn Student Representative she organised local Qualifying Sessions, including advocacy skills workshops. She was also elected Vice President of Northumbria University’s Law Society, helping to manage a committee of 12 and organising events for the 300 plus members. Jorden said: ‘The law is a passion of mine and, having been fortunate enough to spend time in courtrooms from the age of 13, due to my family’s legal profession,

I have gained good insight as to what a career at the bar really involves. ‘I am very much looking forward to the next step in my career, and beginning my Articles at Gough Law. Qualifying as a Manx Advocate will make me a dualqualified lawyer, with rights of audience in both the UK and the Isle of Man. However, my aim is to be triple qualified. ‘I plan to take the New York Bar Exams, regarded as the most difficult in the world, and become a qualified US attorney by the age of 25. Jorden will be Articled to Alan Gough, Director at Gough Law. Alan commented: ‘Jorden has accomplished so much academically and in terms of experience gained in just a few short years. She has a great work ethic and demonstrates an envious - to most people I am sure sense of drive and ambition. I have no doubt she will be called to both the Manx and New York Bar in the near future.

PwC ISLE OF MAN STRENGTHENS ADVISORY SERVICES TEAM

wC Isle of Man has strengthened its Advisory team ahead of major changes in data protection regulation being introduced in May 2018. Paul Williams has joined PwC from an Isle of Man-based CSP specialising in e-gaming and will focus on working with clients in the area of data privacy. A qualified Data Protection Practitioner, Paul holds an International Compliance Association qualification, and has an advanced level Diploma in Financial Crime Prevention. Alison Cregeen, Advisory Director and Data Protection Leader at PwC Isle of Man, said: ‘We are very excited that Paul has joined us at this time, when data protection is such a concern businesses. We are already working with clients on the coming changes in data protection regulation and, with his qualifications and experience, Paul will further strengthen the team.

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update Movers & Shakers

Basil Bielich is appointed member of TIAG Advisory Board

rowne Craine Director Basil Bielich has recently been appointed a member of The International Accounting Group’s (“TIAG”) Advisory Board. The Advisory Board, comprised of prominent accounting firm’s leaders from around the world, is a vital component of TIAG’s membership, which encompasses 119 independent member firms throughout 70 countries. “We are honoured to welcome Basil as a new Advisory Board member,” said Richard Attisha, President and CEO of TIAG and TAG Alliances. “Basil is a leader in his firm and community, and I’m confident that the 17,000 professionals throughout TAG Alliances will be well-served by his advice and counsel to our organisation. “I’m proud to be asked to join the board of such a vibrant and progressive alliance of leading accounting firms which has such a global presence,” said Basil. Mark Pesco

Stuart Pinnington

First Names Group appoints Stuart Pinnington as new Group Managing Director Corporate Services

corporate funds lawyer by background, Stuart’s industry experience has been honed through a number of senior leadership roles, most recently as Group Holdings Director Head of Funds and Corporate for a wellrespected Jersey based firm. Stuart started his career by training and qualifying as an English Solicitor whilst working for LG LLP based in the UK. As Group Managing Director Corporate Services Stuart will work closely with the wider leadership team and will be an active member of the Group’s Management Committee. He will be based in Jersey where he will report to Mark Pesco. Commenting on his appointment Stuart said: “I’m delighted to be joining First Names Group particularly as we are entering into an extremely exciting period of growth for our business following the

announcement of our acquisition by SGG Group late last year. I’m particularly looking forward to working closely with my new team to deliver the exceptional level of client service for which the Group is known and, once the necessary regulatory consents are in place, to work with our new SGG Group colleagues in taking this business to even greater success.” Mark Pesco, First Names Group Chief Executive Officer said: “Stuart is both well-known and hugely respected in the industry. He combines great technical expertise with a deep understanding of the industry and a strong client focussed approach, which make him an excellent commercial and cultural fit not only for our business as it stands today but even more so for the newly combined business in the future. ON THE AGENDA...

update Movers & Shakers spotlight

Tracy Kirby Customer experience manager, Sure Isle of Man What does your new role at Sure involve? I am responsible for customer strategy as well as research and insight across the Isle of Man, Guernsey and Jersey. This includes detailed analysis of the feedback customers provide through regular surveys and customer panels and working with the business to ensure that decisions and strategies are focused on providing an excellent customer experience.

In more recent years my roles have required my focus to be more strategic in nature, influencing and implementing business decisions that shape the experiences that customers have with a business. These range from the way people are trained and supported to using customer feedback and satisfaction (or dissatisfaction) to ensure that the business offers suitable solutions and services that customers are happy with.

Why did you choose to work in customer service? I’ve always enjoyed working with people and many of my previous roles have been customer facing. Making sure customers are satisfied with the level of service they receive and that they are given the correct information and advice is a part of the customer service role that I really enjoy. While this can sometimes be challenging, solving a problem and ensuring that even an initially unhappy customer can go away feeling that they have been listened to and understood is really rewarding.

What do you most enjoy about your new role? Sure is based in seven jurisdictions including the Isle of Man, the Channel Islands, the Falkland Islands and Diego Garcia and each has its own culture and requirements so learning about these has been very interesting. One size does not fit all when it comes to customer service which makes customer insight all the more important when making business decisions. There are numerous projects that I am involved in where I’ve been able to use my previous experience to help shape positive outcomes for customers and employees. The launch of Sure’s innovative technology platform is one of these projects. Once the platform is live it will offer full digital services to business and retail customers and enhance customer experience through billing and customer

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relationship management; this is a very exciting project for Sure and something I am looking forward to being a part of. How has the way businesses interact and communicate with their customers changed during your career? There has been a significant change in how businesses are able to communicate with customers over the past 20 years. E-mail and social media, for example, have enabled faster communication but this has led to increasing expectation from customers for an almost instant response. The challenge for businesses is how to manage these multiple streams of communication effectively. Businesses must be able to continue a conversation with a customer regardless of which method of communication the customer is using. For example, a customer may start their conversation with a business on the telephone or in store, but continue it by email or using Facebook messaging. When a customer moves between contact methods the business must maintain a coherent and seamless conversation with the customer and anticipate customer needs where possible to provide the best customer experience. What is Sure doing to enhance customer experience? Sure puts customers at the heart of its business and works very hard to meet and exceed customer expectations. The business has made a considerable investment in introducing new ways to collect and analyse customer feedback so we can better understand our customers’ needs and use the insight gained to shape the way the business operates. Whether the feedback is about products and services or how customers wish to interact with the business, we are constantly reviewing how this information can be used to enhance customer experience.

SPECIAL REPORT - sexual harassment in the workplace

COMBATTING S SEXUAL HARASSMENT IN THE WORKPLACE Words by: Alan Gough, Director at Gough Law, Isle of Man

exual harassment is the hot topic of the moment, with two things happening over the last 6 months to bring this problem to the fore. The explosive allegations against Weinstein have resulted in sexual harassment in the workplace being very much under the spotlight. Many older readers will remember the office environment of the 70s and 80s where sexual harassment was in most instances accepted as the norm or, if not, was tolerated. Things today are far from what they used to be as I suspect Harvey is about to find out. The second event has been the passing of the Equality Act in the Isle of Man. The Act recognises the problem and provides specific provision to protect workers from a range of unacceptable behaviours, sexual harassment included. Employers should always strive to provide a safe working environment, condemning any kind of harassment or intimidation in the workplace and encouraging respect at all levels. Proactivity is key when it comes to promoting awareness of workerâ€™s rights and in meeting employer responsibilities. Organisations would be well advised to have the most stringent provisions written into their policies and contracts of employment to protect both their workers and themselves, especially those dealing specifically with sexual harassment. In ON THE AGENDA...

simple terms it should not be tolerated in the workplace, and neither should retaliation against anyone who complains of it. Of course, all new legislation creates problems of interpretation particularly legislation as broad and sweeping as the Equality Act. So there needs to be a better understanding of what constitutes sexual harassment. The wording of the Act is broad and includes both verbal and physical harassment. It can present itself as any unwanted conduct of a sexual nature which has the purpose or effect of violating the recipient’s dignity or otherwise creating an intimidating hostile degrading humiliating or offensive environment. The conduct does not have to be sustained. A one-off incident that makes someone feel uncomfortable can amount to harassment. Employers should educate their staff and make it very clear what is and what is not acceptable behaviour in the workplace. Staff should know where they stand. Proper policies, if implemented, should protect potential victims and also protect the employer against being sued for not providing a safe workplace environment. A particular grey area is the fact that sexual harassment can be readily identified in some cases, but less so in others. When it comes to balancing between an objective assessment of the CONNECTING BUSINESSES

conduct in question and a subjective one (whether the complainant found the conduct intimidating or not) the courts in England have taken the view that the test is subjective but the effect the behaviour had on the victim should also be taken into consideration. So, what happens when harassment has occurred in the workplace? Employers need to make clear procedures for complaints in a sexual harassment case and need to recognise that sometimes the perpetrator will be high up the management chain. It also has to be recognised that victims are often vulnerable and are loath to raise complaints. Indeed, victims have been criticised for not standing up for themselves and it seems to be only when Harvey’s indiscretions were made public that many of the victims were emboldened enough to come forward. Without a complaint there is not much that the employer can do and not much protection can be afforded in practical terms by the law. Victims of harassment will often find themselves in an invidious position. They may feel intimidated at the thought of taking the matter to management and instead opt for the police. Nevertheless, once a report to the police is made the employer will no doubt be brought into it and statements will be taken. There is also the ogre of unwanted publicity for both the victim and the employer, let

Alan Gough

alone the alleged perpetrator. It will be interesting to see how the Equality Act is applied as regards sexual harassment. It has only just come into force and has not yet been tested before tribunals and the courts but employers need to be prepared for a robust application of the law. Of course, it is not always easy to force high-minded principles on the public by way of a legislation. The Equality Act is as broad and sweeping as they come. There can be unforeseen and undesirable consequences. In England the Crown Prosecution Service is under fire from judges for sending inexperienced barristers to prosecute serious crime, sometimes with disastrous consequences. The CPS has denied giving big cases to relatively junior and inexperienced barristers for fear of being accused of breaching the Equality Act. Nevertheless, it is a step in the right direction and if the Equality Act and current media storm brings us closer to tackling sexual harassment in the workplace, it can be considered a small triumph.

SPECIAL REPORT - sexual harassment in the workplace

“I

do hope the movie stars don’t give up on the #MeToo movement and move on to something else.” The speaker was a senior consultant, and it was a private conversation. He was trying to articulate his sympathy for the men and women who have spoken out against harassment at work. He wanted the campaign to succeed. But his comment exuded abject passivity: fixing the problem was up to the “actresses” — not him. My first response was outrage, my second was pragmatic. This consultant’s perspective was the same as that of many male and female managers I know. They support women and they are against harassment. They have not experienced or perpetrated sexual harassment themselves, but they probably know people who have, though they may be unaware of that. So they have power and goodwill but they do not know what to do with them. This article is for them. The first step is to accept that, according to the statistics, sexual harassment is almost certainly happening in your workplace. Research shows that the proportion of workers who say they have been harassed stands at between 20 per cent and 53 per cent for women depending on the survey; for men, it is somewhere between 7 and 20 per cent. Unless you work in a very, very small business, this is your problem now. The second step is to recognise that harassment is against the law under the Equality Act. It does not matter if it was intentional or not. If you put porn up in your open-plan office without intending to upset the person next to you, you are creating a degrading environment. It

It is not up to film stars to sort out workplace harassment

Three steps to changing a culture Words by: Margaret Heffernan (FT)

ON THE AGENDA...

does not matter that you did not intend it to violate anyone’s dignity or create an intimidating, hostile, humiliating or offensive environment; that is what ordinary harassment is about.” Much the same applies in the US, where, as part of equal opportunity legislation, sexual harassment of men or women is against the law. The third step is to understand that everyone is watching. What will your organisation do? The old responses — brush it under the carpet, quietly manage out the junior party — will not work. All those purpose and values statements, ethics exhortations and workforce engagement strategies: you can kiss them goodbye when you turn a blind eye to harassment that everyone sees and talks about. Everyone’s eyes are on employers. After decades of failed diversity initiatives, will management grasp the nettle and change anything? Which senior leaders — male or female — are stepping up and demanding action? Who remains silent? The obvious policies have to work in practice. An ethics phone line that no one answers will not cut it any more — attention must be paid not just to policies but also to their practical impact. Which employers will follow Cambridge university, by measuring sexual misconduct and tracking progress in dealing with it? In the past five years, fewer than six incidents of sexual misconduct were reported formally at the university per term. But since it launched an anonymous online form to allow staff to

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report incidents, 173 were reported in just nine months. The university’s project is watched with interest. Who in senior management will stand alongside those with grievances to ensure they are investigated firmly and fairly? Will you volunteer? Which non-executive director will personally guarantee that every reported case is taken seriously and dealt with quickly? That is the undertaking I have made on one board on which I sit. I want to reassure myself our promise is serious and real. Now is an excellent time to introduce reverse mentoring, in which senior executives receive feedback from junior staff. I have seen this work well in large organisations where leaders were paired with young workers of different genders, ethnicity and sexual orientation. Being told how they come across to others, where they cross lines or step on toes, can be chastening but informative. Many leaders shrug their shoulders and say it is just too difficult these days to know what is acceptable behaviour and what is not. But it is not hard — junior mentors will tell you. Seeing yourself and your organisation through young eyes makes a difference to how you communicate and behave. This is particularly effective at board level, where it is hard to know what is really going on. Senior leaders must now be prepared to stake their reputations on fair, safe workplaces. As we have seen with Oxfam and the Catholic Church, it is naive to assume that your organisation’s reputation and higher purpose will protect you. This is an existential moment for everyone in management. It is not up to film stars to sort it out. It is up to you.

“The first step is to accept that, according to the statistics, sexual harassment is almost certainly happening in your workplace.”

brand voice - Adamson Middleton ltd

Adamson Middleton Social Event On the 22 February Luxury asset broker Adamson Middleton Limited was the host of a cocktail and social evening for clients and business partners at Portofino Restaurant

damson Middleton was founded in 2017 by Paul Middleton and Peter Adamson to facilitate bespoke luxury asset and lifestyle management services for international high-net-worth

clients. Director Paul Middleton said, “Being able to catch up with clients and business partners in a relaxed social setting is very important. The recent cocktail evening was an excellent event and everybody seemed to have a great time. It was fantastic to re-connect with existing partners and to build the foundations of new relationships” More than 50 guests at the invitationonly social evening enjoyed a selection of fine food and refreshments, including cocktails by Raise the Bar.

About Adamson Middleton Limited Adamson Middleton Limited is based in Athol Street, Douglas and utilises a global network of business partners and associates with expertise in a range of

ON THE AGENDA...

sectors including yacht management, aviation, real estate, vehicle sourcing and fine art, to co-ordinate the acquisition and long-term holding of luxury assets. “With constant change in the legislation and regulations relating to certain high value assets like superyachts and private jets, ownership requires specialised tailored planning from the outset to ensure effective acquisition and continued operation. Many of our clients are unfamiliar with these rules and regulations or daunted by the complexities of a luxury asset acquisition. Some simply just don’t have the time or inclination to work through the processes themselves and would prefer to have experienced management teams establish the best ownership structures to suit their needs.” The company is also a broker for yacht and private aircraft charter and offers a wide range of global marine employment solutions in partnership with specialist advisors. “We work hard to build trusted business partnerships with global experts so our end-client receives a co-ordinated, holistic service of the highest quality. Whether the task at hand is a single undertaking like the sourcing of a luxury asset or the continued management of a portfolio of assets, we have the knowledge and expertise to offer bespoke solutions tailored to the individual.” Adamson Middleton Limited will be in attendance at a number of high-profile international events in 2018, with the next on the calendar being the Palma Superyacht Show in Mallorca at the end of April.

To find out more please visit: www.adamsonmiddleton.co.uk

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Continue...

brand voice - adamson & Middleton ltd Continue...

ON THE AGENDA...

brand voice - The International Stock Exchange carries out ongoing surveillance to protect the integrity of the market. The sponsor is also required to assist the company in meeting its continuing obligations post listing, including notifications to the market and the preparation of audited financial statements to internationally recognised standards (e.g. IFRS, UK GAAP, US GAAP). The audit provides third party scrutiny and review of the financial position of the company which allows investors and the wider public to be able to make an evaluation of the performance of the company and in particular, in comparison to the objectives outlined in the listing document.

What are the benefits

of a listing? The benefits of a stock exchange listing go beyond just accessing capital and include demonstrable adherence to recognised standards of transparency and governance, says IoD Member Carolyn Gelling, Head of the Isle of Man Office at The International Stock Exchange Group.

Words by: Carolyn Gelling, Head of Isle of Man Office, The International Stock Exchange Group

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here are numerous reasons why business owners and company directors may consider it beneficial to list their company on a stock exchange, such as The International Stock Exchange (TISE). These reasons might include one or more of the following: enhanced prestige and profile for the owners and their business; access to a new pool of capital which will help to take the company to the next stage of its development; a clearly defined price for the shares and a valuation of the business; provision of a stepping stone to another major global exchange; and a route to exit. However, a stock exchange listing also provides demonstrable adherence to well recognised standards of transparency and governance. Transparency & Governance Companies wishing to list and to continue to be listed must adhere to the listing rules of a stock exchange and at TISE this is carried out in conjunction with a listing sponsor, which must be appointed at all times. The sponsor is responsible for helping the company with the listing application process, which includes demonstrating that the company meets the minimum conditions of listing, completion of the listing document, disclosure requirements and responsibility statements. TISE’s own market authority assesses a company’s suitability for listing and

Accessing Capital Transparency and good corporate governance can make investment in listed companies more attractive for investors. Indeed, some investors can only invest, or have to invest a certain proportion of assets, in listed products because they know that the company in which they are investing is adhering to specified standards of transparency and governance. It is these requirements which mean that owners need to have given thought to whether or not they see an exchange listing playing a part in the development of their business well before they actually reach that stage. By giving this consideration early in the company’s life, business owners and company directors can start to make the necessary preparations for an exchange listing so that they are in the best possible position to meet the required conditions at the time they wish to be admitted. TISE Isle of Man companies might choose to list on TISE because it offers the advantage of being able to facilitate the listing directly from the island. In addition, TISE also has a fee regime and admissions criteria which are better suited to meeting the needs of growing businesses than those of some larger exchanges. In fact, a company may use a TISE listing as a way to raise its visibility and get comfortable with the requirements of being a listed company and then, once it has grown, transition to being listed on a major global exchange. In this way, TISE might be considered an ‘incubator exchange’ or a ‘stepping stone’. For many businesses that is likely to be a longer term objective but in the meantime, they should still ensure that they are adequately planning for the future and as part of that, consider how an exchange listing could aid their ambitions.

brand voice - WHIreland International Wealth

Bitcoin:

Digital Gold, Dead Duck or the Future of Finance?

Will Bitcoin rule the world? David Bushe, Head of Investments, International, Chris Bell, Senior Investment Manager and Mike Ingram, Chief Market Strategist, from WHIreland, muse on the outlook for cryptocurrencies

hose of us who have worked in the financial services industry for the last few decades may sometimes be forgiven to think we’ve seen it all. Dotcom boom and bust; global

financial meltdown; negative interest rates; quantitative easing and the market

applauding a reality TV star becoming President of the United States. It’s surely all water off a duck’s back by now. Yet when people who have never shown any interest in finance suddenly become cryptocurrency evangelists, you know that something is up. Rarely have we seen a topic become as pervasive and passionate as the eyewatering rise of ‘cryptos’. However, much of this debate seems to be due to the conflation of different, but related topics such as blockchain (a blockchain is a continuously growing digitized, decentralised, public ledger of all cryptocurrency transactions and other records linked and secured using cryptography and broader distributed ledger technology that enables cryptos. Leaving aside the blockchain technology, which would require another article in itself, and looking just at Bitcoin, it is fairly clear that the concept of digital currency has much to commend it. In the now-familiar world of non-physical cash, the ability to buy assets and discharge liabilities relatively simply and securely ON THE AGENDA...

without lugging large quantities of cash around that can be stolen or counterfeited and doesn’t have to be counted or replaced is obvious. This efficiency further extends in a distributed ledger-enabled crypto currency such as Bitcoin. At a more practical level, the argument that Bitcoin isn’t ‘real cash’ also seems to have been dealt with. Advocates are keen to point out that virtually all established currencies are ‘fiat’ i.e. they are not convertible into precious metals such as gold and silver with ‘intrinsic value’. In that sense, they say, Bitcoin is no less real a currency than a Pound, Euro or Dollar. Moreover, crypto fans have pointed out that central banks, even if ostensibly free of political meddling, have deemed it necessary to aggressively expand the base money supply of their domestic currencies in an effort to boost nominal growth in post-crisis economies. Theoretically no more than 21 million Bitcoins will ever be mined – and we are already over 80% of the way there. The reasoning goes that widespread adoption of Bitcoin would usher in a new age of economic stability such as that envisaged by those that would like to see a return to the Gold Standard. This is one of the reasons why Bitcoin has been dubbed ‘Digital Gold’. Initially we found these arguments persuasive, so last summer we embarked on an exercise to try and establish a fundamental valuation for Bitcoin which came up with an estimated figure of $120,000 per Bitcoin. Considering that at the time Bitcoin was trading below $3,000, this seemed like a pretty compelling investment case, even taking into account the compounded assumptions made in arriving at that valuation. It wasn’t long however before doubts set in. Yes it might be true that the number of Bitcoins might be capped, but there are currently 1517 crypto currencies listed on the website coinmarketcap.com. Even though the market share of the four largest ‘cryptos’ (Bitcoin, Ethereum, Ripple and Bitcoin Cash) account for about 70% of the market by value, it is clear that the barriers to entry for a new digital currency are very low. And what about crypto-based banks with fractional reserve banking? Never underestimate the ability of the financial services industry to engineer leverage into the system. We concluded that the future supply of cryptos may indeed not prove to be so fixed as to fill a gap currently occupied by major currencies with a very high crypto coin value. Our doubts didn’t end there. Having suspected that crypto currencies might prove prolific, our thoughts turned to gold and the notion of ‘intrinsic value’. It’s intuitive to think that something which is scarce i.e. gold is more likely to have CONNECTING BUSINESSES

Mike Ingram

Chris Bell

David Bushe

‘intrinsic value’ than something that is plentiful i.e. water but context is important too. Arguably if you were trapped on a desert island, gold could well be useless and water might be more immediately valuable or to be more economically correct, offer more ‘utility’. The serious questions of who is using Bitcoin, who is ultimately accountable for regulation, oversight and control in order to guarantee investor protection became a huge concern for investment managers watching from the sidelines who are quite rightly heavily scrutinised with regards suitability and client security. From there it was a slippery slope. Perhaps the technological eye-candy and growing popular acceptance of crypto currencies wasn’t enough? Perhaps the sovereign issuers of our current fiat system of currencies will push back hard? It might be impossible to un-invent blockchain, but it is certainly possible for the world’s leading economies to marginalise it by outlawing its use within banking systems, retailers and like. Furthermore these authorities could make it illegal to receive payment in cryptos for goods or services provided or work done. The final line of defence would be to require the payment

of taxes in the appropriate fiat currency. These combined efforts might easily reduce cryptos to a niche collectibles market such as exotic postage stamps or fine art. All this probably sounds alarmist. After all, haven’t we seen a number of endorsements of Bitcoin from some powerful establishment institutions? Well, not as such. For instance the announcement last year that Goldman Sachs was going to facilitate Bitcoin trading was seen as legitimising the cryptocurrency, but this was no more an endorsement of value than the London Stock Exchange facilitating the trading of Vodafone. Goldman simply thinks that facilitating Bitcoin trades will be profitable for Goldman. Similarly, Bitcoin futures were launched on the CBOE futures Exchange in Chicago in December 2017. Given the spread and volatility evidenced by Bitcoin, this is probably a reasonable bet. At a company level it is easy to identify how many business models might be threatened by the rise of Bitcoin and similar cryptos. The Governor of the Bank of England has been keen to point out that while banks largely recognise the costcutting potential of adopting blockchain technology, they are far less appreciative of the dangers more widespread adoption might have to their revenue streams. The peer-to peer nature of blockchain could potentially disintermediate any financial hub that has been painstakingly – and to a large extent profitably – built over decades. Widespread replacement of established fiat currencies would probably pose even greater risks to the central banks themselves. They could completely lose control over the money supply, making the effective exercise of monetary policy and inflation targeting impossible. That said, many central bankers, such as the Chief Economist of the Bank of England, Andy Haldane, are in principle very keen on sovereign-issued digital cash as this will actually extend the reach of central banks’ policy toolkit. For instance such issuance would make it possible to affect negative interest rates on cash as opposed to merely negative rates imposed on banking system reserves. So you don’t have to be a conspiracy theorist to suspect that the issuance of private digital currencies might not be universally welcomed by the policymakers and many in big business who are unlikely to want to relinquish their current power under the sovereign-sanctioned fiat system. In short turkeys never vote for Christmas - and they are not keen on extending voting rights in this matter to non-turkeys. In this instance we suspect that digital currencies will indeed be on the menu, but they will be digital currencies controlled by the status quo.

brand voice - KPMG Isle of Man

Cyber security: A strategy for growth as well as risk A good cyber security plan will not just protect against unwanted attacks, it can also help businesses maximise opportunities and get ahead of the pack, says Bryan Beesley from KPMG Isle of Man

usinesses operating on the Isle of Man are no different from virtually every business competing in today’s dynamic market environment: regardless of size, sector, or past success, they are typically on a transformational journey. Senior executives are having to re-think their organisations’ traditional business and operating models to meet customer behaviours and expectations. At KPMG, Cyber Security professionals working across the member firms around the globe believe that cyber security must be today’s priority. The evolution of customers’ expectations and the introduction of disruptive technologies mean that the extent of connectivity and the volume of sensitive data accessible about a business and its customers are growing at an exponential rate – leading to both greater opportunities and risks for an organisation. When you hear the term ‘cyber security’, there’s a very good chance that, like many executives, you immediately think of one thing: an IT infrastructure challenge. Of course, a strong IT security infrastructure is a critical part of any cyber

security program. However, it is not the only part. In 2018, just as it was in 2017, this traditional ‘defence-first’ mind-set is too limited and can actually hinder your company’s long-term growth prospects. Indeed, there is another important element at play and that is the potential impact of cyber under-preparedness to your company’s future business growth. This is particularly true in a business environment in which so many companies are undertaking ambitious customerfocused transformation programs amid widespread technological disruption and competitive threats. KPMG’s Cyber Security professionals are confident that tomorrow’s leading businesses will ultimately wield their cyber security capabilities as competitive advantages. Cyber security solutions are a core value proposition to customers to drive growth, and a necessity for management teams, board members, and ON THE AGENDA...

Bryan Beesley, KPMG Isle of Man

investors to continue making investments in technology-enabled transformations. Without confidence in cyber security solutions from all of these stakeholders, organisations limit their ability to innovate business and operating models, leading to current customer defection and poor growth prospects. The Cloud – Frequently, if not weekly, conversations between KPMG professionals and board members across businesses globally cover concerns about putting information ‘in the cloud’ and the assumed vulnerability to cyber attacks. The advice that typically follows is that most cloud service providers understand security is a priority and they build their systems accordingly. Furthermore, it’s highlighted that sometimes not moving to the cloud is a bigger risk than putting your information there. If all of your competitors are in the cloud, they may be faster and more agile. By staying with CONNECTING BUSINESSES

your slow-moving, legacy IT infrastructure, you may be putting your company at a distinct competitive disadvantage. In other words, the value you can provide to your customers can be limited by your technology stack. Don’t discount the use of the Cloud from the outset; give its use due consideration. ‘It’s just IT, isn’t it?’ - One of the other major blind spots for executives is viewing cyber security as an IT risk only, when it should really be viewed as a core part of the company’s holistic business strategy. The question shouldn’t be ‘how much of my IT budget are we spending on cyber?’ The question should be ‘how much of my business change or innovation budget are we spending on cyber security?’ When you treat cyber security as an IT risk only, you risk missing opportunities and inflection points that could help fuel business growth. Being prepared - No matter what

industry you’re in, data is the lifeblood of modern business. A high-quality cyber preparedness program will not only focus on keeping the data safe and secure. It will also help to increase and improve the integrity of that data to make sure that you have the right and complete data upon which to base your business decisions. There are no quick fixes to becoming cyber defensible. The transition, and its continued maintenance, takes time, resources and patience. Critically, it will require boards and executives to have awareness to be able to challenge the decisions made by the business, and it will require the business to be in the ‘lead’. Businesses must also remember that the opportunities created through a strong cyber position and robust controls are massive and vital to future growth. We in KPMG believe that the most successful organisations going forward will be the ones that are able to create a smart balance between corporate opportunity and operational risk; to protect their reputations, and grow their business; and to build trust with clients and regulators. They will be the ones that are best positioned to seize new market opportunities. Please contact the KPMG Isle of Man team if you want to discuss how we can help assess your approach to cyber security and find the right balance for your organisation moving forward. Email: info@kpmg.co.im

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Opinion - cyber security

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Words by: David Bond (FT)

“You don’t need to beat cyber crime — and it would be unrealistic to think we could” 34

K security chiefs took down more than 120,000 fake websites last year and blocked 54m malicious online attacks as part of a “great British firewall” designed to stop cyber criminals targeting the public for money and secret data. According to a report released recently, GCHQ’s National Cyber Security Centre says its “active defence programme” has led to a 2 per cent reduction in the volume of global “phishing” and “malware” attacks hosted in the UK since July 2016. ON THE AGENDA...

While the report, does not cover severe cyber attacks launched by hostile state actors such as North Korea or Russia, the NCSC said it was the first time the UK had outlined the scale of what it called “commodity attacks” that caused “the majority of people the majority of harm”. Ciaran Martin, chief executive of the NCSC, who warned last month that it was a question of “when not if” a big cyber attack hit the UK, launched the active cyber defence initiative in September 2016, announcing plans to work with internet companies to tighten online security. Spoofing and phishing attacks fool people into handing over personal details through seemingly legitimate emails purported to be from trusted organisations and government departments. They are one of the most commons types of attack. The email usually redirects people to a fake website that then either infects the user’s computer or asks them to input their details. Hackers can also target a service provider’s domain name service — the internet’s phone book — to automatically launch malware, software that can disrupt or penetrate a computer system. The NCSC said that while there was some overlap between hostile state actors who employed similar tactics, the vast majority of attacks were run by criminal gangs who looked to profit from selling on people’s data or hacking into their bank accounts. “You don’t need to beat cyber crime — and it would be unrealistic to think we could,” said Ian Levy, technical director for the NCSC. “But we do want to make it as hard as possible and that means making it as unprofitable and risky as we can for cybercriminals to act in the UK.” The NCSC report focuses largely on public sector brands and departments that are among the most commonly used as ruses by attackers. The agency found that HM Revenue & Customs was by far the biggest inspiration for imposter websites, with 16,064 sites created by nearly 2,500 attack groups. But other public bodies such as the Crown Prosecution Service, Universities UK and the BBC were also targeted. In total the NCSC took down more than 18,000 fake public sector websites last year. Despite the proactive steps, many people still fall for crude spoof emails asking them to provide personal details, the report says. It cites one example of an email supposedly sent by Mark Carney, governor of the Bank of England, informing the recipient they were entitled to a $2.5bn payout. The BoE, along with the National Lottery and the Financial Conduct Authority, were the top institutions used last year in so-called advance fee fraud attacks. The growing focus on cyber attacks — given renewed urgency in the UK by CONNECTING BUSINESSES

“GCHQ’s ‘active defence programme’ leads to removal of 120,000 fake websites”

a series of interventions from military chiefs and political leaders highlighting the threat posed by Russia — will place pressure on the tech companies and internet providers to do more to protect users. In December, the NCSC wrote to ISPA, the UK trade association for internet providers that includes BT, Sky, Virgin and TalkTalk, setting out five steps it wanted them to take to tighten security, including running its blocking software. But while ISPA said it welcomed the approach being taken by the NCSC, privacy campaigners have urged caution and appealed for more transparency over the methods being used by the NCSC and GCHQ to block sites. “Of course we want protection from problematic sites,” said Privacy International, a campaign group. “But even with noble intent, this is the very same infrastructure used to censor and manipulate information in many countries across the world.” The NCSC said its intention was not to limit freedom of expression, adding that internet companies running its firewall offered consumers an opt out.

opinion - the truth about tax havens

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ON THE AGENDA...

ack in 2016, Oxford Dictionaries proclaimed ‘post-truth’ as its arbitrary and largely pointless Word of the Year. Setting aside my belief that hyphenated phrases should not really be allowed as individual words, and indeed, that, the year before, the same accolade was given to an emoji, the word(s) heralded a turning point for political discourse in the age of mass communication. I need not mention the role of perceived truths and lies in election campaigns which left us with Brexit and Donald Trump. You’d think humanity might have learned a lesson. And yet, two years on from the year-of-post-truth, we are still completely obsessed: obsessed with fake news, obsessed with shouting over each other, and obsessed with silencing those who dare to disagree. It was once considered noble to listen to and critically deconstruct the argument of an opponent; now it feels more appropriate to tell them to shut up because you are right and they are lying. Even in the Isle of Man, renowned for historically doing things its own way, we have been unable to escape this rot. Recent steps towards overhauling the nation’s decades-old laws on abortion have been met with accusations of media bias from both sides - with those both pro- and anti-reform crying foul play, often against the same media outlet. The Chief Minister, Howard Quayle, has been busy berating local journalists for peddling ‘half-truths and tittle-tattle’, while readers simultaneously accuse those staff of sycophantically towing the government line on the same issues. The Paradise Papers threatened to deal a hammer blow to the Island’s reputation last year. But three months on, the water remains distinctly muddy. The shadowy and prevaricating International Consortium of Investigative Journalists, responsible for leaking 13 million documents from legal firm Appleby, is represented in the UK by media partners at the BBC and The Guardian. Lawyers representing the firm are currently preparing court proceedings against the pair concerning defamation and theft. And while no one at this stage is any the wiser as to whether or not certain allegations levelled against the Isle of Man’s aircraft registry hold any weight (we await the findings of Westminster and now the European Parliament), this has demonstrated an oblique change of course for the traditionally non-partisan BBC. Despite a hard-hitting November 2017 Panorama exposé drawing heavily on commentary from the Tax Justice

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‘In a world where nothing any longer feels true or verifiable, it is critically important to forage for and filter through facts”

Paul Beckett

Network, it is ironic that the Corporation chose not to cover the results of the same organisation’s 2018 Financial Secrecy Index - findings which placed the Isle of Man several fathoms below the United Kingdom, and 41 other global financial centres, in a league table of overall tax malpractice. That’s ten places lower than the Island was three years ago. Sometimes, what is not reported on can be the most telling. Advocate and tax author Paul Beckett knows the feeling. ‘They [Tax Justice Network] asked me if I would do a short piece to be included in the Index’s report on the Isle of Man’, he told me. ‘I produced one saying the obvious: it’s not a tax haven.’ The piece was rejected. Why? It was ‘counter-intuitive’. The Network, Mr Beckett believes, was convinced that readers wanted to hear about unproven VAT fraud claims, and not that the Island had improved its regulatory offering over the same time period. ‘The impact of the Paradise Papers has been a certain superficiality’, he concludes, ‘where people just read the headline and then assume the remaining detail’. There are several ways of measuring whether a nation qualifies as a tax haven. The old-fashioned way, of simply measuring incomings and outgoings versus population multiplied by entities incorporated, is less reliable in an interconnected global model. Then there’s the secrecy test: to what extent are institutions allowed to cover their tracks? There’s also the accountability test: are institutions brought to rights if they are seen to be acting unethically? No matter which methodology one employs, the results are similar for the Isle of Man - not squeaky clean, not terrifically dirty, and certainly not as intrinsically shady as, say, Lichtenstein (but not as wellto-do as Jersey or Guernsey). But, as with any argument - and this is the key - you cannot choose to take one set of information in favour of another. Facts are facts and opinions are opinions; it is the duty of responsible media outlets to present them in as balanced a way as is physically possible. But is bias ever truly avoidable, especially in politics? Paul Beckett warns the Manx government against allowing ‘Chinese whispers’ in the future. It would do anyone, public or private, good to heed the same message. In a world where nothing any longer feels true or verifiable, it is critically important to forage for and filter through facts before forming any kind of overarching summation. But, in this case at least, it seems some good news has come to the Manx without them seeking it.

iod-iom members opinion

Brexit, The Economy T and the Isle of Man in 2018

CAROLYN GELLING

Head of Isle of Man Office, The International Stock Exchange Group

We ask IoD-IoM members for an opinion on the year ahead and thoughts on Brexit and the economy.

Here’s what they had to say.

he number of people in employment on the island has increased, tax revenues are reported to be up and the government has noted that there is a steady stream of new business in the pipeline. These are all positive indicators. However, ratings agency Moody’s commented last year that one of the biggest challenges facing the island is Brexit-related uncertainty and as the UK’s Brexit negotiations rumble on, there is still a huge number of unknowns in terms of what may come and the potential implications for the island’s economy. That said, one of the island’s most profound advantages against this backdrop and with even greater uncertainty in the UK, is in continuing to offer the stability of being a jurisdiction which is in Europe geographically but outside of the European Union. It is in this regard that the island can seek to capitalise on its existing connections and be nimble in identifying opportunities for growth in niche areas that will help drive our economy forward this year and into the future. Government can help industry by creating an environment that allows businesses to make the most of such opportunities, whilst continuing to tackle the sustainability of its own finances. Work permit and planning reform are key initiatives for 2018 that start to address the very current issues around skills and personnel shortages in several sectors. As we look into a future it is pleasing to see the presence of world class data systems, a tech sector, a potentially greater presence of media industry and access to capital markets for entrepreneurs, Small and Medium sized Enterprises (SMEs) and larger businesses through The International Stock Exchange (TISE). These are all areas that are harnessing new and exciting opportunities for the island and its economy in 2018 and beyond. ON THE AGENDA...

BILL MUMMERY

PAUL HOTCHKISS

BRIAN KELLY

Celton Manx Executive Director

Managing Director, Hotchkiss Associates Limited

Chairman, Mannlink

E-Gaming Post Brexit Threats and Opportunities

hilst Brexit is not yet ‘Settled’ and there could always be a sting in the tail of the negotiations, as it stands I don’t believe that Brexit represents a threat to the IOM eGaming sector and indeed will present opportunities. We have built an economic vertical in eGaming that represents 20% of our GDP when we are not a Member State of the EU. There has been no concept of Member States allowing the free flow of goods and services, in this case eGaming. This has meant that those IOM based eGaming companies targeting EU countries have, over a decade, had to obtain individual licences for each EU country. Therefore nothing should change post Brexit in terms of market access. Conversely there are opportunities for us based upon the uncertainty Brexit will bring for other jurisdictions whose economy is significantly based upon eGaming. Gibraltar to name just one. We offer World Class infrastructure, strong regulation and a clustering of eGaming companies that are Global leaders. Our Government understands the sector which is essential for its future development. A ‘first step’ for some operators in other jurisdictions might be to utilise our Data Centres and regulatory framework for Disaster Recovery. This could lead to a greater presence for them in a World Class stable and eGaming friendly jurisdiction where they can invest with confidence.

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Trading Partners

ne thing we are all aware of is that the Island is in a customs union with the UK and therefore we have access to the EU customs union on the back of that. This is important for many industries we host including but not limited to manufacturing and financial services. Furthermore, the Island forms part of the Common Travel Area with the UK, Ireland and the Channel Islands. This currently means free movement and no passports are required to do so. A lot of this may change come Brexit. Clearly for the island we need to ensure that access to markets for all our industries remains unaffected (a) to retain business but (b) to attract new business. We also need to be able to go on holiday without visas! It is incredible how we get used to a way of going on holiday and something like this may affect us so dramatically in unexpected ways. We also need to make sure that in the process of negotiation we are not forgotten or used as a political football, in say taxation. The EU has long disliked our tax system and furthermore many outside the Island think our VAT sharing arrangement is unfair. This former point has been seen recently with the grey listing: an ongoing process which will not be out of the blocks until late 2018/early 2019: fortunate or unfortunate timing? If these bedrocks of our economy are caused to be modified by Brexit pressures, this is a concern and we can only rely on the UK to assist. It is good the Island’s Government officials seem to be spending time keeping close to the UK to make sure we are considered. There may be advantages of course and the Island may be more useful to the UK than we perhaps realise as a trading partner to the rest of the world. Only time will tell!

Travel & Tourism

hat is the potential fall out within the travel sector from Brexit? I think they are surprisingly pretty clear cut. Free Movement of goods & services, the value of sterling and immigrant employment being perhaps the headline issues. There are strong travel and tourism flows between the UK and EU. The EU is the main destination for UK tourists, and the main source market for overseas tourists coming to the UK. Tourism and travel trade between the UK and EU has been facilitated by the free movement of goods and services, investment and people across the EU. A Brexit could jeopardise this free movement, and affect the flow of trade and travel. Brexit had an immediate negative impact on the value of sterling. The extent to which operating from outside the EU would increase costs for the travel industry would depend largely on the agreements the industry would adopt and the ease at which it could transition to the new arrangements. The travel and tourism sectors employ a significant number of immigrants. Any changes limiting the sector’s ability to recruit or employ foreign nationals, including those from the EU, could challenge many travel and hospitality businesses in filling a number of roles , especially given the current levels of UK employment and existing skills shortages. The UK travelling consumer is faced with increased costs and we have now experienced sustained deterioration in the value of sterling, making foreign currency destinations more expensive in sterling. Consumers would also need to cover any additional health insurance costs, should the UK exit the European Health Insurance Card scheme.

IOd-UK 2018 predictions

IoD UK: Business leaders see tumultuous year ahead

Predictions for business and politics in 2018

t the beginning of last year, the IoD made five predictions about economics and politics over the next 12 months: n Theresa May will trigger article 50 in 2017 n UK tax revenues will continue to disappoint n Populist revolts are far from over n A significant cyber-attack will bring down a company n European banks are in serious trouble Our record wasn’t bad. Some predictions, such as that the Prime Minister would start the Brexit countdown, were delivered quickly (although it’s easy to forget now, this was not a forgone conclusion – the Supreme Court was still deliberating on whether Parliament needed to approve Article 50 in January). Others were borne out, if not universally, then in notable examples. While economic growth improved appreciably in the EU in 2017, concerns about banks in several countries remain. In the most highprofile case, Monte dei Paschi di Sienna, the world’s oldest surviving bank, had to be bailed out by the Italian government to the tune of €5.4bn. Populism was very much on display in 2017. While Emmanuel Macron fought off the challenge of the National Front’s Marine Le Pen, in Germany the farright AfD entered the Bundestag as the third largest party. By one measure, the number of populist parties in Europe has almost doubled from 33 in 2000 to 63’. Cyber attacks continued to engulf global companies, with Uber, already

ON THE AGENDA...

ECONOMY fighting fires on a few fronts, taking a serious reputational knock when it was revealed in November that not only had it suffered a massive hack that had exposed the data of 57 million users and drivers, it had also initially attempted to brush the incident under the carpet by paying off the criminals and keeping the information from regulators. The subsequent contrition of the new CEO, Dara Khosrowshahi, only goes to prove how worried executives are, and should be, by cyber risks. Tax receipts have fared better than we expected, up 6.8% between 2015/16 and 2016/17. At the November 2017 Budget the Office for Budget Responsibility revised up their forecasts for tax receipts for 2017/18, but they expect growth to be slower in subsequent years.

1) London’s economic growth will be weaker than the UK average in 2018 This would buck a long-term trend that has seen London consistently outperform other UK regions. Uncertainty around Brexit, particularly regarding financial services and access to skills will disproportionately weigh on the City – as will weaker consumer spending. Meanwhile strength in manufacturing activity – owing to the weak currency and global growth – will provide some buoyancy for the regions.

CORPORATE GOVERNANCE This year, we are taking the brave (or foolhardy) step of making predictions across several different areas that relate to business, 14 in total. It will be a year of great change for companies, characterised by both uncertainty and determination to succeed. Half of IoD members say they are optimistic for their own business in 2018, but less than a quarter say the same for economy as a whole. Our members are hoping for continued progress in the Brexit talks and, at home, the Government’s Industrial Strategy to bear fruit. Many will be hoping for a year free of too many political surprises, but that is one prediction we are not willing to make.

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3) Global stock markets will come under growing pressure to relax their listing rules, as competition for major flotations hots up In 2017 The New York Stock Exchange has overtaken Hong Kong as the top global venue for companies undertaking initial public offerings. This reflects a surge in the number of Chinese companies that have chosen to list in New York rather than Hong Kong. One of the reasons underlying this trend is that the NYSE allows listing of shares with multiple voting right (in contrast to Hong Kong, Singapore and London). Such shares are heavily used by tech entrepreneurs who want to raise funds without ceding voting control to other shareholders. Growing competition amongst stock exchanges will tempt other markets to relax their listing rules in a similar direction, with potential implications for global corporate governance.

2) Business investment growth will fall short of official forecasts for 2018 Our members’ investment prospects for the year ahead have been subdued, largely due to political uncertainties. But also, elevated costs, absorption of additional labour market capacity, and redirected revenues (for contingency planning, product launching etc.) will weigh down investment in capital and technology. As a result, business investment growth will likely lie closer to 1.5% – short of the Office for Budget Responsibility’s 2.3% forecast – before rebounding in 2019.

4) Several major UK companies will appoint employee representatives as board members for the first time Although common in continental Europe, the presence of employee representatives on UK boards is a rarity. However, proposed reforms to the UK Corporate Governance Code seek to give an increased voice to employees and other stakeholders in corporate governance. Reflecting this development, several major UK companies will appoint employee representatives as board members for the first time in 2018, although the practice will remain relatively unusual due to the strong shareholder orientation of most UK enterprises.

IOd-UK 2018 predictions

EMPLOYMENT 5) Legal challenges against gig economy platforms will keep rolling The gig economy will stay a controversial subject with trade unions taking more online platforms to court to challenge their work policies. High profile legal disputes have underlined the ambiguous definitions surrounding employment status in the UK. The issue has proven a challenge for legislators, and it’s incumbent on Government to provide clarity for businesses moving forward. The situation is unlikely to be totally resolved in 2018 and controversies and contentious court cases will continue to be the order of the day.

6) Net migration will continue to fall Net migration to Britain will fall by at least 50,000, bringing the Government the closest they have come to reaching their net migration target since it was first introduced in 2010. Though the rights of EU citizens in the UK were recently firmed up in Brexit negotiations, EU inward migration will continue the decline it has taken since the referendum. As a result, businesses – particularly SMEs – will find it more difficult to recruit the people they need for our economy to prosper resulting in a labour market tightening. Some firms will feel pressure to raise wages but others will struggle to cope and will consequently stagnate or downsize.

TAX 7) The UK Treasury will try to tax the self-employed more like employees The different treatment of employees, contractors and the self-employed when it comes to Income Tax and National insurance has been brought to public attention by the rapid growth in the flexible economy. The area is politically challenging because, although most people in work are disadvantaged by the current treatment as they pay income tax and national insurance under PAYE, there is a vocal minority who could be required to pay higher national insurance contributions (and, at the margin, more income tax) if changes are implemented. The Government has been cautious so far, excluding tax policy from Matthew Taylor’s recent review of modern employment. Rather than make sudden changes, we predict the Chancellor will launch a consultation at the Autumn Budget, putting forward several options for reform.

8) The UK Government will launch a review of business tax reliefs and find they are worth keeping There have been increasing calls recently for cuts to tax reliefs in areas like start-up investment. We believe these calls should be resisted for several reasons. Firstly, who receives tax relief matters less than the behaviour secured. Secondly, calculations of ‘tax expenditures’ often include both capital and annual investment allowances, but these represent the tax approach to providing – and controlling – the allowance for capital expenditure. Without these reliefs, the effective rate of tax on profits would be above the rate enacted by Parliament. Thirdly, equating ‘tax expenditures’ with public spending leans on the false assumption that all income belongs to the state. We predict that the Government will, correctly, maintain all significant reliefs in broadly their current form for 2018.

TRANSPORT AND COMMUNICATIONS 9) Mobile and broadband data consumption will grow by at least another 30% in 2018. This rise will be driven by video streaming and cloud-based services which will stretch the UK’s telecoms networks to their limits. This will put greater pressure for a more radical intervention by the Uk government with the forthcoming review of the UK Telecoms market announced as part of the Industrial Strategy. Openreach will feel obliged to offer more ambitious fibre to the premises plans while faster, nimbler Alternative Network Providers continue to attract new waves of investment.

10) The first people will fly from a reusable suborbital space vehicle In doing so, Blue Origin’s New Shepard will open up a brand new market for space tourism, remote sensing and observation, and scientific research. The UK will then push harder to attract a working operator to one of the shortlisted potential spaceports. Meanwhile, reusable rockets as pioneered by SpaceX will start to look normal.

ON THE AGENDA...

EUROPE AND TRADE

11) There will be written commitment to a transition deal by March Now that phase one issues have reached ‘sufficient progress’, it’s vital the Government reaches swift agreement with the EU on transitional arrangements for Brexit. While companies are keen to know what the terms of the final deal will be, the more urgent matter is detail of the implementation period. In essence, UK businesses leaders want to know the realities of trading on exit day in March 2019. Given the tight timeframe and urgency of transition for businesses, the simplest arrangement would involve the continuance of the status quo - both in terms of Single Market access and Customs Union membership - for the duration of the bridging period. In doing so, the UK Government would show it is taking heed of calls from the business community that the process of exiting the EU should only involve one set of adjustments. It is by no means certain, but we predict a political agreement between the UK and the EU on the terms of transition will be reached by the end of March.

12) The ground will be prepared for future regulatory cooperation One of the most important discussions for phase two is to what extent UK regulation diverges from the EU after Brexit. The question brings to light a central trade-off: while more flexibility in setting regulations could help in future trade deals outside the EU, UK businesses want to avoid barriers that make trade with the EU – our biggest and closest trading partner – more challenging. Our prediction is that this question will not be resolved in 2018, the UK Government will instead focus on the nearterm, putting mechanisms in place that facilitate regulatory cooperation with the EU for the period immediately after Brexit.

TECHNOLOGY AND ENTREPRENEURIALISM 13) Digital giants will come under sustained pressure to stamp out fake content on their platforms The use of social media as a platform for accessing news content has continued to grow particularly in both the UK and the USA over the past year, exacerbated by deepening political divides and low trust in established media sources. According to Reuters, 4 in 10 UK residents now use social media as a news source. Set against this backdrop has been a spate of fake news controversies which – by the time they have been disproved – have already reached their intended audiences. With suggestions already in place in the UK for a tax on firms that fail to tackle terrorist content in good time, fake news will not be far behind.

14) The number of companies being formed will continue to rise The UK landscape for entrepreneurship will remain robust in 2018. According to the IoD’s latest survey on start-up confidence, UK entrepreneurs are coming into 2018 with a positive attitude towards jobs and investment in their firms. At the same time, the UK’s ranking in the Global Entrepreneurship Index has jumped from 8th in 2017 to 4th this year. With these favourable tail-winds, we are confident that UK start-ups are wellplaced to take another year of political uncertainty well in their stride.

LONDON

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IOd-iom Member Interview

Jade Zorab Sets A Fast Pace In The eGaming World Overcoming challenges plus a sense of achievement are high priorities in the life of Jade Zorab whose name has become synonymous with the eGaming world along with its operators and regulators as a result of her increasingly high profile role with Douglas-based SMP Partners Ltd. Words by: Les Able Photography: Matt Mosur

ade, 29, is the firmâ€™s senior manager for eGaming Development and Licensing which sees her managing the new business and licensing team within the flourishing SMP eGaming division, whose newly launched Compliance Academy celebrated its first anniversary this month by hosting a party at The Shard in London.

ON THE AGENDA...

Attended by influential names from the industry, the party took place during ICE, the biggest global eGaming event which this year attracted more than 30,000 delegates. In the two years since she joined SMP from lottery betting operator Annexio, Jade, who with husband Daniel moved to the Isle of Man from South Africa five years ago, has become an integral part of a firm which helps an increasing number of clients obtain the necessary licences and compliance advice they need. “Licence applications are becoming increasingly complex, every licensing jurisdiction has different licensing frameworks, conditions and expectations,” says Jade, who has a law degree from the University of South Africa and is planning to convert it so she can practise in both the Isle of Man and UK. She is also the youngest member of the Isle of Man branch of the Institute of Directors. SMP Partners manages almost 50 per cent of the Island’s licensed gaming operators. “We support a multijurisdictional offering with the aim of helping operators obtain the necessary licence they need, be it Isle of Man, UK, Jersey or Malta jurisdictions. We offer unbiased advice and look at what suits a client’s needs and aspirations rather than providing an offering limited to our locality. “We have an incredibly close relationship with the various Regulators and have an open dialogue with them; there is a mutual respect which sees us work hand in hand with operators and Regulators. We also offer a fully managed service for those companies who may not be present in the Isle of Man, and offer full regulatory compliance oversight. ” “We will then provide key personnel from SMP who sit on the board, alongside our clients’ directors, keeping operators safe based on our wealth of experience. Our ambition is to incubate these businesses and focus our efforts on practicing best in class compliance standards, so that they can flourish by focusing their efforts on the commercial and marketing aspects. A number of new businesses we have looked after have in fact gone on to fully manage themselves and indeed establish an on-island presence,” adds Jade, who sits on the board of two such companies.” Recently, Jade and her team have been working with an Asian company, helping it to set up an office in the island, which has included a remit to get the licence application approved, staff relocated and trained and to support them in the establishment of their office. Their presence on the island is expected to be significant. Continue>>> CONNECTING BUSINESSES

IOd-iom Member Interview “We recognise there is a huge demand for training, particularly as the level of compliance standards is high, the bar is set high by reputation and the Isle of Man is particularly well recognised for its high level of regulation and also it high standard of player protection. “It is against this background of having done a lot of face to face training with operators, that we decided to put all this into a package of information; the result is the SMP Compliance Academy. It has definitely been a successful and significant first year for the Academy. “The package offers a broad spectrum of knowledge with training procedures that are targeted at different types of operators, including those in operational levels. Most training procedures in the market charge for content but the Academy is offering the full package spectrum on subscription.” While there was a time when growth of licences in the Isle of Man was limited, Jade is in no doubt that the level of inquiries has not only increased but also the quality of those inquiries. “There has been some uncertainty in the Asian market which has prompted a number of inquiries coming from this market,” says Jade. “We are incredibly busy, there is no one else on the Isle of Man market can compare with SMP’s broad knowledge and experience. We have a team of 32 people who have fully immersed themselves in eGaming, they have a good understanding of the market which is why we are so successful. Each person on the team purely looks after eGaming.” Of her membership of the IoD she adds: “Because of how IoD membership has benefited me I hope to inspire others to join and educate themselves, to perhaps give them the confidence they might be looking for. It also enables you to network with your peers. It offers challenges which I enjoy.” She admits that moving from the “hot and humid” temperatures of Durban to the Isle of Man was something of a culture shock both Jade and her husband now see the Island as home. “We are very settled and have just bought a home here, so that’s certainly a commitment,” adds Jade, who when it comes to relaxation puts running at the top of the list, particularly half marathons. “I so love the island and its community spirit,” she declares.

FACT FILE FAMILY? On the Island, my husband Daniel. The rest of my family lives in Durban, South Africa.

FAVOURITE SONG? Love by Nat King Cole – the song we first danced to at our wedding.

BEST GADGET? Tough call! That would have to be a draw between my Garmin running watch and Sonos wireless home sound system.

A PERFECT DAY? This would start with an early morning run watching the sun rise, followed lazing on the beach with my husband and a good book, an afternoon in the spa and finally a candlelit dinner.

SPARE TIME ACTIVITY? I love to be active and busy! My spare time activities for leisure include running, yoga and reading. FAVOURITE MEAL? Sushi (and my mom’s mac & cheese!) WORST CHARACTER TRAIT? I tend to be a bit of a perfectionist and have learnt over the years that sometimes things can’t always be perfect. It’s something I’m working on. FAVOURITE FILM OF ALL TIME? I’m a sucker for Pearl Harbour. MOST EMBARRASSING MOMENT? Oh gosh, there are a couple of those! Fortunately, I have a great sense of humour and often laugh at myself. GUILTY PLEASURE? Watching a Suits marathon with take-out on a Friday night – the perfect lazy night in. BIGGEST INSPIRATION? I take inspiration from those around me and feel incredibly inspired by other successful women who have overcome adversity, notably Shonda Rhimes (I mean, have you read her book ‘Year of Yes!’?) and Oprah Winfrey.

BEST PIECE OF ADVICE YOU’VE EVER HAD? Follow your passion and it will lead to your purpose. WHAT DO YOU MOST DISLIKE? Unkindness, it is such an unnecessary thing. IF YOU COULD GO BACK IN TIME, WHICH AGE WOULD YOU GO TO? I wouldn’t, life is an absolute adventure and I eagerly await every new day. I wouldn’t want to relive any of the special memories made as I don’t think that they would be the same the second time over. WHERE IS YOUR FAVOURITE PLACE IN THE WORLD? I have been fortunate enough to travel to many places which are all incredible in their own right, however, I still believe that there is no country quite as beautiful and rich in diversity as South Africa and it remains my most favourite place. YOUR BIGGEST EXTRAVAGANCE? Travelling the world. TOP OF YOUR BUCKET ‘TO DO’ LIST? Go to Bora Bora with my husband! ON THE AGENDA...

feature Iod-IoM events

February Dining Club

he IoD Isle of Man Branch was delighted to have Allie Renison, Head of Europe Trade and Policy for the IoD, speak at the February Dining Club. Allie represents the voice of members on EU reform matters and helps to provide the link between business and Government on increasing international trade. She also provides advocacy for the IoD on a range of regulatory issues in Brussels. Around 20 attended the evening which was sponsored by the Department

for Enterprise. Daphne Caine MHK, Lawrie Hooper MHK and Richard Slee DfE joined us in the discussions about the Brexit transition period, and how this impacts the Isle of Man. The UK is the Isle of Man’s biggest market, therefore it is important to keep this relationship strong and current. According to Allie, it appears that the EU is still focused on damage limitation instead of opportunities, with too much focus on process rather than outcome. On a positive note, the relationship between

the Isle of Man Government and the UK Home Office is strong, which will be important for the Island in the post Brexit era. The evening ended with an interesting Q&A session after a delicious four course meal provided by The Claremont Hotel. Allie’s final message to the IoD Members was to continue to provide feedback to her on how EU trade and policy impacts your business, to help shape the IoD’s narrative with the UK Government to better reflect your interests.

IoD Northern Ireland open to Isle of Man members IoD members have access to the meeting and working facilities at Riddel Hall at Stranmillis including two Executive Lounge areas, free Wi-Fi via The Cloud, and meeting and function rooms that can be hired, all equipped with the latest IT equipment plus free parking close to the building. Catering can be booked in advance and light refreshments are available to order from Riddel Hall staff each day. IoD members can hire the smaller meeting rooms in Riddel Hall at 185 Stranmillis Road in Belfast at discounted and hourly rates if booking within 5 working days of your meeting: £25 per hour, £80 for a half day and £130 for a full day. To book rooms and catering, contact the Riddel Hall administration office on 028 9097 5647. Mini hubs And don’t forget that thanks to our partnerships with Catalyst Inc and Omagh Enterprise Centre, members can also access facilities in Omagh, Belfast Titanic Quarter, Derry and Ballymena. Omagh Enterprise Centre at Great Northern Road, provides a modern meeting space with casual seating areas, on-site café, free Wi-Fi and parking. You CONNECTING BUSINESSES

can hire boardrooms and meeting rooms as well as a 120 seater conference room. Check out the website at: www.omaghenterprise.co.uk Catalyst Inc premises include their Innovation Centres in Derry~Londonderry at Fort George and at the Titanic Quarter in Belfast, and at the ECOS Centre in Ballymena. The premises are open from 9am to 5pm and provide seating areas, café, parking and free wifi. Members can also get a 20% discount on bookings for private meeting rooms. Find contact details and information about Catalyst Inc at: www.catalyst-inc.org/contact

IOd-iom committee members

Meet Your institute of directors - isle of man Committee members Institute of Directors - Isle of Man The Claremont 18-22 Loch Promenade Douglas Isle of Man IM1 2LX

JENNIFER HOUGHTON

CHAIRMAN

DAWN WEBB TREASURER

SUE PRESKEY SECRETARY

(Dawn Webb Advisory Limited)

(Financial Services Consultant)

Isle of Man Member Benefits QUICK LOOK n Discounted entry to Rendezvous Lounge at the IOM Airport n Discounted VIP Business Travel and Airport Transfers with K&B Carriage

CLIVE PARRISH

DEB BYRON

CLAIRE MILNE

(CDP Associates)

(Hansard International)

(Appleby)

n Discounts on Leisure and 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

JOHN HUNTER

PHAEDRA BIRD

(Department For Enterprise)

(Crowe Clark Whitehill LLC)

PETER REID

(Lloyds Bank International)

and Business Hub and locations throughout the UK

n IoD Car Rental, provided by Hertz www.iod.com/ carrentalÂ www.iod.com

SALLY BOLTON (Corlett Bolton & Co)

ALICE MARTIN

(Isle of Man Government)

MARK WATERHOUSE (Isle of Man Financial Services Authority)

JADE ZORAB (SMP Partners)

ON THE AGENDA...

IOd-iom events

Iod-Iom Branch supports Crossroads Wine Tasting Event

ocal branch of the IoD held a Christmas wine tasting and quiz night at The Claremont in Douglas and raised the grand total of £468 for Crossroads. 50 guests attended the fun event which included tasting wine, guessing the name of the wine, where it was from and how much it would be sold for. The night also included a raffle with the winners receiving some fabulous prizes donated by IoD committee members. Special thanks also go to The Claremont for hosting the event and Anne Berry for arranging the wine tasting. Jackie Betteridge, CEO of Crossroads said ‘The wine tasting evening was thoroughly enjoyable and would like to thank the Institute of Directors for their support. The money raised at this event will go towards improving the lives of carers by giving them time to be themselves and have a break from caring.’ Jennifer Houghton, Chairman of The Institute of Directors on the Isle of Man commented: “We had an entertaining networking evening with everyone getting in the spirit of the event! While having fun we raised a great donation for a very worthy charity. I would like to thank everyone who attended. In addition, I would like to thank all the committee for arranging the raffle prizes.” CONNECTING BUSINESSES

Iod-IoM future events feature

Spring Lunch Speaker Chris Thomas MHK “2018 – The Year of Our Island”

Chris Thomas MHK is the guest speaker at the IoD Spring lunch on May 11th. Minister for Policy and Reform and a passionate chair of the 2018 Year of our Island project, Chris will be joining us to talk about this themed year and how it is aimed to celebrate what we have and what we can have in our special Island.

ow in their 6th year, the prestige lunches organised by the IoD are very popular with members and their guests alike welcoming a variety of guest speakers from Stephen Martin, Director General of the IoD, to Ian Rowland – “The man who taught the FBI to read minds” and Adrian Moorhouse. Chris Thomas MHK will be the 10th speaker to attend the prestige lunches, which commenced in 2013 to commemorate the 25th Anniversary of the Institute on the Island with Simon Walker, the previous IoD Director General in attendance. Chris commented on his invitation to speak at the lunch which includes the Appleby sponsored Director of the Year Awards ceremony, “It is excellent to mark the achievement of those business leaders who have contributed so much to our Island’s community and prosperity, and I am so pleased to attend this awards ceremony.” Commenting about his talk, Chris

went on to say “I will talk briefly about “Our Island 2018” special year. This is a celebration of the special place where we live and work which has been recognised as such as a UNESCO Biosphere. Our quality of life affects the size and nature of our population and economy. That’s what this year is about, that’s how important it is.” Jennifer Houghton, Chairman of the IoD “We are delighted that Chris is able to join us for our Spring Lunch. It is very fitting that we celebrate the special leadership talent that we have on the Isle of Man with the chance to hear more about the Year of our Island project, and how we can all help as business leaders to increase the awareness of our beautiful Island. I would like to thank Barclays for their continued support of our prestige lunches since their inception in 2013.” The Hon Chris Thomas MHK is the Isle of Man Government Minister for Policy and Reform having been elected as Member of the House of Keys for Douglas Central first in 2013. He chairs the Island’s Public Service Commission, Public Sector Pensions Authority, Culture Vannin, and the Council of Ministers Sub-Committees for Environment & Infrastructure, Social Policy and Legislation. A chartered financial analyst by professional background, the Minister has been strongly involved in developing and implementing the Programme for Government, digital transformation (Government’s Smart Service Framework and GDPR), planning policy and economic matters including calculation of the first Manx Living Wage and the population white paper. Legislation the Minister has taken through the Keys includes the Equality Act, Statute Law Revision Act, Freedom of Information Amendment Act and the Safeguarding Bill.

ON THE AGENDA...

Iod-IoM events feature

Not interested in Social Media?

Words by : Alice Martin, Committee Member

ell like it or not, you already have an on-line presence! Our first CPD session of 2018 was held at our new HQ the Claremont Hotel and Alison Teare, Managing Director Simply Marketing delivered a session which really made us challenge our thinking and some of our assumptions about using social media to support our business strategy. She reminded us that we should target and allocate resources to manage the conversation on social media, using the likely demographic of the various platforms to inform our business decisions. So, for example, Facebook is primarily used by 25 to 54 year olds, whereas the younger demographic are on Facebook but don’t really use it in the same way, perceiving it to be the place you post a sanitised ‘letter to grandma’. They are much more likely to use Instagram or Snapchat for their real conversations. Alison also focused on the changes to ownership of some of the platforms and how that is likely to affect their own target audience and business development strategy. 62% of the population are on some form of social media. Who do you want to speak to and where are they most likely to be? Social media can be a vehicle for all aspects of business and branding. LinkedIn provides a proposition which allows you to portray your level of expertise or write about your specialism. What does your personal LinkedIn account say about you? Is it up to date? What is the quality of your photograph? Do you encourage your employees to portray your business in a professional way on this site? Using social media to ensure that you place your adverts in front of a select audience can provide an excellent return on a relatively small investment; or perhaps you should see this as a return on the conversation. A word of caution though was that you should see the use of social media as a lead generator, not as a sales generator. If we were still doubtful about whether to be concerned about targeting scarce resources at social media, Alison reminded CONNECTING BUSINESSES

us that we have an online presence whether we like it or not. If we are silent in this space, someone else will fill it and they will most likely be our competitors. You could decide that recruitment is the only area that you will use social media to ensure that you clearly communicate your proposition, but it must portray the reality of what your organisation can offer a new recruit. Alternatively, an integrated approach, involving your senior management team, Sales, Marketing, HR and Customer Service may be right for you. There is no doubt that model is most successful when Leaders are involved and acknowledge the need for and their support of an integrated approach. It can be problematic to keep the flow of new and interesting conversation. Consider professional articles or other ways to trigger dialogue about your business. Providing employees with some training to help them to create a social business can be very helpful to keeping the momentum going. This can help with consistency and allow leaders to provide the focus and the direction, empowering your employees to push the conversation forward.

Key messages

1 Directors need to put the use of Social Media on the agenda, make sure they use

Marketing expertise to inform and help develop the strategy. 2 Remember it is a conversation, not a hard sell, and try to empower your team to keep it fresh and provide a steady stream of consistent messages. 3 Ensure that you notice and monitor conversations that appear to identify problems with your business. 4 You would hopefully want to fix things that go wrong, but make sure you are seen to do so quickly.

IOd-iom Allie Renison

ON THE AGENDA...

The Brave Brexiteer Interview with Allie Renison, Head of Europe & Trade Policy at the Institute of Directors Words by: Michelle P. Tonnesen Photographs: Matt Mosur

or most of us, Brexit and the workings of Brussels are concepts we read and hear about in the media all the time. We may have opinions on the matter or not, but we usually leave the discussion at our mental doorstep when we turn off our TV or close the newspaper. For Allie Renison, the relationship of the UK with the European Union is her life. Her interest in international politics did not appear overnight in the wake of the referendum, though.

“I am half British and half American. I lived my first years in Paris, but grew up in Washington DC. I came to the UK for a year abroad and never left. I did graduate school in London then started working as a PA for UKIP. I turned out to be bad at administrative duties, but very good at research and speech-writing. I spent most of my time going through EU documents and the more I learned about how the EU worked, the more critical I became about how the organisation impacts the UK. I was fairly agnostic about the subject before I started working for very Eurosceptic politicians at UKIP. I believe the EU started off as a good idea, but often ideas end up differently after they have CONNECTING BUSINESSES

been in the hands of various countries. It does not help that the workings and decisions of the EU are not captured well in the media. The news typically cover the EU in a very political way with a focus on current headlines, not the process leading up to decisions. When I started working for the Institute of Directors (IoD) instead of in politics, I gained a more realistic and grounded approach. Politics is all spin, rather than facts and details. I became gradually less Eurosceptic over time. I did not fall madly in love with the EU, but I am more balanced now.” In her role as Head of Europe & Trade Policy, Allie devises recommendations and represents the voice of members on EU reform matters, helping to provide the link between business and government on increasing international trade. She also routinely provides advocacy for the IoD on a range of regulatory issues in Brussels. She holds a Master’s Degree in the political economy of emerging economies in the post-Soviet space. She was previously Research Director at Business for Britain, the campaign focused on renegotiating the UK’s relationship with the EU. Prior to that, she advised a number of parliamentarians in both Houses on EU legislative issues, with a particular focus on trade and employment policy areas. “It had been some time since the IoD had looked at the EU and trade. When the referendum was announced, they needed someone to focus on EU reform issues. I am very interested in EU trade policy. The UK’s trade agreements were managed by the EU for the last thirty years. Luckily, we had been looking at trade policy for years before the referendum. Now it is all the rage in the UK.” What initially strikes people when they meet Allie is her relatively young age for a subject matter expert. However, her comprehensive knowledge and

IOd-iom Allie Renison professionalism instantly explain how and why she has become an opinion leader in her field. “The greatest obstacles in my career so far have been my age and my cultural background. Coming in to work in politics in Westminster as a young, female American was a challenge. I always had to make extra sure what I said was supported by research. I am very direct and an impatient person who prefers to get things done quickly via the shortest route. This sometimes comes off as being abrasive. However, I believe people should be taken seriously no matter their age. They should be judged based on their capabilities. I don’t believe in hierarchy either, which is prevalent in the UK. There is a certain way of doing things here which can be a challenge when you have a strong view and was raised to express it. I went back to Washington DC for a work trip recently and noticed how incredibly direct and blunt Americans can be, so I guess I have mellowed a bit over the years.” Her career progression and results are impressive. What have been her greatest achievements so far? “A lot have come whilst I have been working for the IoD. Getting a piece of legislation changed in France for a member was a great success story. We took the issue up with the European Commission and got the French government to change the legislation. It is a good example of how we use policy work to benefit our members; how what I do for a living comes alive – and our members get their money’s worth for their membership fee. The membership relations are the best part of my job. I learn so much about how things work in the real world. When in politics or in a think tank you come up with ideas, but can’t test them in real life like members can. It is great to discuss subjects with them. It also means that I travel a lot. You can only get so much from a survey. Face-to-face time with real people is invaluable.” Allie’s work for the IoD entails a combination of policy analysis, member advocacy engagement and lobbying in terms of policy development. “It’s a two way-relationship with members. I explain how a policy works, and they tell me what that means in practice in the real world for them. Businesses don’t have to worry about policy consultations every day, but they guide their decision-making. A lot of interests are represented in the IoD with diverse industries competing. Lobbying is a crowded field with many different business organisations in the UK. Our members are the people running the companies you interact with. This means you get a better understanding of top decision makers than in other

organisations which may represent a more corporate view. It is a unique interaction. In politics you have to be able to tell the story when dealing with policy makers. Business is not a monolithic force for bad. There are a lot of different strings to our bow regarding what we advocate.” It is no secret that Allie has been campaigning in favour of Brexit in the past, particularly in her role at Britain for Business. What does she believe are the benefits? “Brexit forces people to think about things which our EU membership has put off for years. So many matters are laid down by the EU, rather than being UK home-grown decisions. In my opinion, Brexit enables UK politicians to take responsibility. As an example, the way we structure our agricultural policy is different to other EU countries. By leaving the common policy, it gives us more independence to decide what is best suited to the UK’s needs. I was struck by the pragmatism of a lot of farmers at the National Farmers Union conference. Producers in the UK have other interests than other countries. By streamlining agricultural subsidies we can distribute it in a better way. It’s a matter of efficiency, not protectionism.” With her academic background and real life insights, she is not blind to the challenges of Brexit. “The obvious downside is uncertainty. It causes a big headache and distractions. Brexit right now is pure politics, and it’s hard for the media to avoid covering it all the time. However, there are more pressing issues in the world too. Until we know exactly what the agreement looks like, it’s all speculation. The problem is that we haven’t got to a stage where we know what the UK wants in the long term. It’s hard to gauge the impact now. The detailed discussion won’t start till April. I don’t think the initial project of peace and prosperity of the EU will be threatened by Brexit. Some people believe it’s a wake-up call for all of Europe, but I don’t believe the UK will start a domino effect. It is not likely that referendums like ours will take place in other countries. It will test solidarity to its limits. Eurosceptic parties will not go away, but are on the rise. We have the immigration crisis. However, EU representatives say they have never been as united as on the subject of Brexit. All the other countries want to ensure that the UK doesn’t get an easy ride out. This is the focus rather than looking inwards on the EU project itself.” “The biggest issue is how we move away from the black and white narrative the referendum was about. People have stuck to their referendum mind-set on whether it is a good or bad scenario. It was a very difficult debate with good reasons for both leaving and for remaining. It was not an obvious choice to make for any of

“The greatest obstacles in my career so far have been my age and my cultural background. Coming in to work in politics in Westminster as a young, female American was a challenge.”

ON THE AGENDA...

the camps. I did not take sides, but I did tours and debates for the IoD, listening to both sides of the argument. Talking about how you should leave is very different to whether you should or not. We need to move on to focus on the practicalities of leaving and our relationship with the EU going forward. The other big challenge is the short time scale we have to make huge decisions on complex issues like agricultural support and trade policy. We would rather have a proper consultation over time with constituents, than a process squashed into 18 months. So many areas are impacted by the EU. The plan will be implemented, but there is not much scope for consultation and negotiations. This makes it hard to get support for decisions. I think the UK was likely on its way out anyway. The EU was growing at a pace some were uncomfortable with. So the discussion of what we would like to be as a country was probably inevitable. The referendum result opens the door faster.” Bringing the discussion closer to home, we ask Allie how she thinks Brexit will impact jurisdictions like the Isle of Man. “In economic terms the UK is the Isle of Man’s biggest market. It’s not a situation where you choose between the UK and the EU. It’s clear where your trade policy affiliation should lie. There are certain complications compared to the Channel Islands as the Isle of Man is in the EU’s VAT area, thus impacted in a different way to other jurisdictions. There will be complications for people and businesses who are in supply chains with both the UK and the EU. The free movement of goods and people is a concern, but the impact will be limited as the island is used to being a “third country” in a way the UK has not been. The main concern is that Isle of Man priorities are not taken as an afterthought, but constantly at the forefront. Fortunately, you have Protocol 3.” Under Protocol 3 of the Lisbon Treaty, the Isle of Man is part of the customs territory of the EU. There is free movement of industrial and agricultural goods in trade between the island and the Union. “The island has to make sure its relationship with the EU is not changed at the last minute. Government may be worried about not having the UK’s influence in the EU any more, especially regarding tax policy. The question is whether you can continue to rely on the voice of the UK.” It has been enlightening to hear Allie’s perspective on the Brexit process and how her role comes into play on the political scene. What the specific outcomes will be remain to be seen. CONNECTING BUSINESSES

iod-iom what’s on Nigel is a Welsh International and Heineken Cup rugby union referee who received his MBE in 2015 for his services to sport. This event will be held in Kingspan Stadium where Nigel will be exploring the world of leadership over a light lunch.

Please note the original date for this event was 14th March but due to Nigel Owen’s Six Nations diary commitments, the event is now on 20th March 2018. For more information on NI events go to: www.iod.com/events-community/ regions/northern-ireland/events

IoD - London

Open House 2018 - An un-Convention-al annual convention DATE 12-14 March 2018 TIME from 9am LOCATION 116 Pall Mall, London PRICE From £175

Join fellow IoD members and guests at IoD Open House 2018. Open House 2018 at the Institute of Directors marks a new direction for the Annual Convention. For the very first time, the IoD is throwing open the doors of its historic home, where you’ll immerse yourself in all the matters facing leadership today. Open House will allow you to explore the opportunities surrounding diversity and inclusivity, truly global business and the vital importance of connectedness, all the while keeping our eyes on the future.

gdpr cpd seminar

After a day of inspiring and insightful keynotes, seminars, debates and workshops, enjoy an exclusive chance to unwind with an evening’s entertainment at 116 Pall Mall.

£15 inc VAT

DATE 27 March TIME 12:15 - 14:00 LOCATION iMuseum, Douglas PRICE IoD Members FOC, Non members

We are delighted to advise that Katherine Johnson and Mark Emery from Appleby will be joining us for our Spring CPD seminar on GDPR. A buffet lunch will be served. Kindly sponsored by Appleby.

Whether you’re already a member or entirely new to the Institute of Directors, Open House is a place to be inspired, define your future and grow your business. www.iodopenhouse.com

annual bankers black tie dinner

IoD Northern Ireland

IoD NI In Conversation with Nigel Owens MBE, International Rugby Referee

DATE 20 March 2018 TIME 12:00-14:30 LOCATION: Kingspan Stadium, Belfast PRICES Member Price - 30.00 GBP +

VAT | Non-Member Price 45.00 GBP + VAT

We are delighted to welcome BBC’s Mark Simpson back to the IoD to interview Nigel Owens MBE.

IoD - Isle of Man

Ladies Lunch with Christine Walters

DATE 21 March 2018 TIME 12.15pm LOCATION 14 North Restaurant, Douglas PRICE £15 inc VAT

We are delighted to advise that Christine Walters, Spark Impact will be joining us for a short talk and discussion on “Enterprise Development Scheme helping your business to grow”, over lunch.

DATE 27 April TIME 19:00 LOCATION The Palace Hotel & Casino PRICE IoD members and guests £60 inc

VAT

The IoD have the unique opportunity of booking 2 tables at this year's Dinner. The evening will be Black Tie and the formal dinner will commence at 7:45pm in the Cushag Suite, with pre dinner drinks available from 19:00pm in Whispers Bar. If you would like to book a space on the IoD Table at this prestigious event please contact Claire Veale. T: 355160 E: events@iod.im ON THE AGENDA...

Institute of Directors Annual Members Meeting DATE 22 May TIME 17:45 LOCATION The Claremont Hotel PRICE Members only - FOC

period, in companies across the country and helped circa 400+ businesses through successful transactions. Jo has sold three of her own companies and undertaken two personal MBO’s. Drinks reception at 19:30 is sponsored by Lloyds Bank International.

Notice is hereby given that the Annual Members’ Meeting (AMM) of the Institute of Directors Isle of Man Branch will be held at The Claremont Hotel, 18-22 Loch Promenade, Douglas, IM1 2LX on Tuesday 22nd May 2018. Formal notices will be sent to all branch members.

IoD - Isle of Man

Spring Lunch and Isle of Man Director of The Year Awards Ceremony with Chris Thomas MHK

More Isle of Man Events

ISLEXPO

DATE 15-16 May TIME All-Day LOCATION Villa Marina, Douglas PRICE Free

DATE 11 May TIME 11:45 - 14:00 LOCATION The Claremont Hotel PRICE From £30 (inc VAT)

We are delighted to invite you to our 2018 Prestige Spring Lunch with Chris Thomas MHK and Director of the Year Awards Ceremony. Book by 31st March to take advantage of the early bird offer of £30 inc VAT per head. The Lunch is sponsored by Barclays, DOTYA is sponsored by Appleby Global. Drinks reception starts at 11:45am, lunch served at 12.15pm – 2pm.

Dining Club with Jo Haigh, CEO of fds DATE 21 June TIME 19:30 LOCATION The Claremont Hotel PRICE £40 inc VAT

We are delighted to invite you to our summer Dining Club with Jo Haigh, CEO of fds and IoD Course Leader. Jo Haigh is the CEO and founder of fds, which has bases in London, Birmingham and Yorkshire. An experienced deal-maker, Jo specialises in putting together the right deal at the right time and in the right format for growing businesses throughout the country. She has bought and sold approximately 400 companies in the last 26 years specialising in owner managed companies. In the ‘90s Jo created a specialist director training division, which has been highly successful since inception. She has held circa 40+ non-executive roles over that

CONNECTING BUSINESSES

Not your average business event. Part conference, part motivational gathering, part networking social - ISLEXPO is a unique event that celebrates the dynamic entrepreneurial spirit of the Isle of Man. This free conference and business festival inspires innovation through real-time connectivity. Hosted by the Department for Enterprise, ISLEXPO 2018 will continue to reveal the how-tos of starting and growing a strong business while shining a bright light on a new theme - ‘LOCATE’. This theme ushers in an exploration of the importance of location and why the Isle of Man is a unique destination for local and global businesses to call home. On topic: start-up support and funding, future proofing the workplace, work life balance and beyond! www.islexpo.com

For more information on local IoD-IoM events go to: www.iod.com/eventscommunity/regions/isle-of-man/events

iod-iom sme board development

From Entrepreneur to Effective Board A 10-point plan for your business Why does a small business need a board?

Words: Joy Allen, Leading Governance

ntrepreneurs carry the weight of the company â€“ satisfying customers, developing happy and productive staff, and keeping the money flowing - on their shoulders. It can be lonely at the top.

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The good news is that it doesn’t have to be that way. Growing companies can really benefit from an effective board team giving leadership and direction, while ensuring it remains safe and legal. The inclusion of independent NonExecutive Directors brings many benefits. A good board sets the tone for a brilliant business culture, and enhances the company in many ways:

n It can bring new skills, ideas and contacts into the business. n It provides leadership continuity in the event of the founder retiring, falling ill, or just wanting to slow down and take a back seat. The value of the business can increase because it is no longer dependent on one or two founders. n The business is more ‘sellable’ as institutional knowledge rests with a board, and not with just one person. n It is easier to attract great staff, as they see a long-term future which will outlive the founder. n Businesses with a reputation for being well run are more attractive to potential investors, customers and suppliers.

Often entrepreneurs worry that having a board would bring too much formality and bureaucracy. It doesn’t need to. Changes should be gradual, proportionate, and should clearly add value rather than create burden. Here is a practical plan for the basics:

A Ten Point Plan for SME Board Development

Think about whether the business is ready for a full board to lead the company, with the powers and responsibilities that brings, or whether a less formal advisory board may be a useful interim first step. Get the right people in the boardroom, with the skills, experience and personal attributes that will enable them to contribute to strategic thinking, and challenge thinking across all aspects of the business. All directors must make decisions objectively in the interests of the company. Independent Non- Executive Directors can bring very useful skills and experience, and a more dispassionate perspective. Appointing the first independent NED is a big decision for business owners. Take it slowly, and check out the person thoroughly before appointment. Give them an induction about the business and their director role, and on-going training to keep them informed and motivated. Invest in team development activities for the board, such as Away Days for planning and review, and some social time for informal engagement. Define roles clearly, and ensure that Directors know their legal duties and their responsibilities, collectively and individually. The leadership role of the Chairman is key, and an experienced, independent person in the role can really add value to meetings. The Chair role should be separate from the Chief Executive role, and the two people in those roles should meet at least monthly to plan board work. Agree how often the board meetings will be held, how the agenda will be set, what information will be provided before the meeting, and who will take minutes and store them. There should be a clear difference between board meetings and management meetings, and dates should be fixed for the year in advance to develop a flow. Delegation to any board committees and to managers should be within clear limits, and should be in a document to ensure shared understanding. A remuneration policy should be developed, particularly on any performance related incentives for the CEO and senior managers.

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Agree the vision, mission, and values, and the strategy, and ensure the resources are in place to enable their delivery. Ensure everyone in the organisation knows what we want them to do to contribute to that, and how we want them to behave, to create a vibrant, energised, safe and rewarding culture. Ensure the business is legal, and compliant with regulations. Key dates should be known, for returns to Companies Registry, tax returns, insurance renewal, health and safety checks. The Articles of Association, and any Shareholders’ Agreements, explain the rights of shareholders. Think about whether those documents are still appropriate for the business as it is growing, or whether they need to be changed (which needs a formal process and should include legal advice). Be clear about the process for the shareholders to appoint the Directors to the board and to define the extent of its powers. Make sure all the directors are registered as such with Companies House. Checks and balances should be in place, so that any mistakes are picked up, and the risks of fraud and mismanagement are minimised. Conflicts of interest should be managed, including ensuring that nobody is involved in setting their own pay. The board should identify key risks (financial, strategic and operational) and ensure they are being managed effectively. The board should have regular communication with shareholders, if they are not involved in running the business, about the strategy, performance, and key risks, to ensure that views are aligned. Develop a ‘learning board’ culture, by engaging in continuous development, formal and informal – for example, the Institute of Directors provides the Chartered Director qualification, which brings together knowledge, skills and experience. IoD can also help with recruitment of qualified independent NEDs. And finally, take it slowly and carefully, be consistent, and don’t just pay lip service! An effective board can really add value to your growing business.

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Joy Allen CDir is Managing Director of Leading Governance Ltd, and Lead Tutor with IoD in London. She has specialised in board review and development processes for 15 years. www.leadinggovernance.com

CONNECTING BUSINESSES

Entrepreneur - Ian Plenderleith, Manx Gas

Job in Customer Contact Centre Paved The Way for Manx Gas Supremo

Ian Plenderleith 60

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“If Manx Gas doesn’t stand comparison with the best utility companies in the UK in the next two years I will be disappointed.” Words by: Les Able Photography: Matt Mosur

nequivocal words from Ian Plenderleith in his first interview since being appointed group managing director of International Energy Group (IEG) who adds: “And you can hold me to that statement.” Previously at the helm of Dee Valley Water Company and before that CEO with Tallinn Water in Estonia he continues: “I am passionate about delivering industry leading customer service and I achieved that in both those utility companies.” He goes on: “It has been a very positive start for me at Manx Gas in discovering that the health and safety performance is exemplary, this is an area which perhaps does not get the publicity it deserves but stands comparison with the very best in the UK. “In addition, the performance of the assets is very good indeed and customers have not been seeing problems with interruptions of supply. I’m particularly delighted by the passion and enthusiasm of the staff, who genuinely care about the customers and want to deliver the highest quality of services and security for them. These are excellent foundations to build from.” Mr Plenderleith goes on to waste little time in addressing what he describes as the “problematic” introduction of the Standing Charge over the past 12 months. In doing so he remains diplomatic with his words. “It’s important that I stand back and listen to the concerns of both the public and MHK’s and understand the problems and details, then decide on the next steps and the best way to achieve a charging structure customers understand and which is fair to them and the gas they are using. “There will be an extensive dialogue with both MHK’s, customers and the OFT before we decide how we achieve this. That is something that can happen in a matter of weeks. Arriving at the best solution for all concerned will take longer. It will require a lot of communication and dialogue between all the parties. There is no point in reversing one problem and replacing it with another.” He emphasises: “I’m not going to be rushed into anything, there will be no knee jerk reaction. I would, however, welcome involving customers to help us find the CONNECTING BUSINESSES

“As a utility company we are in a privileged position, which means we must deliver the highest standards of customer service to the citizens of the Isle of Man.”

appropriate Standing Charge solution.” One associate who worked closely with Ian Plenderleith describes him as “dynamic and a principled business leader”, a CEO who wastes little time in achieving his goals. What is already clear is that he has a vision for Manx Gas which is likely to result in some major changes with a series of regular dialogues, particularly with customers. This is his style as underlined by his achievements at both Tallinn Water and Dee Valley Water. A qualified accountant, as chief executive officer with Dee Valley Water he established and led a high performing management team that in less than two years made significant improvements across all business areas. The company’s business plan enabled it to outperform Ofwat’s five year cost targets by 8 per cent. He successfully implemented a culture change programme, including a new corporate vision and values.

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His responsibilities at Tallinn included managing all aspects of the business and United Utilities interests in Estonia through a 20 year privatisation contract serving 400,000 customers with a direct workforce of over 300 staff and revenues of 50 million euros per annum. The company is listed on the NASDAQ OMX Tallinn Stock Exchange and is the only privatised water utility in the Baltic region. “In the short time I have been in the island I sense there is a strong community feeling and I believe that Manx Gas should be more part of that,” says Mr Plenderleith, 54, who lives within walking distance of the Manx Gas offices on North Quay in Douglas. He goes on: “I would like to see Manx Gas spread its wings, become more of a community faced organisation, the creation of new positions with members of staff becoming community liaison representatives, active among community organisations across the island. Their job will be to meet stakeholders, charities, church groups, people who want to ‘do good’ for their community and discuss how Manx Gas can help them to do a better job. Those community liaison representatives taking part in coffee mornings, making sure people have the right tariff and listening to any concerns they may have and how Manx Gas can help those communities.” As to his style of management he adds: “You don’t achieve anything if you can’t take people and the organisation with you. Staff need to have confidence in you along with trust. In leadership your people and teams must have belief that you are prepared to lead from the the front and walk the walk and not just talk the talk. You must make sure you are visible around the organisation and connect with staff. It’s very important to offer opportunities for employees to grow in the business. Develop talent and promote excellence, staff need to know you have an interest in

“In the short time I have been in the island I sense there is a strong community feeling and I believe that Manx Gas should be more part of that”

their futures.” His first major decisions include bringing all IEG’s HR operations from the Channel Islands to the Isle of Man with the appointment of the organisation’s of an HR manager who will also be based in the Manx Gas offices. He makes no attempt to disguise his enthusiasm for his new role which currently sees him working up to 10 hours a day and spending one week a month in the Channel Islands. Married, he has two children, Noah, aged eight, and Alice, aged four. Marion, his wife is Estonian, although they met in Finland. He plays football and golf when he can and weekends are often taken up with him coaching a junior football team. Long walks are also on the agenda with his two dogs, a two-year-old Hungarian vizla and a 12-year-old Dalmatian from Estonia. Assessing his career to date he confesses that he considers himself “very fortunate, even lucky” that he reached the top positions in both Tallinn Water and Dee Valley Water and now group managing director of IEG. He left school at 16 with six O-levels and then before the ‘gap year became fashionable’ set off travelling the world. At the age of 25, and back in the UK, his mother made it very clear that it was about time he got some qualifications and finished his business studies as a degree. “My first job when I came back from travelling was on the phones at the customer contact centre of North West Electricity Board (Norweb),” he declares with a laugh. “I’ve also been a billing clerk, a pay roll clerk plus a clerk in accounts payable. In fact, I may take time out to spend an occasional afternoon on the Manx Gas customer contacts desk. I so enjoyed those times and they have made it easier for me to relate to employees who do those jobs. You understand their frustrations.” Four years saw him working in South America for Norweb, much of it in Argentina. “Those were great years, if I had stayed in the UK I may not have had the chance to prove myself, working overseas gave me the opportunities to do that. You could say I was brave enough at that time to take on that challenge, I had some wonderful times. I realise I may not have got the job at Tallinn Water without that invaluable experience.” “I believe it’s important not to be hurried in making any decision which results in going from the frying pan into the fire. At the top of my agenda in taking the company forward will be to focus on consultations and dialogues with customers and members of Tynwald.” His final words are: “As a utility company we are in a privileged position, which means we must deliver the highest standards of customer service to the citizens of the Isle of Man.” ON THE AGENDA...

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entrepreneur - Clive Parrish, CDP Associates Limited

Bankers Of Today Need To Earn Respect of Customers says the man who was a banker for 30 years Words by: Les Able Photography: Matt Mosur

ATE can all too often dictate major life changes and none more so than for Clive Parrish whose first choice for a career was the Army but whose ambition was painfully shattered. Aged 18, he had already enjoyed time at prestigious Welbeck College but an injury playing rugby put an end to all those hopes and the possibility of ultimately going on to Sandhurst Military Academy.

“I had to have a pretty quick rethink and found that Midland Bank was advertising a sponsorship course,” recalls Clive, a Yorkshireman. “I applied, got through all the relevant stages and found myself at the start of a career in banking, man and boy, achieved you might say through the back door. I worked at my home branch in Doncaster for the first 15 months and then three years at Loughborough University, graduating with a degree in banking and finance.” It was a career which was to last for 30 years, seeing promotion after promotion, and in 2001 it was promotion which brought him to the Isle of Man as head of HSBC. “I came over to do a recce after I had accepted the job. It was a sunny June day which I well remember but when I pulled the hotel room curtains back the following morning I couldn’t see the beach it was so foggy.” By then Clive and his wife Ann, who had also worked in banking, had two young daughters, Kathryn, ten, and Helen, nine. “Both girls were brilliant when it came to leaving their school in Scarborough and

coming to the island, they decided it was an adventure and were going to enjoy it. All in all life was good, I had got the promotion I wanted although we originally thought we would be here for perhaps no more than two to three years,” adds Clive. In 2004 Clive, then 48, decided he wanted to do something other than banking and at the same time the family decided they didn’t want to go back to England. “I had enjoyed my time in banking but had no regrets on leaving. I had reached a stage in my working life when I was ready for a new challenge but had no idea what that challenge might be.” The new challenge, however, was not long in coming. “If you believe in horology then all the right stars were there. I had been approached by a couple of people to do some consultancy work for them so on 31st August, 2004 I left HSBC and on 1st September, 2004 launched CDP Consultants. Referrals soon started coming my way and in February, 2005 I got my first non-executive directorship, over time I’ve built up a small portfolio of nondirectorships. I also have a qualification in business coaching and mentoring. One area he particularly enjoys is mentoring young entrepreneurs and emphasises there are more of them on the island than is sometimes appreciated. “One reason for that is because I think we are very poor as an island in celebrating success. The media is focused on highlighting problems as opposed to successes. It’s the old adage, bad news sells newspapers or along with coverage of controversial issues. Two people I know from South Africa who have recently moved here and are in business are incredibly positive about the Isle of Man.” On the controversial and tarnished image of banking today he goes on: “Yes, banking is facing a challenge, there isn’t a lot of choice in the Isle of Man where there aren’t many banking licences at the moment. Banks will provide services where there is a demand, but the number of people going into branches has fallen Continue >>>

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“I have a great sympathy for local bankers, community bankers, who have been tarred with the same brush as investment bankers.”

CONNECTING BUSINESSES

“I had enjoyed my time in banking but had no regrets on leaving. I had reached a stage in my working life when I was ready for a new challenge but had no idea what that challenge might be.”

dramatically. The majority of people deal with their business on the phone or online, and it’s not just young people who are doing that, it’s the middle aged and elderly. I can’t remember the last time I went into a branch to do business and I might use a cheque just once a year. “At the time of the financial crisis the way banks treated customers in far too many cases was unreasonable, and that’s putting it too politely. The interests of customers were lost in the scramble to protect their own balance sheets, this is across the UK and customers suffered unnecessarily. Banking is slowly recovering its reputation but it still has a long way to go. I have a great sympathy for local bankers, community bankers, who have been tarred with the same brush as investment bankers.” Clive, who first started talking to personal customers about their family finances and mortgages at the age of 24, goes on: “That was an era when bank managers were seen as pillars of the community as were doctors and other professionals, they were all revered generally. The bank manager lived in a big house and spent much of his time on the golf course. Historically, bank managers were given respect but managers now have to earn it. “In the 1970s the growth in the banking industry was phenomenal because people had to open bank accounts and that was when banking procedures changed dramatically. The customer could no longer just ‘drop in’ to see the manager

“I came over to do a recce after I had accepted the job. It was a sunny June day which I well remember but when I pulled the hotel room curtains back the following morning I couldn’t see the beach it was so foggy.”

as the manager no longer had time available. Free banking, introduced into the UK around 1984, created problems in the industry that were not foreseen and resulted in the scandals of PPI, endowment mortgages, mis-selling, etc as banks looked at ways of producing income as other services were provided free.” Last year saw him stand down as chairman of the Isle of Man branch of the Institute of Directors after four years in the role. A keen swimmer, for the past 12 years he has been chairman of the Isle of Man Swimming Association. “I’m extremely proud how swimming has developed as a sport in the island.” On the future of the island he adds: “It’s currently tough for those businesses that trade locally and rely on the local population. Real incomes have gone down which impacts on the ability to spend locally. One solution, but which can’t be done overnight, is building the population so as to create local demand. There are signs that the decline in population has been reversed. Attracting new jobs and people to the island is a crucial factor and will have a positive impact for the local community and certainly on local businesses.” Looking back to his arrival on the island a generation ago, Clive is unequivocal when his response is a definite “No Regrets” and adds: “Coming to the Isle of Man has enabled myself and family to have a work/life balance and be part of a small, but sophisticated business community.” ON THE AGENDA...

CORPORATE / TRUST / FUNDS / ACCOUNTING

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Estera. Collaborate with the best. GARY Oâ€™CONNOR, MANAGING DIRECTOR, ISLE OF MAN

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Estera Trust (Isle of Man) Limited is licensed by the Isle of Man Financial Services Authority to provide Corporate and Trust Services. Incorporated in the Isle of Man. Company No. 101068C. Registered Office: 33-37 Athol Street, Douglas, Isle of Man IM1 1LB. Estera Fund Services (Isle of Man) Limited is licensed by the Isle of Man Financial Services Authority to provide services to Collective Investment Schemes and Corporate Services and is incorporated in the Isle of Man Company No. 113998C. Registered Office: 33-37 Athol Street, Douglas, Isle of Man, IM1 1LB.