bl magazine issue 42 january/february 2016

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finance The human face of financial crime, P2P moves into investment trusts, and how to target business in emerging markets ISSUE 42 JANUARY/FEBRUARY 2016 BL MAGAZINE ISSUE 42 JANUARY/FEBRUARY 2016 Fintech in the channel Islands COULD IT be the way of the future? business The cost of hiring the wrong person, the benefits of employee ownership, and just what is change management? technology Is your job really going to be taken over by a robot? And how to spot the tech companies of the future

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In our first issue of 2016, we review Fintech, is it the next big thing for the Channel Islands or are the possibilities being overplayed? We interview Sheila Dean, Global CEO of Equiom Group, plus many other features from P2P to employee ownership.

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Page 1: BL Magazine Issue 42 January/February 2016

financeThe human face of financial crime,

P2P moves into investment trusts, and how to target business in emerging markets

ISSUE 42 JANUARY/FEBRUARY 2016

BL MAGA

ZINE ISSUE 4

2 JANUA

RY/FEBRUARY

2016

Fintech in the channel IslandsCOULD IT be the way of the future?

businessThe cost of hiring the wrong person, the benefits of employee ownership,

and just what is change management?

technologyIs your job really going to be taken over by a robot? And how to spot the tech companies of the future

Page 2: BL Magazine Issue 42 January/February 2016

Wednesday 25 May Pomme d’Or Hotel, Jersey5 Hours CPD availableDelegate rate: from £245

A BL event

Jersey Trusts Conference 2016

Supported by:

Where disruption meets opportunity

Places can be booked by visiting www.blglobal.co.uk/events or emailing [email protected]

Page 3: BL Magazine Issue 42 January/February 2016

www.blglobal.co.uk january/february 2016 3

Welcome

The Channel Islands had their own successes and challenges in 2015, and that looks set to be no different in the 12 months ahead

The headline above is a phrase that has been bouncing around ‘BL Towers’ quite a bit in the

past few months. Just how did 2015 pass by so quickly? And how did we find ourselves in 2016 already, having hardly caught our collective breath during the previous 12 months?

There’s no doubt that 2015 was a remarkable year across the whole BL enterprise. In May, we rebranded the business – from businesslife.co – and relaunched the magazine in the size and with the look that you see now. We held four conferences that drew a record number of delegates and speakers. And we launched our writing course – ‘How to write perfect copy’ – a totally new departure for us. We also started working with major Channel Islands firms, supporting their editorial needs.

We’re already optimistic that 2016 is going to be a great year. The magazine will see a new property section launched in the next edition, followed by our annual Wealth Edition, which will hit the streets (and shops and airport stands) in early May. Our full conference schedule for the year has been announced and kicks off with an NED conference in March. And we have writing courses scheduled until June.

The first major development of the year is going to be the redesign of our website, which we are currently working on. We look set to launch this in the first half of the year, and we’ll keep you posted on how that’s going. Another

development is going to be the introduction of a ‘How to write for the web’ course, which is likely to land mid-year.

And we’re kicking off this year by doing something we’ve never done before – two separate covers for the same issue – representing the two sides of the debate on fintech in the Channel Islands. We hope it won’t cause confusion!

Of course, it’s not all about us. The Channel Islands had their own successes and challenges in 2015, and that looks set to be no different in the 12 months ahead. In the finance industry alone, the Common Reporting Standard has just come into effect, creating a new reporting regime for affected firms. And there’s the possibility that there will be further developments on third-country passporting under the Alternative Investment Fund Managers Directive (AIFMD).

To steal from Donald Rumsfeld, these are the known knowns and the known unknowns (or something along those lines). But, as always, there will be plenty of things we really don’t know. How successful will tourism be in 2016? How is technology going to be disrupted? And what could a potential exit of the UK from the EU mean for the islands?

If there’s one thing we can be absolutely sure of, however, it’s that – as always – there are many things we can’t be sure of.

The BL team

How on earth did that happen?

financeThe human face of financial crime,

P2P moves into investment trusts, and how to target business in emerging markets

businessThe cost of hiring the wrong person, the benefits of employee ownership,

and just what is change management?

technologyIs your job really going to be taken over by a robot? And how to spot the tech companies of the future

ISSUE 42 JANUARY/FEBRUARY 2016

BL MAGA

ZINE ISSUE 4

2 JANUA

RY/FEBRUARY

2016

Fintech in the channel IslandsCOULD IT be the way of the future?

ISSUE 42 JANUARY/FEBRUARY 2016

BL MAGA

ZINE ISSUE 4

2 JANUA

RY/FEBRUARY

2016

Fintech in the channel

Islandsa case of all talk and

probably not much action?

financeThe human face of financial crime, P2P moves into investment trusts, and how to target business in emerging markets

businessThe cost of hiring the wrong person, the benefits of employee ownership, and just what is change management?

technologyIs your job really going to be taken over by a robot? And how to spot the tech companies of the future

Page 4: BL Magazine Issue 42 January/February 2016

4 January/february 2016 www.blglobal.co.uk

Xxxxx

Legal services in British Virgin IslandsCayman IslandsGuernseyHong KongJerseyLuxembourgShanghaiTokyo

ogier.com

We get straight to the point, managing complexity to get to the essentials. It is a collaborative approach. We listen actively, asking the right questions, focused on what really matters. We deliver targeted, pragmatic advice with absolute clarity.

Resp nsive

Page 5: BL Magazine Issue 42 January/February 2016

www.blglobal.co.uk january/february 2016 5

Contents

INSIDE

© Chameleon Group Limited, all rights reserved. Reproduction in whole or in part without written permission is prohibited. Views expressed by our contributors are their own and do not necessarily represent the views or policies of Chameleon Group. While every effort is made to achieve total accuracy, Chameleon Group cannot be held responsible for any errors or omissions.

Office: Floor One, Liberation Station, Esplanade, St Helier, Jersey JE2 3AS

BL is published six times a year by Chameleon Group

+44 1534 615886www.blglobal.co.uk

The BL Global Discussion Forum

Follow us @blglobalnews

CEO, CHAMELEON GROUPCarl Methven

[email protected]

EDITOR-IN-CHIEFNick Kirby

[email protected]

ART DIRECTORAngela Lyons

SUB EDITORKate Wheal

BUSINESS DEVELOPMENT CONSULTANTJane Gregory

[email protected]

[email protected]

NEWS AND [email protected]

GENERAL [email protected]

BLMAGAZINE

DR LIZ ALEXANDEROur Texas-based scribe Liz takes an up-close-and-personal look at

whether we’re all going to lose our jobs to robots,

and discovers that being human is the one

characteristic that simply can’t be replaced.

DAVID BURROWSBusiness writer David heads off to emerging

markets to see whether Channel Islands firms

looking to capture new business should focus

on entrepreneurial start-ups, existing wealth

or a bit of both.

BEN JORDANJohn Lewis may be

the best known company where staff own a share of the business but, as

our writer Ben discovers, it’s a trend that seems

to be growing and benefiting

everyone involved.

DAVE WALLERIt’s another triple-header

for BL stalwart Dave, who looks at the

potential of fintech in Guernsey and Jersey; newly launched P2P

investment trusts; and the human face of

financial crime.

contributors

68 January/february 2016 www.blglobal.co.uk

BLguernseyMonterey Insight reveals market share of funds

Guernsey Finance to open Hong Kong office

GFSC issues guidance on electronic CDD

Findings from the 21st edition of the Guernsey Fund Report from independent fund research company Monterey Insight reveal the market shares of all

service providers in Guernsey’s funds industry.For fund administration services of domiciled and

non-domiciled funds, Northern Trust remains the largest by total net assets ($63.8bn), with Ipes ($45.5bn) and Apax Partners ($31.7bn) ranked second and third. For funds under custody services of domiciled and non-domiciled funds, Northern Trust also maintained its lead position with $20.5bn. Kleinwort Benson ($9.4bn) stayed in second position ahead of BNP Paribas Securities Services with $6.3bn.

Of the legal advisers, Carey Olsen advised 724 funds, followed by Mourant Ozannes with 264 and Ogier with 120. For auditors, PwC was auditing 350 funds at the end of the period, ahead of KPMG with 343 funds. Among fund management companies, the largest fund promoter of Guernsey-domiciled schemes was Apax Partners ($32.4bn), followed by Partners Group and EQT Partners (with $23.5bn and $18.5bn respectively).

“The report shows a fall in total assets for the first time in five years,” said Monterey Insight MD Karine Pacary, adding: “Guernsey continues to attract business: 106 new sub funds were launched (domiciled and non-domiciled), 71 serviced funds were launched (including 48 new Guernsey schemes) and 15 new promoters have chosen Guernsey to establish their funds.” n

Guernsey Finance is to open a representative office in Hong Kong in the first quarter of this year.

The office will be the promotional agency’s second overseas outpost, in addition to its Shanghai office, which opened in 2008.

Guernsey Finance’s China Representative, Wendy Weng, who is based in Shanghai, will use the office to carry out further promotional activities concentrated on the wider south-east Asia market. It will also be utilised by the Guernsey Financial Services Commission to provide regulatory advice to those in the region who might be considering Guernsey-specific ventures.

The central location at Three Pacific Place in Admiralty ensures Guernsey Finance is well positioned to meet Hong Kong-based practitioners and others from Asia.

The office is expected to be operational during the first quarter of 2016. A formal launch event and a Guernsey-hosted masterclass is scheduled to take place in Hong Kong during the first week of March. n

The Guernsey Financial Services Commission has issued annexes to the Handbooks for Financial Services

Businesses and Prescribed Businesses on Countering Financial Crime and Terrorist Financing, on the use of technology in the customer due diligence process.

The changes to the rules and guidance in the Handbooks provide for the use of technologies such as digital signatures and electronic verification in the client take-on process and when due diligence documentation has to be updated, including where this technology is delivered through the internet or by tablet and smartphone applications.

Each annex encompasses new rules stipulating that a firm must understand this technology if it is to use it and that it has evaluated that its use will result in compliance with the relevant regulatory requirements. The revisions to existing rules are intended to provide positive affirmation that new technologies have a part in this important process.

The GFSC hopes that these changes will give firms the confidence to use new technologies. It doesn’t require firms to notify the Commission that they intend to use new technology. However, it will monitor take-up through the disclosures firms are asked to make in the annual financial crime risk return.

“Guernsey is the first offshore jurisdiction to introduce such guidance. The GFSC should be congratulated in listening to industry and recognising that regulated businesses can introduce smart technology while continuing to apply the same rigorous standards the island has based its reputation on,” said Dominique Carpentier, Director at KYCme (Guernsey). n

7 NewsA round-up of the latest business news from the Channel Islands and beyond

12 AppointmentsRecent key hires for Guernsey and Jersey businesses

16 InterviewSheila Dean, Global CEO of Equiom Group, talks business

Finance20 P2P investmentHow peer-to-peer lending is moving into the wider market via investment trusts

24 NEW BUSINESSIf you’re planning to move into emerging markets, should you be targeting old or new money?

29 financial crimeCyber crime may be stealing the headlines, but ‘traditional’ methods remain a big problem

32 CRSThe challenges posed by the arrival of the Common Reporting Standard

34 fintechIs it the next big thing for the Channel Islands or are the possibilities being overplayed?

business40 CEOs and CSRDo CEOs who have daughters run more responsible companies?

44 RECRUITMENTHow hiring the wrong person can be a costly mistake, in more ways than one

48 employee ownershipWhat are the benefits of staff owning all or part of a company?

53 change management‘Change’ is often seen as a buzzword, but getting it right can mean success or failure for a business

technology59 automationAmid all the hysteria about machines taking over our jobs, are robots really destined to rule the workplace?

62 small tech stocksLooking to get in on the action with the big tech companies of the future? Then tread carefully

66 APPsFive apps that can help make your life easier and more enjoyable

68 bl guernseyThe latest financial and business news and views from the bailiwick

70 January/february 2016 www.blglobal.co.uk

Stable Q3 for finance sector

jersey Aircraft Registry takes off

Monterey Insight issuesfunds review

Funds and corporate activity in Jersey’s finance industry remained buoyant and banking business was stable in the third quarter of 2015, according to

the latest figures for Jersey’s finance industry.Collated by the Jersey Financial Services

Commission (JFSC) for the quarter to September 2015, the statistics show the net asset value of regulated funds under administration in Jersey increased to £218.8bn, the third highest level since December 2008 and 6.5 per cent up on the September 2014 figure.

Within the funds sector, alternative asset classes continued to perform well, with total alternatives business, including hedge, private equity, real estate and infrastructure funds, growing by 11.5 per cent year-on-year, and real estate and private equity values both increasing by four per cent on the quarter.

The total number of regulated collective investment funds increased by 13 from 1,298 to 1,311 – there were also 126 active unregulated funds

The banking sector displayed relative resilience despite ongoing global pressures in the quarter, with the total value of deposits in Jersey banking institutions falling by about one per cent to £131.8bn.

Meanwhile, the corporate market was very active, with 717 company incorporations during the quarter –the second highest quarterly rate of incorporation in seven years. There are now 33,739 live companies on the register, the highest total figure since June 2009. n

Following the enactment of the Aircraft Registration (Jersey) Law 2014, Jersey’s first aircraft registry became

operational in November.The Jersey Aircraft Registry (JAR),

which will focus on registering new or nearly new high-value private and corporate aircraft, registered its first aircraft, a private jet. JAR will offer:● Registration of private and corporate

aircraft● Registration of commercial aircraft engine

mortgages● An online registration system, available 24

hours a day (to be launched in Q3 2016)● A safe and comprehensive regulatory

framework

● Neutral nationality registration prefix ZJ- followed by three characters of choice

● A competitive Scheme of Charges.

Minister for Economic Development, Senator Lyndon Farnham, said: “The Jersey Aircraft Registry… will enable local businesses to broaden their offerings, which already includes the registration of companies, ships and other security interests. Revenue will be created through the fees charged by the Registry, and we hope to see new jobs created in financial, fiduciary and legal services.

“There is also a longer-term goal of creating roles in technical positions, as we see maintenance and management organisations relocating to Jersey.” n

Findings from independent fund research company Monterey Insight, released at the end of November 2015, reveal the

market shares of all service providers in Jersey’s fund industry to the end of June 2015.

For fund administration services across domiciled and non-domiciled funds, State Street remained at the top of the table with $50.2bn in assets, followed by Aztec Group with $44.3bn and Saltgate with $33.4bn.

Again, for domiciled and non-domiciled funds, BNP Paribas maintained its top position as the largest custodian, with $30.3bn in assets. JP Morgan, with $13.7bn, climbed to second (up from fourth last year), and SG Hambros Trust ranked third with $10bn.

Among legal advisers, Mourant Ozannes remained in top spot, advising on 817 funds, followed by Carey Olsen with 479 and Ogier with 328. PwC is the largest auditor, with 472 funds, ahead of KPMG (259) and EY (172). Among fund managers, BlackRock Financial Management took the lead of Jersey domiciled schemes with $16.1bn of assets, followed by CVC Capital Partners ($15.6bn) and ETF Securities ($13.6bn).

“Jersey had a rather stable year in terms of total growth of assets, and actually showed a slight increase in the number of newly launched funds and new business coming to the island,” said Karine Pacary, Managing Director of Monterey Insight.

“Additionally, in excess of 30 new promoters have chosen Jersey to establish their funds. Jersey continues to attract new investment and is regarded as a specialist in private equity funds, and is also competitive in alternative funds and real estate funds.” n

BLjersey

70 bl JerseyFinance industry updates and figures, plus latest business developments

40

The AgendaFrom tequila with George Clooney to high-end speakers wearing coats, it’s a fascinating start to 2016

73

29

Page 6: BL Magazine Issue 42 January/February 2016

T H E F I R S T N A M E I N C O R P O R A T E S O L U T I O N S

M A L C O L M

First Names (Jersey) Limited is regulated by the Jersey Financial Services Commission.First Names (Guernsey) Limited is regulated by the Guernsey Financial Services Commission.

For further information, please visit www.firstnames.com/legal-and-compliance

We are one of the world’s largest independent providers of trust, fund and corporate administration services.

We are committed to helping our clients protect, nurture and grow their wealth.

Above all, we are a people business.

To find out more about our services and to get to know us better, visit

www.firstnames.com

Page 7: BL Magazine Issue 42 January/February 2016

www.blglobal.co.uk january/february 2016 7

in the NEWS

FOLLOWING A SERIES of successful conferences in 2015, BL Events has launched its first conference for 2016, aimed at non-executive directors in the Channel Islands, with a particular focus on Jersey.

Entitled ‘A Board’s Eye View’, the event, which is in partnership with Deloitte, sponsored by BNP Paribas Securities Services and Optimus Group, and supported by Rossborough, will take place on 16 March at the Pomme d’Or in St Helier from 9am-12.45pm.

The conference will bring together speakers and delegates from the Channel Islands and the UK, and will address issues facing NEDs right now, and those likely to arise in the near future. The event will cover a wide range of subjects:● What should be on the NED

agenda in 2016?● Board dynamics and dynamic

boards

● Directors’ duties and relief from liability

● How to address innovation and digital skills

● Managing strategy and risk● The independent NED toolkit.

Carl Methven, CEO of BL Events, said: “We’re not only looking forward to our first event of 2016, but also to our first NED forum in a number of years. Having enjoyed a great year in 2015, we were asked by a number of companies whether we had considered an NED event, and we are really happy to be able to deliver what they wanted.”

Speakers are currently being lined up for the event and a full timetable will be published in due course. More details are available and places can be booked by visiting www.blglobal.co.uk/events or by emailing [email protected]. Three-and-a-half hours of CPD are available. n

BL Events launches Jersey NED conference

Offshore PE activity heading for highPRIVATE EQUITY (PE) activity represented more than a quarter of the total value of offshore M&A transactions in the third quarter of 2015, putting it on pace to generate the biggest annual amount in the past five years, according to a report by offshore legal and administrative services provider Appleby.

The findings are in a sector spotlight edition of Appleby’s Offshore-i report, which looks at transactions in the PE industry in offshore markets in the year to date. It analyses PE investment in the form of buyouts and exits, whether via initial public offerings, sales to other private equity firms or trade sales.

“With 92 PE transactions worth a combined US$56bn in the first three quarters, [2015] is well on its way to surpassing 2014,” said Andrew Weaver, Jersey-based partner in Appleby’s corporate group.

The third quarter of 2015 saw $16.1bn in PE deals across jurisdictions, representing over a quarter of the $61bn of total offshore activity. The report said 2015 is set to overtake the record exit total of $41.2bn, set in 2014, with market conditions proving highly supportive for exits.

Other key findings include:● There were 41 investments by PE

firms involving offshore targets to September 2015, and 55 exits. The exits typically command more value, with the average value of an investment in 2015 $490 million and the average exit worth $673 million.

● There were seven PE investments of $1bn or more involving offshore targets to the end of Q3. These accounted for 79 per cent of the year’s PE deal value to date. n

Sign up for email updates at www.blglobal.co.ukFollow us @blglobalnews

Wednesday 16 MarchPomme d’Or Hotel, Jersey3.5 hours CPD availableDELEGATE RATE: FROM £195

A BL event

JERSEY NED FORUM 2016

A BOARD’S EYE VIEW

In partnership with: Sponsored by:

Supported by:

Page 8: BL Magazine Issue 42 January/February 2016

8 January/february 2016 www.blglobal.co.uk

Hawksford granted Cayman Trust Licence

HAWKSFORD HAS BEEN granted a Trust Licence by the Cayman Islands Monetary Authority, enabling the firm to provide a full range of trust services to private and corporate clients in the islands. With this expansion into Cayman, Hawksford can now offer fiduciary services to clients from Europe, Asia and the Caribbean.

Hawksford Director Steve Robinson, who will oversee the Cayman operation, said: “We are delighted that Hawksford now has operating capabilities in the Cayman Islands. This is a significant development for the company and our clients.”

Hawksford is an international corporate, private client and funds business offering a range of comprehensive services to trusts, companies, foundations, partnerships, family offices and investment funds. n

INVEST EUROPE, FORMERLY the European Private Equity and Venture Capital Association (EVCA), has published its 2015 Professional Standards Handbook, a comprehensive set of up-to-date standards and guidelines for the private equity sector.

The Handbook reflects the heightened standards of transparency and accountability being pursued by investors in Europe’s growing private equity industry, which represents €545bn of assets under management.

It takes into account regulations in Europe, including the Alternative Investment Fund Managers Directive, that have come into force since the last update of the Handbook in 2013.

As part of the revision, Invest Europe has published substantially updated guidelines for reporting by private equity firms to their investors, which emphasise the importance of clear and detailed disclosure of fees. As well as increasing transparency, the guidelines encourage extra reporting to address areas of non-financial disclosure and enhanced clarity on reporting metrics.

The updated Handbook was created by Invest Europe members – including private equity firms and their institutional investors – as well as industry advisers, working in collaboration for over a year. Its guidance demonstrates consensus across the industry about best practice in today’s market.

All Invest Europe members are required to adhere to the Handbook’s Code of Conduct, which remains unaltered from prior editions.

The Invest Europe Professional Standards Handbook 2015 can be downloaded from the Invest Europe website, www.investeurope.eu n

Invest Europe launches Professional Standards Handbook

PwC opens KYC Centre of Excellence in AlderneyPWC HAS OPENED its Know Your Client (KYC) Centre of Excellence (CoE) in Alderney. The new hub will service financial institutions (FIs) operating within the Bailiwick of Guernsey. The company chose to pilot its concept on the island because of the availability of labour, and because of full support from local politicians.

Globalisation, increased trade and money flows, the emergence of new technologies and the financial crisis of 2008 have collectively compounded the threat posed by global organised financial crime, which continues to increase year by year. For FIs, the costly business of keeping pace with the required compliance, monitoring and control of financial transactions has similarly continued to increase.

The technologically enabled CoE will perform KYC services as required by the local regulator, the Guernsey Financial Services Commission (GFSC). These services will include identification and verification of clients, as well as screening based on public/commercial sources.

Located at Maison Des Venelles, Venelles Des Gaudion, the CoE will initially have seven staff. n

Follow us @blglobalnews

Page 9: BL Magazine Issue 42 January/February 2016

www.blglobal.co.uk january/february 2016 9

News

Sign up for email updates at www.blglobal.co.uk

SafeCharge relocates from BVI to Guernsey

Minerva and Meghraj announce joint venture

PraxisIFM acquires Cavendish Administration

AIM-LISTED TECHNOLOGY company SafeCharge International Group has relocated from the British Virgin Islands to Guernsey. The company, which was floated on AIM in April 2014, raising $125 million, now regularly ranks in the FTSE AIM 100. At the time of migration it was capitalised at around £400 million.

SafeCharge provides payments services, technologies and risk management solutions in the UK and Europe. Its decision to move to Guernsey was motivated by the island’s reputation as a base for funds and companies listed on the London Stock Exchange. The company also saw Guernsey as well positioned for a potential move to the Main Market.

SafeCharge’s domicile in Guernsey will give the company greater exposure to investors, thereby facilitating liquidity in its shares. It was advised on the move by Collas Crill Partner Sean Cheong, assisted by Senior Associate Gareth Morgan and Associate Simon Heggs. n

INDEPENDENT TRUST, CORPORATE and fund administration services provider Minerva has entered into a joint venture with Meghraj Group to provide investment banking services. The joint venture firm, which is known as Meghraj Capital LLP, has been set up in London.

Meghraj Group, which is connected to Minerva through common family ownership, has been involved in investment banking since the 1990s. Using this experience and expertise, Meghraj Capital will offer clients a range of advisory services, including equity raising, debt raising, mergers and acquisitions and joint ventures.

The business will leverage the collective relationships of Minerva and Meghraj to help clients raise money, and to buy and sell businesses.

Meghraj Capital will be headed by Murray Robertson, who will join the business as its Managing Director. Prior to his appointment, Murray was one of the founding partners of Bowmont Capital Partners. n

THE PRAXISIFM GROUP has expanded its fund administration division with the acquisition of London-based closed-ended fund administrator Cavendish Administration.

The acquisition means that PraxisIFM will be able to offer administration services for onshore as well as offshore investment trusts. It follows a previous announcement in October of the Group’s intention to acquire Confiance and the expansion of its pension division Trireme Pension Services, with the acquisition of Confiance Pension Services.

Cavendish Administration provides a range of support services, including administration, secretarial, management accounting and compliance work mainly to closed-end investment trusts listed on the London Stock Exchange, including those traded on AIM.

Cavendish has funds under administration in excess of £700 million, and its team will all join PraxisIFM. Cavendish’s offering will be rebranded under PraxisIFM Fund Services. n

DUKE STREET AND Europa Capital have sold their investment in Channel Island retailer SandpiperCI to a consortium of Channel Islands-based investors.

The consortium has been assembled by Ravenscroft, and includes Bailiwick Investments, Sealyham and other private clients of Ravenscroft. The SandpiperCI management team, led by CEO Tony O’Neill, will be investing alongside the consortium and will continue to lead the business.

At the time of writing, the transaction is subject to regulatory approval from CICRA in Jersey. Key terms for the transaction have not been disclosed.

This transaction brings to an end Duke Street and Europa’s investment in the SandpiperCI Group, which was acquired in 2007 and has franchises that include Marks & Spencer, Iceland, Costa and George.

Commenting on the sale, O’Neill said: “Business will continue as usual and our customers are unlikely to notice any changes.

“Our new Channel Islands-based investors plan to continue investment in our retail estate, including extending the range of our numerous franchise brands, benefiting our customers in Jersey, Guernsey and the wider European mainland.”

The consortium was advised in relation to the transaction by Carey Olsen and BDO. Ogier acted for the vendors, Duke Street and Europa Capital, through UK law firm DLA Piper. n

Consortium buys SandpiperCI

Page 10: BL Magazine Issue 42 January/February 2016

10 January/february 2016 www.blglobal.co.uk

News

Done DealsCarey Olsen has advised on the successful launch and admission to trading of Regional REIT Limited, a Guernsey real estate investment trust (REIT), on the Main Market of the London Stock Exchange. Regional REIT is managed by Toscafund Asset Management LLP, with London & Scottish Investments managing the property portfolio. It merges two existing funds, and targets investments in commercial property in major regional centres outside London. Carey Olsen Partner and Head of the Guernsey corporate group Graham Hall, Senior Associate Annette Alexander and Associate Alexandria du Jardin advised on all Guernsey aspects of the listing. The REIT has a market capitalisation of approximately £274.2 million.

Carey Olsen also advised Gravis Capital Partners LLP on the initial public offering (IPO) of a new £100 million Jersey fund, Project Finance Investments, which is now listed on the Main Market of the London Stock Exchange. The company’s investments will be largely UK-based, medium-to-long-term fixed or floating rate loans secured against cash flows and/or physical assets. Its objective is to generate attractive risk-adjusted returns primarily through regular, growing distributions and modest capital appreciation over the long term.

Offshore law firm Mourant Ozannes has acted as Jersey counsel to Mimecast Limited on its IPO on NASDAQ. The email security group was valued at US$540 million based on the IPO price. Mourant Ozannes also advised Mimecast on its pre-IPO group restructuring. Mimecast is the first US IPO by a Jersey company since Jersey introduced legislation specifically designed to facilitate US listings. The Mourant Ozannes’ team advising Mimecast was led by Partner James Hill, Senior Associate Jon Woolrich and Associate Jamie Wisbey.

Mourant Ozannes has also acted as Jersey legal adviser to the Aerium group in the sale of a commercial property portfolio worth £330 million. Working alongside King & Wood Mallesons, the team at Mourant Ozannes advised pan-European real estate investment manager Aerium on the sale of prime commercial properties held by a number of Jersey entities. The team from Mourant Ozannes was led by Partner Ben Robins, supported by Senior Associate Sophie Reguengo. Headquartered in Luxembourg, with offices operating in key European markets, Morocco and Turkey, Aerium manages more than €6.1bn in property assets across 12 countries. n

Sign up for email updates at www.blglobal.co.uk

CISE allows SPACs to be listedRULES HAVE BEEN introduced to allow Special Purpose Acquisition Companies (SPACs) to be listed on the Channel Islands Securities Exchange (CISE).

A SPAC is a cash shell used to raise money for a very specific investment objective. According to the CISE, SPACs are growing again in popularity as international markets recover from the global financial crisis. The Exchange has launched rules to introduce it as a new product.

Fiona Le Poidevin (pictured), CEO of the CISE, said: “We have been able to introduce our SPAC rules in a timely manner, which demonstrates the responsive nature of the CISE in meeting the needs of current and potential clients. The new SPAC rules have been designed to be commercially attractive for management teams and yet also offer robust integrity for investors.”

The new rules came into effect in November 2015 and they include:● A minimum initial market capitalisation of £700,000● A management team shareholding of more than 10 per cent● A 36-month timeframe to make a Qualifying Acquisition. n

Crestbridge gains Jersey ManCo licenceCRESTBRIDGE IN JERSEY has been approved by the Jersey Financial Services Commission (JFSC) to provide Management Company (ManCo) solutions to Jersey funds.

The award of the licence means that Crestbridge in Jersey will now be able to act on behalf of fund managers as an appointed management company, provide risk management oversight, oversee delegation for portfolio management, central administration and distribution, and coordinate communication with third parties and regulators.

The launch of Crestbridge’s Jersey ManCo service complements its existing Luxembourg offering and means it can now provide ManCo services for a full range of regulated funds to support both onshore and offshore distribution. n

Follow us @blglobalnews

Page 11: BL Magazine Issue 42 January/February 2016

www.gt-ci.com

Grant Thornton Ltd is a member firm within Grant Thornton International Ltd (Grant Thornton International). Grant Thornton International is one of the world’s leading organisations of independently owned and managed accounting and consulting firms. Grant Thornton International and the member firms are not a worldwide partnership. Each member and correspondent firm within Grant Thornton International is a separate national firm. These firms are not members of one international partnership or otherwise legal partners with each other (with the exception of certain limited instances), nor is any one firm responsible for the services or activities of any other. Each firm governs itself and handles its administrative matters on a local basis. Any and all references to Grant Thornton International are to Grant Thornton International Ltd.

With offices in Jersey and Guernsey, Grant Thornton Limited is one of the Channel Islands’ leading accounting, tax and business advisory firms dedicated to serving the needs of privately held businesses, financial services and private clients. We offer a full range of audit, assurance, tax, corporate recovery and advisory services. As a member firm within Grant Thornton International we have access to member and correspondent firms in over 130 countries, offering our clients specialist local knowledge supported by international expertise and methodologies.

Kensington Chambers, 46/50 Kensington Place, St Helier, Jersey JE1 1ET Channel Islands

T +44 (0)1534 885885

PO Box 313, Lefebvre House, Lefebvre Street, St Peter Port, Guernsey GY1 3TF Channel Islands

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Page 12: BL Magazine Issue 42 January/February 2016

12 JANUARY/FEBRUARY 2016

Appointments

Investment consultancy Enhance Group has appointed Tom Wiseman as

Managing Director of its London office. He will oversee relationships with London-

based clients, as well as local operations for clients with multijurisdictional needs.

Tom was a Relationship Manager and Partner at Seven Investment Management

(7IM), where he managed discretionary investment portfolios for the clients of

independent financial advisers. He also helped establish 7IM’s direct-to-client

proposition, providing a range of services to a small number of wealthy families and

their associated structures.

Nicola Gott has been named Managing Director of Equiom (Jersey). With more

than 18 years of banking experience, Nicola has served as Country Chief

Operating Officer for BNP Paribas. She was previously its Head of Risk and

Permanent Control and, before that, Head of Group Risk Credit. With a seat on the Equiom Group (Europe) Board, Nicola’s

new role involves overseeing the key business functions and contributing to business development across Europe.

Nicola takes over from Anton Swemmer, who becomes Group Finance Director for

Equiom’s European operations.

David Oliver has been named Chief Compliance Officer at Sanne. He

joins from the JFSC, where he was a member of the executive committee and led the Trust Company Business division for two years. He previously lectured at

the Jersey Business School for seven years, covering UK and Jersey regulation. David was also a Chief Examiner for ICSA

from 2003 to 2011. He will be based at Sanne’s headquarters in Jersey and will

be responsible for the Group’s compliance function, supporting the firm’s six

business divisions located across nine financial jurisdictions.

Butterfield Bank (Guernsey) has appointed Alan Bain as Chief Financial

Officer for Guernsey. He joined Butterfield as Head of Finance for Guernsey in 2007,

overseeing the financial management and regulatory reporting for Butterfield’s

Guernsey operations and the Butterfield Trust business, together with a range of

administered banks. In his new role, Alan has broader responsibilities in the overall management of the Guernsey business, in addition to his current responsibilities for

the Trust. His prior experience includes senior roles at financial services

companies in the UK and Channel Islands.

First Names Group has recruited Carol Keenan (pictured) and Gerard O’Gorman as Client Services

Directors. Carol joins from Elian, where she was Group In-House Counsel, having spent 12 years with Ogier. She has also been a lawyer with Linklaters in Hong Kong and

London. In her new role, Carol will grow the Group’s corporate business in the Channel Islands, while Gerard

takes on an existing client portfolio in the Group’s Private Client service line. Gerard has 25 years’

experience managing high-net-worth individuals. Prior to joining First Names, he spent 14 years with Royal Bank of Canada, managing a large client portfolio.

Page 13: BL Magazine Issue 42 January/February 2016

JANUARY/FEBRUARY 2016 13

News

Guernsey’s former Chief Minister, Lyndon Trott, has been appointed Chairman of

Guernsey Finance. He replaces Jim Gilligan, who is retiring. Elected

Guernsey’s first Treasury Minister in 2004, Lyndon became the jurisdiction’s

youngest and longest serving Chief Minister, a role he filled until 2012. He has combined a 16-year political career with

30 years in financial services. A former City trader specialising in proprietary foreign

exchange, Lyndon is now a non-executive director on the boards of a Guernsey

fiduciary company, a fund administrator and an AIM-traded private equity fund.

The Jersey Financial Services Commission (JFSC) has appointed John Everett as its Deputy Director General, to drive forward

its programme to become a more efficient, effective regulator. The

appointment reinstates the Deputy Director General post, which was a part of the JFSC’s senior management structure

until 2009. As well as his role in the change programme, John will oversee supervision

and policy activities, ensuring effective co-ordination between the development of policy and its implementation. Since

joining the JFSC in 2014, he has been the Director for Funds and Fiduciary.

RBC Wealth Management has appointed Daniel Bisson as Chief of

Staff, Fiduciary Services. Based in Guernsey, he will manage projects aimed

at transforming the fiduciary services business and joins the Fiduciary Services

Management Committee. RBC Wealth Management’s fiduciary services business

includes RBC’s Channel Islands-based trust and private client business, as well

as its tax advisory practice and RBC ‘cees’. Daniel was RBC Wealth Management’s

Head of Business Development Execution and Delivery. He has also held senior roles

managing high-net-worth clients.

The Guernsey office of JTC Group will now be led by Adam Moorshead. As well as

being Managing Director of the Guernsey office, Adam, who joined JTC in 2015, will have cross-jurisdictional responsibilities and sit on the global management board

of JTC’s Institutional Client Services division. Adam has specialised in business transformation, client service delivery and

fund operations. He has been Head of Fund Administration at Kleinwort Benson and held senior roles at Man Investments,

Credit Suisse and Rothschild Asset Management. He also holds directorships

in several investment firms.

Ogier has promoted Richard Daggett to Partner. Richard is a corporate finance lawyer focusing on complex

real estate investment transactions, mergers and acquisitions, private equity structures and IPOs. A former Ogier bursary student, he joined Ogier in 2004 as part of

the firm’s first intake of English trainees. He has worked on some of the largest real estate transactions of the past

decade, including Intu Properties’ £867 million acquisition of Westfield shopping centres. Richard has also acted

for global private equity firms on high-profile transactions, such as the £1.54bn Main Market listing of

Partnership Assurance.

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Page 14: BL Magazine Issue 42 January/February 2016

Wednesday 16 MarchPomme d’Or Hotel, Jersey3.5 hours CPD availableDELEGATE RATE: FROM £195

A BL event

JERSEY NED FORUM 2016

In partnership with: Sponsored by:

A BOARD’S EYE VIEW

Places can be booked by visiting www.blglobal.co.uk/events or emailing [email protected]

The agenda for the half day includes a variety of panel discussions and presentations covering the following: • What should be on the NED agenda in 2016? • Board dynamics and dynamic boards • Directors’ duties and relief from liability • How to address innovation and digital skills • Managing strategy and risk • The independent NED toolkit

Page 15: BL Magazine Issue 42 January/February 2016

JERSEY NED FORUM 2016

Supported by:

Page 16: BL Magazine Issue 42 January/February 2016

16 January/february 2016 www.blglobal.co.uk

Interview

From its headquarters in the Isle of Man, Sheila Dean, Global CEO of Equiom Group, has overseen the company’s rapid expansion in recent years, including into the Channel Islands. So just what has she learned from the experience and are the crown dependencies at all alike?

You have one minute to tell us about Equiom – and the clock starts now…Equiom is a multijurisdictional trust and corporate service provider, focused on delivering bespoke ownership structures and professional tax advice for a broad range of companies and clients, including ultra-high-net-worth individuals, across a variety of specialist markets.

Our history is something we’re very proud of. We were part of the Ernst & Young Trust Company up until 2002, when we were sold to Anglo Irish Bank. We became an independent company in 2006, having completed a management buyout, and we completed our secondary management buyout in 2013.

Since 2011, we’ve completed 10 acquisitions, which has led to us opening offices in Jersey, Guernsey, Malta and Hong Kong.

We currently have 327 employees working across our five offices in Europe and Asia. Our total assets under management are in excess of US$23bn.

I believe you’ve effectively been with the company since the start of your career? Pretty much. I started working for Ernst & Young straight after graduating. Along the way, I qualified as an accountant and when E&Y was acquired by Anglo Irish, I stayed with the company. When Anglo Irish decided to sell the trust arm of the business, I led the management buyout and Equiom was born. So this really has been my entire career. 

Jersey and Guernsey are often lumped together, whereas the Isle of Man sits well outside, despite being a crown dependency, and seems to plough its own furrow. Is that a good or a bad thing?The Isle of Man is bound to be viewed differently to the Channel Islands to a certain extent. It has a very different government system and there are differences in the taxation and business rules across the islands too. Also, to state the obvious, we’re geographically quite a distance away – we certainly don’t benefit from the same climate!

VAT is probably the main thing that differentiates the Isle of Man from Jersey and Guernsey. In the Isle of Man, VAT is charged and legislated almost exactly the same as it is in the UK. This is because the island

Words: Nick Kirby

has a VAT revenue-sharing agreement with the UK, so it’s considered part of the common VAT area of the European Union, giving it full access to the EU for importation and EU trade. The Channel Islands, on the other hand, are only part of the EU in terms of customs, which can cause limitations with the importation of goods.

That said, there are some massive similarities between the islands. They are all crown dependencies; corporate income tax rates are all zero per cent; and all three islands now have a financial ombudsman. None of the islands operates capital gains tax, and there’s no denying they have all been affected by the recession.

All the islands benefit from the flexibility enabled by their independent governments. This independence from the UK has allowed them to proactively introduce changes to their regulatory and legal systems to embrace, for example, the Foreign Account Tax Compliance Act (FATCA) and Tax Information Exchange Agreements with a host of countries.

As a business, we’ve built very strong relationships with the Isle of Man government over the years, having worked closely on joint initiatives. We’d like to replicate this with Jersey’s and Guernsey’s governments.

Is being private equity-backed – through Lloyds Development Capital (LDC) – a help or hindrance? Can PE be too short-term focused? We wouldn’t be in the successful position we are in without the backing of a private equity company. We’ve worked with our current PE company, LDC, for a number of years.

The LDC strapline is ‘Private Equity less ordinary.’ This is without a doubt our experience of them. Yann Souillard [Managing Director] and his team at LDC have exceeded our expectations – their support has been all-embracing. With such a broad portfolio of businesses under management, they have a network of solutions at their fingertips, all of which we can dial into and use to support Equiom.

LDC’s management style is very much relationship driven, and this philosophy of putting relationships first is mirrored at Equiom. As we have grown, our relationship with LDC has strengthened. The team at LDC has been incredibly supportive throughout and they’ve delivered on everything they promised – and

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www.blglobal.co.uk january/february 2015 17

Interview

The

interviewSheila Dean

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18 January/february 2016 www.blglobal.co.uk

Interview

more. When professional firms work in conjunction with private equity, it’s important for clients to know that neither the service nor the cost is going to be adversely affected. We’re proud to have delivered a seamless service to our clients through the initial and secondary buyouts, without the loss of any clients as a direct result. 

There’s been a significant amount of M&A activity in the financial services sector in recent years – what is your take on that and do you see it continuing?M&A activity is indeed flourishing again in financial services, which is strong evidence of renewed economic confidence globally.

A substantial contributor to this, in our sector in particular, has been the increase in regulatory and compliance requirements within the industry. This has made it very difficult for the smaller trust companies to continue to operate because they just don’t have the resources to cope with the additional administrative and regulatory requirements.

In order to continue, they need to become part of larger companies, with large established compliance, legal and operational risk teams, and the systems and processes in place to ensure adherence to regulations.

In addition to this, banks are streamlining their operations to reduce costs while at the same time reducing their exposure to risk. This has resulted in a number of banks selling off their trust businesses, which have become acquisition targets for the larger trust companies.

As regulation within the industry continues to tighten up, I don’t anticipate that this M&A activity will slow down. Equiom is particularly active on the

acquisition front and we do see this continuing over the coming years.

Your expansion has been quite ‘aggressive’ in recent years – tell us about that.The business has grown from 80 staff in the Isle of Man in 2012 to 327 staff across five jurisdictions.

Seven acquisitions have taken place since the secondary management buyout in September 2013, five of which took place in the six months up to May 2015.

Our strategy is focused on creating a business of scale and substance in both Europe and Asia. This is best achieved by concentrating on establishing and developing successful businesses in a small number

of jurisdictions. The purpose of our strategy is to provide increased opportunities for our clients and staff. Having a number of offices allows us to offer a wider range of solutions to our clients, and to tailor services to their specific needs.

Does growing quickly put pressure on the business – from client service and compliance perspectives, for instance? And how difficult is it to meet those challenges?Yes, it inevitably does put pressure on. The five acquisitions we completed in the past year certainly tested everything we’ve got to give!

Acquisitions particularly affect the central Group support functions, such as compliance, finance, corporate communications and IT. However, all areas of the business are impacted, particularly by all the travelling that myself and the senior team do in the lead-up to an acquisition in order to form integration plans and build relationships with our new colleagues.

Our priority throughout the acquisition process is to ensure that everything happens as seamlessly as possible for our clients. It’s also critical to establish ‘buy-in’ from the staff throughout the Group. I always make sure that we regularly communicate internally throughout the acquisition process to ensure that all staff are aware of the progress we are making. All Equiom staff are familiar with the acquisition process and are well accustomed to the continually evolving and fast-paced world that we work in.

Our IT and communications infrastructure has particularly been tested in recent months. The IT team works exceptionally hard to ensure that our systems, data and communications networks are integrated effectively. We’ve recently invested heavily to increase the level of support within our IT, Integration and Change functions, including upgrades to our core IT infrastructure and employing additional staff.

Even after an acquisition has completed from a technical point of view, the work continues to ensure that the acquired business and the employees are integrated into Equiom from a cultural perspective.

We have a ‘buddy’ system, where we pair up any new employee with a current team member at their equivalent level – sometimes in other jurisdictions – to ensure that they are made to feel part of the wider Group and to give them a point of contact for any questions. Training is also an essential part of the process.

The Compliance team has an important part to play in acquisitions – from overseeing the due diligence prior to the completion of the acquisition, to playing a role in the integration and harmonisation projects post-acquisition and communicating with the relevant regulatory authority.

So, in summary, yes – growing quickly does put

Growing quickly does put pressure on. The five acquisitions we completed in the past year certainly tested everything we’ve got to give!

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www.blglobal.co.uk january/february 2016 19

Interview

FACT FILE

Name: Sheila DeanAge: 46Position: Global CEO, Equiom GroupMarried to: JonnyChildren: Ollie, 13Hobbies: Keeping fitInteresting fact: I absolutely love Russian history

pressure on the business, although we do plan these projects well, resource accordingly and most of the time, things go smoothly.

A number of fiduciary companies have either made acquisitions or opened offices in the Far East in recent years – Equiom bought AFP Group in Hong Kong at the start of 2015. Why? And what is the strategy?We’ve always viewed Asia as a key market as part of the company’s ambitious growth plans but, as with all of our acquisitions, we had to find the right business, with the right people, to blend with the overall culture that we promote throughout the company.

With AFP Global, we knew that Roddy Sage [Executive Chairman of Equiom Hong Kong] and his team would bring that ‘can do’ culture that Equiom has, as well as the huge experience that we needed with our first Asian acquisition.

The strategy in Asia mirrors the strategy for the rest of the Group, in that we continue to follow the twin-track method of acquisitional and organic growth, within clearly identified markets.

At BL, we often hear about the lack of suitable skilled staff in small jurisdictions such as the crown dependencies. What’s your take on this? And, indeed, how should it be dealt with?It’s a problem that needs to be addressed – particularly in the Channel Islands, where strict employment and

housing restrictions are in place to limit the size of the population. If these rules aren’t going to be relaxed, the islands need to focus more on education and training locally to attract young people to return beyond graduation and make the islands less dependent on immigration.

At Equiom, we wholeheartedly support training, exams and external courses – it’s important that our staff are qualified and continually develop in the area of the business in which they work.

We’ve also trialled a new programme where we employ school leavers as Assistant Administrators within the Client Services team, providing ‘roots up’ experience. They’ve also been given the opportunity to sit exams, which will help with their professional development and career progression.

Where do you stand on the subject of the lack of senior women in business? Is too much attention given to it? Is there a danger of promoting women purely based on gender as opposed to merit?Yes, it’s something that’s talked about a great deal, but, if I’m absolutely honest, this ‘issue’ has never really been apparent to me. Many of the businesses I deal with employ women in senior positions.  Likewise, there are several women occupying board positions at Equiom. 

Personally, I don’t think my gender has ever had an impact on my career and it certainly hasn’t held me back. I’d like to think that I’ve achieved what I have because of my skills and experience, rather than my gender, and I’ve never had any negative (or otherwise) experiences as a result of being female. n

NICK KIRBY is Editor-in-Chief of BL magazine

I don’t think my gender has ever had an impact on my career and it certainly hasn’t held me back

Page 20: BL Magazine Issue 42 January/February 2016

Finance

20 January/february 2016

Already one of the fastest growth areas in financing, peer-to-peer lending has recently seen

the launch of a number of investment trusts. Will investors and businesses both reap the rewards?

Page 21: BL Magazine Issue 42 January/February 2016

Finance

www.blglobal.co.uk january/february 2016 21

Words: Dave Waller

THE PAST SEVEN years haven’t exactly been the best time to be an SME seeking funds. Since the financial crisis, banks and other traditional lenders have tightened their lending criteria and avenues have become closed off as regulators restrict lending activities to help stabilise the economy.

Against this backdrop, the surging appeal of peer-to-peer (P2P) lending comes as no surprise – while the banks may not be in a position to dish out the dosh, plenty of other folk are.

The P2P model is largely credited to Zopa, a London-based platform that launched back in 2005 and has now lent more than £1bn. The basic model of P2P is that online platforms allow individuals and businesses seeking capital to go direct to members of the public, who in turn get a good return for their lending (much better than the paltry interest rates that are available from deposit accounts).

Zopa has since been joined by a host of rival platforms, including Funding Circle, through which 11,000 businesses have borrowed a total of more than £890 million in the UK alone.

Overall, P2P lending to British firms exceeded £1.2bn in 2014, with a 90 per cent increase in the number of UK companies borrowing through such platforms, according to the Peer-to-Peer Finance Association.

“There’s strength and wisdom in the crowd,” says Angus Dent, CEO of ArchOver, a UK-based P2P lending platform, as an explanation for P2P’s success. “Borrowing becomes easier for the borrower, while we build in several layers of security for lenders.”

Of course, such revolutionary models rarely remain static for long, and the P2P concept has now expanded beyond one-to-one lending through the creation

of P2P investment trusts, which manage a selection of loans on the investors’ behalf. By investing in a range of P2P platforms, these offer exposure to a greater number of loans than if investors used a standard P2P model.

They may also offer exposure to debt that may not be directly accessible through P2P lenders, and they have a potentially low correlation to equities – which could make for an attractive risk profile. Plus, with dedicated teams to choose the loans, it saves investors doing their own due diligence on the underlying loans and platforms, which can be both tricky and time-consuming.

This is a relatively new asset class, perhaps more accurately labelled ‘direct lending’ – it’s hard to see an investment trust as a peer, but the P2P title has stuck because the process remains intermediary-free. While retail investors were targeted first, it’s now largely the preserve of institutional investors such as pension funds – which means far greater fund volumes and chunkier deals.

BRANCHING OUTAt the time of writing, there are five investment trusts in this space. The largest, P2P Global Investments, launched in May 2014 and has so far raised around £800 million. Victory Park Capital and Ranger Direct Lending are US companies that launched in March 2015 and have raised about £200 million and £135 million respectively to date.

But the Channel Islands are involved as well, first through GLI Finance, which has a Guernsey-based P2P investment trust that has allocated a £52 million fund across 19 platforms.

“We’re director of all of them, so we have full oversight of the businesses,” says Andrew Whelan, GLI’s Director of Lending. “We’re intimate with them,

P2P makes its next move

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22 January/february 2016 www.blglobal.co.uk

Finance

rather than just using them as a vehicle to throw money through, and we’ve created a liquidity in the fund – investors can redeem up to 20 per cent of the fund every six months with 90 days’ notice at a price discount to NAV of 0.5 per cent.”

Finally, there’s the news that Funding Circle has launched an investment trust of its own, making it the first platform to do so. The Funding Circle SME Income fund, which is also based in Guernsey, listed in London in November, after raising £150 million from a group of institutional investors. It’s set to focus on loans to small businesses in the UK, US and Europe.

INVESTOR GAINSSo exactly what’s in all this for the investor? P2P investment trusts bring several benefits – one is yield, which is proving so elusive in the current climate. A pension fund that doesn’t have to worry about the kind of regulation that’s stifling bank lending may wish to get involved as P2P investment trusts are paying between six per cent and 10 per cent. Funding Circle’s trust targets a yield of about seven per cent a year.

The other principle boon for investors is diversification, which helps boost security and lower risk.

“Investment funds allow instant portfolio diversification,” says Dent. “If you’ve only got £1,000, you can’t spread that around on our platform – but put it into a P2P investment trust and you can.”

And what about the borrower? “Institutions are where a lot of the cash is, and these funds are doing a good job by unlocking it and getting it out there to help businesses,” says Dent. “That’s way better than leaving the money sitting in deposit accounts not doing anything.

“If you’re an engineering business in the West Midlands in need of £200,000, do you really care where it comes from? You don’t want to get it from a drug dealer, so it needs to be reputable, but beyond that you’re not fussed.”

Such platforms also benefit borrowers with speed. If you have the opportunity to buy a property for development, but you have to complete on it in a week, for example, there’s little chance a bank could turn it around in the timeframe required.

“With these guys [P2P lending], you may pay an arrangement fee,” says Ben Thomason, Managing Director at Asset

Leverage Consultants. “But as you’ve managed to buy the property and refinance it quickly, it’s still worthwhile.”

While luring powerful institutional investors is a quick way for a fund to hit its targets, P2P trusts are still suitable for individual investors too. They have been eligible for inclusion in individual savings accounts (ISAs) in the UK since July last year – and from April, the first £1,000 of direct peer-to-peer earnings will be tax-free, at least for lower-rate taxpayers.

BUYER BEWAREIt’s no surprise then that retail investors are tempted to get involved. But they should beware: these yields are high for a reason. P2P investment trusts come with the risk of default of the underlying holdings. As Thomason points out: “Anyone hoping to get double-digit returns is operating at the higher end of the risk spectrum.”

Meanwhile, as P2P is a new form of lending, established after the financial crisis, these platforms haven’t been put through their paces yet. If the economy tanks further and jobs go, those defaults

P2P investment trusts bring several benefits – one is yield, which is proving so elusive in the current climate

could shoot up. Ultimately investors will be reliant on the platform

acting in a sensible way to mitigate against this.

Dent points to one problem here – the focus for fintech lenders is often more on the technology

than on the money lending. And as we’ve

learned quite painfully in the past, while tech is a

great enabler in terms of finance, a whizzy bit of computer power isn’t going to protect anybody once things go wrong.

As such, the trust’s risk management has to be bulletproof, or as close to that as possible, and providers must be quick to act should any security be eroded, in order to get money back to investors.

Luckily, such platforms have a good track record in that regard. “One of the advantages of investment funds is that they have deep pockets,” says Dent. “When [GLI’s] Platform Black had a problem, GLI stepped in and financed the business through that period, using some of their funds to ensure people who’d lent over the platform didn’t lose money. They had the cash sitting on the balance sheet ready to go should a crisis arise.”

Still, while the providers may have systems in place to mitigate risk, it’s still a huge leap of faith for potentially unsophisticated investors simply chasing yield. “My concern is that if you’re a smaller investor with £5,000, and you think you’ve found a fund you can stick into your ISA, do you fully understand the risks?” says Thomason. “You have to be very careful that you choose the right fund – you have to know its quality, its track record and its risk assessment.”

It’s for this reason that P2P investment trusts could be a potential growth area for the Channel Islands – not only in the setting up of trusts, listing on the CISE perhaps, or using the Channel Islands to list in London, but also in their administration.

“Investing in investment trusts is a process that needs to be professionally managed,” says Whelan. “If you’re using client money, you have to ensure that you’ve managed it accordingly. That’s administration, which is absolutely a growth area for the Channel Islands.

“In fact, GLI’s administrator is in Guernsey, so by supporting them, we’re ensuring that money goes back into the local economy.” n

DAVE WALLER is a freelance business writer

Page 23: BL Magazine Issue 42 January/February 2016

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To speak to our Channel Islands team, call (01534) 282076.

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Page 24: BL Magazine Issue 42 January/February 2016

24 January/february 2016 www.blglobal.co.uk

Finance

As wealth booms in emerging markets, should the Channel Islands focus purely on new money and entrepreneurial business?

THERE’S NO ESCAPING the fact that global wealth is shifting toward emerging markets, with startling figures showing just how much the demographic is changing. And it’s a situation that’s putting wealth managers under pressure to refocus their business.

In India, middle-class wealth has grown 150 per cent since 2000, while Africa has seen growth of 102 per cent, according to the Global Wealth Report 2015 by Credit Suisse. But these numbers are overshadowed by China, whose middle-class wealth has grown an incredible 330 per cent over the same period. The report predicts that over the next five years, the number of dollar millionaires will rise by 46.2 per cent, with the sharpest increases likely to be across the Asia-Pacific region.

Simon Finch, Fund Manager at Ashburton Investments, agrees that the growth of wealth in Asia will continue, particularly in India. “With 65 per cent of the Indian population under 35, and a demographic pyramid that has a rather broad base up through to middle age, India is in a sweet spot. The trend of a growing employment demographic will result in a boost to Indian economic growth and an uptick in domestic consumption.”

The rural-to-urban migration in Asia, most notably in India and China, also means higher living standards and greater profitability for home-grown, listed companies, such as Repco Home Finance and Bharti Airtel. And they are tapping into this emerging and high-spending consumer base.

As Finch points out, India is often referred to as a country with a billion entrepreneurs. And a significant number of these entrepreneurs are now at an age where they can substantially contribute to the future success of their nation.

Wealth levels are growing in Africa too, as Naro Zimmerman, Business ▼

Words: David Burrows Out with the old?

Development Assistant Manager at Nerine Trust, explains. “Africa is certainly poised for growth and, once it puts in place the necessary infrastructure to be able to support the expansion, it will grow in a very rapid fashion, with an estimated 45 per cent increase in new millionaires over the next 10 years,” he says.

Zimmerman believes this will create huge amounts of new wealth and further opportunities for companies from the Channel Islands to provide wealth management services for these individuals.

However, he warns that outside of the required improvements in technology, various countries across Africa need to resolve corruption and regulatory issues.

“We must ensure that business we bring into the Channel Islands is of a standard in line with the quality already held here. Our standards are of paramount importance to ensure that we continue to be regarded as a well regulated, pragmatic and responsible jurisdiction of choice for high-net-worth individuals from Africa.”

SHOCK OF THE NEWWith massive burgeoning wealth in these emerging markets, this all begs one question: for Channel Islands companies moving into these regions, should the focus be on targeting the new wealth of entrepreneurs rather than established wealth? Indeed, is there much joy to be had in trying to attract those who have long-standing relationships with other jurisdictions and providers?

Zimmerman doesn’t believe it’s as clear cut as that. Looking at the Middle East and North Africa (MENA) region in general, he says: “Many of the larger families do have long-standing relationships with various institutions and it can be challenging. However, we are seeing opportunities to meet these families as we devote time and

resources to expanding our network base in MENA. Once introductions are made, we’re able to better demonstrate what we have to offer.”

He adds: “It’s very much a case of being present within the region, travelling regularly and ensuring that you understand the markets in which you are investing time and resources (both from a cultural and a financial point of view). I think for any company looking at MENA, focusing on old wealth or new wealth solely would not be beneficial. Instead looking at gaining traction in the market as a whole would be more sensible.”

Steve Spybey, Group COO at Hawksford and based in Singapore, agrees there is scope to win over ‘old wealth’ clients. “Although many wealthy families and individuals have existing relationships with advisers, global regulations, particularly regarding CRS and BEPs, are changing the nature of the advice clients need,” he says. “This presents additional opportunities for service providers that can be more jurisdictionally agnostic and that can offer the understanding and expertise required.”

Like Zimmerman, Spybey doesn’t think solely targeting new wealth or old wealth makes much sense. He believes it’s important to be an expert in an area of focus, as a scattergun approach carries more risk. “We assess each new client and ensure that we have the right expertise to deliver impeccable service and to identify and manage our risk appropriately,” he says. “This is more important than whether the wealth is new or old.”

PROTECTING WEALTH Whether old or new, individuals and business owners may well be looking to protect their wealth outside their own jurisdictions, and there is good reason for this. As Richard Sayers, Singapore-

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Finance

Out with the old?

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Many of the larger families do have long-standing relationships with various institutions and it can be challenging to make in-roads

based CEO of Enhance Group, outlines: “Businesses and families are becoming more international, driven by opportunity and helped by technology and transport. Wealth may be protected outside their own jurisdiction due to a broader range of opportunities, stability, diversification, growth rates, intellectual capital, incentives, legal and regulatory frameworks.”

He adds: “Managing international affairs is potentially more challenging than domestic activities and so the trend for financial service companies is to be able to effectively service clients across jurisdictions and time zones.”

Zimmerman also sees the benefit of using foreign jurisdictions. “Taking Africa as an example, we still see a large flight of capital to offshore jurisdictions as wealthy individuals, fearful of political or social instability in their home countries, seek to place their wealth elsewhere in order to protect it.”

He points to the Channel Islands being regarded as a safe haven for wealth, with assets such as prime London real estate (held through offshore structures) still highly regarded by HNW individuals from Africa.

“If correctly advised structures are put in place, the asset protection offered is extremely high, due to the quality of our legislation and regulation,” he says.

There are undoubtedly business opportunities for financial centres such as Jersey and Guernsey, but there are also challenges too. Sayers insists that Jersey and Guernsey must identify the trends and position themselves accordingly. “There can be no doubt that other financial centres will be snapping at their heels and it’s crucial to be a ‘good place to do business’, otherwise it may go elsewhere.”   

Spybey thinks the depth of expertise in Jersey and Guernsey currently sets the jurisdictions apart from some international competitors, but he concedes that the gap is reducing quickly: “In order to remain competitive, I think it’s critical

that the Channel Islands focus on core strengths. The proximity of and good financial connections with London remains particularly attractive to clients that are seeking access to the available expertise and routes to markets such as AIM.”

TRIED AND TESTED As with older wealth, does new wealth prefer to put its money in established jurisdictions? Sayers believes ‘new wealth’ is more open-minded in nature.

“New wealth is presented with many more opportunities and a range of possible jurisdictions. Even if the jurisdiction is considered younger, it may be that new wealth can take comfort that ‘tried and tested’ financial service providers are located in the new jurisdiction,” he says.

In such a competitive market for HNW business in Asia and Africa, how does the Channel Islands go about building relationships with these countries?

Spybey insists there is a need to continually build international awareness with regard to the benefits that Jersey and

Guernsey can offer. “There can be an extended payback period as clients and intermediaries can take time to establish the required levels of trust with advisers and service providers. Individual business and the Channel Islands as a whole need to therefore view time spent with individuals and businesses as a medium- to long-term investment.”

Zimmerman views relationships as key. “The challenge lies in building a relationship with the clients themselves and showing that values are clearly aligned with their own, with a respectful, expert understanding of their needs,” he says.

With a number of Channel Island firms (as well as Jersey Finance and Guernsey Finance) already in emerging regions – and with plenty in the process of setting up – it’s clear they have identified the considerable opportunities, whether old or new wealth. Now it comes down to translating those into real business. n

DAVID BURROWS is a freelance financial writer

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Finance

IN FEBRUARY 2015, Russian hackers stole £650 million from banks across the globe. It was dubbed ‘the world’s biggest bank raid’, which took two years to orchestrate and happened entirely in cyber space. As such, it’s a breathtaking example of what financial crime is all about in this modern, connected age. Right?

Well, maybe not. Cyber thefts may grab the headlines, but they haven’t completely taken over the financial crime scene – they’ve just given forensic teams a whole

new area to dust for fingerprints. More ‘traditional’ financial crime – everything from money laundering and the proceeds of crime and drug trafficking, to fraud and corruption and terrorism – is still a massive concern on a global scale.

The latter came under particular scrutiny in November, after the terrorist atrocities in Paris. “Following the attacks, people are asking questions around where these terrorists buy weapons,” says Barry Faudemer, Director of Enforcement at

the Jersey Financial Services Commission. “The hunt is on for how that was financed. And I can’t see financial crime being shifted off the top of the agenda for a while yet.”

Money laundering remains perhaps the main concern for the Channel Islands. While most people in the islands’ finance industries aren’t robbing banks themselves, they may still come into contact with proceeds from criminal activities, especially as the tracks are increasingly well hidden.

That said, every year one or two people

Cyber theft may make all the front pages, but financial crime goes a lot deeper and much of it has a very human element

gets personalFinancial crime

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on the islands are prosecuted for the direct defrauding of a client or employer. Then you have tax evasion, and third parties stealing from businesses or clients in the finance industry. And much of this does now take the form of cyber attacks.

“We’re a honey pot,” says William Grace, Partner at Carey Olsen. “Businesses in the Channel Islands hold money, and that will attract all sorts of insects who want to dab into it.”

REGULATORY PRESSUREIt’s a lot for financial services firms to deal with, and the picture becomes even more complex when you add in the raft of legislation that companies must comply with in order to avoid trouble themselves.

The list of boxes to tick includes the EU’s anti-money laundering directives, BEPS (the OECD’s Base Erosion and Profit Shifting project), the Common Reporting Standard and directives on tax evasion, and measures from the US including FATCA and Deferred Prosecution Agreements. And in the UK, HMRC has recently issued a consultation paper on the introduction of civil and criminal penalties for enabling and facilitating offshore tax evasion.

It’s a confusing maze, but Barclays’ recent record fine of £72 million for failing to carry out proper anti-money laundering

checks on a £1.88bn deal in 2012, offers a cautionary example of why companies need to find a way through it.

Even though there was no evidence of any crime in this case, the Financial Conduct Authority still slapped a hefty fine on the bank, for failing to sufficiently corroborate the source of the funds.

It’s those sources that Channel Islands companies must be wary of. Grace paints the hypothetical picture of a Jersey fund that owns a widget factory in Bulgaria, which in turn includes businesses in Syria among its customers. Those customers may be distant, but ultimately those proceeds would find their way back to Jersey.

“If a headline in the Wall Street Journal says: ‘Jersey company implicated in sale of widgets to Assad’, that reflects badly on the company and on the jurisdiction,” says Grace. And those illicit links may date back 10 years, to the origins of a client’s wealth.

Syria is currently on the EU’s sanctions list, so doing business with the state is forbidden. But sanctions lists change all the time, which muddies the picture still further. Burma and Cuba, for example, are both being treated more favourably today than they were a few years back.

Sanctions may also be applied by the Channel Islands on its own individuals and firms, who have to comply with the

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Finance

standards set by the regulators or face the consequences.

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

As the landscape becomes more complex, businesses are being forced to put together ever more substantive policies, procedures and teams to counter the threat. This brings compliance teams under increased pressure, and means a greater proportion of turnover has to be spent on protective systems.

“Compliance isn’t a revenue earner,” says Grace. “It’s coming out of the bottom line, so it’s becoming a tougher proposition to scrutinise and manage the risk of taking on new business and transactions.”

UNDER SCRUTINYAs costs go up, solutions become more intelligent to compensate for this. Know Your Client (KYC) and due diligence processes are evolving in sophistication and automation in order to cope with the scale of the task. The finance industry is investing heavily in computer systems that can pick up unusual activity, within their teams and beyond, as well as automatically screen for individuals, businesses or states that appear on sanctions lists.

“Criminals will always try to make the money they’re seeking to launder have the appearance of legitimate funds,” says Faudemer. “But the compliance capability in jurisdictions like the Channel Islands has become just as sophisticated.”

This will mean extra cost, some of which will get passed on, with customers of

financial services firms having to pay more. “It’s similar to airport security,” says Grace. “The need for added security creates a knock-on effect for airports and carriers, and that cost passes on to the customer as a security levy. As is so often the case, the end user will pay.”

As well as increasingly using automated systems, there’s a need for organisations to train staff to ask the right questions throughout the course of the client relationship. The scale of the problem requires common sense too, so that risks are flagged up before they happen without the whole team having to investigate everyone to the same degree.

It’s here where KYC becomes increasingly important. “You can’t escape the basic fact that the vast proportion of all business done in the Channel Islands is perfectly genuine and doesn’t involve any criminal activity,” says Peter Derrick, Head of Risk and Compliance at Ogier. “And that’s the challenge – you’re spending lots of time carrying out checks on all that genuine business to stop the small percentage getting through. The thing

The Jersey brand has been hard fought to achieve, but can be lost very easily by anyone playing fast and loose with anti-money laundering standards

that worries everyone most is money laundering, because that’s the regulator’s greatest focus. But you can get equally unstuck if you get the rest wrong too.”

Plenty of people have learned that lesson the hard way. Take Horizon Trustees, which was pulled up in 2013 by the JFSC for failing to be transparent in its business arrangements and failing to ensure that its statements weren’t misleading, false or deceptive. The outcome for the body was to go into administration. Then there was STM Fiduciaire, which was prosecuted in Jersey in 2015 for failures around compliance – it was ultimately acquitted of these charges last summer.

And it’s not just companies. A number of individuals have been prosecuted in the Channel Islands for bringing cash into the jurisdiction for tax evasion purposes.

“There are also individuals who’ve had personal sanctions applied to them for not fulfilling their regulatory duties properly,” says Tony Horscroft, Head of Compliance and Risk at Ipes. “They’ll have been fined and banned from working in financial services. These cases are starting to be more numerous.”

A ‘landmark’ case took place last June, when Andrew Crawford Norman Fleming was imprisoned for 12 months for providing false and misleading information to the JFSC when trying to acquire a regulated trust company.

Which leads us to the most important upshot of all of this extra compliance work and added cost – that the islands have a financial services industry that everybody knows is clean, which is how they attract more high-quality clients. “We want crooks and dealers to say: ‘These guys ask too many questions’,” says Derrick. n

DAVE WALLER is a freelance financial writer

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CRS: the time has arrived

Having just come to terms with US FATCA, financial institutions in the Channel Islands have had to move swiftly to deal with the intricacies of the Common Reporting Standard. Laila Arstall at Carey Olsen explains

THE TAX AUTHORITIES in the crown dependencies sent the first set of US FATCA reports, compiled by financial institutions (FIs) in their respective jurisdictions, to the US Internal Revenue Service on 30 September 2015. Now those same institutions have to face up to the Common Reporting Standard (CRS) which, for the crown dependencies, was introduced on 1 January 2016.

CRS is a separate regime for automatic exchange of information developed by the Organisation for Economic Co-operation and Development (OECD). Under CRS, jurisdiction A will send information to jurisdiction B in respect of accounts maintained by financial institutions in jurisdiction A for individuals and entities that are resident in jurisdiction B. In many cases, the exchange is reciprocal but, in some instances, the transfer of data is one way only.

The CRS has a wider global reach than US FATCA, given that, as at the end of October 2015, 96 jurisdictions had committed to implement CRS exchanges by 2018 at the latest.

The information that is to be gathered under CRS is broad in scope and covers three key areas:● The financial information to be reported

relates to Reportable Accounts and includes all types of investment income, as well as account balances and the proceeds of the sale of financial assets (including income and balances);

● Reportable Accounts include accounts maintained for individuals and entities (which includes partnerships, trusts and foundations) and there is a requirement to look through passive entities to report on the individuals seen as ultimately behind these structures;

● The FIs required to report under CRS include banks, custodians, brokers, certain collective investment vehicles, trust and corporate service providers.

CRS sets out due diligence rules to be followed by an FI in terms of identifying Reportable Accounts. This involves reviewing client due diligence gathered for anti-money laundering (AML) and Know Your Client (KYC) purposes on pre-existing account holders, and requesting new account holders to complete self-certificates.

Once identified as a Reportable Account, the data to be reported is gathered from financial statements and other information maintained by the institution on the account and the relevant account holder.

The required data is used to complete a CRS schema, which is then filed with the local tax office through an online portal. In Guernsey’s case, for example, this is the Information Gateway Online Reporter (IGOR).

In the main, the steps to review, identify and report on accounts under CRS follow the same approach as US and UK FATCA. So, FIs that have already gone through the process of filing reports under US FATCA in 2015 will be well placed to leverage

that experience when the global reach of reporting, under automatic exchange of information, extends to other jurisdictions.

CRS recognises that taxpayers and tax administrations have a legal right to expect that sensitive financial information remains confidential at all stages of information gathering and exchange. Maintaining confidentiality and the safeguarding of data is a matter of both applicable law and the systems and procedures that underpin the regime.

While CRS contains extensive guidance on confidentiality and safeguarding of data, the onus is on each jurisdiction to satisfy itself that its exchange partner has the required standards in place before sending information to that jurisdiction. In the event of a breach or failure of confidentiality, a jurisdiction would be justified under CRS in immediately suspending transmission of data.

CRS also requires the domestic framework of each jurisdiction to include penalties or sanctions for improper disclosure of confidential information, and investigatory procedures to be triggered if a breach takes place. At its meeting in Barbados at the end of October 2015, the OECD’s Global Forum announced that all CRS-committed jurisdictions will be subject to a preliminary assessment, for the purposes of assessing confidentiality and data safeguarding measures, by mid-2016. This will ultimately lead to a comprehensive review of all jurisdictions. For an account holder, who is susceptible to threats of extortion or kidnap, a breach in security or confidentiality is already too late.

Consequently, concerns around the safeguarding of such information remain high on the agenda for clients and their service providers. They have little option but to comply, however, as the world moves ever closer to a level playing field in

terms of tax transparency. n

LAILA ARSTALL is a Senior Associate at Carey Olsen in Guernsey

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07.10.2015 10:09 (QUADRI-tx vecto) flux: PDF-1.3-Q-300dpi-v-X1a2001-fogra39

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It’s hailed by some as the next big thing for the islands, but

are the opportunities in fintech as dazzling as they seem, or are

people getting carried away?

IF YOU’RE LOOKING to coast along in a job where everything remains safe and familiar, and the only change you have to deal with is the stuff in your pocket that secures goodies from the office vending machine, then the world of finance may not be for you. The sector is being turned on its head, thanks to record levels of investment pouring into groundbreaking technology platforms.

According to Accenture, investment in financial technology (fintech) companies trebled last year, rising from just over $4bn globally in 2013 to more than $12bn. It marks a formidable shift, especially in a sector that has traditionally raked in those dollars and cents without worrying too much about the 1s and 0s.

The most eye-catching fintech deals in recent times have been the $3.5bn that KKR and others poured into payment processor First Data, and the $865 million raised on the New York Stock Exchange by Lending Club, a peer-to-peer lender. But the fintech

a bright future…

FIntech in the Channel

Islands:

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Finance

Words: Dave Waller

buzz goes beyond these massive companies – an army of start-ups has emerged, redesigning (and redefining) everything from small business lending to how flatmates split their bills [see box on p38].

It should come as no surprise, then, that fintech is generating the sort of hype previously attached to other digital disrupters-gone-mainstream, such as AirBnB and Uber. And if there’s something to be learned from the dramatic impact that those have had (on the hospitality and taxi sectors respectively), it’s that the choice facing established finance companies isn’t whether or not they should get on board with this emerging technology, but about ensuring that the change doesn’t bite them in the back pocket.

As you might expect, the Channel Islands’ finance industries have been talking up the fintech opportunity. Jersey recently hosted a conference on the subject and established a high-level working group to develop a coherent strategy for the island.

or nothing but hot air?

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Finance

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Finance

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Guernsey has been making similar moves, commissioning PwC to write a strategic review of fintech and how it relates to Guernsey as an offshore jurisdiction. It’s also formed the Fintech and Digital Oversight Group, again comprising figures from government, regulation and industry. Both islands, be it at the Digital Jersey ‘Hub’ or through Startup Guernsey, are running regular fintech events and networking sessions.

OFF AND RUNNINGThere have already been concrete successes. Elian is one company that’s taken the island’s expertise in identity management to the fintech arena. Its ID Check is an app that enables people to handle certain parts of the Know Your Client (KYC) process themselves – using their phone to take a photo and aggregating that automatically with other information, thus reducing the cost of KYC and allowing Elian to process 120,000 applications a year.

“It’s a small and safe step to be recognised as a potential fintech leader around compliance,” says Chris Clark, who, as CEO of Prosperity 24.7, worked with Elian. “If people are happy to trust data and money in Jersey from a regulatory perspective, then having KYC data outside the UK and EU could well be a compelling proposition too.”

This is one example of an approach that could prove fruitful for the Channel Islands. They have already nailed the ‘fin’ part of the fintech equation by honing in on niche specialisms in areas such as wealth management, real estate, insurance and fund administration. The challenge now is to tackle the tech part.

Many people advocate adapting this to key segments of existing expertise, rather than aiming to lord it over the entire fintech kingdom. “We’re not looking to take on London,” says Andy Jarrett, Director of Digital Jersey.

This seems a sensible approach. The UK capital already employs more than half a million people in digital or technology businesses, and Prime Minister David Cameron himself has stated his aim for London to be the fintech capital of the world by 2020. The UK government even appointed a special envoy for fintech, Eileen Burbidge, in July last year.

Its competition is in Silicon Valley, which has dominated the tech sphere for decades. There are also smaller nimble jurisdictions such as Israel, which now has about 200 fintech companies, many specialising in data security – a handy skill picked up working with the Israeli Defence Force.

Given this competitive landscape, the opportunities for the Channel Islands may indeed lie far from creating headline-grabbing apps like Uber. “The Channel

Islands have a lot of people who know an awful lot about the finance industry,” says Mark Loane, CEO of C5 Alliance. “It’s about bringing out that IP and turning it into products and solutions – whether that’s finding more efficient ways of engaging with clients; building more advanced portfolio management; risk management and the management of regulatory reporting; or the construction of financial products and solutions.”

Mike Culverwell, Interim Director of Guernsey’s Digital Greenhouse, also urges the islands to “play to our strengths”. The islands have a genuinely strong reputation for data sovereignty in financial services, he says. Add a sympathetic regulator and the access they have to key markets, and they can provide an enviable location for product development.

Another example of technology that may suit this testing model is blockchain, the database system that powers crypto-currencies such as Bitcoin. It’s causing a stir in the US as big banks work to establish standards. “Cross-bank payments are likely to be targeted by this technology and it will take out traditional players like Swift,” says Jarrett. The Channel Islands could look to become a home for companies trialling blockchain technology – they will be looking for small and agile jurisdictions with open, proactive regulators.

Such work – now known as ‘regtech’ – could be another potentially rich vein. “Can we put legislation in place that allows

The Islands have a lot of people who know an awful lot about the finance industry. It’s about bringing out that IP and turning it into products and solutions

people to hold data here in an innovative way using blockchain, while giving them certainty that the mechanism is recognised in the court of law?” asks Nick Vermeulen, a Partner at PwC, who worked with Guernsey on its fintech strategy report. “I see that as a way of allowing people to come here to do interesting things. After all, we’ve done it before with e-gaming.”

SUPPORTING ROLEThe other area of potential lies in simply supporting the booming fintech sector in the UK and EU. This is the nuts and bolts stuff the Channel Islands have always been good at. “As these players get wealthy they may need trust structures, seek private equity investment or a local listing, or a listing in London,” says Fiona Le Poidevin, CEO of the Channel Islands Securities Exchange. “If London has the aim of being the fintech centre of the world, it makes a lot of sense to support that effort.”

While the tax-neutral Channel Islands may offer some appeal as a base for fintech start-ups (Digital Jersey is talking to a ▼

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number of large banks that run accelerators globally about setting up something similar on the island), it’s unlikely the islands will be concocting their own Silicon-based nicknames any time soon. Technical skills there are limited, for starters.

“We have the issue of brain-drain, specifically on the entrepreneurship side,” says Jennifer Strachan, CEO of Startup Guernsey and a member of Guernsey’s Digital Business Development Committee. “There’s such a vibrant community in London and the rest of the UK and it’s buzzing. Instead of supporting school leavers here, we say: ‘Go off to uni and maybe come back or don’t’.”

Then there’s the business culture. The islands’ long-standing success in financial services has required a deep-rooted and conservative approach – disruptive technology requires precisely the opposite. “Innovation means taking risks and being prepared to accept that not everything works,” says Jason Laity, Chairman of KPMG in the Channel Islands. “When things go wrong you share your experience, learn and move on. Is that something the Channel Islands are used to doing?”

The governments could also make the environment more welcoming. “We don’t reduce risk for angel investors,” says Strachan, an angel investor herself. “In the UK they may give investors their money back if the company fails, but here there’s no government support, no appetite or vision.”

Guernsey lacks a start-up fund, she

says, and while Jersey has its Innovation Fund, it’s only for companies that already have traction. “We have a lot of building blocks,” she says, “but we need more.”

If you’re wondering how big the market could be for the Channel Islands, this may be the wrong question. It’s more a case of what could be lost if they aren’t involved.

Loane says taxi operators would never have been usurped by Uber if they’d had an easy-to-use mobile booking system and a quick and convenient way to pay. But the industry didn’t adapt to new technology and it got disrupted.

“In the Channel Islands there’s a risk of this happening,” he says. “Not in one huge disruption, more death by a thousand cuts. New players are shifting the paradigm while lots of highly-paid individuals sit apathetically in the financial sector not realising what’s going to hit them.”

The direct gains from fintech are unlikely to make billionaires of the islands’ business community, but it could bring a steady but realistic growth to their GVA. It could also be a vital element in diversifying the economy and, more importantly, help secure the future of financial services.

If the change is handled right, the task needn’t be too big for the Channel Islands. “We don’t need to reinvent the wheel,” says Vermeulen. “We just need to take that wheel and strap it to our bike.” n

DAVE WALLER is a freelance business writer

Potential fintech areas for the Channel Islands● Blockchain/crypto-currencies● Improved client interfaces● Advanced portfolio

management● Risk management ● Regulatory reporting● Construction of financial

products and solutions● Data hosting● Regtech ● Supporting fintech-related

trust structures, private equity investment and listings

● P2P platforms

Fintech’s wide umbrella

Accenture defines fintech as a sector that offers technology for banking and corporate finance, capital markets, financial data analytics, payments and personal financial management. In other words, it’s massive. Here are some of the areas being explored…

PaymentsMobile apps enable users to exchange currencies at favourable interbank rates, and transfer money overseas with minimal fees. Some even send money through social networks, or help housemates to split rent and everyday expenses.

Personal financeNew platforms offer tools and guidance to help people manage their finances better. Take Squirrel, which helps people save, budget and manage their bills directly from their payroll.

Banking‘Smart retail banks’ offer intelligent banking on users’ smartphones – with emerging platforms keen to distance themselves from the old ways of high-street banks.

ComplianceTechnology is being harnessed to help compliance officers detect cases of market abuse, fraud and reckless behaviour early, and conduct investigations faster. Many even use machine learning.

BondsOrigin is a digital marketplace connecting fixed-income investors with large corporate borrowers in the bond market. The aim? To allow large corporate borrowers to save on the cost of capital by transacting directly with investors.

Invoice tradingFunding Invoice is developing an online invoice marketplace to improve cash flow for SMEs facing lengthy payment terms.

Credit scoringAlgorithms and predictive analytics are being used to improve accuracy in forecasting people’s dreaded credit scores.

Finance

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Page 40: BL Magazine Issue 42 January/February 2016

40 January/february 2016 www.blglobal.co.uk

Business

Girl powerDoes having daughters make male CEOs run

more socially responsible companies?

Page 41: BL Magazine Issue 42 January/February 2016

Business

www.blglobal.co.uk january/february 2016 41

ONCE UPON A TIME, Queen Elizabeth I led her country to a famous victory. Five hundred years later, it was Winston Churchill’s turn to become a great leader. Today, however, we defer not to our national leaders, but to the likes of Bill Gates and Steve Jobs – corporate leaders who looked to conquer the world… and won.

There’s no shortage of media coverage when it comes to how and why fêted CEOs make it to the top of their field. They are portrayed as great people (often men) who have an X-factor ability to motivate people and take the crucial, difficult decisions that turn small companies into major multinationals.

The ‘lone hero with a vision’ story is one that the media adores and continually falls back on, but rarely do they look behind the scenes to see just how the CEO’s decisions are being made or, perhaps more importantly, influenced.

Recently, two university professors attempted to lift the veil that so often covers decision-making by looking at the influence of family members – and more specifically, daughters – on the decisions that are taken by CEOs.

Taking the companies in the S&P 500 as their test bed, Professors Henrik Cronqvist of the University of Miami and Frank Yu of China Europe International

Business School analysed the effect that having a daughter has on the socially focused activities of major US companies.

The researchers were able to find information about the gender of the children of 379 CEOs of S&P 500 companies and compared this information with the social responsibility ratings of the companies they run.

Their findings were quite clear – those companies run by a CEO who has at least one daughter scored on average 11.9 per cent higher on standard CSR measures than those who do not. The companies also spent more than 13 per cent more on CSR than those run by CEOs who have only sons or no children.

If daughters do have a quantifiable effect on their CEO parents, it begs the question ‘why?’. According to Professor Yu, it’s all a matter of perspective. “Our study gives credibility to the female socialisation ▼

Words: Kirsten Morel

hypothesis, which says that living and interacting with females helps the male see the world from a female’s perspective.”

The female socialisation hypothesis is more than just a theory; it works in practice, according to Alice Merry, daughter of Chris Merry, the CEO of Ipes. She is clear that “boys who have grown up with sisters tend to be nicer to women than those who don’t”. [See box on page 42]

Her father agrees that if you grow up with sisters in your family – and then go on to have daughters later – you’re much more likely to have an understanding of the female perspective.

GRADUAL INFLUENCEProfessor Yu also points out that the effects aren’t likely to happen instantly, the day a business leader’s daughter is born. “It doesn’t happen right away. People have tested this with judges and senators in the US and there is evidence to show that those with daughters display more ‘female’ ways of working,” he says.

“In the study, we weren’t able to test whether the effects are felt by a certain age – just identifying whether a CEO had a child was challenging – but our guess is that these effects take place over time.”

Yu and Cronqvist’s study showed that companies led by CEOs with daughters score above the median in every CSR category: diversity (+13.4 per cent), community (+6.5 per cent), employee relations (+6.3 per cent), product (+6.0 per cent), environment (+4.6 per cent) and human rights (+1.0 per cent).

The fact that diversity heads this list may be a reflection of the most common experiences associated with parenting a daughter.

“You translate your own experiences back and if you see your daughter having difficulty finding work, you wouldn’t want to see that reflected in your own business,” explains Chris Merry.

He points out that emotional intelligence is not easy to learn in the classroom. Taking this into account with the study, there is an implication that the long-term experience of living with women may more effectively open minds to a greater range of perspectives.

Interestingly, Yu and Cronqvist have sought to quantify the effect that a daughter has on a male CEO by comparing them with female CEOs.

“Having a daughter gives a male CEO about one-third more towards the social responsibility levels of

Those companies run by a CEO with at least one daughter scored on average 11.9 per cent higher on standard CSR measures than those without

Page 42: BL Magazine Issue 42 January/February 2016

Business

a female CEO,” says Yu, which in itself implies that even with daughters, male bosses still aren’t as socially minded as their female counterparts.

THE BIGGER PICTUREWhilst it may be possible to quantify the effect of daughters on their father’s leadership qualities, Christopher Journeaux, Partner at Therapy Jersey, points out that studies like this are useful for companies looking to ensure diversity; they aren’t about ‘feminising’ the business world.

“The more you take a myriad approach to people on a board, the wider the understanding you bring to that board,” he says. “It’s about real diversity, it’s not about making a board female-dominated. Diversity helps boards become more understanding.”

If the performance of business leaders is substantially affected by the people in their family, it does create questions for recruiters who tend to look only at the person in front of them. “If you want to hire a socially responsible CEO, perhaps you should look at their whole profile,” says Yu.

Journeaux suggests that recruiters should start by examining the way they describe the roles they are seeking to fill rather than looking into the candidate’s family background.

“Companies should look at the job description first and ask themselves whether it is focused on a particular set of traits – for example, male characteristics. If it is, then they could look at broadening the description as this will help diversify the leadership.”

Journeaux’s suggestion that firms revisit their job descriptions is a common sense place to start for companies committed to a diversity of thinking around the boardroom table.

However, Yu and Cronqvist’s study highlights an important element of leadership that is often overlooked in the search for the mythological and self-contained ‘hero-leader’.

Whilst the effect that daughters have on their fathers’ leadership qualities is interesting, more than anything else, the study proves that none of us exists in a vacuum. Leaders, as much as anyone, soak up the experiences of those around them and, often subconsciously, use these experiences to inform their decision-making.

Many companies are looking to better reflect the world around them and to play a more active role in the societies in which they operate. To achieve this, they could start by gaining a true understanding of the influences and experiences of their CEO – these factors may well affect how they run the company.

KIRSTEN MOREL is a freelance business writer

THE FAMILY VIEW

With an older brother, a younger sister and a father leading one of the Channel Islands’ largest private equity and fund administration companies, Alice Merry, 20, is well placed to comment on the effect that her family has on her father’s leadership style.

“I studied geography, so the wider environment is important to me and I’d find it very unfair if my father wasn’t interested in diversity,” she says.

As Alice looks towards work following graduation, she is both positive about the issue of gender diversity in today’s workplace and clear about the kind of influence she’d like to have on the companies she’ll end up working for.

“I personally have never found that I have been discriminated against,” she says. “There’s a lot less discrimination these days due to the pressures that social media can place on companies. I’m interested in Human Resources because it’s about making companies better places to work at.”

As a father of two daughters and one son, Chris Merry is keenly aware of the effect that siblings have on each other and he recognises

this in the findings of Yu’s and Cronqvist’s study. “If you grow up with sisters, you grow up with a greater understanding of the female perspective than if you don’t. If sisters have an influence, then daughters will too,” he says.

Ultimately, he feels that companies, as much as their leaders, are products of their environment and will always reflect this. “The drivers to being a good place to work are similar wherever the office is located, but offices do reflect the populations in which they are located,” he says.

Unlike ethnic diversity, however, where location plays a defining role, populations everywhere are split pretty much 50:50 in terms of gender. So few companies should have a problem maintaining equality between the sexes.

42 January/february 2016 www.blglobal.co.uk

Chris Merry (CEO of Ipes) with his daughters Alice and Pippa, son Hugh, and wife Julie

If the performance of leaders is affected by the people in their family, it does create questions for recruiters who tend to look only at the person in front of them

Page 43: BL Magazine Issue 42 January/February 2016

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Page 44: BL Magazine Issue 42 January/February 2016

44 January/february 2016

Business

Only you can prevent a bad hireWhether it’s through poor interviews, misrepresenting a role or not looking after a new recruit, getting the ‘fit’ wrong when you employ someone can prove costly

Page 45: BL Magazine Issue 42 January/February 2016

www.blglobal.co.uk january/february 2016 45

Business

FIRING SOMEONE IS awkward. It’s bad enough when the employee knows they’ve done wrong, but when it comes as a surprise to them, it’s worse. As your voice dips into an unfamiliar timbre – sympathetic but resolute – and the conversation moves to its conclusion, you can’t help but feel you’re partly to blame.

This is probably because you are. Employees don’t march into the office unbidden – they’re invited there. Before that, they’re filtered by suitability, and it’s highly likely that you gave them the job in the first place. Somewhere along the line, a mistake has been made. And while disappointment in a bad hire is natural, taking responsibility for it often isn’t.

The costs of poor recruitment can be high. A recent survey from Glassdoor puts it at £122,000 for every senior hire that goes belly-up; for mid-level managers, £57,700; and for junior roles, £39,000. Last year, online shoe retailer Zappos said bad hires had cost it about $100 million over its lifetime. To counteract any future loss, it initiated a separation scheme that offered employees $3,000 to exit the company swiftly, which it claims has made the process a lot smoother and much less expensive.

These figures factor in costs such as salary, loss of customers, reduced productivity and turnover; and then there’s litigation and outplacement for missing talent. Despite this, Jeralie Pallot, CEO of Rowlands Recruitment, thinks these numbers are conservative. “Lost time and lost productivity can add up to double the annual salary of the hired position, particularly for a senior hire,” she says.

While people leave an organisation over time in the natural ebb and flow of a business, it’s those who leave soon after joining that do most of the damage. On top of the money and time spent on finding someone in the first place, there’s an impact on the running of the business itself. Productivity dips while the role is unfilled – the team that should’ve been managed by the new employee is left in limbo. And morale is hit, not just because staff changes are disruptive, but because a new employee leaving so fast is startling.

REPUTATIONAL DAMAGECompanies in the Channels Islands should be especially careful of this. A sudden high-profile exit from a firm in such a small market can cause reputational harm that could take years to repair. “You’d be surprised by how long people hold on to these things,” Pallot says. “You can meet someone who left a company unceremoniously who will say nothing but bad things about them, even if it was 10 years ago.”

Experts advocate trying to resolve problems with a new employee rather than letting them go. “If it’s not an issue of the employee being in completely the wrong job, relationship problems can be quite quickly overcome with administrative support,” says Phil Eyre, Managing Director at The Learning Company.

If it is a relationship issue – such as a problem with a co-worker or difficulties with senior staff – it can, and should, be fixed. Not only does this save on the expense of damage done by seeking someone new, but it may also address potentially pre-existing problems in the company that only a fresh pair of eyes can spot.

Clearly, this all takes place post-appointment. But to stop your company from making a bad hire before any of this happens, it’s

Words: Jack Flanagan

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46 January/february 2016 www.blglobal.co.uk

Business

important to address how robust – or not – the company’s interview process is. Inexperienced interviewers (who talk more than they listen), poor communication and ill-defined requirements make the selection process little more than a lucky dip.

Lack of information about the candidate is another common mistake. Shelley Kendrick, Director at recruitment company Kendrick Rose, suggests a ‘360 degree’ approach to hiring. She recommends “getting opinions from old colleagues who know this person and how they work, having in-depth meetings”. Employers need to be more sleuth-like, to find sources of information beyond what they’re presented with.

There’s a race on between you (the employer) and the person who wants the job – you want to know their weak point; they want to shield it from view.

However, these preventative measures aren’t foolproof. Once an employee has joined a new company, the next task is retaining them. An onboarding strategy – the way you bring new recruits into the

company – will be key. If the first couple of months aren’t working out for them – they may feel sidelined, underused or that you’ve plain lied to them about the job – this will slash the enthusiasm of even the most ambitious hire. A happy employee will become lacklustre, eyeing the exit.

A good onboarding strategy introduces the employee to the company, makes them feel a part of it and sets up a system for any early worries and concerns to be dealt with before they become severe irritants.

HONEST AND OPENFeeling misled can be a particularly bad problem, says Pallot, and it will be difficult for a newcomer to recover from this. If they feel they’ve been mis-sold a job or culture, it will create resentment towards the employer, and each day in the office will reinforce this feeling.

Employers must be candid in the interview process, rather than sugarcoating the role or making presumptions, to avoid misunderstandings once the candidate has entered the business, says Pallot.

“A company can give the impression they are quite relaxed and social, but in fact are very heads down. That doesn’t make it a bad culture, but it can quickly disengage a new employee who wasn’t expecting it. It’s important that companies understand what their culture is and communicate it effectively,” she says.

Probationary periods are a good way of safeguarding the company against such situations, but this isn’t necessarily the case. As Victoria Clohesy, Senior Manager of Resourcing at RBC Wealth Management, says: “They aren’t ‘try before you buy’, but a two-way system for company and employee to get a sense of each other.”

All the same, if a firm lets someone go after their probationary period, the damage has already been done – in reputation, cost, disruption and wasted time.

A standardised, robust recruitment strategy and a friendly, informative onboarding strategy are essential. Beyond that, there are no silver bullets – every

Last year, online shoe retailer Zappos said bad hires had cost it about $100 million over its lifetime

employer must act as the situation demands. Some recommend an objective approach to interviewing, keeping track of the details of every mistake made thereafter; others underline the importance of talking to potential employees to find out who they really are. A candidate who is good at thinking on their feet may not be up to spec in the workplace. Alternatively, someone who comes across as antisocial or unenthusiastic in the interview, could be perfectly fit for the role.

Nobody can be certain that they will never make a bad hire. Somewhere along the line a candidate will misrepresent themselves or an interviewer will make a poor judgement call. But a company must do everything it can to minimise mistakes in the recruitment process – and avoid that final awkward conversation. n

JACK FLANAGAN is a freelance business writer

FIVE FATAL MISTAKESPoor interview processThe interviewer talks for 40 minutes about how demanding the role is, leaving the candidate little time to show what makes them right for the job. Investing in interview training or outsourcing to a professional interviewer can solve this.

Lack of research Start at the CV but go deeper. Establish why the role is needed – such as moving into new markets or selling an established product – and gather information on whether the candidate is right for the job.

No onboarding processA good onboarding process makes a new employee feel part of something. Victoria Clohesy, Senior Manager of Resourcing at RBC Wealth Management, says: “We go through RBC’s history to make them feel welcome and give them shared ownership.”

Negative work experiencesIssues can arise on the job, such as poor relationships or lack of contact. Rowlands Recruitment CEO Jeralie Pallot recommends keeping in touch with newcomers “from three to six months into the job” to keep them engaged.

Weak employer brandA company that hires and fires recklessly comes across as skittish and demanding. It won’t attract the strongest candidates and the recruitment process will drag on much longer than it needs to, while costs rise and productivity falls.

Page 47: BL Magazine Issue 42 January/February 2016

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Business

and share

Words: Ben Jordan

Share

I RECENTLY PICKED up a copy of Atlas Shrugged by Ayn Rand after it was referenced in HBO’s Mad Men. In Rand’s bleak industrial world, the catalyst for change comes from an elite group of innovators. Unfortunately, they have all mysteriously vanished. Without the great Captains of Industry, society is leaderless and falls into economic decline. The book makes the case for a hierarchical society governed by self-interest and the pursuit of profit. Amazing the things you can learn from chilling and watching Netflix.

Society is egocentric. We like to attribute success to extraordinary leaders who, through some Faustian pact with the dark forces, make it big. Henry Ford’s self-assembly model for manufacturing affordable cars for the mass market was used as a blueprint for such giants as McDonald’s and Apple. Successful companies in 2016, however, seldom have one private owner at the top of a pyramid.

Increasingly, companies co-own their business with their employees and give them a broader participation in the profits.

Back in 1991, Starbucks launched Bean Stock, an employee partnership programme that rewarded all eligible employees in addition to their normal salary. It created a culture where everyone had a vested interest in the financial success of the business. It increased productivity and staff retention from the bottom up.

Long before that, John Spedan Lewis decided from the outset that he would share the ownership of his company with the employees. Every member of staff would be a partner and have a voice in how the business was run. Today, the John Lewis Partnership is the largest employee-owned business in the UK.

ALL FOR ONEAccording to the latest figures, more than 300 UK companies are fully owned by their staff and at least the same again are majority-owned by their workers. Between them, they employ 250,000 people.

There’s little wonder, when the Employee Ownership Association’s (EOA) 2015 report reveals that the top 50 employee-owned companies had combined annual sales of £21.5bn (about two per cent of the UK’s GDP). They enjoyed an average sales increase of 4.6 per cent year on year combined with a very respectable 3.4 per cent increase in operating profit.

The same companies have also reported an average increase of employees of 4.3 per cent. And according to the National Bureau of Economic Research, employee-owned companies consistently outperform the FTSE All-Share Index.

All of this comes as no surprise to Duncan Langston, Director of Waitrose,

alikeWhen it comes to job satisfaction, employee engagement and increased productivity, does it pay for your staff to own your company?

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Business

www.blglobal.co.uk january/february 2016 49

Channel Islands, an employee-owned company. He says: “We perform well in staff retention, morale and productivity relative to other retailers. Our company ethic is that our partners share in the rewards, through annual bonuses, but also share in the responsibility for running the partnership.”

Nigel Le Quesne, CEO of JTC Group, another company with shared ownership, similarly enthuses about the benefits: “We’ve found that productivity is better and it creates a sense of family and cohesion. It’s important to us that our employees are treated fairly, so, provided all the ingredients are there, you’ll get a better all-round result for your team, clients and external partners.”

Indeed, Le Quesne is quite evangelical about employee ownership. “It’s my absolute belief that if we all have a real stake in the company, then collectively we will achieve more success and better results and that success should then be shared in proportion to each individual’s level of input and contribution,” he explains.

There’s no doubt that embracing employees as ‘partners’ makes sound

economic sense, and there are a number of ways in which companies achieve this. In the UK, for example, there are several HMRC-approved schemes, including Save As You Earn and Company Share Option Plans. The schemes vary in terms of whether shares are bought by employees or given by the company, the tax advantages, whether the shares can be sold separately, and the influence that employees have over the company direction.

FOLLOW THE LEADERLarger companies may choose to follow the John Lewis model, where the company is held collectively in a trust. John Lewis notes on its website that this creates a stable long-term business model as such companies are difficult to sell to a third party. Employees also have a greater voice.

“We have separate democratic structures for every level,” says Langston of the Waitrose model. “So at branch level, we have a forum called Partner Voice, which holds to account the management for the success of the store.”

“Representatives are democratically elected from the shop floor and they have

alike

a say in how we can make things happen,” he continues. “This goes right up to the Partnership Council that affects decisions at the top level.”

Other companies, such as JTC, operate a hybrid model, where staff are allocated shares under one scheme, but have the option of purchasing additional shares in the company through a second scheme.

“We started our first Employee Benefit Trust [EBT] in 1998, and in 2012 that paid out £9 million to our staff shareholders when we sold a 40 per cent stake in the company to the private equity firm CBPE,” explains Nigel Le Quesne.

“We then started EBT2 in 2012, which, just like EBT1, holds shares in the company for every single member of staff and is growing as the business grows.

“Our Equity For All [E4A] scheme sits alongside EBT2 and allows staff to directly purchase shares in JTC Group. We thought it was important to offer that option for a number of reasons. First, regardless of their level in the business, we want people to have the option to increase their stake in JTC if they wish. Second, we have grown rapidly through acquisitions in recent years

Page 50: BL Magazine Issue 42 January/February 2016

Business

50 January/february 2016 www.blglobal.co.uk

Help someone you care about reach their potentialOur Friends and Family Evening offers you great information to help them plan their career journey

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Gripple – a different approach

An innovative company developed on the design, production and marketing of a wire fastening device, Gripple is based in a lovingly refurbished factory in Sheffield. The Gripple device, named after its ability to both ‘grip’ and ‘pull’ wire, was invented by wire salesman Hugh Facey after an enlightening conversation with a Welsh farmer.

Big things have small beginnings, and Gripple now produces 30 million wire joiners every year. What’s more, nearly 80 per cent of its 220 employees own equity in the firm.

While some businesses follow the John Lewis model, with an employee benefit trust as owner, Gripple asks workers for a direct investment. Indeed, employees are required to invest a minimum of £1,000.

“Everyone in the business should take a risk,” explains Andy Davies, Chairman of Glide, a holding company for Gripple and other businesses. Employees are required to buy into the company after a 12-month qualifying period, with loans available to enable purchase where necessary. An internal market ensures equity stays within the business. The share price is generated by profits – shares purchased at the outset are now worth about 18 times their original purchase price.

As a footnote, you might be interested to know that thousands of Gripple wire joiners hold together the Great Dingo Fence in Australia, the world’s longest fence. Strewth, that’s a lot of gripples.

and E4A allows our newer colleagues to access a greater stake in the business.”

Given that it is relatively easy to establish an employee-owned company, there’s little to be said against the model. Indeed, in the Finance Act 2014, the UK government set aside £50 million for measures to exempt employee trusts holding shares from capital gains tax, as well as income tax for individual employees.

FROM THE GROUND UPDespite these generous incentives for titans of business like John Lewis, is it worth the trouble for a smaller company such as a new business to embrace employee ownership? Iain Hasdell, former Chief Executive of the Employee Ownership Association, is ambitious about the prospects of employee-owned companies.

“Employee ownership contributes some £30bn to UK GDP each year. And it is a growing economic force, at an annual rate of around nine per cent over the last three years with the pace of growth set to further improve,” he explains. “We are on track towards the EOA’s goal of 10 per cent of UK GDP being delivered by employee-owned businesses by the end of 2020.”

From a Channel Island perspective, it also remains to be seen whether employee-owned companies will benefit the wider economy. Nevertheless, Langston is enthusiastic about what Waitrose has done thus far. “Profit earned by partners naturally comes back into the local economy, but it’s not just about financial benefits. We see a greater level of community engagement from our team, from the Community Matters green tokens we distribute to shoppers, to our support of the Salvation Army at Christmas and recent involvement in the Island Games. There’s a social benefit as our partners are committed to providing for the community.”

The unsentimental drive to make profit isn’t incompatible with notions of fairness and social responsibility. Employee-owned companies are testament to that. According to Hasdell, the recent growth in employee-owned businesses has been triggered partly by the financial crash because business owners want to find a new way of doing business – just as John Lewis did in the late 1920s.

Perhaps the Channel Islands will follow the UK by introducing tax incentives to encourage local companies to adopt the shared ownership model. The policy underpins the idea that it builds stronger businesses and spreads wealth.

So rather than looking for a new job or joining a hippy commune, direct your boss to the Employee Ownership Association. It pays to share. n

BEN JORDAN is a freelance business writer

Page 51: BL Magazine Issue 42 January/February 2016

www.blglobal.co.uk january/february 2016 51

Business

Help someone you care about reach their potentialOur Friends and Family Evening offers you great information to help them plan their career journey

A strong foundation with Deloitte helps careers motor in all directions. Any country, any industry. Whatever they want to become, come along and see how they can acquire the skills, networks and business experience with us, that they’ll need to succeed following their dreams. Find out about our school leaver and graduate programmes and how our study options flex to suit students’ individual learning styles. Chat to our people and see the breadth of characters and talents that flourish with us.

Date: Thursday, 25 February 2016Time: 5pm – 7pmVenue: Deloitte, 44 Esplanade, St HelierRSVP: [email protected]: 01534 824203

www.deloitte.co.uk/students/offshoreCareers in Audit • Tax • Advisory

© 2015 Deloitte LLP.Deloitte LLP is an equal opportunities employer.Member of Deloitte Touche Tohmatsu Limited

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Business

Time for a

Some companies resist new ways of working while others embrace them, but getting change right can be the difference between success and your company going to the wall

THE MYSTERIOUS WORLD of change management can sometimes seem like the dark arts. Replete with models and methodologies and strange-sounding names – Lewin’s Force Field, Kotter’s Eight Steps and ADKAR, to name but a few – it can be an offputting prospect for the uninitiated. But just how complex is change management? And, more to the point, what does it actually mean and do you need to be doing it?

The official definition of change management, according to the Association for Project Management, is ‘a structured approach to moving an organisation from the current state to the desired future state’. Change, therefore, means progress – and in business this means leading a firm towards the future, not simply letting it stand still with the risk of being overtaken by competitors and losing the trust of its stakeholders.

Steve Hearsum, a Development Consultant at leadership institute Roffey Park, thinks we should think of change as something that shouldn’t be managed but led. Most important, ▼

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Change?

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Many experts agree that change in a business should encompass continuous small improvements married with the major change programmes that are sometimes necessary

he says, at the forefront of any leader’s mind should be two key questions: change is an answer to what question, and what is it you want to achieve?

A change management programme doesn’t necessarily have to mean radical upheaval. As Debbie Rayner, Director of IT at law firm Ogier in Jersey, says: “A lot of small changes can add up to a radical difference without the added downside of upheaval and disruption to the business. Understanding your organisation’s appetite for change, identifying quick wins, and a common sense approach go a long way.”

Jonathan Atkinson, CEO of change management consultancy Greenlight, says his own rule is not to change unless you have a robust business case that spells out the proposed benefits and how they will be measured and made real.

“Companies need to change for many reasons. It might be because systems, processes or services have become out of date or because they simply need to be improved due to new demands, or there are opportunities to grow revenues or profit,” he says.

CHANGE OR DIE“Evolve or become extinct,” Rayner says more plainly. Moving towards a state of continuous improvement is what most firms should be aiming for. “It’s essential that we continually challenge why we’re doing things and the way in which we are doing them, and that we adapt our processes to continually enhance and improve the services we offer,” she says.

Mike Jeacock, COO at the Jersey Financial Services Commission, is spearheading a major transformation programme at the financial regulator. The reasons behind it, he says, are to increase efficiency and effectiveness and to bring about modernisations that were put on hold during the financial crisis. Once the “major surgery” that he is spearheading is complete, only “routine changes” will follow, he says.

Although advancements in technology are the catalyst for much change, Rayner warns that organisations can be too easily seduced by the next magic Hogwarts IT solution. “Any time the IT

department is the driver of change into the business is a recipe for disaster,” she explains. Instead, technology should underpin and support the strategic plans for every area of the business, including cultural, environmental, technical and financial issues. “Just because a new technology ‘can’, doesn’t necessarily mean the organisation ‘should’,” she cautions.

Many experts agree that change in a business should encompass continuous small improvements married with the major change programmes that are sometimes necessary. Solely sticking to a ‘big bang’ approach, which drags an organisation kicking and screaming into the present day, can be fraught with problems. The business may have to wait for months, or even years, to reap any benefits from the new regime – or worse, a change may be so delayed that it becomes outmoded itself.

WHAT TO CHANGEIdentifying which areas to fix in a business can be done in a number of ways. The most straightforward is to talk to employees, clients and suppliers to find out what is going well and what needs to be worked on. This leads to an important stream of organic ideas for change, but must be supplemented by a proactive approach that analyses whether each process or area of business is working as best it can.

Atkinson advocates a combination of business analysis techniques and measurement to identify any areas of weakness. “Measuring the performance of certain functions or outputs paints a picture that allows you to understand what needs to improve,” he says. “Then it’s back to the business case again – what are the impacts in terms of time, cost and resource to improve, and what is the return on investment.”

He argues that the greatest assets an external consultant brings are objectivity, along with lessons learnt from other organisations,

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as well as proven tips, tricks and methods that will be of invaluable help to staff leading change from within the organisation.

A change management programme will inevitably encounter obstacles, ranging from managerial resistance and budgetary constraints, to the limits of legacy systems and company culture problems. Personal attitudes can also put a spanner in the works if those in the company are fearful of change, are too busy to take it on or are too complacent about it.

“It’s down to every single member of every team to first accept that there will be days when we fall into one of these categories,” says Rayner. “We are all human after all. The trick is to recognise those days for what they are and not let them turn into weeks or months.”

Atkinson believes obstacles lie in people, processes and technology. The most complex of those is people, as resistance can be covert, making it difficult to manage. “Industry techniques, such as stakeholder analysis and engagement and communication planning, are a great help in overcoming these resistors, but they need constant attention,” he says.

With two decades of change management experience behind him, JFSC’s Jeacock says the key to a successful programme comes down to several factors. These include strong communication with staff, a realistic timescale, a common-sense approach and a ‘will-do’ attitude, board support and good governance of the project.

A massive advocate of engaging every employee with change, Jeacock has created roles for voluntary change champions at the organisation to dispel any resistance. Their job is to give feedback to management about how the programme is affecting staff, to clarify any areas of concern and in particular to dispel any worrying rumours. “You have to bring staff with you,” he says.

Rayner has another important message for any organisations proposing to transform the way they’re run. “Change doesn’t have to be arduous or threatening,” she says, adding: “Although it can be hard work at times, we have a lot of fun.” n

EMMA DE VITA is a freelance business writer

SIGNS THAT YOUR COMPANY MIGHT NEED TO CHANGE

Are you concerned your company might be struggling to keep abreast of the market? Answer yes to two or more of these statements and it might be worth considering whether you should undertake a change management programme. The following list isn’t definitive or ‘right’, it’s a starting point for reflection.

1 Your customers/users are complaining about your products/services.

2 Your employee engagement/staff survey data is showing a downward trend – or if it’s the first time you’ve run it, is simply not indicating your business is a great place to work.

3 Staff sickness/absenteeism is increasing and/or churn rate is high. This isn’t a sign you have ‘the wrong people’; it’s a signal that the leadership and/or culture is in need of attention.

4 Whistleblowing. If people need to tell someone else what is wrong in your business, and they can’t tell you, you have a problem.

5 New entrants to the market can offer what you do more efficiently/for less. Can you remain competitive?

6 Revenue/cost targets aren’t being hit.

Page 56: BL Magazine Issue 42 January/February 2016

Corporate Commercial & TrustFrom finance houses and utility companies to entrepreneurial start-ups and internet businesses, we understand that you need high quality accurate and pragmatic advice.

At Parslows we work closely with our clients to ensure a prompt and practical service that you can rely on.

For expert advice, please call Mason Birbeck on 01534 630530.

17 Broad Street, St Helier, Jersey, JE2 3RR T: 01534 630530 E: [email protected] W: parslowsjersey.com

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Page 57: BL Magazine Issue 42 January/February 2016

www.blglobal.co.uk january/february 2016 57

Advertising feature

Mason Birbeck, Head of the Corporate, Commercial and Trust team at Parslows, examines key due diligence considerations when outsourcing business operations

WANT TO KNOW MORE?For advice on due diligence as part of an outsourcing process, contact Mason Birbeck at [email protected] or call +44 1534 630530www.parslowsjersey.com

Outsourcing?Then make sure your due diligence is thorough

OUTSOURCING IS ON the rise across a large range of industries. Recent figures show the value of UK public and private sector outsourcing rising from about £35bn at the turn of the millennium to a current figure of around £88bn. A significant increase.

Unsurprisingly, businesses in the Channel Islands have also embraced outsourcing as a means to lower costs, increase efficiency, expand resources and expertise, and ultimately improve customer service. This can, however, open the door to operational and regulatory risks. As a result, before committing to outsourcing arrangements, a business should carefully consider carrying out appropriate due diligence in order to avoid, or at least mitigate, those risks.

Here are some of the key points that need to be considered:

● Establish a risk management framework and risk register enabling the outsourcer’s and service provider’s teams to identify and assess the project risks, their current status and any action needed to manage those risks.

● Look inwards as well as at the prospective service provider. Start by considering what target services are currently being provided in-house, the service delivery model and the service levels being met, as well as the transaction volumes. This includes the number of employees engaged in providing those services, and if changes could affect staffing levels, or require a review of employment terms.

● If cost is a key driver, the process should include a detailed review of current expenditure on the earmarked services.

● Examine intellectual property rights used in the existing services (software

products, for example). If those IP rights aren’t owned by the business, will the terms of use enable the business to make them available to the service provider if necessary, and is there any associated cost for doing so?

● Are there any third-party contracts currently in place to deliver the services? If those will cease to serve a function, can the business terminate the contracts without penalty or before expiration of a set notice period? If there will be a continued need for third-party services, but on amended terms, can the business unilaterally vary those terms?

● Assessment of a prospective service provider requires a comprehensive analysis of all the services it is offering, how it will tailor those to the aspects the business wishes to outsource, and how it will deliver those services.

● Fixing the detail of those services will inform the service provider’s proposals on pricing, which should make it easier for the business to price any changes to volumes and service levels.

● Include an examination of the service provider’s corporate status and wider group structure, and its own (and its group’s) financial standing. Also, its insurance coverage and the risks covered.

● Investigate the service provider’s compliance history, the existence of complaints, litigation or regulatory actions, and evaluate its track record in delivery of similar services.

● Analyse the service provider’s disaster recovery and business continuity plans, its system of internal quality and other controls, its security history, and the extent to which it is audited, financially and otherwise.

● If the business is a data controller and/or data processor for the purposes of the Data Protection (Jersey) Law 2005, and data is to pass to the service provider under the outsourcing arrangement, adequacy of data protection will be a key consideration.

● Adherence to the six core principles laid down in the Jersey Financial Services Commission’s Policy Statement and guidance on outsourcing will be a critical factor for businesses in the regulated financial services sector.

If, following the due diligence process, the decision is to proceed, the parameters of the outsourcing, and a detailed description of the services, should be set out in a comprehensive outsourcing agreement. This should, among other terms, include a precise description of the functions to be outsourced, and a clear delineation of the respective responsibilities of the service provider and the outsourcer.

An early-stage and comprehensive evaluation of any proposed outsourcing arrangement is highly advisable.

Failure to identify strategic, market, reputational and (to the extent applicable) regulatory risk could not only fundamentally affect the project’s economics, but also be potentially damaging to the outsourcing business. n

Corporate Commercial & TrustFrom finance houses and utility companies to entrepreneurial start-ups and internet businesses, we understand that you need high quality accurate and pragmatic advice.

At Parslows we work closely with our clients to ensure a prompt and practical service that you can rely on.

For expert advice, please call Mason Birbeck on 01534 630530.

17 Broad Street, St Helier, Jersey, JE2 3RR T: 01534 630530 E: [email protected] W: parslowsjersey.com

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Technology

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THOSE OF US fascinated by Star Trek technology may once have dreamed of phones that responded to voice commands, robots taking on household chores, and cars that drive themselves. But did we ever wonder what effect these modern marvels would have on the world of work?

Last November, Andy Haldane, the Bank of England’s Chief Economist, said 15 million jobs in the UK – about half the current working population – could soon be lost to “sophisticated machines”.

That’s consistent with findings by Professors Carl Frey and Michael Osborne of Oxford University, whose 2013 study, The Future of Employment: How Susceptible are jobs to computerisation?, proposed that ‘about 47 per cent of

total US employment is at risk’ within the next 20 years.The impact on manufacturing has already been huge,

with armies of robots taking jobs once performed by humans – but it’s not the only sector feeling the march of automation. Even as bank profits have shot up in recent years, jobs on trading desks have plummeted. In 2013, Bloomberg Business quoted one bank analyst who talked about firms getting rid of traders because “all they do today is hit buttons on computer screens. Twenty-five years ago they would be calling their buddies at different firms. It was a highly labour-intensive effort.” Now it’s largely automated.

That’s just one example of how this ‘evolution’ is different to the technological changes that led to manual

There’s been much talk, and some hysteria, about job automation and artificial intelligence, but is this really the end of the human workforce as some would have us believe?

Words:Dr Liz Alexander

Will a robot steal your job?

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Technology

You are safer if you have three things that are essentially human skills – negotiation, helping other people and coming up with new ideas

labour being ousted after the invention of the combine harvester. A report issued in April 2015 by Bank of America Merrill Lynch on creative disruption predicted that “machines will perform more and more tasks in banking, logistics, healthcare and other service sector industries”.

But, as physicist and Nobel Laureate Niels Bohr once famously pointed out: “Prediction is very difficult, especially if it’s about the future.”

This seems especially true concerning technology. Who can forget the widespread belief that Y2K would be ‘a crisis without precedent in human history’? So how much salt should we take with experts’ assessments that the ‘second machine age’ will lead to massive unemployment? More to the point, who will be the fortunate ones whose jobs are least threatened by the advancement of AI?

THE HUMAN ELEMENT “Don’t fear the robots or automation and the rise of computing,” says Gez Overstall, InfrasoftTech’s business development expert in Guernsey. “They’re just going to take away the drudgery and routine, repetitive stuff, freeing up people to add more value to the business.

“If I can find a way to make my work more efficient and finish in half the time, rather than the monotony of doing the same things for clients over and over and shuffling paper around, that frees me up for networking and getting out in front of people.”

That may be true for Overstall, but not necessarily for everyone. A report from Oxford’s Frey and Osborne featured on the BBC website, reveals that not every role has the same odds of survival. Those at greatest risk of automation (95-97 per cent certainty) include book-keepers, accountants and taxation experts. Roles assumed not to be so easily taken on by machines (seven to nine per cent certainty) are management consultants, business analysts such as Overstall, and CEOs.

“Automation is a massive threat, but also an opportunity as long as you’re at the ‘thinking’ end of the industry,” says information consultant Dan Hare, Director of Continuum in Jersey. “If you can draw on a flow chart how something is supposed to happen, you can automate it. You are safer if you have three things that are essentially human skills – negotiation, helping other people and coming up with new ideas.”

Which begs the question, just how ‘sophisticated’ and ‘intelligent’ are the machines that could replace us? Maybe not so much, even now. As the authors of The

Second Machine Age, Erik Brynjolfsson and Andrew McAfee, point out: “Computers and robots remain lousy at doing anything outside the frame of their programming.”

Take this simple statement by Hector Levesque, AI Researcher in the University of Toronto Department of Computer Science: “The large ball crashed right through the table because it was made of Styrofoam”.You read that ambiguous sentence as meaning the table (not the large ball) was made of Styrofoam, right? But a computer would flounder at making that inference, says Levesque. In short, machine automation – at least as it stands today – isn’t really about thinking, it’s about removing the paperwork burden and handling huge quantities of disparate data really, really fast.

FINDING THE BALANCEBarry Matthews, an expert on robotic process automation (RPA) technology and Managing Director of independent management consulting firm Alsbridge, agrees that while technology has matured and advances in AI are an “unstoppable tide”, machines still aren’t intelligent in the same way that we are. Those currently used for back office ‘heavy lifting’ can only act on rule-based algorithms programmed by their human masters.

Nevertheless, he cites an example where RPA took data spread across many different file formats and posted it into the right accounts so quickly that it enabled a global bank to close their books in days rather than weeks and reduce headcount by 70 per cent. It simply replicated what a human would do, only so much faster and without the need to eat, sleep or take holidays.

However, as Dan Hare counters: “In financial services, the advantage we have is customers. The best way to service those clients is by embracing automation and making sure we have better quality information with which to add value to them.”

WHO MIGHT GO FIRST?

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Technology

Think, for example, how we’ve become used to the convenience of ATMs rather than having to wait for a bank teller. Or how much quicker and easier it is to book an airline ticket online than go through a travel agency. Yet when we have a problem for which we don’t even know the right question, let alone the answer, it’s a human being we want, not automated options.

The balance to be reached is human-centred, rather than technology-centred automation. Indeed, as Jonathan Aldrich-Blake, Global Investment Manager and tech sector specialist for Ashburton Investments says: “Automation may be a bigger risk in emerging markets where the economy is still largely based on physical labour. The UK is a developed market and is less about manufacturing processes than it once was. The higher end or skilled jobs still need somebody who has decision-making control.”

“If a customer says to me: ‘What’s the business case for sourcing my data warehouse to India rather than Eastern Europe?’, or insource it rather than outsource it, I’ll use technology to provide those data points and all the evidence,” adds Barry Matthews. “But understanding what the customer wants, assessing it and then providing recommendations is something that only a human will be able to do for many years to come. I hope.”

TURNING POINTWhy speak of hope? Because of the likelihood, at some point, of the ‘technological singularity’ – a term coined by futurist Ray Kurzweil to describe “a future period during which the pace of technological change will be so rapid, its impact so deep, that human life will be irreversibly transformed.”

Says Matthews: “When a machine can start to think for itself and design other machines, that’s when we all have to worry. That’s a real inflection point because

Source: BBC/Oxford University/Deloitte

then you lose control, robots can do what they like without having to obey their human masters. At the moment that remains in the realm of science fiction movies.”

Then again, as the Kyle Reese character says at the end of the film Terminator: Genisys: “One thing we know for sure: the future is not set.” n

DR LIZ ALEXANDER is an author, educator and business strategist, and Founder of business consultancy Leading Thought

SOME JOBS ARE MORE LIKELY TO BE AUTOMATED THAN OTHERS. HERE, A SELECTION OF JOBS ARE RANKED OUT OF 365 PROFESSIONS, AND A PERCENTAGE GIVEN ON THEIR LIKELIHOOD OF AUTOMATION

WHEN ROBOTS GO BADDespite all the talk of robots taking over certain jobs, automation isn’t foolproof, as a recent example of market trading demonstrated starkly.

High-frequency trading (HFT) platforms, and a form of AI also referred to as ‘algos’, have been used on Wall Street since 1999. According to Marc Goodman, author of Future Crimes, they now “represent up to 70 per cent of the trading volume on the Dow Jones”.

Goodman relates how, in April 2013, the Dow Jones Industrial Average and the S&P went into freefall, with $136bn in shareholder value wiped out within three minutes. Why? Because these algorithms, while making “trillions of calculations per second” and executing trades “in less than a half a millionth of a second” rely on the automated reasoning of software programs written by human beings.

So, when a group calling itself the Syrian Electronic Army (SEA) hacked the Associated Press’ official Twitter news feed and falsely posted news of two explosions in the White House, injuring President Obama, the algos began selling like crazy, as they’d been programmed to do when scanning news sources that reported terrorist attacks.

As Goodman points out, had a human looked at the false SEA tweet they “might have noticed it was poorly phrased, was not in Associated Press style format” and had other “subtleties lost on a robot-trader”.

8=FINANCE OFFICER

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From tech acorns…

With technology seeming to leap forward almost every day, can investors spot those small tech firms that could

become the Googles and Apples of the future?

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From tech acorns…

IT’S ASTONISHING TO think that the dotcom crash occurred over 15 years ago. Many investors lost their shirts (and a lot more) putting all their money into tech in the hope of making a fast buck. Fast forward to 2016 and tech must still be approached with caution – but there are plenty of opportunities to make money if you know what you’re doing.

For today’s digital generation weaned on the internet, the investment frenzy that centred around the emergence of internet businesses from 1997 to 2000 may seem strange. Yet it’s a lesson that every tech investor should learn by heart.

At its height, private investors were ploughing cash into start-ups that had no prospect of ever making profits – companies such as Boo.com, Just2Clicks and Pets.com. When this bubble burst in March 2000, many of these ‘hot’ tech stocks vanished without trace, along with their investors’ cash.

Even a traditional FTSE stalwart, GEC, came unstuck trying to reinvent itself to profit from the boom. Under Lord Simpson it sold off its profitable defence arm, rebranded itself Marconi and invested billions to become a telecoms equipment manufacturer. The bust brought it close to bankruptcy and wiped out shareholders.

It took 15 years for the NASDAQ, America’s tech-heavy equity index, to surpass the high water mark of 5,048 set on 10 March 2000. Yet in that time a few of the ‘new economy’ stocks that survived, such as Amazon and eBay, have become global behemoths.

The trick of investing in stocks is to spot winners when they’re small and cheap – invest early and hold. Better still is when a sector is out of favour. For those that had

Words: Chris Menon

the nerve to invest in good tech stocks when they were most out of favour back in early 2003, the rewards have often been impressive. Indeed, from the start of March 2003 to the end of November 2015, the FTSE techMark All-Share Index of tech stocks rose 415 per cent compared with only 100 per cent for the FTSE All-Share.

TRENDING RIGHT NOWGiven the pace of technological innovation, there are many broad trends than an investor can play. According to technology analyst Lorne Daniel, from broker finnCap, some of the most important centre around mobiles, connectivity and changes in transport.

“Mobiles grow in importance by the day. They’re becoming an all-pervasive connection to the world – business, financial, personal and leisure. Connectivity is key,” says Daniel. “The Internet of Things means an increasing number of devices will

be connected around us, talking to each other, anticipating our needs. In transport, wider coverage and better data capacity sees us pulling more and more data from vehicles, about driving characteristics and vehicle and engine status.”

Gartner has estimated that by 2020, 35 billion things (ranging from vacuum cleaners to parking meters) will have internet access and 47 per cent will have the ability to request support automatically.

This level of interconnectivity will also necessitate increased cyber security. Gartner believes that by 2018, 20 per cent of smart offices will have suffered from digital vandalism.

Other top trends for 2016, identified by Juniper Research, include the rise of virtual reality headsets in the world of entertainment, the availability of consumer robotics, the growing use of wearable technology (such as surveillance cameras and health monitoring) by business and government agencies, and cloud infrastructure for game devices, such as Nintendo’s NX console. Juniper sees eSports, where consumers watch live streams of games tournaments, as pioneering a new games revenue stream.

Gervais Williams, Managing Director at Miton, is a fund manager who specialises in the small cap universe. He believes it is set to outperform in an era of low economic growth – a thesis ably set out in his book The future is small.

He’s well placed to identify fast-growing small cap technology stocks but cautions against jumping to invest in trends such as robotics and the Internet of Things. “Although it’s nice to be able to turn your heating on remotely, the more that you link things up, the more you have the ability for

The trick of investing in stocks is to spot winners when they’re small and cheap – invest early and hold. Better still is when a sector is out of favour

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Technology

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someone else to turn your heating on… I think the mainstream may be quite slow to adopt it,” he says.

STOCK PICKINGIn terms of finding stocks with world-class technology, balancing the risks against the opportunities is key. “There are a lot of concept stocks that could do very well, where there is quite a lot of sales growth and profits still to be generated,” says Williams.

“Generally, our strategy has been to slightly steer away from those. This is partly because the excitement of the future is already reflected to a degree in the share price, so there is substantial downside if it doesn’t materialise, but also because we believe we can make much better returns by investing in companies that aren’t at the leading edge but are still innovative. They are taking existing products but modifying or updating them, so the technology risks for the new adopters aren’t too high but the commercial benefits very substantial.”

He cites software firm K3 Business Systems. “Their technology has started to be adopted by Microsoft, who are using it in Germany and the US,” he enthuses.

An exception is his holding of four per cent of small cap Seeing Machines, which is at the cutting edge of driver monitoring systems for safety.

“They have many leading auto companies working with them and recently sold the rights to their technology in the mining industry to Caterpillar. As the Caterpillar money came in, it allowed them to devote more resource to develop their customer base in other areas,” says Williams.

He admits that he mitigates the risks by working with industry partners “who have better knowledge than we have and who, more importantly, have done more due diligence than we are allowed to”. Hence he used Caterpillar’s adoption of Seeing Machines as third-party verification.

This is a classic example of today’s smart tech investor – spotting the value of the genuinely new but using tried and tested investment practices as back up. n

CHRIS MENON is a freelance investment writer. He holds shares in Seeing Machines

FIVE FOR THE FUTURE?For most investors, exposure to small cap tech stocks, or even their bigger cousins, is likely to be achieved through an investment fund. But for those with the knowledge, time (and nerve), here are five small cap tech stocks worth a look.

Gfinity This stock, which is on AIM, could benefit from the increasing popularity of eSports, where consumers watch live streams of games tournaments. According to Juniper Research, the 2015 Gfinity Championships in London topped 30 million viewers worldwide. Small cap specialist Hargreave Hale has a 10.3 per cent holding. Oliver Bedford, Manager of the Hargreave Hale AIM VCTs, says: “Although online gaming events already attract large global audiences through online broadcasting platforms, it remains a nascent industry that is yet to fully exploit the commercial opportunity. Gfinity is a leading European player in eSports.”

Seeing MachinesAIM-listed Seeing Machines developed head and eye-tracking technology, which was used by Caterpillar in the mining industry to monitor driver fatigue and reduce costly accidents. Caterpillar then bought the rights to use and market the system for its business for US$17.5 million. The technology is also used in next-generation semi-autonomous vehicles, such as General Motors flagship Cadillac CT6, and the firm is working with another 10 auto manufacturers. Tech analyst Lorne Daniel, at house broker finnCap, said: “We see a company with a mid-term value of at least £480 million, even on a conservative basis. That compares with the current £40 million market capitalisation.”

GB GroupGB Group offers identity verification and tracking solutions on the internet. It has a vast number of connections to multiple databases, which is very difficult to replicate globally. More internet commerce means more business and demand for GBG. As that explodes, GBG is growing proportionately. House broker Peel Hunt’s tech analyst Alexandra Jarvis said: “We believe the company can sustain strong organic growth through international expansion, its expanded product base and ongoing innovation, supplemented by acquisitions. GBG is uniquely placed in the ID intelligence market and the strategic value of this business continues to grow.”

K3 Business TechnologySoftware integrator and vendor K3 Business Technology supplies software to the retail, manufacturing and logistics sectors. It’s increasingly moving up the value chain, selling products that contain its own intellectual property at a higher margin. These products are also being sold internationally through third-party vendors such as Microsoft. According to finnCap analyst Andrew Darnley: “Global recognition through membership of Microsoft Dynamics’ Inner Circle demonstrates the solution quality and in turn raises K3 product visibility on the world stage, with increasing channel interest and first global contract wins.”

Intelligent Energy This AIM-listed company designs and develops hydrogen fuel cells for low-cost, mass-market applications. It operates in the automotive, consumer electronics and distributed power and generation sectors. Notably, Apple sells its Upp phone charger and it’s said to be developing a long-life fuel cell for the iPhone. Zeus analyst Dr Tom McColm described it as “one of the UK’s most sophisticated and exciting technology companies”. In the automotive sector it’s working with some leading Asian car manufacturers.

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Technology

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Whether you want to organise your work life or choose a bottle of wine with confidence, we’ve picked five apps that will help you kick off the new year with gusto

Five apps to make life better in 2016

HOW TO TIE A TIEThere are lots of apps on tying tie knots, and many use an identical interface and graphics, but this one by Damir Nigomedyanov is the high-class end of the market and uses its own moving artwork. The free version gives you limited access, while the paid-for app shows you how to tie all the knots. Different knots suit different collars – and then there’s that occasional black tie event. There’s nothing more stylish than untying your real bow tie at the end of the evening and leaving it draped casually around your neck. This app means you can tie that knot confidently rather than wearing a tacky clip-on.Free/£3.99 (premium)

CAMCARD‘Good intentions’ is the name I give to the pile of unsorted business cards on my desk. Thankfully, I now have the CamCard app. On the way home from meetings, I simply take a snap of each of the business cards I’ve collected and CamCard adds the details to my contacts. It lets me edit them before I save (though sometimes its guess at which category to put each bit of text in is wide of the mark). All new business cards are immediately in my address book, which syncs with my computer. Now there’s just that old pile of cards to get through …Free

MICROSOFT OFFICEIt’s ubiquitous; you use it everywhere you go; and at long last, thanks to this handy app, it’s actually pretty good on your phone as well. If you don’t already have a Microsoft account, you’ll need to sign up for one in order to access all the functions of Word, Excel and Powerpoint (each a separate app). This gives you the freedom to edit documents on your phone wherever you are and save them to access later on your computer. One big plus, if you’re a fan, is that you can use Outlook on your iPhone instead of Apple’s Mail programme, which gives you the same look and feel as on your computer.Free

iSCANNERIf someone sends you an official document in the post and you want a digital version or you’ve been asked to email it to a colleague, iScanner is the app for you. Using your phone’s camera, you can quickly turn any paper document into a PDF. There is a free version of the app, but that leaves you with a visible watermark at the top of your PDF, which is annoying. So it’s worth paying the small sum for the full version to give you a clean scan. It’s much quicker than putting paperwork through your scanner and the quality is almost as good.Free/£0.79 (premium)

VIVINOScan a wine label, or even a wine list, into this nifty little app and Vivino will tell you all about the wine, how much a bottle might cost and what your fellow drinkers think of it. This means you can scan a wine list to find the bottle that’s either best value or most likely to suit your palate. Many venues – restaurants, shops and wine merchants – are already included on Vivino, so you can look up the wine list before you even enter. You can add your own comments to help others too, and there are special offers for wine lovers.Free

Technology

Words: Chris Wheal

Page 67: BL Magazine Issue 42 January/February 2016

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BLguernseyMonterey Insight reveals market share of funds

Guernsey Finance to open Hong Kong office

GFSC issues guidance on electronic CDD

Findings from the 21st edition of the Guernsey Fund Report from independent fund research company Monterey Insight reveal the market shares of all

service providers in Guernsey’s funds industry.For fund administration services of domiciled and

non-domiciled funds, Northern Trust remains the largest by total net assets ($63.8bn), with Ipes ($45.5bn) and Apax Partners ($31.7bn) ranked second and third. For funds under custody services of domiciled and non-domiciled funds, Northern Trust also maintained its lead position with $20.5bn. Kleinwort Benson ($9.4bn) stayed in second position ahead of BNP Paribas Securities Services with $6.3bn.

Of the legal advisers, Carey Olsen advised 724 funds, followed by Mourant Ozannes with 264 and Ogier with 120. For auditors, PwC was auditing 350 funds at the end of the period, ahead of KPMG with 343 funds. Among fund management companies, the largest fund promoter of Guernsey-domiciled schemes was Apax Partners ($32.4bn), followed by Partners Group and EQT Partners (with $23.5bn and $18.5bn respectively).

“The report shows a fall in total assets for the first time in five years,” said Monterey Insight MD Karine Pacary, adding: “Guernsey continues to attract business: 106 new sub funds were launched (domiciled and non-domiciled), 71 serviced funds were launched (including 48 new Guernsey schemes) and 15 new promoters have chosen Guernsey to establish their funds.” n

Guernsey Finance is to open a representative office in Hong Kong in the first quarter of this year.

The office will be the promotional agency’s second overseas outpost, in addition to its Shanghai office, which opened in 2008.

Guernsey Finance’s China Representative, Wendy Weng, who is based in Shanghai, will use the office to carry out further promotional activities concentrated on the wider south-east Asia market. It will also be utilised by the Guernsey Financial Services Commission to provide regulatory advice to those in the region who might be considering Guernsey-specific ventures.

The central location at Three Pacific Place in Admiralty ensures Guernsey Finance is well positioned to meet Hong Kong-based practitioners and others from Asia.

The office is expected to be operational during the first quarter of 2016. A formal launch event and a Guernsey-hosted masterclass is scheduled to take place in Hong Kong during the first week of March. n

The Guernsey Financial Services Commission has issued annexes to the Handbooks for Financial Services

Businesses and Prescribed Businesses on Countering Financial Crime and Terrorist Financing, on the use of technology in the customer due diligence process.

The changes to the rules and guidance in the Handbooks provide for the use of technologies such as digital signatures and electronic verification in the client take-on process and when due diligence documentation has to be updated, including where this technology is delivered through the internet or by tablet and smartphone applications.

Each annex encompasses new rules stipulating that a firm must understand this technology if it is to use it and that it has evaluated that its use will result in compliance with the relevant regulatory requirements. The revisions to existing rules are intended to provide positive affirmation that new technologies have a part in this important process.

The GFSC hopes that these changes will give firms the confidence to use new technologies. It doesn’t require firms to notify the Commission that they intend to use new technology. However, it will monitor take-up through the disclosures firms are asked to make in the annual financial crime risk return.

“Guernsey is the first offshore jurisdiction to introduce such guidance. The GFSC should be congratulated in listening to industry and recognising that regulated businesses can introduce smart technology while continuing to apply the same rigorous standards the island has based its reputation on,” said Dominique Carpentier, Director at KYCme (Guernsey). n

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BL Guernsey

island signs MoU with shanghai family office union

Funds grow but banking dips island retains AA+ rating

funds masterclass to shed light on AIFMD

Guernsey Finance, on behalf of Guernsey’s financial services sector, has signed a Memorandum of Understanding (MoU) with the Shanghai Family

Office Union (SFOU).The agreement was signed by Kate Clouston,

Director of International Business Development at Guernsey Finance, and Antoine Kuo, Chairman of the SFOU, at a co-hosted wealth management event in Shanghai in November last year.

The MoU sets out a statement of intent to support business development initiatives between Guernsey and the SFOU, provision of office and meeting room space in Shanghai, organisation of events, employee exchange programmes and registration services.

“Guernsey industry experts now have the opportunity to help Chinese firms understand international regulatory and compliance standards and procedures. The Union will in turn act as a conduit to a vast and growing network in mainland China,” said Clouston.

“The MoU also shows a broadening of the relationship between Guernsey and China, which has continued to build since we first established our Shanghai office in 2007.” n

The total value of funds business in Guernsey grew by £4.9bn (2.2 per cent) during the third quarter of 2015.

Latest figures from the Guernsey Financial Services Commission (GFSC) show that at the end of September 2015, the net asset value of all funds under management and administration in the island stood at £224.8bn.

Guernsey closed-ended funds increased by £2.9bn (2.1 per cent) to £138.4bn, while Guernsey open-ended funds increased in value by £0.3bn (0.8 per cent) to £39.4bn. Non-Guernsey schemes – open-ended funds that aren’t domiciled in Guernsey but have some aspect of their

management, administration or custody carried out on the island – also increased in value by £1.7bn (1.3 per cent) during the third quarter to reach £47bn.

In total, the GFSC approved 19 new investment funds during the third quarter, comprising 14 closed-ended funds, two open-ended funds and three non-Guernsey open-ended schemes. This brought the total number of approvals for domiciling or servicing in Guernsey to 1,045.

Figures for the banking sector, however, showed a decline. Total deposits fell to £81.6bn (1.7 per cent down on the previous quarter), with the number of banks on the island down one to 29. n

International credit rating agency Standard & Poor’s (S&P) has confirmed that Guernsey’s credit rating remains at

its highest possible level.The ‘AA+ with a stable outlook’

rating is the highest a jurisdiction such as Guernsey, which does not have its own currency, can achieve.

In its latest announcement, S&P said Guernsey had ‘a wealthy and open economy, generally strong institutional environment, and robust fiscal position based on a prudent fiscal framework and sizeable government assets.’ n

Options for fund managers marketing into Europe under the Alternative Investment Fund Managers Directive (AIFMD) will be

the focus of a Guernsey funds ‘masterclass’ in London on 3 February.

The event, at the British Museum, will feature a panel debate with leaders from the funds industry and a keynote speech from Lord Flight. Discussion will centre on the benefits and suitability of national private placement (NPP) regimes and third-country passporting under AIFMD.

Dominic Wheatley, Chief Executive of Guernsey Finance, said: “Given that both NPP and third-country passporting look set to be available in relation to Guernsey alternative investment funds and alternative investment fund managers for at least three years after the activation of passporting, our masterclass will examine which regime will be the preferred option for fund managers operating in the EU.”

The panel session will be moderated by Robin Fuller of Guernsey Funds Consultancy. Panellists include Cathy Pitt, Corporate Partner of CMS Cameron McKenna; Shane Le Prevost, Chairman and Founder of Liberum; Storm Boswick, Managing Director of Brightwood Capital; and Emma Bailey, Director of the Investment Supervision and Policy Division at the Guernsey Financial Services Commission.

The event – entitled NPP or third-country passport? – starts at 4pm and ends with a networking drinks reception at 6pm.

For further information or to book a free delegate place, email Vicky Richardson at [email protected] or telephone +44 (0)1481 720071. n

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Stable Q3 for finance sector

jersey Aircraft Registry takes off

Monterey Insight issues funds review

Funds and corporate activity in Jersey’s finance industry remained buoyant and banking business was stable in the third quarter of 2015, according to

the latest figures for Jersey’s finance industry.Collated by the Jersey Financial Services

Commission (JFSC) for the quarter to September 2015, the statistics show the net asset value of regulated funds under administration in Jersey increased to £218.8bn, the third highest level since December 2008 and 6.5 per cent up on the September 2014 figure.

Within the funds sector, alternative asset classes continued to perform well, with total alternatives business, including hedge, private equity, real estate and infrastructure funds, growing by 11.5 per cent year-on-year, and real estate and private equity values both increasing by four per cent on the quarter.

The total number of regulated collective investment funds increased by 13 from 1,298 to 1,311 – there were also 126 active unregulated funds

The banking sector displayed relative resilience despite ongoing global pressures in the quarter, with the total value of deposits in Jersey banking institutions falling by about one per cent to £131.8bn.

Meanwhile, the corporate market was very active, with 717 company incorporations during the quarter –the second highest quarterly rate of incorporation in seven years. There are now 33,739 live companies on the register, the highest total figure since June 2009. n

Following the enactment of the Aircraft Registration (Jersey) Law 2014, Jersey’s first aircraft registry became

operational in November.The Jersey Aircraft Registry (JAR),

which will focus on registering new or nearly new high-value private and corporate aircraft, registered its first aircraft, a private jet. JAR will offer:● Registration of private and corporate

aircraft● Registration of commercial aircraft engine

mortgages● An online registration system, available 24

hours a day (to be launched in Q3 2016)● A safe and comprehensive regulatory

framework

● Neutral nationality registration prefix ZJ- followed by three characters of choice

● A competitive Scheme of Charges.

Minister for Economic Development, Senator Lyndon Farnham, said: “The Jersey Aircraft Registry… will enable local businesses to broaden their offerings, which already includes the registration of companies, ships and other security interests. Revenue will be created through the fees charged by the Registry, and we hope to see new jobs created in financial, fiduciary and legal services.

“There is also a longer-term goal of creating roles in technical positions, as we see maintenance and management organisations relocating to Jersey.” n

Findings from independent fund research company Monterey Insight, released at the end of November 2015, reveal the

market shares of all service providers in Jersey’s fund industry to the end of June 2015.

For fund administration services across domiciled and non-domiciled funds, State Street remained at the top of the table with $50.2bn in assets, followed by Aztec Group with $44.3bn and Saltgate with $33.4bn.

Again, for domiciled and non-domiciled funds, BNP Paribas maintained its top position as the largest custodian, with $30.3bn in assets. JP Morgan, with $13.7bn, climbed to second (up from fourth last year), and SG Hambros Trust ranked third with $10bn.

Among legal advisers, Mourant Ozannes remained in top spot, advising on 817 funds, followed by Carey Olsen with 479 and Ogier with 328. PwC is the largest auditor, with 472 funds, ahead of KPMG (259) and EY (172). Among fund managers, BlackRock Financial Management took the lead of Jersey domiciled schemes with $16.1bn of assets, followed by CVC Capital Partners ($15.6bn) and ETF Securities ($13.6bn).

“Jersey had a rather stable year in terms of total growth of assets, and actually showed a slight increase in the number of newly launched funds and new business coming to the island,” said Karine Pacary, Managing Director of Monterey Insight.

“Additionally, in excess of 30 new promoters have chosen Jersey to establish their funds. Jersey continues to attract new investment and is regarded as a specialist in private equity funds, and is also competitive in alternative funds and real estate funds.” n

BLjersey

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BL Jersey

Jersey and spain sign tax agreement

S&P reaffirms jersey’s AA+ credit rating

population office releases application figuresJ

ersey and Spain signed a tax information exchange agreement (TIEA) at the Spanish Embassy in London on 17 November 2015. For Jersey, the agreement was signed by the Assistant Chief Minister, Senator Philip Ozouf.The tax information exchange agreement will come into force once the

parties have completed their respective domestic procedures for ratification.Senator Ozouf said: “We attach great importance to the signing of this TIEA

with Spain. While Jersey is not a part of the European Union, we are part of Europe and we have long pursued a good neighbour policy towards the Member States of the EU. It is also further evidence of Jersey’s full commitment to compliance with the current international standards on transparency and exchange of information for tax purposes.” n

Standard & Poor’s (S&P) has reaffirmed its ‘AA+ credit rating, with a stable outlook’ for the States of Jersey. This is one of the best that the credit ratings service awards.

In its report, S&P noted: ‘The AA+ ratings on Jersey reflect our view of its mature political and institutional setting, flexible policy environment, wealthy economy and a healthy financial position underpinned by low debt and a high-net general government asset position.’

The report also stated that Jersey ‘has an open and wealthy economy’ and recognised that Jersey’s economy had grown in real terms in 2014, mainly underpinned by strong profits in the financial services sector.

Treasury and Resources Minister, Senator Alan MacLean, said: “It is extremely positive news for Jersey that an international credit rating institution such as S&P continues to recognise our strong balance sheet. We have had a full and frank discussion about our fiscal position with them and our future plans have provided the comfort they need to maintain their high rating level. The outlook view remains stable, reflecting their expectation that Jersey’s economy will continue to grow.”

The AA+ credit rating was first assigned in November 2013 so that the States could proceed with the £250 million bond earmarked to provide investment in affordable housing over the next 10 years. n

Figures showing the number of applications for registered and licensed staff, and how many were granted or

refused by the States of Jersey’s Population Office, were released in late November. This coincided with publication of Guidance Notes outlining how decisions on individual applications are made to support the policies of the States Assembly.

The highest number of permissions were in the finance and construction industries, and the highest number of refusals in the hospitality sector.

A States of Jersey press release stated: ‘Permissions were granted in all sectors, having considered the benefits to Jersey of individual applications. This is in line with the States’ policy of optimising economic growth by targeting migration which generates most social and economic value.’

The Guidance Notes outline support for seasonal permissions, in particular for the hospitality industry. ‘This is because these workers do not add to the permanent resident population,’ stated the release.

The Notes also outline a commitment to improve the time it takes to process an application – from the standard 15 working days to 10 working days – with an aspiration to further improve this target. Figures will be published in the new year showing how the Population Office is performing against these targets.

The figures will be published every quarter on www.gov.je. n

Pictured L-R: Spain’s Ambassador to the UK, Federico Trillo-Figueroa Martínez-Conde; the Spanish Embassy’s Financial Counsellor, Jose Manuel Gutierrez Delgado; Senator Philip Ozouf

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waitrose.com/sthelier

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➨INSIDE THE AGENDA: FOOD, MUSIC, FURNITURE, HOMEWEAR, BEAUTY, FRAGRANCES,

FASHION, FOOTWEAR, ACCESSORIES, JEWELLERY, DRINKS, CARSEverything you need for a more stylish life.

The Agenda is compiled by BL’s Fashion and Lifestyle Editor, Thom O’Dwyer, with additional material by Danny Cobbs, Peter Dean and Jeffrey Chinn of Hettich Jewellers in St Helier

1. SHOOTING STARNo Hollywood A-lister is worth their salt these days until they have their own brand of booze, writes Peter Dean. We’ve had Brad and Angelina launch their bling Provençal rosé, Miraval, and Sean ‘P Diddy’ Combs releasing his own vodka brand. This month golfer Nick Faldo of all people has launched his own wine selection, the consumption of which will not necessarily improve your handicap.

Not to be outdone, the latest star to join this exclusive set is Mr George Clooney. Casamigos is his own brand of tequila and comes in three varieties – blanco, reposado and añejo. It’s great neat, on the rocks or (apparently) straight from the bottle.

Although George’s been making it for six years, he’s just started selling it retail – a launch not harmed one jot by him hand-signing each batch. At some launch events, he’s even shown up in person to deliver the first case.

What makes this ultra-premium tequila better than

average? Only the finest hand-selected Blue Weber agaves are used

from Jalisco, Mexico; the agave piñas are oven-roasted for 72 hours rather than steamed for seven;

better yeast is used; and the spirit fermented for twice as

long. As for the label’s design, that’s inspired by an altogether earlier screen legend. “This was going to be like the bottles in old John Wayne movies,” says George, “where you slide the bottle down the bar, pull out the cork with your teeth and pour yourself a shot.” Class. £54-£57 a bottle, www.amazon.co.uk1

THE AGENDA

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THE AGENDA

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33. BAGS OF STYLEEvery season there’s an ‘It’ bag that every fashionista in the galaxy just has to have, no matter what the cost. This time round it’s the Mayfair Bag, which is the result of an inspired collaboration between ultra-classic luxury leather goods brand Aspinal of London and cult French fashion brand être cécile. The latter is a new breed of contemporary clothing brands that combines the clean, fresh lines of French style with injections of humour of British street fashion. The boxy proportions of this lady-like handbag are a perfect fusion of classic chic and tongue-in-chic street-style. Handmade in Italian calf leather and accented with boldly coloured panels, it’s lined in shimmering grosgrain and even has a built-in compact mirror and a central zip compartment. Naturally, it features Aspinal’s trademark shield for the black enamel lock clasp. This handbag ticks all the right boxes, and has already reached icon status. £695, www.aspinaloflondon.com

42. GOLDEN GODDESSNo matter how you spell it – using a ‘u’ or a ‘v’ from the classical Latin alphabet the famous Italian jewellery and luxury goods company prefers – BVLGARI (aka BULGARI) is synonymous with the ultimate in high-class, high-grade, high-quality, high-living opulence. Its latest fragrance, Goldea, is a powerful echo of virtually everything the brand represents and personifies. It is, in fact, a manifesto of Bulgari’s style. Cleopatra – who is said to have slept wearing a

solid gold mask to preserve her legendary beauty and flawless complexion – is the scent’s intoxicating muse. And the eternal, almost hypnotic obsession that the precious metal symbolises is at the core of the scent’s seductive inspiration.

This fragrance was created for the contemporary goddess – a passionate, sensual, charismatic, provocative woman determined to seize her own destiny. Key notes include crystal musk, orange blossom, bergamot, jasmine, ylang ylang, patchouli, amber and musk. A heady mixture that captures the regal, sensual, luminous essence of the precious metal that it is named after. Eau de parfum, £102 for 90ml; £74 for 50ml; £37 for 25ml, available nationwide from 15 February 2016

4. PERFECT TOUCHThese sporty, butter-soft leather driving gloves have got to be the ultimate in winter handwarmers. Gucci’s leather and cashmere gloves embody the super deluxe label’s sophisticated Italian aesthetic focusing on elegant, timeless design and luxurious quality make. The gloves – which also come in black – have a knitted cashmere underlayer that is trimmed with a ribbed cuff. The famous ‘GG’ logo is prominently featured on the sporty wrist strap closing. Treat yourself, guys, and make your hands feel special. £330, www.matchesfashion.com

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6. ALL WOOL AND GOODInspired by their home town of Buckfastleigh, Devon – once a thriving part of the British woollen industry – husband and wife design duo Justin and Hannah Floyd have developed an ingenious and revolutionary way of working with wool. Instead of using coarse wool from upland sheep for carpets, they’re using it to make furniture. No joke. They call it Solidwool and it’s a strong, beautiful and 100 per cent natural composite material. Think fibreglass but made with wool. This durable and groundbreaking medium is then used to create beautiful products to last and cherish. The Hembury Range of furniture includes simple, classic, functional pieces. Pictured here, the Hembury Chair in Solidwool, with its simple lines and timeless appeal, was inspired by the iconic Eames plastic side chair created in fibreglass in 1950. It’s shown here with a rustic tanned sheepskin rug. This forward-thinking design team may be tucked away in Devon, but they’re futuristic trailblazers. Chair, £395; rug, £85, www.solidwool.com

5. ALL SHOOK UPFor the man who, like James Bond, appreciates the finer things in life and likes his very dry martinis shaken not stirred, and with a twist, look no further. This timeless and decidedly deluxe solid sterling silver and 24-carat gold Aston Martin Martini Set has been designed and produced by one of Britain’s finest top-end silversmiths, Grant MacDonald. Blending centuries-old techniques and advanced modern technology, it takes highly trained master craftsmen more than 30 hours to handcraft just one set. The lines and curves that have defined Aston Martin throughout its history epitomise refined, discerning and highly sophisticated connoisseurship. Each piece in the set carries the official Aston Martin collection hallmark and comes in an elegant handmade black and grey case, along with a certificate of authentication. With a limited edition of just 100 having been made, we’re really talking heirloom material here. £7,850, www.grantmacdonald.com

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THE AGENDA

8. KISS AND MAKEUPThe Yves Saint Laurent Kiss and Love Multi-Usage Make-Up Palette not only comes in a chic gold case embossed with the iconic YSL logo, it also has the famous red hot lips print introduced by the master himself in 1971 and recently rehashed by current YSL maestro Hedi Slimane. It gives off a real Valentine’s Day vibe and is almost too gorgeous to use. Shimmering gold, dark brown, silver and champagne eye shadows create glamorous smoky eyes. Lips are saturated with either wicked pure red or playfully demure natural pink, both with an irresistible high-shine finish. Finally, the cheeks are lightly dusted with a delicate, fresh coral tone delivering a playfully naughty glow. A must-have make-up palette to help you rock the night away in glamour. £59, available nationwide7 87. SPEAKERS OF THE HOUSE

Venerable Scottish hi-fi manufacturer Linn has come up with just what the well-dressed home needs: an active speaker system – the Series 5 – clad top to toe in a wide range of fashionably fabricated coats. These include a totally on-trend heritage Harris tweed jacket (pictured here), ready for a pheasant shoot or Vivienne Westwood’s catwalk.

Putting aside the ‘fluff’ though, let’s turn to the serious stuff. In the Linn 520 System there’s no amplifier or receiver ‘between’ the speakers, but there is a 100W amp and receiver inside, all controlled wirelessly via your iPad or PC. The Series 5 also uses algorithms to adjust the sound to the shape of your room – even to what the walls are made of.

As a result, the sound is astounding. The system is built for digital tracks stored at CD quality and above, streamed via ethernet cable from a central unit you can hide away in a cupboard. It offers a sparkling sound that will remind all real hi-fi aficionados what proper systems sounded like before the iPad arrived and messed it all up.

Be warned though. The 502 System – decor-matching coats and all – doesn’t come cheap. £9,250, www.linn.co.uk

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10. HEART AND SOULWith a number of prestigious awards under her belt – as well as lucrative collaborations with top brands Peroni, Frame Chain and Smythson – jewellery designer Jessica de Lotz has hit the big time. Her quirky, narrative-inspired designs are a modern reflection of the past, embellished with playful heraldry, Victorian wax seals and vintage dolls’ winking eyes. Her work has attracted a growing celebrity fan base, including Helena Bonham Carter, Daisy Lowe, Paloma Faith and Samantha Cameron. Emotive, evocative, and intriguingly romantic, the necklace and matching bracelet pictured here are from the Across the Waters collection, based on the theme of cherished love exchanged.

Either – or both – would make the perfect Valentine’s Day gift for that significant other. They are made from hallmarked sterling silver, plated with 18-carat rose or yellow gold. The hand-stamped ‘love forever’ Victorian wax seal is topped with an ornamental scroll top and suspended from a delicate chain with the JdL

trademark on the fob. What girl could resist? Necklace, £215; bracelet, £197,

www.jessicadelotz.co.uk

11. ALL WRAPPED UPGuys, your best friend this winter is a shearling coat. This classic menswear material has a definite 1970s macho vibe, and it’s been on every AW15

catwalk from London to Timbuktu. Not just a coat or jacket lining,

it’s also been used for trims on bags, boots and even knitwear, both dyed and in its natural furry form. It’s a functional, hard-wearing fashion favourite that never fails to turn heads. Another big plus is that you’ll be wearing it for years. Like fine wine, shearling – tanned sheepskin – only improves with age.

So if you’re going to buy just one coat or jacket this winter, make it a shearling. The charcoal dyed shearling duffle coat

pictured here has an attached hood, toggle fastening and roomy front patch pockets and was designed by Joseph. And as it’s totally reversible, you’re getting two coats for the price of one. £1,595, www.matchesfashion.com

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9. NAILED ITBeauty brand Palette London could revolutionise the at-home manicure market with its customised nail varnish service. With the Create Your Own Nail Paint Collection, you can concoct your own must-have shade. There are dozens of colour permutations at your fingertips. Every kit contains five 14ml bottles of nail varnish, including red, yellow and blue primary colours, plus neutral shades of black and white. You also get five 3ml pipettes, five 5ml empty bottles and 10 basic formulas to get you started. You’ll soon be the Michelangelo of the manicure table! Should you prefer someone else to do the dirty work for you – though it won’t be half as much fun – there’s the Bespoke Nail Paint service. Just send them a fabric swatch, an image from a magazine, or even a smudge of your favourite lippy, and the exact colour will be replicated. Alternatively you can select a shade from their special colour wheel online. Create Your Own Nail Paint Collection Kit, £50; Bespoke Nail Paint, £50, www.palettelondon.com

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12. BOXSTER CLEVERPowered by the same 3.8-litre engine found in the 911 Carrera S, the new Porsche Boxster Spyder is sleek, slick and full of intent, writes Danny Cobbs. Streamliners behind the headrests – a stylisation that evokes the Porsches of a bygone age – transform this version into an easily recognisable yet instantly different car from the one it’s been based on.

It trumps many of its rivals with some notable performance figures – 0-62mph in 4.5 seconds and a 180mph top speed. But it’s the way it takes all that power and turns it into speed that makes this two-seater convertible so impressive. A greater power-

12to-weight ratio – it’s now 30kg lighter than a regular Boxster – wider rear wheels, lowered suspension and a mechanical differential take this car to a new level of competency. It’s amazingly precise and surefooted, guaranteeing the tightest of corners are executed to perfection, while displaying an unyielding and endless enthusiasm to please. It really does exceed all expectations.

The standard model comes in at just over £60,000, which includes a six-speed manual transmission, race-derived carbon-shell seats and Porsche’s Sports Chrono package. However, certain onboard niceties, such as

air conditioning and an audio system – all of which have been stripped out to save weight – are now found on the options list.

For far too long the Boxster was considered a pastiche – a dumbed-down Porsche constructed to a sell to the masses and devoid of any sense of its own identity. Conversely, the Boxster Spyder represents something thrillingly new. It’s relevant, contemporary and seductive.

Put simply, this car is the difference between nearly good and really good. And it’s also by far the prettiest car that Porsche has built in decades. From £60,459, www.porsche.com/uk

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THE AGENDA

13. SIGNATURE STYLEA partnership between one of the world’s leading design minds and a heritage brand famous for its craftsmanship was always going to cause waves, writes Jeffrey Chinn. So it’s no surprise that the collaboration between Marc Newson and Montblanc is attracting attention as a reinvention of a classic, reworking the world of luxury writing instruments and moving it into brand new territory. Described as the one of the most influential designers of his generation, Newson has brought his revolutionary eye to writing accessories, working with Montblanc to engineer a pen that’s not only striking to look at, but intuitively simple to use. Says Newson of the Montblanc M range: “Writing becomes a sensory experience.” Featuring a seamlessly polished shape, an engraved ruthenium and rhodium nib, and a magnetic cap that slides perfectly into place, this is set to become a classic. The full range includes a fountain pen, rollerball, ballpoint, screenwriter, and a fineliner for technical drawing. Marc Newson Montblanc M, from £236, www.hettich.co.uk

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14. BOTTOMS UP As more and more designer brands take note of the men’s fashion underwear market, D Hedral goes well beyond the basics to provide underwear that looks great and keeps the masculine form in mind. Hailed as the new ‘Wonderbra of men’s underwear’, D Hedral’s innovative, patented, bum-boostingAngleFit technology – an angled Y-band at the back –creates the perfect fit for the manly derrière. Moving past all the cheesy gimmicks promising to ‘enhance’ this or ‘lift’ that, this seamless underwear is designed quite simply to be a man’s second skin. Three bum shapes define the angles and are divided into groups according to roundness – slim, average and full.

Traditional underwear only accounts for waistline measurements, but with D Hedral’s premium pants, after selecting your usual waist size, you choose your actual bum size. Pictured here, made from knitted seamless lightweight Italian microfibre, the white-on-white Gigolo Joe II trunk is an easy-to-wear classic. As the brand’s advertising logo states: ‘AngleFit re-curves a classic’. £35, www.dhedral.com

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15. DIAMONDS ARE FOREVERTo celebrate its 200th anniversary in 2015, revered knitwear giant Pringle of Scotland has launched Deconstructed, an interactive online platform that allows visitors to customise the brand’s iconic ladylike twinsets or the golfer’s favourite argyle pullover. True classic styles that defy fickle fashion-forward trends, colour being the key. From neutrals to neon, Deconstructed’s extensive colour menu allows you to make a total tonal transformation from sleeve to trim. For those experiencing a creative Design-It-Yourself slowdown, the Deconstructed Style Icon Designs section offers an impressive array of inspiration.

Notable collaborators include superstar Tilda Swinton, shoe designer to the stars Manolo Blahnik, actor Luke Treadaway, artist David Shrigley (whose Argyle pullover is pictured here) and GQ Editor-in-Chief Dylan Jones, among others.

All bespoke cashmere knitwear is crafted in Scotland and is ready within eight weeks. The same time frame applies to the Style Icon Designs, though prices for the latter come in slightly cheaper than the true bespoke knitwear. Despite being the centrepiece of the brand’s landmark celebrations, Deconstructed will continue well past the bicentennial year. Argyle pullover, £995, www.pringledeconstructed.com

1516. WHAT A SMACKERThis ring has to be the perfect present for the lady in any man’s life come Valentine’s Day. Created by jewellery designer to the stars Solange Azagury-Partridge, the original ring from her Hotlips collection was first released in 1995 and has been snapped up by a gaggle of showbiz luminaries – Scarlett Johansson,

Lady Gaga, Katy Perry, Penelope Cruz, Cara Delevingne and Lily Allen among them.

The original model carried a four- or five-figure price tag, depending on the type

of gold used. However, thanks to the designer’s link-up with e-commerce

giant Amazon – a partnership now in its second season – this iconic piece of jewellery

symbolising the power of love and never-ending kisses can be yours for a fraction of the original price. Instead of gold like the original, this one is in sterling silver with a hand-painted lacquer finish. Who cares though? It’s only the lips that speak! £69, www.amazon.co.uk

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1717. FIESTA ON A PLATETex-Mex joints – all sombreros, tequila slammers and drunken hen parties – have done little for the reputation of Mexican food. And burritos, nachos, chili con carne and hard-shell tacos are all Tex-Mex inventions. Thankfully, people are discovering authentic Mexican cuisine, a kaleidoscope of regionally diverse and vibrant tastes dating back to the Aztecs. Growing demand for the real thing has been driven by the rising popularity of Mexico as a tourist destination, and many authentic Mexican restaurants have opened in the UK. Masterchef winner Thomasina Miers was one of the first with Wahaca; another is East London cantina Boho Mexica. Now an explosion of Mexican home cooking in the US is starting to spread here too. Check out online foodie paradise SousChef – its Mexican Fiesta Hamper has all the necessaries to rustle up an honest-injun Mexican blow-out. It also comes with the holy grail of genuine Mexican cooking, The Essential Cuisines of Mexico by Diana Kennedy, who in the US is hailed as the Julia Child [read Delia Smith] of Mexican cuisine. Buen apetito, amigos! £80, www.souschef.co.uk

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THE AGENDA

18. HAPPY FEETThe Golfito shoe from Christian Louboutin is a postmodern take on juiced-up trainers. This is a witty hybrid combo of low-top college guy sneakers and the classic all-American Ivy League jock saddle shoe. Made from different colour wing-tipped panels of leather and canvas, the shoe sits on a thick, white rubber midsole. Think of them as the ideal smart/casual go-between. They go perfectly with skinny fit jeans and a cotton-piqué polo shirt. And like their female counterparts, do these kool krazy kolour kicks sport the designer’s trademark sole? Buy ‘em and see! £495, www.matchesfashion.com

19. POWER DRESSINGThe power suit is back! It’s no secret that the trouser suit – or pantsuit, as our American cousins call it – is having a magic moment right now. Since its major emergence during the sexual revolution of the late 1960s and 70s, this fashion statement has undergone any number of major changes and reinterpretations. The perfectly tailored trouser suit is ideal for the working woman, and will take her from work and formal meetings right through to after-hours drinks and parties. The look will also carry on into the spring and summer months in a number of new, reworked guises. Most of the new trouser suits – like the one shown here by brilliant American designer Derek Lam – are being sold as separates. The sharply tailored jacket is made in Italy from black and white tweed with subtle pink flecks. It’s elegantly cut so that it sculpts the body, from the mannish notch lapels to the nipped-in waist. And the oversized black, felt buttons add a charmingly feminine finish. Combined with matching leg-lengthening, wide-cut trousers, this full-on trouser suit spells head-to-toe success. Jacket, £1,090, and matching trousers, £590, www.matchesfashion.com

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THE ONLINE DIRECTORY THAT WILL GET YOUR FIRM NOTICED. With a profile summary on every press release, and a historical press release archive linked to your directory entry, BLGlobal.co.uk is the place to be

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DirectoryTo advertise in the directory in print or online contact Carl Methven on+ 44 (0)1534 615886 or [email protected]

Training to improve your business performance

ALX Training is dedicated to making sure that your staff have the tools they need to do their jobs efficiently and effectively.

Our extensive range of courses covers all Microsoft Office products including Excel, Outlook, Powerpoint, Word, Project and Visio as well as training on the major bookkeeping packages: Sage and Quickbooks.

We also offer a wide range of online courses through our exclusive partnership with LearnDirect. From Microsoft Office Expert exams to short focused IT modules, you can use our range of online courses to provide your staff with a truly flexible way to learn.

Where software packages are unique to your business, we are able to create courses that will effectively train both your customers and staff on bespoke systems, getting the most from your investment.

Operating with complete flexibility - you can choose to use our training rooms or we can come to your workplace - we deliver courses in short two or three-hour sessions that ensure learning is maximised whilst time out of the office is minimised.

For more information, please contact:Alex MorelManaging DirectorHilary House19 Hilary StreetSt HelierJE2 4SX

01534 87378507797 774676 [email protected]

Appleby is the leading provider of offshore legal, fiduciary and administration services. Uniquely positioned in the key offshore jurisdictions of Bermuda, BVI, the Cayman Islands, Guernsey, Isle of Man, Jersey, Mauritius and the Seychelles, as well as the international financial centres of London, Hong Kong and Shanghai. We are also the only firm to have offices in all three British Crown Dependencies. Our services include: ● Corporate● Dispute Resolution● Private Client & Trusts● Property Members of the Jersey and Guernsey offices regularly advise London City and international law firms on all legal aspects of offshore corporate, finance and investment fund transactions and arrangements in the Channel Islands. For more information visit our websitewww.applebyglobal.com/our-expertise Michael Cushing Managing Partner, Jersey+44 (0)1534 818 [email protected] Gavin FergusonManaging Partner, Guernsey+44 (0)1481 755 [email protected]

Ashburton Investments is a new generation investment manager. We are the investment management arm of the FirstRand Group, one of Africa’s largest financial services companies. Our offering spans traditional and alternative investment strategies, as well as active and passive investment styles.

The strength of our investment proposition is based on our unique ability to leverage investment thinking and capability across the FirstRand Group, to offer retail or institutional clients unique investment opportunities. With us, investors can gain access to more sources of return, broader investment capabilities, considered risk management and deeper investment insights. We are experienced emerging market investors in Africa, India and China, with a proven track record in multi asset investing.

Our assets under management total approximately US$10 billion as at June 2014, and we have international reach with offices in the Channel Islands, South Africa, the United Kingdom, United Arab Emirates and India.

To find out how Ashburton Investments can help you access more opportunities, contact us today on:+44 (0)1534 512000 [email protected]

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Directory

Bright. Commercial. Responsive. Law firm, Benest Corbett Renouf, provide solutions to a wide range of legal issues.

We may be Jersey’s newest legal practice, but we draw on the combined wealth of experience of our partners and fee earners in the following practice areas: ● Litigation● Personal Injury and Clinical Negligence● Family Law● Property & Planning● Wills & Estates● Trust Law We aim to provide the best possible advisory and advocacy services to clients, tailored to their particular needs. We are proud of our ability to resolve matters by giving legally sound, commercially practical advice at sensible cost. For further information about how we can assist you, please contact: David Benest, Managing Partner

[email protected]

Tel: +44 (0) 1534 760 860 www.bcrlawjersey.com

Cazenove Capital Management is the wealth management business of the Schroder Group in the Channel Islands, the UK and in Asia; and is a leading provider of specialist financial solutions to private clients, family trusts, companies, charities and pension plans.

We offer exceptional levels of personal service from our team of experienced specialists, whose role is to tailor our range of wealth management services to meet our clients’ individual circumstances and objectives. Our range of services includes personalised discretionary and advisory investment services, wealth planning, cash administration and specialised lending.

Overall, we believe that our complete range of services and the quality of our private client specialists, together with the stability and depth of investment resource of the Schroder Group, give us an unparalleled ability to look after our clients.

For further information on our services, please contact:

GuernseyJulian Winser, [email protected]+44(0)1481 703700

JerseyMatthew Sutton, Client [email protected]+44 (0)1534 848200

www.cazenovecapital.com/ci

Cazenove Capital Management is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 1994 and the Protection of Investors (Bailiwick of Guernsey) Law 1987, as amended. Schroders (C.I.) Ltd is a participant of the Guernsey Banking Deposit Compensation Scheme. Registered address at Regency Court, Glategny Esplanade, St Peter Port, Guernsey GY1 3UF, (No.24546). Terms and conditions apply. For your security, communications may be taped or recorded.

Independent and Professional

We provide a full range of management services to our domestic and international private clients.

Family office – bespoke assuranceWealth management – your strategyFiduciary services – impartiality with visionCorporate services – attention to detailGood governance – a helpful eye

We aim to assist in the provision of personal service to meet your requirements, being vigilant and proactive in the face of a fast changing legal, economic and fiscal landscape. We can provide the focus to your solution. Try us.

Our team has many years of experience dealing with a wide range of clients in different countries. We look to provide good corporate governance to achieve your aim. Contact us:

Mrs Áine O’Reilly, ACCA – Client [email protected] Rice – Head of Business [email protected] Dodge – Senior Trust [email protected] Warder – Senior Trust [email protected]

Tel: +44 (0)1534 870670

Licensed by the Jersey Financial Services Commission in the conduct of trust company business

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To advertise in the directory in print or online contact Carl Methven on + 44 (0)1534 615886 or [email protected]

Deloitte LLPDeloitte LLP offers professional services to the UK and European market. The company has the broadest and deepest range of skills of any business advisory organisation and employs over 14,400 exceptional people in 28 offices in the UK and Switzerland. We provide professional services and advice to many leading businesses, government departments and public sector bodies and publish many influential studies and thought leadership pieces. Deloitte LLP employs 160 professionals across the Jersey, Guernsey and the Isle of Man offices. It is the UK member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its global network of 150 member firms, each of which is a legally separate and independent entity. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. For further information please do not hesitate to contact: John Clacy, Partner, GuernseyEmail:[email protected] +44 (0) 1481 724011 Greg Branch, Partner, JerseyEmail: [email protected]: +44(0)1534 824325www.deloitte.com

About EYEY is a global leader in assurance, tax, transactions and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

Our strong network has enabled us to build close working relationships with our colleagues in EMEIA and across the world. This allows us to respond quickly to our CI clients’ needs, drawing upon our industry experience across all our services lines.

To discuss how we can support your business, please contact one of our partners below:

Mike Bane, Partner, Assurance and TASE: [email protected] T: 01481 717435

Andrew Dann, Managing Partner, AssuranceE: [email protected] T: 01534 288655

Geraint Davies, Partner, Assurance E: [email protected] T: 01534 288639

Chris Matthews, Partner, AssuranceE: [email protected] T: 01534 288610

David Moore, Partner, Assurance and Advisory E: [email protected] T: 01534 288697

Peter Willey, CI Head of Tax E: [email protected] T: 01534 288 212

Wendy Martin, Partner, Tax E: [email protected] T: 01534 288 298

David White, Head of Tax, Guernsey E: [email protected] T: 01481 717 445

Grant Thornton Limited is a leading Channel Islands accountancy and consultancy practice with offices in Guernsey and Jersey. We are the Channel Islands member of Grant Thornton International, one of the world’s leading organisations of independently owned and managed accounting and consulting firms. We provide a range of services in the Channel Islands that include:

● Audit● Accounting services● Insolvency, Recovery and Reorganisation● Forensic accounting● Data forensics● Out-sourced Accounting and Payroll

services● Private Client services● Tax services● Business Risk services For more information please contact: JERSEY OFFICEAdam BudworthDirectorBusiness Advisory ServicesE [email protected] +44 (0) 1534 885885www.gt-ci.com GUERNSEY OFFICEDave ClarkManaging DirectorE [email protected] +44 (0) 1481 753400www.gt-ci.com

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Directory

The Intertrust Group is a global quality leader in the trust and corporate services sector, providing a broad range of specialised administrative services to multinational corporates, financial institutions, alternative investment funds and private clients from every corner of the world.

Intertrust in Guernsey is one of the Channel Islands leading fiduciary companies offering a range of trust and corporate services, fund administration services, taxation services and compliance out-sourcing services. With over 130 experienced and highly qualified staff and a presence in Guernsey which goes back to 1900, Intertrust Guernsey can provide professional, personal and multi-jurisdictional services for clients all over the world.

For further information, please contact:

Intertrust GuernseyP O Box 119, Martello Court,Admiral Park, St Peter Port,Guernsey GY1 3HB

Phone: 44 (0)1 481 211 000

E-mail: [email protected]

www.intertrustgroup.com/en/locations/guernsey

i2Office Guernsey offers a more flexible and lower cost alternative to the traditional long term lease with prestige serviced offices and meeting space in Royal Chambers on St Julian’s Avenue, St Peter Port, Guernsey.

i2Office provides high quality serviced offices for rental on flexible, competitive terms with top-grade technology services. The offices can accommodate all sizes of operations, from small start-up teams to companies looking to house more than 50 people, either for a project, an interim period whilst refurbishing or moving offices, or for a long term real estate solution.

i2Office Guernsey also offers a business lounge plus meeting space to accommodate board meetings, seminars, training and events for 2 to 150 people.

i2Office operates high quality serviced offices and meeting rooms in over 25 locations in the UK, including Mayfair and the City of London as well as major cities such as Birmingham, Edinburgh, Glasgow, Leeds and Manchester.

For further information please contact: Michelle MorleyGeneral Manager i2Office Guernsey LtdThe RotundaRoyal AvenueSt Peter PortGuernseyGY1 2HL Tel: 01481 760000Email: [email protected] www.i2office.co.uk

TO GET YOUR FIRM LISTED IN THE DIRECTORY CONTACT CARL METHVEN+44 (0) 1534 615886 / +44 (0) 7797 796377 ORCARL.METHVEN BLGLOBAL.CO.UK

ONLINE DIRECTORYTHE ONLINE DIRECTORY THAT WILL GET YOUR FIRM NOTICED. With a profile summary on every press release, and a historical press release archive linked to your directory entry, BLGlobal.co.uk is the place to be

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To advertise in the directory in print or online contact Carl Methven on + 44 (0)1534 615886 or [email protected]

A leading accountancy practice, with offices based in Jersey and Guernsey, KPMG in the Channel Islands provide audit, tax and financial advisory services.

KPMG’s global network enables us to draw on our international resources and skills to meet our clients’ needs. We address complex business challenges with methodologies and processes spanning markets and national boundaries.

Fundamental to KPMG’s approach is our focus on industry sectors. Our vision is simple, to turn knowledge into value for the benefit of our clients, people and capital markets.

For further information please contact:

Neale JehanHead of [email protected]

Andrew QuinnDeputy Head of Audit, [email protected]

John RivaHead of [email protected]

Tony ManciniExecutive Director, [email protected]

Ashley PaxtonHead of [email protected]

Robert KirkbyExecutive [email protected]

www.kpmg.com/channelislands

Minerva is a family owned business that has been in existence in Jersey for over 35 years.

As a leading independent provider of trust, corporate and fund administration services, we focus on internationally active clients located in sub Saharan Africa, India, the GCC and Europe.

We firmly believe in the value of personal relationships and are familiar with how our clients and professional intermediaries operate from a cultural and business perspective within these regions.

In addition to Jersey, we provide services from a number of offices based in key jurisdictions including London, Geneva, Mauritius, Dubai, Singapore and Amsterdam, as well as affiliate offices in Kenya, India and New Zealand.

For further information, please contact:

John WoodManaging Director

Minerva Trust & Corporate Services LimitedPO Box 21843/45 La Motte StreetSt HelierJersey JE4 8SDChannel Islands

T +(0)1534 702930E [email protected] www.minerva-trust.com

As a full-service law firm, Parslows regularly act for clients in all fields of law from corporate commercial trust and commercial litigation to conveyancing, personal injury claims, family law, wills and probate.

Whatever your needs, be you a corporate client or an individual instructing a lawyer for the first time, you will find Parslows lawyers and staff efficient, experienced and approachable. Above all, you can be sure that we will work in partnership with you to reach a positive outcome.

Our lawyers are tenacious in litigation and pragmatic on transactional matters. Our forward thinking, imaginative and meticulous attitude has ensured that we have built a growing network of loyal clients. Have a look at our website to find out more at parslowsjersey.com For further information please contact Dispute resolution and Court [email protected] Corporate Commercial [email protected] Personal legal [email protected] Property and [email protected] Risk & [email protected] [email protected] Parslows, 17 Broad Street, St Helier, JE2 3RR01534 630530www.parslowsjersey.com

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

Building trust in society and solving important problems

We focus on three things at PwC in the Channel Islands: assurance, tax and advisory services. But how we use our knowledge and experience depends on what you want to achieve. So whichever one of our 320 plus staff in the Channel Islands you work with (or 208,000 people across the PwC global network of member firms), they’ll start by asking the following questions:

Are you looking to build trust? Give your shareholders more value? Or do you want to do something completely different with your strategy?

When we work with you we really listen, to understand you better. We’ll get to know you, your business and your goals. Then we’ll share what we’ve learned to help you get there. We want to deliver the value that you, our clients, our people and our communities are looking for.

Talk to us about your issues and aspirations.

For further information, please contact:

John Roche, Partner, GuernseyTel: +44 1481 752040 [email protected]

Karl Hairon, Partner, JerseyTel: +44 1534 [email protected]

www.pwc.com/jgFollow us: @PwC_CI

Rathbone Investment Management International is part of the award winning Rathbone Brothers PLC (“Rathbones”), which was established in 1742. Rathbones is a leading provider of discretionary investment management services for private investors, charities and trustees.

We enjoy the stability afforded by being a FTSE-250 listed company with significant critical mass (£28.3 billion of funds under management as at 30 June 2015).

We offer a range of tailored investment options:● Bespoke portfolio management ● Multi-manager portfolios ● Unitised portfolios (the RIMI Strategies

Funds)

Our services are delivered by a team of innovative and experienced offshore professionals based on an understanding of a client’s specific investment and risk objectives, backed-up by the performance-driven Rathbone investment process and encompass the full universe of assets.

For further information please do not hesitate to contact:

Jonathan Giles, Managing [email protected]

Phil Bain, [email protected]

Vaughan Rimeur, [email protected]

+ 44 (0) 1534 740550www.rathboneimi.com

Rathbone Investment Management International Limited is regulated by the Jersey Financial Services Commission

Specialty: Bespoke IT Development & Business Consultancy

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

Specifically designed to meet the increasingly complex accounting, compliance, and reporting needs of our clients, all software features robust audit and control capabilities which can be easily updated to reflect changes in the regulatory environment.

Our products include:● PureFunds - a unitized product platform

specifically designed to support many different types of asset class and fund structures and help fund administrators and portfolio managers better manage investor activity

● PureClient - an advanced customer due diligence/client management system which will maintain and update client records for any entity or relationship and provides the necessary transparency and look-through reporting that is needed to manage sophisticated structures

● PureManager - a bespoke software package for fund and investment managers which provides for effective control, analysis, reconciliation and reporting of daily trading activity.

As well as software development, our services include:● Systems integration and implementation● Programme and project management● Project and business consultancy

To find out more how Puritas can help your business.

Contact: Mike Feighan - DirectorPhone: +44 (0) 1534 874100Email: [email protected]

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To advertise in the directory in print or online contact Carl Methven on + 44 (0)1534 615886 or [email protected]

Rowlands has been actively supporting businesses in Jersey for almost 40 years. With a wealth of experience, in-depth market knowledge and a genuine enthusiasm for people, careers and resourcing we are well positioned to help you make the most of your recruitment opportunities and to secure the best possible people for your business.

Our performance is based on honest, effective personal relationships and it is our aim to provide you with a long term, valuable resource that will help to improve your business. The services we provide have developed through client demand; building a reputation for professionalism and confidentiality. Our services include:

● Permanent Recruitment – all levels● Executive Placements● Temporary/Flexible Solutions ● Contract Recruitment● Graduate Services● Pre Employment Screening● Outplacement Services● Psychometric Testing● Remuneration Survey

For more information on these services and how we could support you and your resourcing strategy please contact:

Jeralie Pallot Managing DirectorRowlands Recruitment, Trinity House, Bath Street, St Helier, Jersey JE2 4ST

T: +44 (0)1534 626722E: [email protected]

We are an award winning, established law firm with a multi-facet approach to law. Renowned for our integrity, accountability and vast legal network, we build longstanding relationships with clients who return to us time and again. This is substantiated further by our Lexcel status, recognising us for excellence in legal practice management and client care.

Representing clients across the Channel Islands, UK and Europe, we act as their strategic legal partner utilising our off-shore expertise and international reach. We understand your business is unique and that you require a bespoke solution to meet your business needs and responsibilities.

In this way, we ensure our services are aligned to your legal requirements - whether you are a global corporation, a business start-up, a national government or a private client.

Our range of bespoke legal services includes:

For expert legal advice that can redefine your business, please contact us today.

E: [email protected]: +44 (0) 1534 888 666W: www.viberts.com

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CARL METHVEN+44 (0) 1534 615886 /

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90 January/february 2016 www.blglobal.co.uk

Tea or coffee?Coffee. I get my beans from Coopers and always keep at least three different varieties, milled as I go. Three big cups a day – at breakfast, for my ‘eleven o’clockers’ and after dinner. Favourite TV programme?The Bridge and, indeed, any ‘Scandi noir’. Fondest childhood memory?Building dams and making lakes on the beach at Gorey with my cousins.

Somewhere you’ve never been that

you’d love to visit?Brecquou, for the gardens. Rome, for everything.

Scariest

thing that’s happened to you?

A university moot [mock trial]: Middle Temple Hall in London, packed with eminent lawyers, last-minute change of plan, submissions hurriedly rewritten on a paper napkin. Never again! Your best quality?It’s not for me to say, but I’ll venture word power. Something about yourself you would change?I can dwell too much on incidental details – see answer to first question. Last meal on death row?The entire mixed hors d’oeuvres trolley from La Capannina restaurant in St Helier.

Cats or dogs?

Furry poop factories. Neither thank you. Someone you admire?

Andrew Marr – his book, A History of

Modern Britain, was a revelation. He’s

written for The Economist and fought back from a stroke,

so I forgive him for taking out a super-injunction.

First job you had?Queue marshal at Barclays Bank – “Cashier number three is free madam…” Worst job you’ve done?See above. Dream job?Minister Plenipotentiary for the re-planning of Jersey. Any hobbies?Cycling, gardening (as a blood sport), architecture and design – and flying flags, of which I have collected about 70. Something that drives you nuts?Giving the impression that Jersey is part of the UK, as in www.police.jersey.uk. No, no, no! Best bit of advice received?Stop writing and listen – from my pupil master. Your fantasy dinner guest?Napoleon Bonaparte. Buzzword you hate the most?‘Going forward’ – do we have a choice? Sweet or savoury?Sweet – in Lisbon I once ate eight cakes in one day. Something about you that people might be surprised by?In 1981 I did time in Borstal. Although, as the Monopoly board puts it, I was ‘just visiting’ – experiencing the penal system incognito for my legal studies.

Christopher Scholefield is a Partner at Viberts in Jersey

20questions with

CHRISTOPHER SCHOLEFIELD

n

MODERN MIRACLE

ROMAN HOLIDAY

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Page 91: BL Magazine Issue 42 January/February 2016

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Corporate Processes & Transactions

Financial Services Regulation

Mergers & Acquistions

for yourbusiness strategic choice

the

We are an award winning, long established, international law firm renowned for our outstanding client service, effective problem-solving skills and outcome focused strategic thinking. Whether you are a multinational corporation, a business start-up or an individual, contact us today to experience our pragmatic approach to law.

COMMERCIAL EMPLOYMENT FAMILY LITIGATION PERSONAL PROPERTY

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Page 92: BL Magazine Issue 42 January/February 2016

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