MONEY NOV 2016 ISSUE 39

BUSINESS | LIFESTYLE | DESIGN

THE FINANCE ISSUE ISSUE 39

BREXIT:

INTERVIEW:

WHAT NOW?

ZAK & BENJI BORG

BUDGET 2017

PENSIONS:

MALTA’S ATTRACTIVENESS

MINISTER SCICLUNA & DR MIFSUD BONNICI 1 - Money / Issue 39

CONTENTS

WELCOME Budget 2017 has been met with mixed reactions.

Government, rightly so, described it as one of the best budgets ever, addressing both middle-class and low-income earners’ needs, while consolidating future prospects for the country. The Opposition, on the other hand, declared the budget as a short-sighted one with no direction.

The truth, as always, is somewhere in between. There is no denying that Malta’s economy is performing well – in fact, it is predicted that Malta’s economy will exceed pre-2009 levels by more than 25 per cent by the end of this year. That is excellent performance indeed.

This has been confirmed by ratings agency Standard & Poor’s, which has raised Malta’s long-term rating to A-. The ratings agency also predicted that Malta’s economy will continue to grow by an average of three per cent a year until 2019.

This was the first time in two decades that Standard & Poor’s has upgraded Malta’s rating.

However, government should not rest on the proverbial laurels because the economy is a fickle thing – it takes just one incident to cause a negative turn.

This means that government has to think long-term. One of the main areas that needs long-term planning is pensions. In this issue of Money, Economy Minister Edward Scicluna says that government is working hard to ensure that future generations will receive an adequate pension that will not put them anywhere near the poverty line.

THE FINANCE ISSUE

NOVEMBER 2016

8 PONDERING PENSIONS

There is a real worry that this and future generations will not receive pensions. Are we still in time to remedy this? Veronica Stivala crunches the numbers.

30 MALTA’S CUTTING EDGE NEW FUND FRAMEWORK Richard Bernard outlines the new Notified Alternative Investment Funds regime.

14 ECONOMIC OPPORTUNISM

33 OIL WAR RAGES ON

16 THE RISE OF THE ROBO-ADVISOR

47 ENTER THE CASTLE

18 SMALL IS BEAUTIFUL

48 LIGHTS, CAMERA, IMPACT

Is Malta’s new economic sector nationally corruptible, Victor Paul Borg asks.

How are digital technologies disrupting the financial services sector, Theo Dix and Chris Meilak ask.

Smartphone advertising is enjoying a steep rise, unlike oil and post-Brexit forecasts, Alexander Mangion says.

Romania is not the post-Communist expanse of mud and vampireinhabited castles that we think it is.

Opposition MP Paula Mifsud Bonnici also reiterates that pensions are a way of investing in human capital and this would have a positive impact on the country’s economic growth.

20 LOOKING AT THE FUTURE

In this issue of Money, we also analyse what makes Malta attractive to foreign investment, as outlined in the 12th edition of EY’s Malta Attractiveness Survey: the future is today. The views outlined in this study were augmented by those of 60 leading local and international speakers and 530 of Malta’s top public and private stakeholders.

What attracts foreign direct investment to Malta, Theo Dix asks.

The arts play an essential role in our everyday lives, our cultural identity and our economy. Veronica Stivala speaks to Toni Attard, Director of Strategy at the Arts Council Malta to look at the impact the arts are having and are set to have on Malta’s economy.

22 SET SIGHTS ON HORIZON

58 IT IS THE SEASON

24 A PLAN FOR PROSPERITY

62 THE ISSUE IS, WHERE ARE THE ISSUES?

We also analyse the effects that the Panama Papers has had on Malta’s reputation, study the European post-Brexit scenario and focus on automation in financial services.

Read on and enjoy.

How does the 2017 budget intend to boost micro businesses, Reuben Buttigieg asks.

How do you ensure that your marketing remains relevant in a booming economy, George Larry Zammit asks.

How is the EU is ensuring prosperity through investment, Ivan Ebejer asks.

28 EXIT BRITAIN, ENTER OPPORTUNITIES

Winter is the season to be generous with yourself and with Money’s gift list.

There’s a lot of noise surrounding the race to the White House. The Bluesman tries to listen.

What does Brexit mean for investors?

Kristian Camenzuli and Jordan Portelli, investment managers at Calamatta Cuschieri, explain.

Editor Anthony P. Bernard anthony@moneymag.me Consulting Editor Stanley Borg stanley@moneymag.me Design Peresso Design Studio peresso.webflow.io Printing Print It Distribution Mailbox Direct Marketing Group

Hand delivered to businesses in Malta, all 5 Star Hotels including their business centres, executive lounges and rooms (where allowed), Maltese Embassies abroad (UK, Rome, Brussels, Moscow and Libya), some Government institutions and all ministries For information regarding promotion and advertising call Tel: 00 356 2134 2155, 2131 4719 Email: hello@moneymag.me

Zak Borg and Benji Borg, ANCHOVY.

Money is published by BE Communications Ltd, No. 81, Howard Street, Sliema, Malta SLM 1754 All rights reserved. Reproduction in whole or in part is strictly prohibited without written permission. Opinions expressed in Money are not necessarily those of the editor or publisher. All reasonable care is taken to ensure truth and accuracy, but the editor and publishers cannot be held responsible for errors or omissions in articles, advertising, photographs or illustrations. Unsolicited manuscripts are welcome but cannot be returned without a stamped, self-addressed envelope. The editor is not responsible for material submitted for consideration.

4 - Money / Issue 39

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PENSIONS

PONDERING PENSIONS There is a real worry that this and future generations will not receive pensions.

Are we still in time to remedy this? Veronica Stivala crunches the numbers.

T

here is a real worry that, due to an ageing population, today’s young generations are paying social security, but that they will not be recipients of State pensions when they reach retirement age.

The surge in life expectancy (with males born in 2015 expected to live until age 79 and females until age 83.2, exceeding the EU average) coupled with the decrease in birth rates are expected to have a major impact leading to an increase in public expenditure making pension systems more challenging to sustain.

Social Policy Shadow Minister Paula Mifsud Bonnici acknowledges this problem and is worried that what has so far been done is not enough.

“It is true that the measures on the State pension which had been mostly implemented by the previous Pensions Working Group as at January 2007 managed to break the probable breakdown of the whole system and stabilised the public pension funding gap around breakeven until 2040, however one question – is this enough? What are we doing today to make sure that the funding gap in proportion to GDP will not continue to increase?”

Finance Minister Edward Scicluna says: “Thanks to sophisticated statistical and economic models, government is looking into the distant future, even up to 2060, to address concerns over the future sustainability of our system by taking into consideration future demographic changes as well as future changes in economic growth, productivity and labour force participation.

“This way,” he continues, “we are ensuring that today’s young generation may receive an adequate pension that would not put them anywhere near the poverty line. Today’s taxpayers have to foot the bill for €240 million in interest payments, while at the same time support the pensions system. By reducing both deficit and debt, this government is thus strengthening the pensions system by easing the burden off the future taxpayer.”

8 - Money / Issue 39

“WE ARE ENSURING THAT TODAY’S YOUNG GENERATION MAY RECEIVE AN ADEQUATE PENSION THAT WOULD NOT PUT THEM ANYWHERE NEAR THE POVERTY LINE” Minister Edward Scicluna

For Budget 2017, 20 different measures were announced that will allow pensioners to benefit from varying levels of raises and tax reductions.

This can be seen as a short-term measure to patch up the current situation. But looking to the future, what can the pensioners of say, 30 years’ time, be realistically looking to benefit from?

Minister Scicluna absolutely disagrees that policy measures announced in the last budget, as well as the three preceding it, are of a short-term nature.

“They are building a system which is permanent.

At the same time they are contributing towards

a fairer distribution of the country’s income. The 20 measures will become a permanent fixture of our income and caring system for people living in retirement,” he says.

Furthermore, he adds, “we have built on last year’s budget by increasing yet again the lowest level of income from a pension, which is now close to 60 per cent of the country’s median income. Thus, we are making sure that anybody who has contributed during to the scheme during his working lifetime will not be getting anything below that minimum.

introducing adequate state funded interventions and systems which pensioners can realistically be benefiting from”.

There is still inequality in men and women’s salaries. This is further aggravated by the fact that some women stop working to have children, resulting in them finding difficulty in accruing pensions’ entitlements.

“This year we have topped the income for pensioners whose partners, usually wives, for different reasons, were not able to join the labour force and contribute to the system.”

Minister Scicluna says this a problem of the past which is being felt in the pensions system and which the government has addressed. “I don’t think there has ever been a government which has implemented so many measures to ensure this will never happen again, this has prompted government to take all such measures to make women financially independent,” he stresses.

They have also looked at various groups, such as the over-75s and increased the bonus of those women who have only paid National Insurance for a short time and therefore did not qualify for a minimum pension.

“Results show that female participation rate is increasing significantly and this has been noted by rating agencies and other observers.

Thus, we strengthened families by helping them having two sources of income and

“THE OPPOSITION STRONGLY BELIEVES IN HUMAN CAPITAL DEVELOPMENT AND ITS POSITIVE IMPACT ON THE COUNTRY’S ECONOMIC GROWTH AND SOCIAL DEVELOPMENT” Dr Paula Mifsud Bonnici

Government has also taken decisive steps in order to encourage the elderly to stay at home rather than being institutionalised by making care more affordable, he notes.

There are three schemes, one of which is new and whereby the State will assist partners giving care and increased the allowance given to old people where an external carer is sought.

“Furthermore, we are also preserving the social well-being of carers by introducing a respite service for them,” he comments.

A last set of measures are meant to widen the means test in order to be fair with lower income pensioners who act in good faith and do not resort to tricks in order to qualify for assistance in kind such as free spectacles, dental care and hearing aids.

“The Budget 2017 measures (proposed also

by PN) to abolish income tax on pensions and reduce the withholding tax on investments held by pensions are very important and will surely help to alleviate pensioners’ financial hardships,” comments Dr Mifsud Bonnici.

She is aware, however, that pensioners are slipping into poverty as a result of lack of an adequate pension indexation. It results also that the elderly population in Malta compares rather unfavourably with their EU counterparts.

Thus, she emphasises that “it is of paramount importance for the government to increase the guaranteed national minimum pension while

9 - Money / Issue 39

PENSIONS

thus ensuring that they contribute to have a pension in the future.

“The more important measures are the free childcare, tax-breaks for women who re-enter the labour force and the increase in maternity leave for self-employed.

“These measures are aimed not only at encouraging women to participate today, but also at ensuring the gradual diminishing and eventual disappearance of disparity and inequality based on gender.”

Dr Mifsud Bonnici feels more needs to be done: “Even though according to the latest data issued by Eurostat, the gender wage gap in Malta was the second lowest in the European Union with women in Malta earning 5.1 per cent less than men, I strongly reiterate that we must strive further to decrease this gender wage gap. A clear gender pay gap still exists despite more women are graduating from university than men.”

She agrees that the introduction of the Child Rearing Credit measures was a positive pro-natal policy design measure within the First Pension system.

“The child rearing credits framework should be calibrated often as this will surely help in minimising the discriminatory impact of the traditional social model on career breaks experience by females for child bearing and rearing and encourage mothers to be more active in the labour market.

“The Opposition strongly believes in human capital development and its positive impact

on the country’s economic growth and social development. Thus, it fully supports the introduction of a lifelong learning/ formal apprenticeships/academic or vocational higher education credits.

“It is high time that these gender gaps are reduced. This will not happen overnight – however long-term policy efforts are required to combine equal opportunity policies across several fields. Social partners have a very important role to fulfil in this respect.”

Unfortunately, Dr Mifsud Bonnici is well aware that there are women who perform undeclared work resulting in their noneligibility to a state pension in their own right.

“We have several elderly women today who are fully dependent on their spouses’ pensions to get by as only 61 per cent of Maltese women have a pension of their own. In our pre-budget document launched this year, Let’s All Succeed Together, we proposed that widowers who stayed at home to raise and family and consequently do have a right to a pension should by right be able to continue receiving their deceased husband’s full pension.”

So, what next? What should the young generation do in order to prepare for the eventuality that they will not receive pensions?

This is the hardest question, admits Scicluna, as the nature of young people is such that they give little thought to old age and this should be addressed through family, family education, information and discussion.

“We disagree with imposing forced savings, such as the second pillar until we Malta reaches the European average labour force participation.

However, we do encourage saving, according to one’s means, on a voluntary basis. We are still passing through a learning experience, as society is still coming to terms with retirement at age 65, which still has to occur. We should tread carefully, and take it step by step. That is why we have introduced the third pillar and are incentivising employers. We have to first come to terms with late retirement and then work towards increasing one’s savings.”

Similarly, Dr Mifsud Bonnici agrees it is important young people start managing their money and not be managed by their money.

“They can only be in a position to do so,” she explains, “if they are able to understand better the range of financial management strategies, such as asset management, tax and succession planning, and insurance. They must, however, also be aware of their rights and protection mechanisms when investing or saving in financial products as until to date, some are still very wary of taking any risks with their portfolio for fear of losing money, of being scammed or becoming victims of fraud.”

Moving forward, she says, “we should be investing more in the use of educational pathways across the school curriculum, adult and community education; the provision of information to change behaviour and on-going support through targeted websites, digital markets and social and traditional media. We need to make sure that everyone is aware of their pension entitlements and how they go about accruing pension rights.”

THE FUTURE OF PENSIONS Karl Micallef, director at Curmi and Partners Ltd. There is a real worry that, due to an ageing population, today’s young generation are paying social security, but that they will not be recipients of government pensions when they reach retirement age. How true is this and which generation will be the last to enjoy pensions?

We believe that this is a real concern, albeit one which has been, and is currently being directly and indirectly addressed. Malta, in the recent past, has experienced various changes in the profile of its working population amongst which are: an influx of foreigners coming to work in Malta; an increase in female participation in the workforce as a direct result of efforts made by the Maltese Government to help women integrate and remain

10 - Money / Issue 39

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PENSIONS

part of the workforce; and an increase in the number of individuals who remain in the workforce post retirement age.

Therefore, this real concern has not been deteriorating at the accelerated rate we experienced until a while ago – one can even argue that the situation has improved when compared to the worst level this issue had reached. We believe that the State pension will remain in place for many years to come. The question is whether the State pension will be adequate enough at the time to maintain an acceptable standard of living which is reflective of a growing and developing economy.

Furthermore, the recent developments in the areas of Private Pension Schemes (Pillar 3) and non-mandatory Occupational Pension Schemes (Pillar 2) are very welcome as they are the necessary platforms which an economy needs to have in place in order to address this concern.

For Budget 2017, 20 different measures were introduced to allow pensioners to benefit from varying levels of raises and tax reductions.

This can be seen as a short-term measure to patch up the current situation. But looking to the future, what can the pensioners of say, 30 years’ time, be realistically looking to benefit from?

Generically, trying to predict a realistic outcome for a point in time 30 years from today is very difficult; more specifically when trying to do so in the area of pensions which is dependent on so many moving parts is unrealistic.

However, one can attempt to address this in reverse by determining where we want to be in 30 years’ time and seeing where we are today. This will allow us to determine what needs to be achieved in this interim period through the setting and execution of shorter-term strategies and objectives, in order to achieve the bigger picture.

One can argue that Malta has never been in a better position than the one it is in today to set and execute such plans and possibly even consider shorter time frames for the achievement of such goals. Over the past years we have seen policy actions being implemented with the specific intention of improving the current situation and which should benefit the younger generation when they reach pensionable age.

Combining the current economic growth we are enjoying, together with the occupational and private pension structures we can now adopt, we believe that our workforce can today look at the future more optimistically. We further believe that the typical investment mind-set of individuals will change in terms of scope and methodology given the tools they have today which they never had before. Tools which will help them save in a tax efficient way.

There is still inequality in men and women’s salaries. This is further aggravated by the fact that some women stop working to have children, resulting in them finding difficulty in accruing pensions’ entitlements. What should be done to remedy and avoid this in future?

You don’t need to reinvent the wheel. One of the very few advantages (if not the only advantage) is that we can look around us and see what other countries have done in this respect.

What do you advise the young generation to do in order to prepare for the eventuality that they will not receive pensions?

Start saving or emigrate to a country which has a proven, wellestablished pension system which provides the certainty one is

12 - Money / Issue 39

looking for. Realistically today, and this is not necessarily Malta specific, we need to reinstate the concept of saving. Today’s financial system has driven individuals to focus much more on consuming today rather than saving for tomorrow. If such a system is left in place for too much time the ripple effects could be very painful to reverse.

One needs only look at the current interest rate environment (for example in Europe) to note this shift in focus.

With current interest rates at record lows the incentive to save has been diminished while the incentive to borrow and spend has taken centre stage. This needs to be reversed especially because the capital required to generate a reasonable pension is much greater today.

Naturally, as a firm that operates specifically in this sector, we are well prepared to provide investment advice and solutions to individuals and companies that are looking at this space.

“WITH CURRENT INTEREST RATES AT RECORD LOWS THE INCENTIVE TO SAVE HAS BEEN DIMINISHED WHILE THE INCENTIVE TO BORROW AND SPEND HAS TAKEN CENTRE STAGE” Looking to the future, what in your opinion is the best way forward for a public, or otherwise, retirement scheme for the Maltese?

We believe that any scheme that is proposed as a way forward needs to have certain criteria which will provide the confidence required by a prospective participant; criteria that promote and provide longevity, security, transparency and ensure that an ethical and professional approach is adopted throughout the lifetime of the scheme.

We need to remember that this is a life-long journey for the participants. On the other hand, the Government of Malta needs to ensure that such schemes are administered and managed professionally, cautiously and prudently to ensure that the ultimate objective is achieved. The main reason why it has taken us so long to put the necessary structures to address this issue in place is one of cost.

However, if done correctly this will no longer be seen as a cost, but as an investment for the Government, which should reap the benefits of today’s ‘investment’ through a reduction in the financial burden in the sectors of pensions and healthcare. In the last budget the Minister of Finance announced additional measures which should only help us achieve further progress for tomorrow’s pensioners.

In our opinion this is a very big opportunity which we need to grab and run with without further delay.

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ECONOMY

ECONOMIC OPPORTUNISM

Is Malta’s new economic sector nationally corruptible, Victor Paul Borg asks.

T

he disquiet that two persons at the core of government did not resign following the outing of their secret accounts in Panama has been largely limited to the chattering classes (journalists, academics, activists, artists, political buffs), and those steeped in political partisanship.

The Labour party has even retained its lead in surveys of voting intentions, and that signifies a wider societal indifference that is in part due to disillusionment with all politicians and in part because we are a semblance of Panama – Malta is a more restrained version which, although bound more firmly by European norms of disclosure and legal rigorousness, similarly

14 - Money / Issue 39

offers arrangements for tax avoidance and passports of convenience to the global rich.

point it was even suspended due to the discovery of abuse – and it still survives.

These offerings are part of an economic journey that started with the so-called global residence scheme, in which wealthy individuals could gain residence in Malta by fulfilling a set of criteria (buying property above a certain value, declaring yearly income above the €100,000 threshold and being taxed at a flat rate of 15 per cent, procuring private medical insurance, and being able to speak Maltese or English – the latter requirement was never rigorously interpreted), a scheme which over the years (since its introduction under the previous government) has been through twists and turns – at one

The country has become economically beholden to it, just as it has become economically beholden to the financial services industry in a wider way, for there is certainly money to be made: substantial tax inflows, real estate sales of upmarket property, increasing the pool of potential clientele for private hospitals, all the services and goods that these residents might pay for (this is variable, for it is safe to assume that most of them only spend a small part of their time actually on Malta).

Yet it’s a scheme that has given Malta the reputation of a ‘tax haven’, because it allows

Victor Paul Borg has published more than one million words, as well as hundreds of pictures, all published in books and magazines and newspapers in every corner of the world.

“THE SOFTENING OF THE OPPOSITION TO THE SCHEME REMINDS ME OF THE ACCEPTANCE OF CRUDER WAYS IN THE MEDIEVAL AGES” the rich to become Maltese ‘residents’ mostly for the purpose of legalised tax dodging (otherwise euphemistically known as ‘tax planning’), of not paying tax at the country where the profits are generated (and where the tax bracket would be higher) – that’s not a very principled way of making money.

Less principled still is the so-called Individual Investor Programme. It’s a euphemistically sumptuous title for something that is rather more base: the granting of Maltese citizenship in return for a total package price of over a million euro, more than half of which has to be sunk in government bonds. Of course the overwhelming majority of applicants are not really interested in Malta, or in living in Malta – rather, they are mainly interested in a Maltese passport as one of convenience, mostly because it provides instant access to the EU. In fact this programme would be a flop if Malta wasn’t a member of the EU, so all we are doing is positioning Malta as a stepping stone to Europe – in return for more than a million euro of course.

We are merely resorting to economic opportunism, a cynical exploitation of EU membership benefits, which makes a travesty of the solidarity that supposedly exists among the EU’s member states.

Never mind solidarity among nations, many would argue; and it’s not only the Maltese who are nationally cynical within the EU. Indeed. Seen from a narrow national perspective it is tempting to perceive these new economic sectors as a means to an end: creating wealth without much effort, investing that wealth in our infrastructure and health and education and social services. We could retain our enviable free education and free healthcare; we could expand our social services.

There are certainly benefits to the legalised national skimming of money from the global rich, and for this reason the opposition to the sale of citizenship has diminished since its introduction. Even the Opposition leader doesn’t seem to be any longer opposed outright as a matter of principle.

The softening of the Opposition to the scheme reminds me of the acceptance of cruder ways in the Medieval Ages, when the state (then under the Knights) permitted corsairing in law – Malta-based pirates were sanctioned to raid Muslim ships plying the Mediterranean in return for ten percent of the booty put into State coffers.

Nowadays few are convinced that the granting of citizenship against specific monetary contributions is something to be proud of, and that includes the government, which is publishing the list of new citizens in a manner that obfuscates (in alphabetical order under initial of first name instead of surname as before), making it harder for journalists to pick out the names of persons who would have gotten citizenship in this manner.

But before we fully acquiesce to these new economic sectors, we should think hard about where this kind of economic path is leading us, and whether we are prepared to go there, or at least how far we are prepared to go. What is certain is that these schemes taint Malta’s image to some extent, and our individual and collective association with these Maltese residents or passport-holders has an insidious effect on our ethos. For no matter how much we fool ourselves with checks of due diligence on applicants for Maltese citizenship (the residence scheme is more acceptable because at least these grantees do not become Maltese citizens), we cannot escape the plain fact that most of the applicants for citizenship hail from some of the world’s most corrupt countries – and it is hard to thrive and become a millionaire in a corrupt country without being corrupt.

And no matter how rigorous the due diligence, no matter how well intended, it is highly unlikely that it would catch out the corrupt whose corruption remains undiscovered in their country.

So when we think about the path which we are taking, we should not lose sight of who we are as a nation and people. Malta’s historical image conjures qualities of romance and chivalry and

gallantry and hospitality, and anything that adulterates that imagery will do us a disservice in the long-term. Malta is not another Dubai or Singapore: those are brash places without a sense of culture and history, places whose superficial modernity is the best they can offer.

We have a distinct culture that still remains strong, and together with history it is still our strongest asset – it’s thanks to our culture and history that we have a thriving tourist industry.

My fear is that the insidious effects of the new economic sectors under discussion here will over time promote a kind of attitude that will gradually dilute the fundamental nutrients that nourish our culture and eventually pervert our national identity. Also the idea that we can make money from little effort, from being a stepping stone to Europe or offering the wealthy a base of convenience, may also have the effect of making us indolent in body and mind, and lead to national decline (something that can be seen from the obesity epidemic – we are now statistically one of the most obese nations on earth)And another place we are going is that we are becoming like tricksters generating income from the two extremes of the spectrum of financial prowess – the rich and the poor. The rich, we have been talking about. The poor are the increasing hordes of immigrants from Eastern European countries who now work in our service industries – working for a pittance, €5 an hour – an exploitation that is all the more complete by high rents (substantial amount of their meagre earnings disappear into paying the rent and utility bills). And then there are the illegal immigrants, which fare much worse, doing the jobs that virtually all Maltese now shun (rubbish collection, meat processing, farm labour, and so on).

Once again, if looked at from a narrow national perspective, then we could say that cheap labour serves to keep prices low, increasing our competitiveness in all sectors, including tourism.

(They are not the only left-behinds: the number of Maltese in relative poverty has also been increasing according to recent statistics, which is another indictment of the imbalance of these schemes for the global rich.)

Is it in our interest to continue going down this path of partial economic opportunism?

I believe we should look into our history and into our national psyche, where we will find ample quantities of pride and resourcefulness to create wealth from economic constructiveness and creativeness, not opportunism.

15 - Money / Issue 39

DIGITAL

THE RISE OF THE ROBO-ADVISOR

How are digital technologies disrupting the financial services sector, Theo Dix and Chris Meilak ask.

Y

ou’d be hard pressed to find an industry that has not been disrupted by the advent of digital technologies. The financial services sector is no different.

Leveraging the power of a host of evolving technologies – big-data, artificial intelligence, machine learning, natural language processing – together with slick multi-channel digital platforms, a whole new host of digital asset management firms are evolving.

institutions and high-net worth individuals rather than retail investors.

For individuals, investment advice was traditionally only available through faceto-face interaction and involved hefty investment advisory fees and commissions.

Such advice was much more accessible to

Against this backdrop, regulators and investors are demanding more transparency, better risk management, enhanced client service and greater clarity in the connection between fees paid, services delivered and value offered.

16 - Money / Issue 39

Performance and incentive misalignment issues have also blighted the industry. A recent detailed study conducted by S&P Dow Jones, with data from 25,000 funds, found that most active fund managers underperformed versus their benchmarks over the last decade.

“High quality, personalised and comprehensive advice is expensive to deliver and, for smaller sums of money, may not be cost effective,” noted Tracey McDermott, the former acting chief executive, Financial Conduct Authority (the “FCA”, the UK financial services regulator) in a speech in April 2016.

In 2015, the UK’s FCA and HM Treasury set out conducting a financial advice market review to explore the barriers preventing people from accessing financial advice and the ways financial advice could work better for consumers. Its 2016 report set out recommendations for overcoming these challenge. Technology was identified as a means of giving consumers

Chris Meilak leads the economic advisory team at EY Malta.

Theo Dix is a project finance and infrastructure consultant at EY Malta.

“THIS VAST MARKET OPPORTUNITY IS DRIVING MANY TRADITIONAL PLAYERS TO REVISIT THEIR STRATEGIES AND BUILD NEW DIGITAL OFFERINGS INTO THEIR SERVICES”

more access to affordable advice. So, as part of Project Innovate (the FCA’s dedicated hub set-up to support FinTech innovation from new and established firms), the FCA established the Advice Unit, with the aim of supporting firms developing automated models which seek to deliver lower cost advice.

A new breed of digital investment advisors and traditional players are seeking out ways to capitalise on these opportunities. They are offering simplified financial solutions through sophisticated online platforms, eliminating or reducing the need for face-to-face interaction.

According to EY’s report, Advice Goes Virtual: how new digital investment services are changing the wealth management landscape, two different types of models are emerging.

The first is fully automated robo-advisors, a direct-to-consumer approach to offer fully automated investment services, without assistance from a financial advisor, to obtain a diversified investment portfolio. These advisors, most of which are start-ups, are offering simple digital tools which enable clients to complete a profile and risk tolerance questionnaire and receive algorithm-based portfolio construction and investment advice.

Features can include fully direct deposit, periodic rebalancing, dividend reinvestment

and tax loss harvesting, among other features.

The second is advisor-assisted digital wealth managers. This approach combines a digital client portal and investment automation with a virtual or personal financial advisor typically conducting simple financial planning and periodic reviews over the phone. Such advisors aim to offer more holistic advice than those offered by fully automated advisors, through other value-added offerings such as asset aggregation services, expense-tracking, advice on budgeting and financial-goal planning.

Many of the new digital firms providing roboadvice are initially targeting the digitally-native millennial generation as their main customer segment. However, as awareness grows, mass market and mass affluent adoption may not be too far away.

Some within the industry are forecasting that a new self-serve model could gain traction across multiple market segments in the same way the internet disrupted travel agencies.

This vast market opportunity is driving many traditional players to revisit their strategies and build new digital offerings into their services.

The FCA’s Advice Unit assessed 19 applications for the initial tranche of its programme. Nine firms were successful, of which 8 are established financial services companies who want to bring automated advice to the market at scale.

Another form of self-serve model which is also gaining traction is social trading. Social trading platforms allow novice traders to watch, follow and copy trades and mimic strategies of professional investors. The premise is that users can select the best performing traders, and buy when they do, sell when they do and profit when they do.

A lack of awareness about the personal suitability of these investments does however create various risks. Hybrid models are also starting to appear combining social trading within digital advice platforms, enabling customers to compare portfolios with those of their peer-groups.

Robo-advice certainly won’t be everyone.

HNWIs and professional investors with complex financial and tax circumstances are still likely to benefit more greatly from the tailored advice of a traditional investment advisor. A large proportion of investors are also uncomfortable with the idea of a computer programme managing their life savings. But traditional advisors are turning towards new technologies to enhance their offerings too. Many are steering clear of developing proprietary tools and are instead licensing, collaborating with or acquiring FinTech firms to assist them to develop enhanced investment advice and portfolio management tools, enhance customer experiences and transparency through new real-time digital platforms, and strengthen internal risk management functions.

It is clear that new technologies are helping to reshape the industry. Whether the roboadvisors will ever become fully mainstream is however still uncertain.

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BUSINESS

SMALL IS BEAUTIFUL

How does the 2017 budget intend to boost micro businesses, Reuben Buttigieg asks.

M

icro businesses are still an important part of the Maltese economy. Malta must keep incentivising this sector as Malta cannot afford to become wholly dependent on large businesses. The latter risk for Malta would be too high great if it the country focuses solely on just a few large businesses.

The national budget for 2017 read by Minister for Finance Prof Edward Scicluna on October 17, prima facie seems to try to address this.

Indeed, it tries to apparently encourage young persona people to opt for self-employment.

For instance, through one of its measures, the government has recognised that start-ups face unnecessary administrative burdens.

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Exempting them from audit is a step in the right direction â&#x20AC;&#x201C; however, we need to see whether its implementation will be simply paying lip service to the issue or actually striving for its effectiveness and success still remains to be seen will be a cosmetic one or a real one.

In the last past we saw a similar exemption for small businesses â&#x20AC;&#x201C; however, its execution only took place in the Companies Act, but was not mirrored in the Income Tax Act. Presumably, Minister Scicluna is beyond these deceptive tactics and following a true full implementation.

The removal of the eco contribution was also a positive measure. However, extension of SISA

on new products is an old bureaucratic way for a government to generate income. It will also encourage alternative ways of buying online and may damage even further the retail industry.

It may also stimulate the black market and the importation of products through the freedom of movement of goods within the EU, in the process creating unfair competition.

Government will have to increase antievasion measures which in themselves may be in breach of European community rules, defeating the main objectives of the EU internal market.

Malta will need to see have to determine how this measure will be interpreted by the

Reuben Buttigieg is director at Erremme Business Advisors.

“ONE WOULD HAVE EXPECTED STURDIER INITIATIVES” relevant DG internal market. Furthermore, this measure will also have an impact on the cash flow of businesses, possibly putting them at a further disadvantage when compared to the larger competitors. Undoubtedly, selling prices will be effected by this measure.

The addition of SISA on certain construction items is a measure based on the assumption of the new trend for high-rises. It is also based on the premise that the construction industry had a good two-year period – however, this latter assumption is a flawed one, as the increase in property sales during these last two years was also due to the first-time buyers’ measure implemented by this administration.

However, while the first-time buyers’ measure accelerated the sale of property, it did not increase the demand. Consequently, the industry may be slower in the coming years. There is still the increased demand by foreigners, which is limited as well, when one looks at the risks of other industries. This measure is certainly a short-term measure based on previous short-term measures.

It may also increase the property bubble that the country seems to be currently experiencing. The large construction companies will probably have positive results for the next three years, but this does may not necessarily be the same scenario for smaller companies constructors.

The statement that the small business formation time will be reduced by simply removing a trade licence is nothing more than a presumptuous statement. Today, start-ups face various difficulties, including registration for VAT and opening of bank accounts. Apart from publicly complaining about banks’ operations, the government has done absolutely nothing to address this. Many argue that government cannot interfere with banks. This is largely incorrect – government can facilitate through regulation and legislation.

The VAT Department seem to find it very difficult to use technology in order to

monitor fraud. Instead, it is procrastinating in issuing VAT numbers as it does not have the appropriate monitoring tools. This has not been addressed by government and it is one of the stumbling blocks in opening new businesses, particularly when it comes to foreign investment.

The reduction of duty for transfer of business gives a positive succession planning message, even if the measure is only for 12 months. Possibly the effect of this measure will be monitored and extension of period or otherwise will be

decided in future. However, succession planning is a long process and 12 months may be a short period in order to gauge the positive effects of such a move.

This budget has had seen the proposal of various positive measures from the perspective of with regard to other sectors.

However, one would have expected sturdier initiatives that facilitate both the creation of new micro and small businesses and the upkeep of already functioning ones – after all, these are also great contributors to the wellbeing of our economy.

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FINANCE

LOOKING AT THE FUTURE What attracts foreign direct investment to Malta, Theo Dix asks.

T

he benefits which foreign direct investment (FDI) brings to a small, open economy like Malta’s are well known.

What is less known are the views of the top executives of foreign owned companies in Malta. What are their thoughts on what drives or hinders FDI flows today and tomorrow?

The 12th edition of EY’s Malta Attractiveness Survey: the future is today, was launched at a national conference on October 7 to help shed light on this question. These views were augmented by those of 60 leading local and international speakers and 530 of Malta’s top public and private stakeholders.

Respondents to EY’s survey highlighted that Malta’s tax regime remains attractive and has now been rated as the strongest factor pulling in foreign investment. This was followed closely by the stability of Malta’s social climate.

EY’s report also found that business confidence in the stability and transparency of Malta’s political, legal and regulatory environment has declined by 15 per cent since last year. While in comparison with other countries Malta still scores highly on this benchmark, this dip cannot be ignored.

Local labour skills levels, telecommunications infrastructure, and labour costs are also considered to be attractive by a majority of respondents, with each of these registering well over the 60 per cent mark. Malta’s FDI shortcomings in 2016 remain the transport and logistics infrastructure, and the research and development, and innovation environment.

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Simon Barberi, EU Advisory Services Leader at EY Malta

Zooming in on another focus area, current investors believe that while Malta’s innovation environment remains weak, it has made significant strides forward.

Simultaneously, there is a recurring and growing perception that our transport and logistics infrastructure deters investment.

Investment by type of facility

As in previous years, investors believe that the sectors tied to technology and financial services – iGaming, ICT, asset management and others – will be the ones that will drive Malta’s future economic. For these sectors to thrive, the right level of stability, a competitive legislative regime and the right human resources have to remain the top priorities of public and private sector decision-makers. But do current investors believe that this is happening?

Focusing on the education and skill levels required to attract and retain FDI in Malta, 79 per cent believe that we need robust progress in this area to remain attractive in the face of global competition. In addition, more than half of the respondents’ expansion plans are dependent on recruiting employees with the required know how.

“MALTA’S TAX REGIME REMAINS ATTRACTIVE AND HAS NOW BEEN RATED AS THE STRONGEST FACTOR PULLING IN FOREIGN INVESTMENT” The demand for skilled labour continues to outstrip supply in a number of sectors.

Indeed, less than half (45 per cent) of existing foreign investors say that they are able to source the required specialised skills locally. Not surprisingly, specialised personnel retention is quite high, standing at 87 per cent. Making this challenge more acute is the fact that the level of education required by investors is on the rise, with 63 per cent now requiring graduates with tertiary level education.

In order to address such current and future skills shortages, respondents overwhelmingly believe that a mix of education and work placements are key.

Source: 2016 survey respondents.

Note: Respondents could choose more than one area.

Among the respondents, 95 per cent believe that Malta should introduce skill sets for the ‘new’ economy, such as coding and robotics in schools. Also, 87 per cent believe that international work placements for Maltese nationals need to be encouraged.

Also significant is the fact that 53 per cent of the companies surveyed are considering expanding their operations in Malta, with more than half embarking on back office work. Sales and marketing projects are also becoming increasingly popular, with one out of every three respondents (31 per cent) looking into this type of expansion. One of the most positive results of this year’s survey is that 79 per cent of the companies predict that they will still be operating in Malta in 10 years’ time, an increase of eight per cent over last year.

Looking towards the future, it should be highlighted that we are living in an increasingly dynamic and digital world.

Following last year’s conference, EY spearheaded a number of policy initiatives in five sectors: FinTech, commodity trading, Malta as a gateway for Asian e-commerce, logistics and reskilling regular immigrants.

At this year’s conference the firm announced that over the last few months, it has been working on launching a number of think tanks with the exclusive task of delving into what action should be taken to further enhance Malta’s economic future.

To contribute to addressing current and future challenges, these think tanks will initially focus on three areas for improvement highlighted by the survey – education, technology and infrastructure.

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MARKETING

SET SIGHTS ON HORIZON How do you ensure that your marketing remains relevant in a booming economy, George Larry Zammit asks.

W

e are experiencing great market conditions at the moment in sunny Malta. Most sectors in the market are booming. From hospitality to services to wholesaling one may say that things are quite rosy. One cannot really complain that they are not taking their fair share of the proverbial cake. The demand is there. One only needs to be capable to tap into it.

In such times one might reconsider the investment being made in marketing. Some might see marketing as an unnecessary cost centre as they feel that the business will come in anyway. Others might think that it would be best to save the money for

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a rainy day â&#x20AC;&#x201C; after all, as they say, whatever goes up will eventually go down.

The problem with this type of reasoning is that you are gearing your business to be a reactive one. You are waiting for the eventual storm and tough market conditions to happen.

However, successful and sustainable businesses are those which are proactive and anticipate potential changes in the market forces. Business that proactively reposition themselves to remain relevant to the market place. Businesses that will sail full steam ahead whatever the market conditions.

While positive business performance is a great situation to be in, this is your opportunity to prepare yourself for the next storm. Naturally businesses can become complacent. Competitors are invited to enter the market as they see the market as more attractive than before. A substitute might arise which challenges the status quo and taps into a consumer need or habit.

The market might actually crash due to unforeseen circumstances.

This is why what you do from a marketing point of view is so important. You donâ&#x20AC;&#x2122;t just allocate financial resources for your marketing just for the sake of it. While the sun shines, set your

George Larry Zammit is a chartered marketer who invigorates businesses through his consultancy Tiki-Taka Marketing (www.tiki-taka.com.mt).

medium- and long-term strategic goals and objectives that will enable you to sustain the wave and determine your long-term success.

The first step you need to do is put together what we call a marketing audit. This is a snapshot of your business and the market you are engaging with. It is a good reflection of what you are doing great, but also what you can do much better. The audit summarises the current market potential while analysing your competitors, customers, and channels.

Using a conventional SWOT analysis you can determine your strength and weaknesses.

Ultimately the audit will enable you to identify potential opportunities while keeping an eye on threats on the horizon.

A solid customer base makes for a solid business. Your customers can easily make you or break you. That is why it has become more important than ever to nurture a bond with your customers and understand clearly what their needs and wants are.

Focusing on your customer base is swiftly becoming the key to success. It consists of three main tasks which you essentially need to include in your future marketing plans.

They are customer acquisition, customer development, and customer retention. While business is good and these tasks might seem quite obvious, they should be central to your marketing framework for the future.

Surprisingly many marketing plans skip this process. We present our plans for the future without setting the point we are starting from. Take this opportunity to take stock of the situation. Get a better understanding of the market and where it might be heading.

Get to know better why your customers love you and grasp how you meet their needs, hopefully with satisfaction.

Customer acquisition is something we think happens naturally. While itâ&#x20AC;&#x2122;s true that there are customers out there looking for your product or service, what are you doing to ensure they opt for you and not for your competitors? Are you sure that they know that you exist? Is your product or service offer aligned with their actual needs and expectations? Are you reaching out enough to win as many new customers and business?

Past marketing strategies evolved around the brand and its promise. The brand was essential for the product and service to stand out from the competition and become easily identifiable as what you see is what you get. The brand has a form of intangible value which we refer to as brand equity. The brand is still important but we are now in an age where the customer drives the market.

This is why current and future marketing strategies should focus on developing what we are now calling customer equity.

Most service-based businesses report periodically on the number of new customers they acquire. It is considered as a key performance indicator which measures the effectiveness of the sales and marketing team. Apart from this though, you need to understand why they are becoming your customers. Which channels are they using to engage with you? What incentives do you need to offer to win your new customers?

Ultimately how much does it cost your business to acquire a new customer?

Once you have acquired your customer, the next task is developing your customer base.

This is your opportunity to reinvigorate your purpose to your customers. What other product and services can you offer or sell them? What new products and services can you develop or introduce? Would it be possible to tap into new customers through your current customer base?

These are all questions you need to ask to ensure that you utilise your current customer base. It is a crucial resource that you can easily tap into to churn new opportunities for your business. There is no better way of finding out more about your customers than directly engaging with them.

Finally, your marketing plan needs to ensure measures are in place to safeguard customer retention. You have no guarantee that your customers will not switch to your competitors.

Therefore, you need to have a mitigation plan in place to fairly keep hold of your customers while not giving them a valid reason to switch.

While reporting on one hand how many new customers you are acquiring, you need to also take stock of the customers you are losing. You need to clearly understand the main reasons and causes you are losing customers. Your ability to do this in a quick and efficient manner will enable your business to realise possible shifts in the market place while understand changing customer need and expectations.

What actions will you take to stop the incident of losing further customers, most importantly your best ones? How can you reward or thank your customers for their loyalty and trust in your business?

We are now operating in a digital world.

All our records are digitised. Hence it is now easier than ever to keep track of how your customers engage with your business.

Make sure you put in the right systems and reporting to ensure your data offers you the right outlook on your customersâ&#x20AC;&#x2122; activity. It is quite amazing how several businesses have the digital tools and infrastructure but do not utilise them fully apart from managing their inventories, reporting sales, and billing.

Your business exists to make a profit.

Ultimately though that existence would not be possible without the regular custom of your customers. Ensure your marketing activities are a customer-centric investment to serve as the foundation to survive and grow in the future.

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EUROPE

INVESTING FOR PROSPERITY How is the EU is ensuring prosperity through investment, Ivan Ebejer asks.

What is the Investment Plan for Europe about and why is it necessary?

Apart from severe and visible effects on Europe’s society, the economic crisis brought about a drop of some 15 per cent in investment.

Investment is a key determinant of economic growth and job creation.

Therefore, it became obvious that to improve economic performance a big push was needed to close this investment gap.

Our analysis shows that rather than a lack of liquidity, investment in the EU is being held back by weak investor confidence.

It was with this in mind that one of the first major initiatives taken by President Juncker’s incoming Commission was to launch the Investment Plan for Europe.

What does it consist of?

The Plan consists of three strands. At its core, a new financing facility that is separate from – but can be combined with – traditional EU funds has been created. The risk-bearing capacity of the new fund is planned to reach €33.5bn. By reducing investors’ risk, this fund will draw in private capital that otherwise would not have happened.

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We are estimating that thanks to the Investment Plan, €500bn in total investment would be unlocked by 2020.

Secondly, an advisory service was set up to support those seeking finance to realise an idea, while an online portal - which acts as a match-maker between project promoters and investors – was launched.

A third important pillar of the Plan is stepping up efforts to improve the investment environment – actions like reducing red tape and removing barriers in key sectors such as finance, energy, telecoms and transport.

How is the new financing different from other EU funding sources?

For starters, the financing provided under the Investment Plan comes mainly in the form of loans and guarantees, not grants. Also, unlike traditional EU funding, there is no predetermined geographical allocation of funds.

Rather, approval of financing depends on presenting economically viable projects which are consistent with EU policy.

Having said that, the two sources of funding are not mutually exclusive. On the

contrary, they can be combined to deliver additional investment. Such blending of funds has been adopted with huge success in other member states, such as France – there is nothing that would not make it a successful model also in Malta.

To facilitate matters, the European Commission has recently proposed legislative changes that would simplify the combination of the two funding sources.

What are the results so far?

One year on, the results show that the Plan is in line with and in some cases has exceeded expectations. Almost all EU countries, including Malta, have signed financing operations under the Investment Plan which are expected to trigger almost €138 billion in total investment. By far, small companies have been the top beneficiaries of the new funding – in total some 290,000 European SMEs will benefit.

On the back of this success, the European Commission has recently proposed an extension of the new fund in terms of both duration and financial capacity. Under the new proposals financing that goes to small companies has been scaled up.

“ONE YEAR ON, THE RESULTS SHOW THAT THE PLAN IS IN LINE WITH AND IN SOME CASES HAS EXCEEDED EXPECTATIONS”

How can a local business benefit from the Investment Plan?

Project support is not bound by country or sectorial quotas but is demand-driven. It is also worth highlighting that governments are not gate-keepers in this process. Therefore, Maltese project-promoters seeking financing from the new fund can go directly to the advisory service . They can also choose to submit a request to list their project in the online portal, thereby increasing their visibility and likelihood of attracting investors worldwide to back their idea.

Closer home, a local private bank has secured a financing line under the Plan consisting of €12 million in fresh low-cost loans to support innovative SMEs. We encourage other financial intermediaries to set up similar agreements under the Investment Plan so that small companies in Malta get access to financing that will help them grow their businesses and create jobs.

Ivan Ebejer is an economist at the European Commission Representation in Malta. For more on the advisory service visit: www.eib.org/eiah

PROMO

A CULTURE OF OPTIMISATION ANCHOVY. rethinks the agency business model.

Why ANCHOVY.?

Being creatures of the sea we felt that our name should be linked to the marine world in some way. We called the company ANCHOVY. because we wanted to create a name that invites intrigue and a sense of team. Anchovies are synonymous with creating teams in a world of vast oceans with adventures and opportunities around each corner. The name ANCHOVY. seemed like a natural fit. More importantly, why not?

What is your past and what are you planning for the future?

The agency was founded back in 2013 out of a bedroom and we now find ourselves on the Hamrun main street in a 1970s town house.

Our office in Hamrun sparks a lot of intrigue and it fits in perfectly well with our culture and hustler attitude. We have pushed hard in the UAE and opening an office in Dubai to service the market has been a great success. We think most people aren’t really sure what we’re doing or what we can do, but we’re comfortable with that, since once we sit down with them it all becomes clear and the adventure starts.

From the very beginning we believed in focusing exclusively on digital and this led us

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down an exciting path of experimentation and exploration. The future will see ANCHOVY. strengthen its international and local structures to define itself as the go to conversion driven agency.

This drive for performance and conversions was the inspiration for the development of ConvRes™, a conversion engine our team pioneered over the past 12 months. ConvRes™ is the first ANCHOVY. product and the coming years will see numerous products being developed, some local and others exclusively for export.

How is ANCHOVY. different to other digital agencies?

We have now redefined the agency and somewhat the agency model itself, moving towards a pure performance driven agency which allows our team to work towards fixed tangible client goals. This pivot in thinking, structure and approach has allowed us to focus on a highly specialised environment, whereby we daily assist our clients and partners in taking their business to the next level by both generating the finest traffic possible and converting that traffic into tangible conversions.

Whereas most other agencies focus on fixed monthly retainers for a core set of services which may not be directly linked to the client’s bottom line, ANCHOVY. focuses on transforming our clients into partners. We do this by working towards tangible monthly KPI’s, it being the number of hotel rooms booked per day, to the number of private charters jet flights booked per month. To be blunt, we’re making money when our client is making money.

We are on-boarding clients who believe in the results we achieve and allow ANCHOVY. to achieve those results with whichever channel we deem is working most optimally.

It took a lot of courage to focus our agency away from a general digital marketing agency to a focused conversion optimisation engine. But by focusing on a culture of optimisation, we’ve aligned our company, team and clients around where we provide the most value to those clients, and most importantly, their consumers.

In what ways does ConvRes™ strengthen a brand?

ConvRes™ isn’t a fixed service – rather, it’s an engine which we mold together with our clients to bring achieve the finest traffic and the highest conversion rate. Working across paid, owned and earned channels ConvRes™ works by creating personalised and dynamic

“BUT BY FOCUSING ON A CULTURE OF OPTIMISATION, WE’VE ALIGNED OUR COMPANY, TEAM AND CLIENTS AROUND WHERE WE PROVIDE THE MOST VALUE TO THOSE CLIENTS” feel at ease with the adverts and site. We care deeply about their satisfaction, happiness and loyalty. And if you help consumers meet their goals, they will convert into a sale or lead.

Our clients going forward If we don’t see a clear path towards client return on investment, we find it is better to say so as early as possible. Otherwise, it is an upwind sail back into the generalist digital marketing agency and the fact that we wouldn’t be working towards one of our main reasons of driving revenue for our clients means we will usually avoid this situation.

customer experience targeted towards the customers that matter. This allows a brand to get a bigger bang for the buck. ConvRes™ is an amalgamation of several proprietary technologies, platforms and a proven methodology which our team practices daily.

ConvRes™ is the brain child of the ANCHOVY. team, its culture and philosophy which is the encapsulation of the ANCHOVY. culture in a dynamic platform. The platform and its architecture is highly dependent on data, an iterative approach to achieving goals and artificial intelligence. We have engineered a unique fuzzy logic engine which allows ConvRes™ to envision the end consumer’s traits and reasoning which is used by our team and ConvRes™ to drive more conversions.

What niche in the market does ConvRes™ address?

ANCHOVY. and ConvRes™ address that part of the market which is results driven and focused.

We stray away from brand awareness campaigns

and focus our energy on seeking clients and partners who depend on conversions, which honestly speaking is applicable to virtually every brand under the sun.

Conversions vary depending on the client, we work with B2B clients, such as financial advisory companies where the mission is to generate global leads from other businesses interested in the clients offering. We also work towards B2C goals and subscriptions such as selling tickets at festivals in mainland Europe.

Through ConvRes™ our conversion engine, we define ourselves as conversion specialists, meaning that we both drive site traffic to our client’s sites and make sure a conversion happens once the traffic is on the site. This focus has led us to what we are today: conversion rate specialists that deliver more traffic, site visitors, and ultimately revenue to clients.

We engineer the campaigns with the end consumers in mind, ensuring that they will

For clients who do fit culturally, but perhaps don’t have the revenues to support working with on a fixed cost retainer model, we will evaluate the project based on our evaluation model and instinct. Should we believe in the project, somehow we will assist the client.

How does ConvRes™ complement other ANCHOVY. products and services?

After hundreds of campaigns and client relationships, we came to the conclusion that not many companies can build a product, launch it, drive traffic and achieve a breakeven point within a few months. We realised we had to be trading this expertise differently, so apart from the retainer-based model, revenue sharing is an option we now consider with ConvRes™, helping to re-launch establishing brands and igniting start-ups is the way forward for ANCHOVY..

ConvRes™ fits perfectly within the vision as it ensures our clients hit their goals within the shortest period possible to drive a healthy conversion rate and bottom line for the company.

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BREXIT

EXIT BRITAIN, ENTER OPPORTUNITIES What does Brexit mean for investors?

Kristian Camenzuli and Jordan Portelli, investment managers at Calamatta Cuschieri, explain.

B

rexit has taken the world by surprise. Now it is a reality that investors have to adjust to. Investment managers had to go back to the drawing board and re-evaluate their models, factoring in a European Union without the UK.

of the index. As the pound falls against the dollar and euro, exporters find their goods are cheaper for overseas customers to buy which boosts their sales and profits.

There is also a bottoming of commodity prices. The largest sector exposure in the FTSE 100 is the oil and gas industry. With a bottoming of the oil price and a weaker Sterling, companies like BHP Billiton and BP continue to do well as their products become more attractive to foreign consumers

KRISTIAN CAMENZULI The FTSE 100 is outperforming other European Indices despite Brexit. Why is this?

With all that has been going on in UK, few are those who would have anticipated that the FTSE 100 would be the best European Equity Index so far this year.

The biggest gains since the referendum have been made by gold miners, exporters with big dollar earnings, and companies with stable incomes such as pharmaceutical groups, utilities, and food and drink companies. House builders, banks and airlines have led the declines.

There are four main reasons for the outperformance of the FTSE 100. First is a weak Sterling. This is good news for those companies who have large overseas earnings, and these account for about 77 per cent

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With interest rates so low, the dividend yield on the FTSE 100 above four per cent makes investing in the market an attractive option when compared to the yield on other asset classes for a similar level of risk.

The Bank of England is accommodative. In August the BOE cut its official interest rate to 0.25 per cent, the first such move since March 2009. It also plans to pump an additional £60bn into the economy to buy government bonds, extending the existing quantitative easing programme to £435bn in total.

Which companies within the UK are benefitting from Brexit?

The companies within the UK which are benefitting most from Brexit are the miners.

Anglo American, which is the best performing stock in the index, is up 167 per cent so far this year followed by Fesnillo, Glencore and Randgold which are up 128 per cent, 96 per cent and 77 per cent respectively.

The outstanding performance of miners can be attributed partly to a rebound in the Gold price. Gold spiked following the vote to leave the EU as investors shifted to safe heavens. Continued uncertainty around how the UK will negotiate the terms of its EU exit means that the price of gold could keep rising – maybe to as high as $1,424 an ounce by the end of the year, according to a survey of analysts. However, it is not just the miners that benefitted from Brexit but also the exports which benefitted from a strong depreciation in the Sterling.

Companies like Smiths Group, Micro Focus International and 3I Group are up 43 per cent, 35 per cent and 28 per cent respectively. This positive performance is mainly attributed to the weakness in the Sterling due to the fact that the main markets of these companies are outside the UK itself.

Which sectors within the UK should an investor avoid due to Brexit?

Sectors in the UK which are performing poorly are mainly in real estate, retail, airlines and financial sectors. The negative performance is mainly due to negative sentiment and uncertainty on the future of the UK economy.

This has been immediately visible in the real estate sector. Retail investors withdrew £1.4bn from property funds in June, six per cent of the sector’s assets, as the Brexit vote sparked an exodus that forced some of the largest funds to halt trading.

JORDAN PORTELLI The BOE acted aggressively following the result.

What was the immediate implemented stimulus?

The market was pricing a rate cut by the BOE, but the stance was more aggressive than expected. Apart from the rate cut from 0.50 per cent to 0.25 per cent, the BOE implemented a term funding scheme of up to £100bn with the aim of the scheme to ensure that the cut to the base rate is passed through to households and companies. In addition, the purchase of up to GBP10 billion in UK corporate bonds was also announced, while the bond buying program better known as quantitative easing was increased by £60bn of monthly purchases from £375bn to £435bn.

Do you envisage any problems for UK corporate bond issuers?

The theoretical implication of easing measures

by Central Banks is a weaker currency, which implies a competitive advantage for UK exporters. Thus for major exporting UK corporate issuers the implication of a weaker currency will indeed imply higher exports.

For corporate issuers with domestic demand, the situation is still unclear due to the fact of the uncertainty in terms of the impact on the economy going forward. Another interesting

portfolios in Sterling as their base currency, should consider seeking an allocation in UK bonds within their portfolios. The rationale is based on the fact that dependent on the economic situation, the BOE will adjust its stimulus accordingly. There is still a strong possibility of further stimulus going forward and thus this will translate in higher bond prices.

point is that the rate cut implies that now issuers can re-finance at lower interest rates and thus reduce their interest expense.

Are UK bonds still attractive?

The effectiveness of the latest implemented stimulus is uncertain. Thus the possibility of further stimulus is surely on the table. This was also confirmed by Bank of England Governor Mark Carney, who stated that despite he doesn’t fancy negative interest rates, the possibly of going towards that path is a possibility if need be.

In my view, Sterling bonds should still offer some value going forward and thus investors who hold Sterling cash and primarily hold

In my opinion a more prudent approach is to select UK issuers with a high exporting element.

These will surely benefit both from further stimulus, but also from an improvement in the issuers’ financial health due to an increased competitive advantage in terms of exports.

The information, views and opinions provided in this article are being p=rovided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd. is one of Malta’s leading financial services firm. The company offers a wide range of investment services including independent investment advice, live online trading, savings plans, investment management and fund services. For more information visit www.cc.com.mt.

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2131 2344 info@creditinfo.com.mt www.creditinfo.com.mt

29 - Money / Issue 39

LAW

MALTA’S CUTTING EDGE NEW FUND FRAMEWORK Richard Bernard outlines the new Notified Alternative Investment Funds regime.

E

arlier this year, the Malta Financial Services Authority announced the launch of an innovative new breed of investment fund regime for Alternative Investment Funds, namely the Notified AIF. The inherently light regulatory touch and corresponding approval mechanism of the new framework applicable for the notification of AIFs represents a clear manifestation of the MFSA’s ongoing drive to simplify Malta’s fund offering and bolster efficiency of the authorisation

30 - Money / Issue 39

process to the extent that Notified AIFs will not require licensing by MFSA and will not be subject to ongoing MFSA supervision.

In the wake of voluminous regulatory reforms implemented both at EU-level and locally over the course of recent years, the move has ostensibly been very well received by financial services practitioners and key industry players alike. As at the time of writing, the first Notified AIF has already been set up and included in the list of Notified AIFs maintained

by the MFSA and the new Notified AIF is touted to become one of the primary EU fund vehicles of choice for the industry over the course of the coming three to five years.

The new Notified AIF regime is rooted in the provisions of the AIFM Directive and will be available to AIFs promoted to qualifying or professional investors which are externally managed by a Maltese or EEA passported full-scope AIFM (Alternative Investment Fund Manager).

Dr Richard Bernard is a managing partner at Be. Legal Advocates and is primarily responsible for the firm’s financial services and corporate and commercial law practice.

“THE BENEFITS OF TIME- AND COST-EFFICIENCY INHERENT IN NOTIFIED AIFS FAR OUTWEIGH ANY NEGATIVE ASPECTS OR ADDITIONAL LIABILITIES PLACED ON THE AIFM” Accordingly, the key feature of the new structure is the reliance on the AIFM’s regulatory status whereby the investment manager assumes full responsibility for the Notified AIF as well as for the fulfilment of its ongoing obligations, meaning that the Notified AIF itself will not be subject to ongoing prudential regulation.

For this reason, the ‘notification’ process is not available to ‘self-managed’ AIFs (AIFs which have not appointed an external investment manager). Similarly, the Notified AIF regime may not be used by loan funds and AIFs investing in non-financial assets, such as antiques, works of art, classic cars, real estate and physical commodities.

Following an internal approval process undertaken by the AIFM, the latter will submit a formal notification request to the MFSA within 30 days. This request must be supported by: acompliant prospectus prepared on the basis of a ‘proforma’ document made available by the MFSA; a resolution of the AIF’s governing body certifying the AIF’s prospectus as compliant; AIFM self-certification confirming that it has the necessary competence and experience to manage and monitor the AIF; a joint declaration from the governing bodies of the AIFM and the AIF respectively undertaking responsibility for the AIF and its continuing compliance with the AIFM Directive; and a declaration by the AIFM confirming that it has carried out the necessary due diligence in respect of the AIF’s governing body and service providers.

Within 10 business days from the date of submission of the relative notification pack, the MFSA will proceed to include the AIF in the publicly available list of Notified AIFs in good standing on its website.

Clearly, the new regime has shifted significant liability and additional obligations onto the AIFM to the extent that when establishing a Notified AIF, the ‘notifying’ AIFM assumes responsibility for, inter alia, ensuring that appropriate due diligence assessments are carried out in respect of

the governing body and service providers of the AIF and that such due diligence records are updated at least annually.

Moreover, the AIFM is tasked with ensuring that the Notified AIF appoints a Money Laundering Reporting Officer (MLRO) and must also report to the MFSA on a quarterly basis with a complete list of investors in the Notified AIF, details of subscriptions and redemptions and an indication of the due diligence measures applied by the Notified AIF on its investors.

Despite this added responsibility assumed by the investment manager, it is widely acknowledged that the benefits of time- and cost-efficiency inherent in Notified AIFs far outweigh any negative aspects or additional liabilities placed on the AIFM. Consistent with the regulatory innovation with which our funds industry has come to be synonymous, the new Notified AIF regime was rolled out in parallel with a regulatory exercise to consolidate and

streamline the entire suite of fund regimes comprising Malta’s fund offering, with a view towards improving the overall competitiveness of the Maltese funds market and enhancing the efficiency of the authorisation process by simplifying the supervisory process.

The efficiency and speed to market inherent in the Notified AIF regime coupled with the safety of the underpinning AIFMD provisions, is expected to attract considerable interest from fund operators and should effectively bolster Malta’s position as a centre of excellence for the asset management industry.

This article contains general information only and neither Be. Legal Advocates nor any of its affiliate/s, partner/s and/or associate/s is/ are, by means of this publication, rendering professional legal advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult with your professional advisors. For more information visit www.belegal.com.mt.

31 - Money / Issue 39

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Terms and conditions apply. Loans are subject to the Bank’s lending criteria. The Bank reserves the right to withdraw the product from the market at its own discretion. Banif Bank (Malta) plc is a credit institution licensed to undertake the business of banking by the MFSA in terms of the Banking Act 1994. Registered in Malta C41030 - 203, Level 2, Rue D’ Argens, Gzira, GZR 1368.

MARKET REPORT

Licensed stockbroker Alexander Mangion is Managing Director at MPM Capital Investments since 2009.

The company is authorised by the Malta Financial Services Authority (MFSA) to provide financial services in Malta and holds a Category 2 licence. He holds a Bachelor of Commerce (Hons) degree in Banking & Finance (University of Malta) and a Master of Finance & Investments (University of Nottingham).

OIL WAR RAGES ON

Smartphone advertising is enjoying a steep rise, unlike oil and post-Brexit forecasts, Alexander Mangion says.

SMARTPHONE TAKES LION SHARE OF INTERNET ACCESS

T

he massive penetration of the smartphone over the past couple of years has seen the mobile phone taking the lion’s share of internet access. According to new data released, and compiled by mobile ad firm Zenith, by next year, 75 per cent of all worldwide internet access will be made via mobile phones.

While the change from traditional desktop PC to laptops and tablets took some time to take place, brands and businesses are now facing

a run against time to ensure their mobile offering is optimised for the user. The main drivers behind the projected growth of mobile internet are the rapid increase of smartphone ownership, access to faster internet, and the increasing popularity of larger screen devices.

In 2016 mobile advertising is expected to reach €65 billion globally, but this figure is forecasted to double next year. To put such a big number in perspective, think of it this way:

more will be spent on mobile advertising than what will be spent on newspaper, magazine, cinema, and outdoor advertising put together.

For the investor, this means new opportunities. For the consumer, it can and will probably mean two things: on one hand, a greater number of adverts. On the brighter side, this should translate itself to increased and better quality content available on our devices.

NO RESPITE FOR OIL PRICES Recent discussions between oil producing countries on limiting production had increased investor hopes that oil prices might recover next year from the low $40-50 per barrel levels which have been a consistent fixture throughout 2016.

However, as the year approaches its end, there is no likely conclusion in sight, and the OPEC’s failure to reach any deal is likely to see prices plummet back to $40 dollars, according to industry experts at Goldman Sachs.

“The lack of progress on implementing production quotas and the growing discord between OPEC producers suggests a declining probability of reaching a deal,” reads a note by the same company. Ironically, as negotiations linger on, OPEC production in October continued to rise, as did the production of nonOPEC members, most notably Russia. Brazil has been adamant in insisting that no production cuts are on the card.

Analysts attach significant importance to Goldman Sachs’s generally accurate forecasting: last year,

the investment bank was amongst the first to warn that the production glut could push oil down to $20 a barrel. This forecast was not too far off, as the lowest level was reached in February, at $26, sending shivers throughout the market.

Major companies such as Shell and BP are bracing themselves for another tough year in 2017, and have announced major cuts in capital investments – down by 40 per cent over the past two years – in an effort to limit their spiralling debts resulting from the prolonged low price for black gold.

CREDIT AGENCIES PILE PRESSURE ON POST-BREXIT UK Nearly five months down the line from the (in)famous Brexit vote and troubles keep on brewing for the UK. Over the past few weeks, leading international banks and financial institutions have announced their intention to move out their core operations from the City. Adding insult to injury, credit rating agencies have piled further pressure with their statements and forecasts for the upcoming year.

Each of the three major agencies have taken of Britain’s triple A rating and hold negative outlook on their ratings assessment. In its latest assessment, Standard and Poor’s retained the UK’s AA rating, and left its outlook as negative. However, its comments

were particularly hard-hitting, claiming that Brexit negotiations would reduce investment, limit growth and potentially reduce the role of the pound as a global reserve currency.

Moody’s report took the same tangent, warning that it will downgrade Britain’s borrower status “if we were to conclude that the UK’s loss of access to the Single Market would materially weaken mediumterm growth”. It added that a deterioration in Britain’s public finances would also add to downward pressure on the rating, while a “wide-ranging free trade agreement” with the EU would mitigate any negative impact from the Brexit vote.

A free trade agreement might not be so readily available for the British as senior EU officials as well as French and German leading politicians have all repeated that Britain cannot expect membership of the single market if it does not accept the free movement of people.

Reacting to such statements, UK government bonds pushed upwards on both 10-year and 30-year issues to post-Brexit vote highs of 1.3 per cent and 1.95 per cent. The sterling has also fallen more than 17 per cent since the day of the vote on June 23.

In view of this, Theresa May’s job may have just become much harder than she ever expected it to be.

33 - Money / Issue 39

new online trading platform If you are an active trader in securities, with the eTrader+ powered by Saxo Bank, you can trade in a wide range of securities on the major international markets, at any time of the day from the comfort of your home or office.

your direct gateway to the world’s major equity markets your success is our goal

The trading platform service offered by Saxo Bank is only suitable for frequent traders due to an inactivity fee. Bank of Valletta p.l.c. is licensed to conduct investment services business by the MFSA. Saxo Bank A/S is incorporated in Denmark as a licensed bank and is regulated by the Danish Financial Services Authority.

Saxo Bank’s trading platform is being made available

by Saxo Bank to clients in Malta under the cross-border passporting provisions of the Markets in Financial Instruments Directive. Terms and Conditions apply.

2131 2020 I bov.com

Issued by Bank of Valletta p.l.c., 58, Triq San Żakkarija, Il-Belt Valletta VLT 1130

PROMO

BUILDING TRUST The team behind the success: Timberland Securities Investment PLC: Germany & Malta

Timberland Investments combines German precision and Maltese heritage.

Thomas Kraemer, Managing Director explains.

How have investor needs changed in the past years and how has Timberland Capital adapted to these changes?

The investment environment has over the last years – and as a result of the changes in interest rates and the ongoing quantitative easing of the European Central bank – strongly changed.

It can not be expected that interest rates will increase in the near future. Timberland Capital has adapted new strategies to cover investor’s needs in regard to returns while on the other hand volatility has been reduced to low levels.

How is the local financial services sector performing?

We are looking at this from an international point of view, as we are performing our services in more than 16 European countries and have a good insight in the different markets.

The financial services sector itself with regards to financial services providers locally is performing in general positively.

However there remains a strong need of diversification, deregulation and cooperation with other central European leading markets.

The international market share needs to be questioned while locally certain services are not enough available.

For investors Malta still has a lack of diversification in retail products. Malta is still focused on properties and bonds. While this is not a disadvantage in itself, it increases the risks of bubbles. In the area of bonds there are primarily local bonds. The local equity market is compared to Germany, UK or Switzerland de facto not existing. New links need to be established, so that these markets can help in the growth in local GDP. What are the prospects for 2017?

We expect further extension of ECBs quantitative easing and insofar still interest rates on low figures. For the equities market

the US elections will carry significant influence, together with Brexit.

Trust is critical to financial services operators.

How do you build trust with your clients?

Next year, Timberland Capital is celebrating its 25th anniversary. With an excellent track record, more than 10,000 clients and over 350, 000 single investments, we enjoy the status of a solid service provider to our local and international clients. Our strong roots and history in Germany, Europe and Malta are the base for the trust of our clients.

Trust is also dependent on security – what safeguards do you offer your clients?

We are working with internationally well known and selected solid partners, that have as well like us proven track records and history. The level of protection that we deliver to our clients, investors and partners through our partners and ourselves is outstanding in the market.

German precision and Maltese heritage – is this the recipe to your success?

Yes, you are right. You couldn’t describe it better.

For more information contact Timberland Securities Investment Plc on +356 2090 8100, email micallef@timberland-capital.com or visit www.timberland-malta.com 35 - Money / Issue 39

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PROMO

A SMART WALLET

We are at the forefront in introducing innovative solutions in the financial services industry, David Borg Hedley, General Manager, Fexserv Financial Services, says.

In recent years, we have seen a move from cash money to virtual money. How has this influenced the financial services sector?

Virtual currencies have been a main topic since the beginning of the digital age; many an expert has been reported to state that the future of our civilization’s money is a digital one. While it may be difficult to imagine a cash-less society, it’s important to understand that money is merely an agreement to use something as a medium of exchange just like in the past barter was the order of the day.

Therefore the purpose of cash is determined by cultural and social systems and not any other mysterious value. So as society evolves and our real world converges with the digital one, economies need to adapt too and our money system just like everything else needs to move along too with our needs.

No matter how the virtual money is used, be it through social games, or mobile apps, virtual currencies and so on we have to admit that this has real implications for the global economy and not just the financial services sector, thus altering in a drastic manner how we conduct transactions between each other.

Having said that, the financial services sector has no real option but to follow the needs, wants and necessities of its users. In fact throughout human history technological advancement has progressed hand in hand with currency reform.

Not so long ago, with the advent of the personal computer and the information age we were enabled to have convenient transactions through e-commerce and credit card processing. Now we find ourselves in a hyper-connected digital world, with businesses and entrepreneurs competing to shape the manner in which we exchange goods and services. Once again the financial services sector needs to rise to the occasion and be there to deliver depending on what society needs.

How have you adapted to these changes?

Fexserv has throughout its 21-year history been at the forefront of introducing innovative solutions in the financial services industry to both retail and business customers. As a company we continue to look into the future and take the necessary decisions to be prepared and well positioned to leaving our mark in the changing world.

As such our continuous determination to break new grounds for the benefit of our customers and the Maltese society in general saw us

venturing into a very ambitious project, actually a dream, and three and a half years ago I kickstarted the process to harness the power of mobile phone to reduce the cash notes and those bothersome coins used daily with a digital alternative. Today, this is reality thanks to the recently launched smartphone app – Myney.

What is Myney and what market niche does it address?

Myney is the only app that anyone in Malta needs to have on their smartphone to carry cash. Myney offers its customers a payment account with a unique IBAN thus connecting it to the banking world. Customers can use funds to pay in shops, send money to friends or family, transfer money to any bank account in the world and even make someone happy by sending a Myney Gift directly to their smartphone.

Furthermore customers are able to pay bills and top up their mobile phone. Just to give you an inkling of the broadness of the system we have created, Myney accounts can be topped in seven different ways whilst funds on the account can be used in 10 different ways. The app also includes a loyalty program, account maintenance and personalisation and an optional Personal Finance Manager system whereby the system tracks and compares to user budgets all transactions processed through Myney. A truly amazing piece of technology.

With regards to the market it addresses, we’re there for anyone with a smartphone who is keen in using his mobile not just as his phone, social network connector, camera or alarm clock but also as a wallet. As long as the user has an Android or iOS (iPhone) device with not too much of an old software he will be able to benefit from the advantages of the Myney app.

In fact smartphones running iOS 4s or newer and Android Jelly Bean 4.2 or newer with a 3G or Wi-Fi connection can in a matter of minutes download and register to the Myney app.

Anyone accepting payments from consumers may open a Myney Business Payment account.

Whether you are a doctor or any other professional, sole trader, street hawker, an owner of a small shop or a large chain or offer food home delivery, a Myney account is the payment option you should offer your customers.

What are the main advantages of Myney?

The advantages of Myney are countless. For private users in particular the possibility to

accessing cash for our daily lives through the one item that is always with us – the smartphone is the main advantage in our eyes. The ease of use, the unique user experience throughout the app and the number of functionalities within the app make Myney a must-have app on your phone.

Another main advantage would be the P2P function whereby friends and family can send money to one another in seconds. One can also send gift vouchers to anyone with Myney gift. One simply creates a gift voucher for any amount and sends it to anyone. The voucher is received and can be spent at shops accepting the One4all paper gift voucher and Myney. The app allows for a message to accompany the voucher or gift personalisation by attaching a short video or photo for a small fee.

Another advantage that Myney provides is the possibility to send or receive Western Union money transfers 24/7 without visiting an agent location.

In a broad way we see the main advantage being that this app provides an array of functionality that includes all that a person would need to get through the day, financially, through the smart phone.

What security features make Myney safe to use?

Money is not stored on the smartphone. The smartphone simply acts as a gadget to access the money. The IT platform supporting the Myney app has been developed to the most stringent and secure IT standards by NTT Data. In addition to the phone’s login passcode, the Myney app will require the user to enter another password to access the App and a PIN to confirm transactions.

We like to say that your money on Myney is safer than cash in your wallet.

Through Myney, you are also rewarding loyal customers. In what ways?

Yes, Myney offers a loyalty program for both the personal and business users. 1 Myney Point is allocated for every 1 euro spent or received.

Myney points are converted to Myney Gift Vouchers which can be spent at hundreds of shops. The Myney Gift is linked to the popular One4all Gift Voucher scheme – so simply put we’re giving the user the opportunity to get Myney Gifts in exchange for the money used through Myney. The more a user utilises Myney the more Myney Gifts the user will generate.

37 - Money / Issue 39

REGULARISE YOUR PROPERTY

Be in a better position to sell or acquire a bank loan for your property

?

WHAT IS THE PROBLEM WITH CERTAIN PROPERTIES TODAY? Certain property owners are not in a position to place on the market or acquire a bank loan for their property due to an illegality which is non sanctionable and may have taken place years back.

WHAT IS THE PROCESS TO REGULARISE AN ILLEGAL STRUCTURE? STEP 1: An applicant needs to appoint an architect to submit an online application.

The application will require the architect to submit certain documentation (site plan, drawings of elevations and sections, photographs and more).

CAN ALL EXISTING DEVELOPMENT BE REGULARISED?

STEP 2: The application is published in the

Applications will only be accepted for irregular buildings and structures within the development boundaries or which in past years benefitted from a Category B concession (within the development boundaries).* The irregular development must not constitute an injury to amenity.**

STEP 3: A report will be drawn up by a

The irregularity must appear in the 2016 aerial photographs taken by the Authority.

* WHAT IS A CATEGORY B CONCESSION? In 2012, owners of illegal buildings were then able to lodge a ‘concession’ application (known as a ‘CTB application’) to be able to obtain water and electricity services or to transfer property. Concessions were limited to specific categories of illegalities prescribed by law. Nevertheless, a concession was not tantamount to a planning permission.

** WHAT IS AN INJURY TO AMENITY? An irregular development cannot jeopardise the ‘comfort, convenience, safety, security and utility that may be enjoyed within and around a property or neighbourhood’. When considering an application, decision-makers are therefore required to have regard to privacy distances, safety issues and outlook levels.

22 years years

HOW LONG IS THE SCHEME OPEN FOR? This one time opportunity is open for a 2 years period, extendable for 1 year.

Government Gazette and on the website of the Department of Information. The public is given a 30 day period to submit any statement of opinion related to the application.

case officer with a recommendation.

STEP 4: A Planning Commission comprising of 3 members will decide each application. All decisions are taken in public.

STEP 5: The Planning Commission decision is published in the Government Gazette and on the website of the Department of Information.

STEP 6: The applicant or registered

objectors may appeal if they are aggrieved by the decision.

€

WHAT FEES ARE DUE? An applicant is obliged to pay a minimum administrative fee of €50 for every application. Additionally every application will be subject to a fee, calculated on the total and combined roofed over area of each floor of the property being regularised.

A 25% surcharge on the fee shall be applied should the scheme be extended for a third year.

Applications which are related to cases already covered by a Category B concession will automatically have deducted the fee they had paid the Authority when they applied for the concession in previous years.

An application refused by the Authority, will be refunded 90% of the fee.

CAN A PROPOSED DEVELOPMENT GET INCLUDED IN AN APPLICATION? No. Any proposed development has to be applied for either through the Development Notification Order, the Summary Procedure or the Full Development Process application.

This depends on the nature of the proposed development.

WILL REGISTERED INTERESTED PARTIES STILL RETAIN RIGHTS? When the Planning Authority receives an application for a site on which there is an enforcement notice still in force, the Authority will safeguard the interests of all third parties who had submitted a formal complaint for which a notice had been issued.

In these cases, the Authority will inform these same third parties of the submitted regularisation application and offer them the option that within a 15 day period, they are to notify the Authority whether to be considered as registered interested parties.

Registered interested parties automatically hold the right to appeal the Planning Commission’s decision before the Tribunal.

CAN THE AUTHORITY IMPOSE CONDITIONS? The Authority on issuing a permission will still retain the right to impose any conditions which it may deem necessary, including, the execution of specific works within a specified time-frame. Failing to abide by these conditions will result in the application being dismissed.

The Authority also reserves the right to take enforcement action if an application gets refused.

The legal notice together with the schedule of fees may be downloaded from the Authority’s website www.pa.org.mt

Interview PROMO

MINDING OUR LANGUAGE

FIMBank launches new CSR campaign focusing on Maltese proverbs.

A

s part of its corporate social responsibility initiatives, FIMBank plc has launched a series of short video clips which focus on Maltese proverbs and their meanings.

The campaign ‘X’jgħid il-Malti?’, follows on last year’s highly rated series ‘Kelma Kuljum’, which had kicked off FIMBank’s efforts to generate a greater appreciation of the Maltese language.

This is the third consecutive year in which FIMBank has produced a campaign in relation to Malta’s heritage.

The ‘X’jgħid il-Malti?’ video clips adopt a playful tone where viewers have a few seconds to figure out the meaning of the proverb. Once the allocated time frame of a few seconds elapses, an explanation of the proverb is provided. The visuals accompanying the voice-over include handmade crafts which are consistent with the selected proverb’s theme.

The innovative, creative and engaging concept adopted by FIMBank for ‘X’jgħid il-Malti?’ manages to communicate the meaning of such proverbs effectively, arousing the interest of both children and adult audiences.

“The aim is to highlight the use of Maltese proverbs in daily discourse, while further emphasising the underlying message of last year’s highly rated ‘Kelma Kuljum’ campaign, that of highlighting the linguistic wealth of the Maltese language,” Murali Subramanian, Chief Executive Officer, FIMBank plc, said.

The campaign consists of a number of spots, each focusing on a different proverb. These video clips are due to appear seven times daily on TVM and TVM 2, throughout the rest of 2016 and through 2017 and will also be posted on the Bank’s social media channels.

For more information about FIMBank plc, visit www.fimbank.com

“Indeed, the success and viewer engagement associated with the latter campaign, clearly demonstrated the strong interest the Maltese have in their language, making ‘X’jgħid il-Malti?’ an ideal continuation for 2016-2017.”

41 - Money / Issue 39

Interview PROMO

GAINING AN EDGE Data loss within the financial sector can have severe consequences. The solution? Outsourcing.

A

cornerstone of a 2016 financial institution is the availability of services on a 24/7 basis such as online banking, ATMs, online trading platforms and even quote generating sites. Failure to provide such facilities, particularly due to negligence, can have dire consequences for any financial institution.

In 2012, the Royal Bank of Scotland Group, including NatWest and Ulster Bank, suffered a system outage due to a corrupted software upgrade, affecting more than 6.5 million customers in the UK over several weeks.

Money did not flow into accounts after being deposited, payrolls were delayed, credit ratings downgraded, utility bills were not met.

Two years later, the Financial Conduct Authority fined RBS £42m, and the Prudential Regulation Authority fined the bank £14m, citing “a very poor legacy of IT resilience and inadequate management of IT risks”.

Surprisingly, the FCA itself suffered a widespread IT outage in September 2016 after a physical incident in a data centre.

It cannot be reiterated enough that IT for finance has become a critical component in every facet of the industry. An IT system failure can result not only in downtime for business, but also in data loss or worse, a data breach.

For financial companies looking to improve their IT infrastructure through outsourcing, partnering with an experienced IT provider is a great way of getting the ball rolling quickly.

But why outsource in the first place and not keep everything safe internally? Outsourcing provides flexibility for companies that are

growing at a fast pace, as well as increased resiliency through having your systems hosted on redundant infrastructure that can withstand both physical as well as digital accidents or attacks.

However, outsourcing does not mean that control over one’s IT systems is lost, as it can be either partial or full. For example, in some cases, companies choose to keep their most critical systems within their premises while housing their still-important ancillary systems with the IT partner, whereas others outsource their IT systems completely. In any case, the company still has full control over its infrastructure, with some of the added benefits being that they can easily scale up or down as well as avoid having to hire additional staff as they expand their IT needs expand.

Data loss is more common than one would expect, and suffering such a loss within the financial sector, can have severe consequences, arguably more so than any other industry. Most data losses stem from a lack of discipline when it comes to backing up. Maintaining a regular backup schedule, regularly testing backup and restore functions, spreading backups across various locations and encrypting the backups are just some of the must-dos to avoid data loss as well as mitigate data breaches.

Of course, all this requires time and resources, so delegating backups to an IT partner can help companies save time, money as well as ensuring the backups are stored in safe environments. We at BMIT, Malta’s largest multi-site data centre, can

put your mind at ease. During the past four years we have evolved from a co-location provider to an IT-as-a-Service provider. We offer a variety of IT services which provide our customers with the flexibility to choose to what degree they want to be involved in procuring, deploying and managing their IT systems and how much of this they want to delegate to us.

In addition to hosting IT systems within our multiple data centres, we can also manage them for our clients thanks to our 24/7 support team. In cases where the operator has their own IT team, BMIT’s role is usually to supplement their efforts and assist them in their support function. We have other clients who opt to outsource all IT support, in which case the role shifts to one ensuring a roundthe-clock upkeep of their systems, as well as providing best-practice advice.

With a trusted and experienced IT partner such as BMIT, businesses can keep up with innovations that help them stay abreast of the market and their competitors. We are already working with a large number of local financial operators to deliver optimal solutions on the business continuity and disaster recovery side, which includes secure backups at our data centres and the management of the business continuity process.

So do you think your company can gain an edge in the financial sector from any of the mentioned advantages and with an exclusive 40Gbps network? Contact BMIT today – we’d love to help your business move forward and save costs in the long run.

43 - Money / Issue 39

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What makes ZEISS DriveSafe lenses so special?

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Can these innovations be explained in more detail?

1. The newly developed Luminance Design Technology provides a better vision to safely drive at night and at low light conditions due to the pupillary diameter optimization introduced by ZEISS scientists in the design of the lens. This advanced technology takes into account the size of our pupils in poor light, hence resulting in a more relaxed and better vision.

2. ZEISS has also introduced a special new coating for this driving lens

called Duravision DirveSafe which considers the various situations during our journey when our eyes are constantly being confronted with glare. This coating offers the same hardness and cleaning properties as the DuraVision Premium coat, but features a different kind of antireflective coating and has been specifically developed to reflect certain wavelengths between 400 and 450 nm which form part of the blue light spectrum and are emitted in particular by oncoming car headlamps and LED light sources such as street lighting. This means 64 per cent reduction in glare compared to a standard premium coating from ZEISS. 3. Driving demands a high level of attention, as most of the time drivers need a broad view of the road in order to evaluate traffic and road conditions. The new ZEISS DriveSafe Lens design makes it easier for progressive lens wearers to quickly refocus between the roads ahead, the dashboard and the rear view or side mirrors and also features optimised distance and intermediate viewing zones, so as to lessen the need for horizontal head movement. These lenses offer up to 14 per cent larger distance zone and up to 64 per cent wider intermediate area without compromising the near reading part.

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ZEISS DriveSafe lenses as well as the entire range of high end ZEISS Optical Lenses are exclusively available from selected leading optical shops in Malta.

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45 - Money / Issue 39

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COUNTRY PROFLE

ENTER THE CASTLE

Romania is not the post-Communist expanse of mud and vampire-inhabited castles that we think it is.

R

omania may have been one of the first countries of post-communist Europe to engage in relations with the European Community, culminating in its EU membership in 2007. And yet, it rarely blips its presence on the European radar – in fact, we hardly think of Romania as a European country.

And whenever it does appear on the European radar, it is almost always for the wrong reason. Just a few weeks ago, an international team of journalists collected data from 25 countries, to reveal that Romania is the European country with the highest number of expats in prison in the EU (the nation with the highest number of prisoners is Morocco). In the majority of cases, Romanian prisoners were convicted for petty crime.

Last May, Romania even managed to anger Kremlin when the US switched on a missile shield in Romania. While the US insists that the missile shield is vital to defend itself and Europe from long-range missiles fired by rogue states, Russia believes that this shield is intended to weaken its nuclear capabilities.

This year, Romania was even kicked out of Eurovision after failing to clear its debts to the European Broadcasting Union. These debts amount to more than €8m and TVR, the national broadcaster, may even face insolvency proceedings.

Elsewhere, Romania doesn’t enjoy good press. It seems that we still associate the country with Nicolae Ceausescu, the country’s last communist leader whose regime became increasingly brutal and repressive until it collapsed in 1989. The

dictator and his wife Elena were tried, convicted and executed by a firing squad.

But while we normally associate this Eastern country with stereotype crime, immigrants, unemployment and vampires, the truth is that we hardly know anything at all about Romania. For instance, in a 2016 survey, the Brits said that most Romanians travel to the UK to take their jobs and social benefits.

However, the truth is that there are fewer than 100,000 Romanians in Britain, compared with nearly 700,000 Poles.

And while we think that Romania is an ugly expanse of mud, it really isn’t. Bucharest, the capital, is beautiful. Its 19th-century buildings have been restored while bars and restaurants are thriving. There’s even Uber, which is a real signifier that the city

has strong hipster credentials. And all over the city, young people are doing interesting, artistic things. Outside the city, the countryside is tantalising.

And the economy isn’t doing that badly. It is a developing one and admittedly, it is only the 17th largest in the European Union.

According to Investopedia, Romania doesn’t even rank in its list of healthiest and safest European economies – Malta, on the other hand, is fourth.

However, the future doesn’t look that bad. Romania’s GDP growth and inflation are steady and for the past three years, unemployment has averaged at 6.8 per cent.

Moreover, the country is adamant in battling corruption and restoring its image. And that is as good a start as any.

Under Romanian law, prisoners can reduce their sentence by

Romania is the European country with the highest number of expats in prison in the EU.

30 days for every book of scientific value they publish.

Tourist expenditure in Romania is on the rise and by 2025 its direct contribution to the GDP is expected to grow by

3.8% The sectors which generate employment are agriculture, at

31.6%

, followed by industry at 30.7% and services at 37.7%.

The average monthly disposable salary in Romania is

€438

after tax.

The adult literacy rate stands at

97.6%.

47 - Money / Issue 39

ARTS

LIGHTS, CAMERA, IMPACT

ME (et) YOU: A multidisciplinary mobility project between Norway, Germany and Malta, funded by the Cultural Export Fund’s Travel Grant.

The arts play an essential role in our everyday lives, our cultural identity and our economy.

They create opportunities, jobs and valuable income for our communities. They can also have a hugely positive impact on people’s lives and address some of our most pressing social issues. Veronica Stivala speaks to Toni Attard, Director of Strategy at the Arts Council Malta to look at the impact the arts are having and are set to have on Malta’s economy.

48 - Money / Issue 39

A

s little as 10 years ago, having a full-time job in the arts in Malta was practically non-existent and being an artist meant juggling a separate full- or at least part-time career.

Yet today, and in the run up to Valletta 2018, we are beginning to see more creatives living in Malta being able to make a living from their work. More funding opportunities are being made available and positions for artists, or for jobs for people working in the arts are becoming more numerous. The reasons for this are many, but what would you say has been the main reason for this surge in creative jobs?

Toni Attard, Director of Strategy, Arts Council Malta (ACM) draws attention to the

young generation and how this is where investments must be made.

“More young people work in the cultural field in Malta than in all other EU Member States according to the latest Eurostat Culture Statistics based on 2014 data. Data shows that we have 31 per cent of people in cultural employment in Malta aged between 15 and 29, while same proportion as an EU average stood at 18 per cent. This could mean that more young people in Malta are likely to be interested in working in the cultural sectors than anywhere else in the EU.” Why is this? There are a number of reasons for this, according to Attard. At a young age, parents do encourage their children to participate in the arts, not just as a hobby, but in terms of studies. There are the means to make that possible nowadays: arts scholarships, EU membership make these even more accessible and cheaper, and also the fact that similar to other trends across all other countries, the appetite for risk in terms of employment has increased. The majority of people don’t look at a job for life. The arts is all about that. You have a passion for the arts but you are constantly shifting from one job to another.

Admittedly the majority have to create their own jobs and many are working with different organisations at the same time. But both private and public sector have given a boost to the performing arts in terms of say employing arts teachers. The present situation is very positive, and, in terms of employment Malta has reached the EU average of arts employment, which is 2.9 per cent.

How does all this contribute to the noncreative sectors?

Attard emphasises how nowadays companies need to have creative stimulus for the employees. Also, creativity affects the way companies are organised, as well as the well-being of their companies. He cites as an example, TILLT, a Swedish organisation which works with companies to help them find creative solutions for their businesses such as re-designing office space, re-thinking the way the organisation structures itself.

We discuss how a job in the arts does not only mean you have to be an artist, but it entails all the other jobs that come with professionalising the arts. The issue, says Attard, is there is no such thing as a limit or a maximum of how many artists a country can have.

“There is space for everyone. It’s an issue of a choice – people have the right to choose the way they want to be engaged in the arts.

Some opt for it as a hobby, others semiprofessionally, others opt to try to make a living out of their talent.”

This is where policy and public funding come in and where decisions need to be taken in terms of who you support and how, in terms of the professional status of the arts.

“We are very slowly starting to create much more activity among that tier of artist, be in terms of the kind of projects that are being developed,” Attard says. “If we are looking at internationalisation, it is highly unlikely for that target to be reached if we look at amateurs.

We need to be much more aggressive in terms of those who are seeking employment and earning a living.”

What does he think are the special and idiosyncratic characteristics of the Maltese that will make them stand out in the cultural sector, both locally and abroad?

The premise, he stresses, is that you won’t stand out simply because you are Maltese, or any other nationality for that matter.

“You will stand out because you are a great artist. It is a highly competitive and very aggressive sector.”

Attard is adamant to stress how being a great artist is simply not enough. You need to be business savvy.

“Sometimes it’s about knowing the trade, and how the sector works. We need excellent work, and we do have artists who are presenting excellent work but those who are succeeding on international stages are those who know how the industry works. We still find resistance from artists who are afraid at looking at the entrepreneurial side of things.

And if they are not ready to do it themselves, they need to get others, like agents, to help them. That’s how it works.”

On May 12, 2015, Parliament approved a new legal structure for ACM which sets down that the council should encourage and promote the culture and creative sectors within a wide perspective of socio-economic activity. To do so, ACM has set out its Create2020 Strategy, the ultimate aim of which is to “invest in the cultural and creative sectors to achieve higher levels of excellence and develop Malta’s creative ecology”.

*Etnika: *Etnika (Touring Band) attended the “Giardini di Luglio 2015”Festival. A project supported by the Cultural Export Fund – Travel Grants.

49 - Money / Issue 39

ARTS

that are very good, and at being competitive in receiving funds. But we also need to be careful to not create ‘A’ groups where it is difficult for the ‘B’ and ‘C’ groups to receive funds.”

Variety is key and Attard stresses how it is important to have different people who through public funding can create new and exciting work. So we need to find alternative sources of financing.

“It is about making the artist understand what a creative enterprise is about. We know that artists who are both good artists and good entrepreneurs. We want people to be more entrepreneurial.”

Quintessence Solo Performance, Renzo Spiteri : An immersive sound experience based on intricate narrative and live electronic manipulation. Supported by the Cultural Export Fund – Presentation and Touring.

As much as €240,000 per year are being invested to nurture new areas such as games and creative start-ups and ACM has a detailed plan of how it will nurture such business development. This will in turn hopefully yield in the creation of new jobs. What kind of return on investment are we hoping to see in the future?

The intention, says Attard, is to support the development of creative start-ups across different sectors through a number of initiatives ranging from grants to mentoring services that will lead to more diverse and sustainable creative ecology. For example, Mighty Box started with a project funded by the Malta Arts Fund, eventually developing into a company through a start-up fund and now employing nine people.

Another strategic programme developed by Arts Council Malta is the Cultural Partnership Agreement. This is a partnership programme with specific organisations that are working with Arts Council Malta to develop its strategic plan.

The programme has also lead to the creation of new jobs, such as Opening Door’s Artistic Director and the theatre manager at Teatru Salesjan. The public sector is not employing them but is empowering arts organisations to be in a position to create new jobs that also generate other sources of income.

because there is a threat, but we need to learn from what other countries have been through.

Attard does not mince his words: “To be very direct, if anyone in the arts in Malta was waiting for public subsidy, we’d have no arts.

So really and truly artists in Malta have created exceptional work, and we should not forget that.

If we make ourselves completely dependent on public funding we run a number of risks. Public funding has some strings attached: for example, how and where it should be spent. And public funding is only part of the creative ecology.

ACM receives around 400 applications each year and last year we funded 158 projects. The quality of the project proposals isn’t always at optimal level. We do have a situation where we have a core group of artists and organisations

The other difficulty, and this goes without saying, he notes, is that because we are a small country and have small economies of scale, and because of the fact that we are an island, we are not part of mainland Europe.

“The issue here is of retaining talent, and of brain drain. What happens if there isn’t an infrastructure that supports the emerging sector?

If opportunities are increasing abroad then it is very easy to pack your bags and disappear.”

So we know we have a young labour force.

We have new programmes being developed.

But, asks Attard, “How do we sustain this ultimately? The legacy of Capital of Culture?

How long do you go on for? This is why we are focusing on young and emerging artists next year. This is where we need to generate the excitement to keep it developing further.”

The future, unsurprisingly, lies within the young generation and this is where we need to invest.

The above only refers to a small part of a very holistic, all-encompassing strategy which sounds incredibly positive. Yet if you had to share what you think might slow down or halt its implementation, what would that be?

Attard points out how we are now at the highest level of investment in the arts. The public funding programmes have reached the €2 million mark. But what happens if that isn’t there in the future, he asks. Are we becoming too dependent on public funding? And this is not

50 - Money / Issue 39

Stejjer Imfewħa: A project creating spaces where participants from different cultural backgrounds are encouraged to interact through personal narration, using spices and flowers. Supported by the Creative Communities Fund.

REPUBLIC STREET, VALLETTA

ON THE ROAD AGAIN PHOTOGRAPHY

NICKY SCICLUNA STYLING

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Interview GIFTS

IT IS THE SEASON

WALK THIS WAY Reflecting the labelâ&#x20AC;&#x2122;s distinctly British appeal, these Derek Rose slippers have been expertly handmade in England. Finished with suede soles and soft cashmere linings.

Winter is the season to be generous with yourself and with Moneyâ&#x20AC;&#x2122;s gift list.

CARRY YOUR SOUND The portable bluetooth Muo speaker from British brand KEF can be placed horizontally or vertically. Purchase two and run one as a left channel and one as a right to double the sound output, creating a stereo effect.

SITTING EASY This cushion by House of Hackney is made of British velvet and takes inspiration from floral fantasies.

58 - Money / Issue 39

IN THE DARK This stylish silk eye mask by Otis Batterbee comes in a range of beautiful patterns, each with a pinch of British lavender to soothe tired eyes and aid sleep and relaxation.

ALL BLACK

LET IT RAIN

Hublot has just celebrated the 10 years of All Black, the inevitably monochrome trend.

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Family-run firm Francesco Maglia has been perfecting the art of umbrella-making since 1854.

Demonstrating the labelâ&#x20AC;&#x2122;s expertise, this classic piece has been entirely handmade in Italy with a spacious black canopy and woven leather handle.

LIVE THE LEATHER Balenciagaâ&#x20AC;&#x2DC;s army-green tote bag is constructed from hardwearing canvas with a durable leather base. The top part of this spacious carryall can be folded down to create a more compact style.

YOUR PERSONAL CONCERT Made from stainless steel and soft leatherette, the curved headband of these Moshi Avanti headphones is engineered to position the soft, adjustable ear-cups to form a perfect, noise-isolating seal.

59 - Money / Issue 39

Interview SPOTS

NEW MODERN SARTORIALISM The BOSS tailoring DNA stands at the centre of this new collection. Clean cuts and sharp silhouettes are the signature. Colour, detail and combinations herald a new mood. Suits in understated greys and refined navy blues are shot through with highlights of colour. Monochrome looks feature a pop of colour – either in a tie and leather accessory, or as a bold outerwear piece.

Sometimes, the suit itself – in an intense blue or graphic houndstooth – is the point of impact.

Glossy nappa sits beside suede, brushed textures are paired with neoprene, wool contrasts with rubberised finishes. The influence of modern sportswear leads us further into a new direction for BOSS Menswear.

Exclusively available at the BOSS Stores Malta in St Julian’s and the Departures Lounge, Luqa Airport. For more information call on 2202 1000 or e-mail BOSS_Store_Malta@vfgmalta.com. The St Julian’s Store is open Monday to Saturday 10:00 to 20:00 hrs.

A SPARKLING SEASON

World-renowned for its hand-finished and contemporary jewellery at affordable prices, Pandora designs, manufactures and markets jewellery made from high-quality materials. Inspiring women to embrace their individuality and express their personal style, Pandora’s stylish and feminine jewellery captures the unforgettable moments and personal values in life. Pandora uses unique and detailed designs combining traditional craftsmanship with modern technology. This holiday season Pandora looks to the sky find inspiration from shimmering star trails and cosmic galaxies, rendered as glittering jewellery studded with stones. The collection also delves into the past to discover bygone treasures which are transformed into contemporary heirlooms with couture stone cuts, lustrous pearls and geometric forms.

GROWTH AND DIVERSIFICATION

WHERE’S MY BROTHER AND OTHER CONFESSIONS – VICTOR CALLEJA The spectacular surroundings of the renovated Fort St Elmo provided an excellent background for the launch of Kite’s newest title, ‘Where’s my brother and other confessions’ by Victor Calleja.

This first book of confessions is a fascinating insight into the life of an ordinary man told in an extraordinary way. The book captures Calleja’s deeds, misdeeds and all sorts of incidents, poking fun at anything from funerals and weddings to trips abroad. His fiendish humour includes confessions about his children, wife, family, friends and complete strangers.

Written in Calleja’s eloquent and inimitable style, this book is a collection of anecdotes spanning his sixty years of life, and also highlights the way Malta and its people have changed over the years.

The launch was animated by one of Malta’s leading actors, Thomas Camilleri, who entertained the guests by reading excerpts from Calleja’s book while perched on a ladder.

This latest publication by Kite Group will be available at the National Book Festival to be held at the Mediterranean Conference Centre in Valletta between the 9th and the 13th November, and can be purchased now on www.kitegroup.com.mt or from leading bookstores.For further details please contact Gordon Pisani on 9947 4873 or Victor Calleja on 7997 0000

Al Faisal International for Investment, the financial investment company of Al Faisal Holding Company, one of Qatar’s largest private diversified industry groups, announced that it has acquired a 78.46 per cent shareholding in Banif Bank (Malta) plc, a key player in the Maltese financial services industry.

Banif Bank (Malta) has been operating since 2008 and currently provides a full range of commercial banking services to its approximately 30,000 customers through a network of 12 branches and its three corporate and business banking units.

AFII has completed the acquisition of the 78.46 per cent stake from Oitante, S.A., following receipt of regulatory approval by the European Central Bank and the Malta Financial Services Authority. The remaining 21.52 per cent of Banif Bank (Malta)’s shares are held equally by four Maltese shareholders. AFII will appoint three non-executive directors to the Bank’s 11 person board.

AFII and Al Faisal Holding have a strong, global track record of long term investment across a range of sectors, adding value and allowing businesses to develop and fulfil their potential. In line with this approach, AFII will be providing Banif Bank (Malta) with additional capital resources to further strengthen the Bank’s capitalisation and to support its focused diversification and expansion plans. These plans include enhancing the Bank’s existing range of services for retail and corporate customers and the development of new private banking and investment banking services.

every expert was once a beginner The Valletta Fund Management Monthly Investment Plan provides you with an excellent way to start planning for your future. Do you want to develop a savings habit for yourself or your loved ones? Are you looking for a convenient introduction to the investment world? Do you wish to expand your current investment portfolio?

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Past performance is not a guarantee to future performance. The value of the investment can go down as well as up and any initial charges may lower the amount invested and the amount received upon redemptions. Investments should be based on the full details of the Prospectus, Offering Supplement and the KIID which may be obtained from Valletta Fund Management Limited (“VFM”), Bank/ ofIssue Valletta 61 - Money 39 plc Branches/Investment Centres and other licensed financial intermediaries. VFM is licensed to provide Investment Services in Malta by the MFSA. The Vilhena Funds SICAV plc is licensed by the MFSA and qualifies as a UCITS. Issued by VFM, TG Complex, Suite 2, Level 3, Brewery Street, Mriehel BKR 3000, Malta. Tel: 21227311, Fax: 22755661, Email: infovfm@bov.com, Website: www.vfm.com.mt. Source: VFM

The Bluesman is a Maltese sound engineer working in New York.

Interview NEW YORK

The issue is

where are the issues?

There’s a lot of noise surrounding the race to the White House. The Bluesman tries to listen.

I know there’s been a surfeit of election stuff and most people are suffering from election fa-tigue so I will not focus too much on this how-the-helldid-this-come-about-it-must-be-a-nightmare-fromthe-bad-sushi-I-had-last-night 2016 election.

Still it will be hard to not mention what seems to have the pathetic media enthralled because, unfortunately the Trump antics have been raised a notch. Still they have been well-covered worldwide. I can understand why many of my friends across the big water seem to think he may be the one who should be elected given his very defensive stance on immigration and given the troubled situation in European cities. But there’s a lot more riding on this, and the presidency is more than a one-issue job.

Top of the list is the Supreme Court. Rumours about the sudden (?) death of the darling of the Right, Antonin Scalia, while on a hunting weekend with friends have now coalesced into yet an-other conspiracy and attributed to Hillary Clinton. His replacement nominated by Obama has yet to be given consideration because the Republican controlled Senate refuse to hold a hearing. This obstructive failure to step up and do their duty has been going on since the Prez nominated Chief Judge Merrick Garland last March 16. This delay is unprecedented and has left the Supreme Court, at eight, with no way to break a tie potentially piling up a slew of undecided cases.

So now FBI Director James Comey announced that they would have to investigate further after having passed a clean bill of health, as it were, weeks prior. There was much crowing in anti-Clinton land and Clinton challenged Comey to announce all the findings, something the Feds don’t do without much investigation first.

Another thing that’s not the practice is that an announcement such as this would actually be made so close to an election as it’s considered undue influence there not being any proof. In fact there have been instances when the FBI held back until after an election and many of those cases proved to have been groundless. Now the likelihood of there being anything of importance re-vealed is slim it seems that the e-mail didn’t even come from her server. As Bill Maher likes to say, she’s a civil servant nerd and doesn’t lie any more than any other politician. I believe the number is 27 per cent which is really quite low it seems. She may be despised but she’s quite capable of doing the job. Remember too the checks and balances built into the system and how Obama has been stymied in many of his projects.

As if to put the icing on the cake a number of Republicans have opined that maybe they should delay indefinitely with Senator McCain even declaring that, were Clinton to win the White House, the GOP would continue to block every nominee put forward by HRC. Way to go Sena-tor, the confirmation of a new justice to the Supreme Court is a constitutional duty to be fulfilled by the President and the Senate.

Yep it’s a screwy election because totally buried by all this noise, lies and finger size, are the issues.

We haven’t really heard about any plans other than some stuff is going to be huge. We can hope if it’s a Democrat win that the deal struck with Bernie will hold up, we’ve already heard pronouncements from Hillary regarding health care and college tuition and promises from Elizabeth Warren to stay on top of reigning in Wall Street greed. HRC even swivelled on the TPP. What we hadn’t heard from her until a brief statement a day or so ago are her thoughts on the stand-off at Standing Rock about DAPL. Sioux land by the Laramie Treaty, Big Oil want to dig it up and run an oil pipeline through sacred burial grounds and under the river with all that it entails.

Meanwhile back at Clinton’s campaign HQ in NYC, consternation broke out when, while in-vestigating the Anthony Weiner sexting scandal, again, more Clinton e-mails were discovered on his computer. A computer he supposedly shared with his (now ex-) wife Huma Abedin vice chair of Clinton 2016, whose relationship with Hillary is very close.

My question is, why did they need to share a computer in the first place and after the first time wouldn’t Huma feel the last thing she’d want to touch would be Weiner’s computer.

A press release from the Sanders camp states that the estimated impact on climate would be as much as the emissions from 21 million vehicles a year. Currently it’s police bully-boy tactics as usual. Dogs, tasering, military weapons and the fatal shooting of an unarmed 11-yearold girl by a police sniper. A 15-year-old boy was also targeted but they missed and killed his horse under him. Consider all this against the acquittal of the Bundy Brothers clan who were found not guilty of the armed occupation of Federal land in Oregon last January. UN

62 - Money / Issue 39

observers are now, hopeful-ly, observing and it seems against the pipeline.

Land grab are two words that fuelled a revolution. The American was not about the small tax on tea (imposed by England to pay for the military defence during the French and Indian War 1756 – 1763), although that may have played a part. There’s a strong case made for the avaricious glances from the wealthy in Boston towards the Ohio Valley which the Crown had declared to be Indian land. After 1776 as folk migrated West it became necessary to clear the land of the natives and thus was born the idea of the noble settler in his prairie schooner battling all the odds in a bid to get to Oregon. Later William Cody aka Buffalo Bill was commissioned to kill buffalo, ostensibly to clear the way for the railroads, but actually depriving the tribes of everything they utilised from the animal.

Four hundred in one day, I remember reading, and as a youngster it didn’t dawn on me that there would have been no way of saving the resources. And so it went, once the various wars were settled, treaties ceding land to the Indian were drawn up and the tribes each went to their reservations where they were able to live as autonomous people and as long as they sold ‘native craft’, tax free cigarettes and ran casinos that is, they did. Then settlers would move in if there was good farmland, timber or gold, claim they were attacked and in came the cavalry.

Clashes and massacres like Wounded Knee in Lakota territory when the army tried disarming the tribe after the Battle of Little Big Horn and a misunderstanding with a deaf tribesman started a shooting spree with 300 natives slaughtered. The Trail of Tears was a series of forced removal from traditional lands to designated native territory.

Four thousand died en route to the various destinations. So Standing Rock is just the latest in a series through history of the rich greedily grabbing land they covet for the purposes of making money. This time with consequences affecting the whole country if the Missouri River is pollut-ed at any time.

63 - Money / Issue 39